Liechtenstein Navigates US Trade Deal Amidst Greenland Sovereignty Tensions

Liechtenstein Forges Closer Economic Ties with the United States

The Principality of Liechtenstein is in the advanced stages of negotiating a comprehensive trade agreement with the United States. A 'Framework for a historic trade deal' was announced on November 14, 2025, with both nations, alongside Switzerland, aiming to conclude negotiations in early 2026. This agreement, officially termed the 'Agreement on Fair, Balanced, and Reciprocal Trade,' seeks to enhance economic cooperation, foster job creation, and stimulate growth in both markets.

Key provisions of the proposed agreement include the removal of various tariffs across agricultural and industrial sectors by Liechtenstein and Switzerland, as well as addressing non-tariff barriers. The United States, in turn, will apply a cumulative reciprocal tariff rate of no more than 15% on imports from these nations. Liechtenstein has committed to encouraging and facilitating at least $300 million in investment into the United States, with a goal to increase jobs created by its private sector in the US by 50% over the next five years.

The United States stands as Liechtenstein's largest overseas trading partner. In 2022, Liechtenstein's investment in the US reached CHF 1.4 billion, supporting approximately 7,000 jobs. Diplomatic relations between the two countries were established in 1997, and a Strategic and Economic Partnership Dialogue was launched in October 2024 to further deepen cooperation.

Advocating International Law in the Greenland Conflict

Simultaneously, Liechtenstein is observing and advocating for international law in the context of a developing 'Greenland conflict.' Recent reports from January 21, 2026, highlight a dispute involving the United States imposing tariffs related to Greenland, prompting Europe to consider retaliatory measures. This situation has brought the issue of Greenland's sovereignty to the forefront of international discourse.

Denmark's Prime Minister, Mette Frederiksen, has firmly stated that 'Greenland belongs to the Greenlanders' and that its sovereignty is not subject to negotiation. European Commission President Ursula von der Leyen has warned of a 'unflinching, united and proportional' response from the European Union should the US tariffs proceed. While Hungary's Foreign Minister, Péter Szijjártó, suggested the matter was bilateral, the majority of EU member states have expressed support for Denmark.

Liechtenstein's foreign policy consistently champions multilateralism, adherence to international law, and robust support for international courts, including the International Court of Justice. The principality has been a vocal proponent of international legal principles, particularly concerning issues such as sea-level rise and the fundamental right to self-determination, principles directly relevant to discussions of territorial sovereignty.

Liechtenstein's Active Role on the Global Stage

Liechtenstein's engagement in both trade negotiations with a major global power and its principled stance on international legal matters underscores its active and multifaceted role in global affairs. The principality continues to balance its economic interests with its commitment to upholding the international rules-based order.