The World This Week | Greenland escapes invasion for now, Trump’s Board of Peace and India-EU free trade deal closer to reality

The past few days also saw the so-called Board of Peace taking shape, but with a much wider mandate than what it was originally proposed for. Iran also continued to be in the spotlight throughout the week, but, unlike in the past couple of weeks, the question on everyone’s mind was – how did the Ayatollah regime survive the biggest and deadliest uprising in the country’s history after the 1979 Islamic Revolution, as the protests, which began on December 28, lost steam.

Greenland survives US invasion threat

Speaking at the World Economic Forum in Davos, Switzerland, on Wednesday (January 21), US President Donald Trump said he would not use military force to acquire Greenland. “I don’t have to use force. I don’t want to use force. I won’t use force,” Trump said, months after first proposing the use of force and repeatedly refusing to rule it out.

US President Donald Trump addresses the audience during the Annual Meeting of the World Economic Forum in Davos, Switzerland, Wednesday, Jan. 21, 2026. (AP Photo)

Trump, however, was adamant on his demand that the US had to have total control of Greenland. The US president, who then met with NATO Secretary-General Mark Rutte, announced a “framework of a future deal” for Greenland.

What is the framework of a future deal?

While there is no official word on what the framework is about, US media have reported that it focuses on strengthening Arctic security to counter Russian and Chinese influence and could grant Washington total access or greater autonomy for military operations. The deal could also see Greenland coming under the US Golden Dome missile defence project. Further, the deal could grant the US greater control of Greenland’s mineral resources, despite Trump’s repeated claims that “we are not in this for the minerals.”

People wave national flags for Greenland Minister for Foreign Affairs and Research Vivian Motzfeldt as she arrives at the airport in Nuuk, Greenland, on Tuesday, Jan. 20, 2026. (AP Photo/Evgeniy Maloletka)

How the world responded

While Denmark and Greenland maintain that sovereignty is a “red line”, NATO and European allies have largely welcomed the framework. According to Danish Prime Minister Mette Frederiksen, while investments and security are open for negotiation, “ownership” of the territory is not. Greenlandic officials also said that NATO has no mandate to negotiate on the island’s resources or status without direct participation from the local government.

Trump walks back on tariffs

One of the immediate after-effects of the ‘framework of a future deal’ was Trump’s retraction of his threats to impose up to 25 per cent tariffs on European allies who had opposed his Greenland ambitions. While the framework may have helped avoid another round of tariffs, analysts also point out that the EU’s decision to suspend ratifying the previously agreed-upon EU-US trade deal may have forced Trump to walk back his threat, a move his opponents celebrated as TACO – Trump Always Chickens Out.

Board of Peace takes shape

On Thursday (January 22), the Board of Peace, an international organisation, first proposed by Trump as part of his deal to end the war in Gaza, became official. The Board of Peace will be headed by Donald Trump as its Chairman and his son-in-law, Jared Kushner, US Secretary of State Marco Rubio, US Special Envoy Steve Witkoff, former UK PM Tony Blair, and World Bank President Ajay Banga as members of the Executive Committee.

President Donald Trump holds up a signed Board of Peace charter during the Annual Meeting of the World Economic Forum in Davos, Switzerland, Thursday, Jan. 22, 2026. (AP Photo/Evan Vucci)

Board of Peace – original objective vs current plan

The Board of Peace was first proposed in September 2025 by Trump as part of a 20-point “Comprehensive Plan to End the Gaza Conflict,” and in November, it was endorsed by the United Nations Security Council through Resolution 2803 as a transitional administrative body for Gaza. Under the UN mandate, the Board of Peace was to manage post-war Gaza, including demilitarisation, infrastructure rebuilding, and the transition to a technocratic Palestinian administration.

But according to the Board of Peace Charter, which was officially signed on January 22 during the World Economic Forum in Davos, Switzerland, its mission has expanded globally to “promote stability, restore dependable and lawful governance, and secure enduring peace” in any conflict-threatened areas. While Trump said the Board of Peace will work with international organisations, including the United Nations, there are concerns that it might compete with or sideline the UN.

Who is ‘on board’?

As of January 22, Albania, Argentina, Armenia, Azerbaijan, Bahrain, Belarus, Bulgaria, Egypt, Hungary, Indonesia, Israel, Jordan, Kazakhstan, Kosovo, Mongolia, Morocco, Pakistan, Paraguay, Qatar, Saudi Arabia, Turkey, the United Arab Emirates, Uzbekistan and Vietnam are members of the Board of Peace.

While the UK, France, Germany, Spain and Italy have declined to join, Trump revoked Canada’s invitation to become part of the Board of Peace.

Who can join?

To become a permanent member of the Board of Peace, member countries will have to pay a fee of $1 billion. Non-paying member states can serve renewable three-year terms.

Canada ‘breaks ranks’ with US, joins hands with China

The World Economic Forum in Davos witnessed arguably one of the most significant and clear diplomatic policy shifts as Canadian Prime Minister Mark Carney and Chinese representatives signalled a significant shift in bilateral relations, moving toward a “strategic partnership” aimed at trade diversification amidst tensions with the United States.

‘Rupture in the old world order’

Canada, which, like Greenland, was facing the threat of a US invasion, decided to come out of the shadows of its neighbour and said that the country must adapt to a “rupture” in the old world order.

Canada’s Prime Minister Mark Carney speaks during the Annual Meeting of the World Economic Forum in Davos, Switzerland, Tuesday, Jan. 20, 2026. (AP Photo/Markus Schreiber)

Canadian Prime Minister Mark Carney also said that middle powers of the world should collaborate and reject coercion from great powers, a speech that was received with a rare and sustained standing ovation at the World Economic Forum.

Trump, who did not take Carney’s words kindly, said “Canada lives because of the United States” and warned that Canada should be “grateful” for its relationship with the US. Carney’s comment also led Trump to revoke Canada’s invitation to join the Board of Peace. Carney responded to Trump a day later, saying “Canada doesn’t live because of the United States” and that “Canada thrives because we are Canadian.”

India-EU free trade deal picks up pace

Negotiations for the India-EU Free Trade Agreement (FTA) have reached a decisive final stage, with a formal announcement expected on January 27, during the 16th India-EU Summit in New Delhi. Addressing the World Economic Forum, European Commission President Ursula von der Leyen called it “mother of all deals”.

India-EU FTA

Talks about an India-EU FTA began back in 2007 but collapsed in 2013. It was relaunched in 2022. According to reports, negotiators have already closed 20 out of 24 chapters. Once signed, the agreement must be ratified by the European Parliament, a process expected to take at least one year.

President of the European Commission Ursula von der Leyen talks during the Annual Meeting of the World Economic Forum in Davos, Switzerland, Tuesday, Jan. 20, 2026. (AP Photo/Markus Schreiber)

The India-EU FTA aims to integrate two of the world’s largest economies into a combined market of nearly two billion people. The deal would become India’s largest free trade agreement in terms of economic scale and regulatory coverage. It would provide preferential access to the 27 EU member states through a single framework, with the EU operating as a customs union.

What India gains

For India, sectors currently facing high EU duties, such as textiles, apparel, and leather, are expected to gain from the FTA with the removal of tariffs. The deal will expand market access for Indian pharmaceuticals, chemicals, electronics, and engineering goods. India is also seeking access for its professionals and export of IT services to the EU.

What EU gets

For the EU, the FTA will provide better access to one of the world’s fastest-growing major economies. Without the FTA, EU exports to India face much higher barriers, particularly on automobiles, auto parts, chemicals and plastics. Tariff cuts would open opportunities in cars, machinery, aircraft and chemicals, while improving access to services, procurement and investment in one of the world’s fastest-growing large markets.

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