Hopes Trump's `Greenland grab' is dealt with in Davos

Germany's Ambassador to South Africa is hoping world leaders can sort out the Greenland issue at the World Economic Forum meeting in Davos, Switzerland which started today.

Ambassador Andreas Peschke says US President Donald Trump who is trying to grab the semi-autonomous island which forms part of the Kingdom of Denmark should be there on Wednesday.

"South African leadership is going, many European leaders are going," says Peschke.

Over the weekend, Trump threatened 10 percent tariffs by 1 February on eight European countries, increasing to 25 percent by June 1 if they continue to object to America's takeover.

The eight are: Germany, Denmark, Finland, France, Netherlands, Norway, Sweden, the United Kingdom

"We had to come up with a reaction quite fast but of course we're not doing it alone but we are co-ordinating with our partners in the European Union and NATO.

"So we had a lot of coordination yesterday between the eight countries... but also inside the European Union. And then we came up with a joint declaration where we said that tariffs are a threat to our unity, undermine trans-Atlantic relations. And we will in due course determine our response.

"Then in parallel we had an extraordinary meeting of our ambassadors in Brussels."

Also yesterday, the European Parliament which is supposed to ratify the tariff between the EU and US - halted ratification. "It was a 15% tariff for EU goods into the US, 0% for US goods into Europe... so we are without a deal now," says Peschke.

"I think what we might see if we do not reach an amicable agreement is that the EU as a whole is going to take counter measures."

Will they hold their positions?

"I think the issue right now is to stand up for principles while at the same time looking for an amicable solution by way of negotiations... One thing is of course is the issue of territorial sovereignty integrity. I mean Greenland is an autonomous territory within the Kingdom of Denmark so the sovereignty issue is clear so I think it should not go lightly... it's a fundamental issue of international law."

Threats in that regards are also not acceptable, he says.

"Of course, we are all fully aware that if we go down the lane of a tariff war, it will be detrimental to all of us. It will be detrimental to the European Union members states, to our population but it will be equally detrimental to US consumers to United States. So, it's a lose, lose situation."

"So, we are ready to talk to address the challenges. And the main challenge that was raised by the US is security... But here we say wow, that should be easy the US is a member of NATO, many European member states are members of NATO, Denmark is a member of NATO so Greenland is also a member of NATO. We can address that security issue easily within the framework of NATO so we should be able to find a solution."

Trump has said he wants Greenland for national security reasons. It also has rare earth minerals.

Peschke says if it can't be solved NATO will be in trouble because it's a conflict within the organisation. "If one member state of NATO tries force against another member state of NATO, that is really against the very principle of our alliance. So then, NATO would need to go back to the drawing table and look at these questions quite fundamentally. "

To listen to Peschke's full discussion with 702's Clement Manyathela, click the link below: