Economic Data (2000, in U.S.$)
Total GDP: Purchasing power parity = $136.2 billion.
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GDP Growth: 2.8%
Per Capita GDP: Purchasing power parity = $25,500.
Inflation Rate: 2.9%
Trade Balance: $7.2 billion surplus.
Trade with RI: Denmark is Rhode Island’s 26th largest trading
partners, with $7.7 million in exports in 1999.
Exports: $50.8 billion: Machinery and instruments, meat and meat
products, dairy products, fish, chemicals, furniture, ships, and windmills.
Export trading partners: EU 66.5% (Germany 20.1%, Sweden 11.7%, UK 9.6%, France
5.3%, Netherlands 4.7%), Norway 5.8%, U.S. 5.4%.
Imports: $43.6 billion: Machinery and equipment, raw materials
and semi-manufactures for industry, chemicals, grain and foodstuffs, consumer
goods. Import trading partners: EU 72.1% (Germany 21.6%, Sweden 12.4%, UK 8.0%,
Netherlands 8.0%, France 5.8%), Norway 4.2%, US 4.5%.
Best Prospects for Exports: IT and telecommunication equipment and services,
tourism services, environmental control equipment, electrical power systems,
offshore oil and gas field equipment, and advanced medical equipment. The most
promising agricultural export prospects are wine, forest products, feedstuff
(including pet food), fresh vegetables, and processed foods.
Kingdom of Denmark
Location: Northern Europe, bordering the Baltic Sea and the North Sea, on a peninsula north of Germany (Jutland); also includes two major islands (Sjaeland and Fyn).
Geographic Area: 43,094 sq. km. (16,640 sq. mi.), slightly smaller than Vermont and New Hampshire combined.
Climate: Temperate, humid and overcast. Mild, windy winters and cool summers.
Major Cities: Copenhagen (capital), Aarhus, Odense, and Aalborg.
Population: 5.4 million (July 2001)
Ethnic Groups: Scandinavian, Inuit, Faroese, German, Turkish, Iranian, and Somali.
Languages: Danish, Faroese, Greenlandic (an Inuit dialect), some German. English is the predominant second language
Workweek: 37 hours, Monday through Friday
Type of Government: Constitutional monarchy
Head of State: Prime Minister Poul Nyrup Rasmussen (since January 1993); prime minister appointed by the monarch, Queen Margrethe II (since January 1972).
Currency: Danish krone (DKK). The Danes rejected the Euro in a September 2000 referendum, but the krone remains pegged to the euro.
Exchange Rate: US$1 = 8.5 Danish krone (February 22, 2002).
Current Economic and Political Conditions: Denmark is an industrialized
"value-added" country, dependent on foreign supplies of most raw materials
and semi-manufactures. The Danish economy is heavily export oriented and Denmark
is a firm advocate of liberal trade and investment policies. It actively encourages
foreign investment. This modern market economy encompasses high-tech agriculture,
up-to-date small-scale and corporate industry, extensive government welfare
measures, and comfortable living standards. Services, including "New Economy
Services," play a growing role in the economy. Communication and information
technologies, although hard to substantiate statistically, play an increasingly
important role in the Danish/U.S. services trade and is a main portion of the
U.S. commercial presence in Denmark. Other important service sectors include
management consulting and tourism. Shipping is perhaps the most important service
sector in Denmark, one that is dominated by the A.P. Moller/Maersk-Sealand Company.
The United States is by far the most important market for Danish ship-owners,
particularly those engaged in liner trade (container traffic) to and from the
United States. The United States is Denmark’s largest trading partner outside
the European Union (EU) and has a share of roughly five percent of the Danish
import market. Political and commercial relations with the United States are
excellent.
Economic Data (2000, in U.S.$)
Total GDP: Purchasing power parity = $136.2 billion.
GDP Growth: 2.8%
Per Capita GDP: Purchasing power parity = $25,500.
Inflation Rate: 2.9%
Trade Balance: $7.2 billion surplus.
Trade with RI: Denmark is Rhode Island’s 26th largest trading
partners, with $7.7 million in exports in 1999.
Exports: $50.8 billion: Machinery and instruments, meat and meat
products, dairy products, fish, chemicals, furniture, ships, and windmills.
Export trading partners: EU 66.5% (Germany 20.1%, Sweden 11.7%, UK 9.6%, France
5.3%, Netherlands 4.7%), Norway 5.8%, U.S. 5.4%.
Imports: $43.6 billion: Machinery and equipment, raw materials
and semi-manufactures for industry, chemicals, grain and foodstuffs, consumer
goods. Import trading partners: EU 72.1% (Germany 21.6%, Sweden 12.4%, UK 8.0%,
Netherlands 8.0%, France 5.8%), Norway 4.2%, US 4.5%.
Best Prospects for Exports: IT and telecommunication equipment and services,
tourism services, environmental control equipment, electrical power systems,
offshore oil and gas field equipment, and advanced medical equipment. The most
promising agricultural export prospects are wine, forest products, feedstuff
(including pet food), fresh vegetables, and processed foods.
Trade, Tariffs, Taxes, Trademarks Tariffs: Denmark has
historically maintained a no-barrier policy, and often leads the international
efforts against non-tariff barriers. While Denmark has no independent trade
barriers against the U.S., it is a member of the European Union (EU). Common
external duty tariffs therefore apply to all products entering from non-EU countries,
including the United States. Duties typically vary from 5 to 14% on industrial
goods.
Taxes: A Value-Added-Tax (VAT) of 25% is applied on a non-discriminatory
basis to all goods (and almost all services) sold in Denmark, whether imported
or locally produced. The importer must pay the VAT, calculated on the landed
(c.i.f.) cost plus duty.
Foreign Investment: The Danish Government and quasi-official
organizations are running campaigns to attract foreign investment, describing
Denmark as a gateway to the large EU Single Market, to Scandinavia, and to the
new democracies in Eastern Europe.
Free Trade Zones: The only free port in Denmark is the Copenhagen Free
Port. The facilities in the free port are mostly used for imports, exports,
transit trade and distribution. However, manufacturing operations can be established
with the permission of the customs authorities, which is granted if special
reasons exist for having the facility in the free port area. The Copenhagen
Free Port welcomes foreign companies establishing warehouse and storage facilities,
whether for servicing Denmark only or Scandinavia, part or all of the EU, or
East European and the Baltic countries, including Russia.
Trade Finance: Denmark has fully liberalized foreign exchange flows,
including direct and portfolio investment. Credit is allocated on market terms
and is freely available. A large variety of credit instruments are available.
Business Etiquette: Danish business people can appear somewhat formal
at first, but are likely to show quickly their more informal side. The dress
code sometimes may seem a little relaxed to an American business person.
Business Appointments: Advance appointments are always required
and punctuality is a must; it is considered rude to be late.
Marketing and Selling Factors:
General: Contemporary communications have eliminated numerous barriers,
but many Danish companies still prefer to deal with an established local agent
or distributor, rather than buying directly from abroad.
Advertising: Introducing a new product or company on the Danish market
is often a costly affair. U.S. and foreign parent companies are expected by
their Danish agents to cover, in full or in part, advertising and promotion
expenses.
Sales Service/Customer Support: Danish importers demand, and get from
European competitors, a high degree of sales and after-sales service and customer
support.
Product Labeling: The marking and labeling requirements for products
sold in Denmark are numerous and vary from product to product. The requirements
may stem from either Danish or EU laws and regulations. For the exporter to
comply, the assistance of the Danish importer is essential.
Patents/Trademarks/Copyrights:
General: Denmark is a party to, and enforces, a large number of international
conventions and treaties concerning protection of intellectual property rights.
Patents: Denmark is a member of the World Intellectual Property Organization
(WIPO) and adheres to the Paris Convention for the Protection of Industrial
Property, the Patent Cooperation Treaty (PCT), and the Strasbourg and the Budapest
conventions. Denmark has ratified the European Patent Convention and the EU
Patent Convention.
Trademarks, Service Marks and Trade Names: Denmark is a party to the
1957 Nice Arrangement and 1967 revision. A new Danish trademark act entered
into force January 1992 also implements the EU trademark directive harmonizing
EU member countries’ trademark legislation. Copyrights: Denmark is a
party to the 1886 Bern Convention and its subsequent revisions, the 1952 Universal
Copyright Convention and its 1971 revision, the 1961 International Convention
for the Protection of Performers, and the 1971 Convention for the Producers
of Phonograms.
