Trading Partner Portal: Denmark
Overview
Trade Overview
Denmark is connected by bridge to southern Sweden and shares a southern border with Germany. Slightly smaller than Vermont and New Hampshire combined, it also contains a cluster of 400 islands to the east. Denmark is considered a part of the Northern region of Europe known as Scandanavia, along with Norway and Sweden.
With a population of 5.9 million people and nominal GDP of $421 billion (2023). The constitutional monarchy has been a member of the European Union (EU) since 1973. Denmark is a rich, modern society with state-of-the-art infrastructure and distribution systems, a highly skilled labor force and a central location that makes it an excellent distribution point for the Scandinavian, Northern European and Baltic markets.
Denmark is a firm advocate of liberal trade and investment policies and actively encourages foreign investment. There are more than 400 American subsidiaries established in Denmark and a strong American Chamber of Commerce with approximately 265 members.
U.S.-Denmark Trade
Political and commercial relations with the United States are excellent. The United States is Denmark’s largest trading partner outside Europe, with about a 10% share of total Danish trade in goods in 2021. The United States exported a total of $5.24 billion to Denmark, coming in at 45th in U.S export markets. The top 5 exports were oil and gas ($1.53 billion), chemicals ($849 million), computer and electronic products ($521 million), transportation equipment ($406 million), and non-electrical machinery ($339 million).
Imports from Denmark to the U.S. totaled $11.6 billion in 2023, ranking at 34 in U.S import markets. Key imports were chemicals (6.3 billion), ($1.4 billion) non-electrical machinery, ($1.1 billion) computer and electronic products, ($634 million) processed foods, and ($486 million) miscellaneous manufactures.
California- Denmark Trade
California is a top exporting state to Denmark. In 2023 Demark was ranked 43rd in California export markets, with total exports to Denmark coming in at $430 million. Top products were computer and electronic products ($131 million), chemicals ($121 million), beverages and tobacco products ($34 million), non-electrical machinery ($26 million), and used or second-hand merchandise ($22 million).
Imports from Denmark equaled $537 million, with top 5 imports being chemicals ($128 million), non-electric machinery ($97 million), computer and electronic products ($61 million), processed foods ($59 million), and livestock and livestock products ($35 million).
FDI-Denmark
FDI from the U.S. in Denmark totaled $12.8 billion in 2023. In this same year, FDI from Denmark into the U.S. was $45 billion. Denmark has been ranked the fourth fastest growing source of FDI in the U.S with key industries being software and IT services, renewable energy, transportation, industrial equipment, business services, and biotechnology. Denmark has provided around 48,300 jobs, invested $815 million in research and development, and expanded U.S. exports by $1.5 billion. SelectUSA
In 2022, Denmark was the 20th largest source of foreign-owned enterprises (FOEs) in California providing 5,349 jobs through 157 establishments throughout the state amounting to $441 million in wages. Top sectors for Danish FOE were transportation/warehousing/utilities, manufacturing, education/health professional/business services, and retail trade. (World Trade Center Los Angeles, May 2024)
Denmark and the World
Denmark has seen a ranking of 35 in world imports and export markets as of 2022, with total world exports being $129.8 billon and world imports totaling $127.1 billion. Denmark like its other Scandinavian counterparts is a technologically advanced, high-income country with strong infrastructure. U.S. Department of Commerce
It has become one of the most ambitious countries in the world in terms of combatting climate change, and thus works with other countries to encourage projects and initiatives to work towards more renewable and climate friendly infrastructure. It has signed a handful of MoU’s with its trading partners and allies in this regard, including the state of California. It has signed on to climate actions such as the Methane Pledge and the Mission for Climate initiative (AIM4C).
Denmark is a member of NATO, WTO, UN, World Bank, OECD, and the Arctic Council.
More Articles:
2024 AmCham Yearbook & Membership Directory
AmCham Denmark, March 4, 2024
California and Denmark Sign MOU on Climate Smart Dairy Collaboration
California Department of Food and Agriculture, January 22, 2021
Trade Agreements and Issues
Denmark has trade agreements through the European Union with its fellow members and with countries that have signed with the economic union. Other agreements include Bosnia, Herzegovina, Canada, the U.S, Chile, MERCOSUR, India, China, and more. It is also a full member of the WTO.
With California, Denmark has a handful of MoU’s in energy efficiency, the water sector, wind energy, and dairy farming.
For list of Denmark’s trade agreements with the EU click here.
Denmark like many countries in the world still faces supply chain issues due to demand since the Covid-19 pandemic. Many Danes are also concerned with the effects of climate change, which has seen Denmark become one of the most aggressive countries in climate-friendly and renewable infrastructure in the world. Growing concerns in their health care system have grown since 2022, as there is trouble finding people to fill open positions. Statista
Events
Dinner Honoring Former Danish Prime Minister – October 19, 2016
On Wednesday, October 19, 2016, CalChamber Vice President of International Affairs, Susanne Stirling, attended a dinner hosted by the Danish-American Chamber of Commerce honoring former Danish Prime Minister and former NATO Secretary General Mr. Anders Fogh Rasmussen. Mr. Rasmussen presented his new book “The Will to Lead,” defending American leadership in the global struggle for freedom and democracy.
First Danish American Frontier Award Dinner, April 3, 2016
On Sunday, April 3, 2016, the Danish-American Chamber of Commerce hosted the First Danish American Frontier Award Dinner at the Mark Hopkins Hotel in San Francisco with approximately 300 Danish-American Business leaders attending. Ulla Tørnæs, Danish Minister of Science and Higher Education presented the winner of the Danish American Frontier Award during the gala event to Jorgen Vig Knustorp, CEO and President of the Lego Group. Based on the iconic Lego brick, the company is one of the world’s leading manufacturer of play materials.
The Danish American Frontier Award is the most prestigious honor awarded by the Danish American community in the western United States.
The DAF Award is presented to a person or group of persons who have distinguished themselves by their actions, exploration or presence in areas of leadership, business, commerce, service, science, technology, invention, arts or humanitarian ventures. The recipient will have exhibited daring curiosity in their pursuits, often standing alone in their convictions, while maintaining integrity throughout their enterprise.
The DAF Award celebrates the pioneer spirit with which Danish-Americans have explored, and are still exploring the boundaries of themselves, their enterprise and their world today and actively shape the world of the future.
The recipient is honored with a statuette by the Danish-American sculptor, Dennis Smith, depicting Peter Lassen, the most important of early Danish-American pioneers and frontiersmen. The statuette is handmade and numbered exclusively for recipients of the award.
About Peter Lassen
Peter Lassen was born in Farum, Denmark on October 31, 1800, and while he did not arrive in America until he was 30, the early days of California’s history would become closely linked to Peter Lassen as a legendary pioneer, as an explorer of the wild country, trailblazer and as settlor and cultivator.
He was a restless entrepreneur. He built the first saw-mill in California. He mapped the earliest trails and helped immigrants into California where he build several communities and helped pave the way to what would become San Francisco. Among Peter Lassen’s friends were Johan Sutter, John Bidwell, and Kit Carson, but he befriended all people and everyone regardless of stature, color or creed were welcome in his home. The Indians called him Uncle Peter and that was his preferred title.
He was a generous helpful man to all he encountered, but he loved the magnificent nature of California the most, and his last day, the 26th of April 1849, he was killed while exploring northern California. A few decades later John Muir would come to California and profoundly shape our understanding of our natural wonders.
To this day, the largest land area named after a Dane outside of Denmark is named after Peter Lassen. The Lassen County, Lassen National Volcanic Park and Lassen Peak (Mount Lassen, the largest plug dome volcano in the world) stand as monuments to this first California Naturalist.
CalChamber Hosts Danish Prime Minister Anders Fogh Rasmussen, June 2006
The California Chamber of Commerce hosted His Excellency Anders Fogh Rasmussen, Prime Minister of Denmark, at an international trade dinner Monday to discuss how research and businesses interact to play a valuable role in promoting bilateral trade between California and Denmark.
Read more at https://advocacy.calchamber.com/wp-content/uploads/alert/2006/Alert_06-16-2006.pdf .