Other State Department Archive Sites

The State Department web site below is a permanent electronic archive of information released online from January 1, 1997 to January 20, 2001. Please see www.state.gov for current material from the Department of State. Or visit http://2001-2009.state.gov for information from that period. Archive sites are not updated, so external links may no longer function. Contact us with any questions about finding information. NOTE: External links to other Internet sites should not be construed as an endorsement of the views contained therein.

Country Commercial Guides FY 2000: Denmark Report prepared by U.S. Embassy Copenhagen, released July 1999 Note*

I. EXECUTIVE SUMMARY

This country commercial guide (CCG) presents a comprehensive view of Denmark's commercial environment, using economic, political and market analysis. The CCGs were established by recommendation of the Trade Promotion Coordinating Committee (TPCC), a multi-agency task force, to consolidate various reporting documents prepared for the U.S. business community. Country Commercial Guides are prepared annually at U.S. embassies through the combined efforts of several U.S. government agencies.

Denmark is a constitutional monarchy which shares a southern border with Germany. From June 2000, it will be connected by bridge to southern Sweden. Its total area of 43,093 square kilometers is slightly larger than that of Massachusetts and New Hampshire combined. The country offers a home market of 5.3 million people, and its modern infrastructure and distribution system, a highly skilled labor force, and its central location make it an excellent distribution point for the Scandinavian, Northern Europe and Baltic markets, with a total population of over 50 million. Denmark's standard of living, per capita GDP of US Dollars 33,270 in 1998, is among the highest in the world.

The United States is Denmark's largest trading partner outside the EU and has a share of roughly five percent of the Danish import market. Political and commercial relations with the United States are excellent.

Denmark is a full member of the European Union. Its economy is heavily export oriented and Denmark therefore is a firm advocate of liberal trade and investment policies. It actively encourages foreign investment. There are about 250 American subsidiaries. There are very few ownership restrictions. The figures for U.S. investments in Denmark increased sharply in 1998, when Ameritech took over the controlling interest in the national telephone company, TeleDanmark. U.S. FDI in Denmark totals some $6 billion. Foreign investors receive national treatment and can benefit from national investment incentive programs. There is a well-established system of commercial law. Expropriation is almost entirely limited to public construction purposes for which full compensation is paid. There are no restrictions on capital transfers and no foreign exchange restrictions. Worker productivity is high, inflation low, and corporate taxation among the lowest in the EU. Danish wages are high but employer contributions to social welfare are very low, which results in lower total labor costs than most Northern EU members. Property, including intellectual property, is well protected.

Denmark buys from the United States machinery and capital equipment, especially computers, aircraft, and scientific instruments. Other important U.S. exports to Denmark are military equipment, pharmaceuticals, chemicals, wine, forest products, foodstuff, fresh vegetables, tobacco, fodder, and nuts. American owned firms in Denmark are prominent in computer hardware and software services, telecommunications, and the food industry.

The most promising prospects for market growth for U.S. non-agricultural companies in the forthcoming year include electronic data processing equipment, telecommunication 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, foodstuff (dog and cat food), fresh vegetables, and processed foods.

U.S. companies are expected to maintain and expand their market share in forthcoming years. Particularly in high-technology areas, such as information technology and medical equipment, U.S. companies are already market leaders and are expected to increase their lead. The presence of about 250 American owned service, sales and manufacturing companies engaged in a variety of trades proves that the Danish market is open and accessible.

The American Embassy in Copenhagen assists U.S. companies in their export efforts, not only to Denmark, but also through Denmark as a distribution center for the Nordic/Baltic region.

Country Commercial Guides are available for U.S. exporters on the National Trade Data Bank on CD-Rom or via the internet. Please contact STAT-USA at 1-800-STAT-USA for more information. Country Commercial Guides can be accessed via the world wide web at http://www.stat-usa.gov and http://1997-2001.state.gov, and http://www.mac.gov. They can also be ordered in hard copy or on diskette from the National Technical Information Service (NTIS) at 1-800-553-NTIS. U.S. exporters seeking general export information/assistance and country-specific commercial information should contact the U.S. Department of Commerce, Trade Information Center by phone at 1-800-USA-TRAD(E) or by fax at (202) 482-4473.