Denmark’s international trade policy fundamentally aims at promoting free trade on a global basis and securing market openings with key trade partners. The Danish economy can be characterised as a small open economy highly dependent on the ability to freely exchange goods, commodities and services with other nations. Denmark fundamentally believes the global economy including the developing countries stands to benefit from an increase in international trade. Denmark’s international trade policy is conducted in close co-operation with the other EU Member States. Through the European Commission, the EU speaks with one voice in international trade negotiations, which gives EU – the largest trading bloc in the world – a significant impact in international trade fora.
Although international trade policy may be conducted bilaterally and regionally, Denmark and the EU remain strongly committed to furthering multilateral negotiations. The World Trade Organization (WTO) is the primary focus of Denmark’s and EU’s trade policy. WTO creates an international legal system with strong rules and legitimacy, and it provides the necessary guarantees for all actors in the global economy. This includes the involvement of, and consideration for, developing countries. WTO agreements can be enforced through WTO’s dispute settlement system. The alternative would be an international economy where “might is right”.
Trade and development
Denmark is among the most active trade liberal and development friendly Member States of the European Union. Accordingly, Denmark works within the European Union to promote common positions along these lines to help integrate developing countries into the multilateral trading system. Simultaneously, Denmark fully respects the fact that trade policy of the EC almost exclusively lies within the purview of community competence.
Bilateral and regional agreements
The bilateral trade agreements constitute an important complement to the results obtained in the multilateral WTO negotiations. Bilateral trade agreements can open market access and lower barriers to trade with significant trade partners for the benefit of growth and jobs in the export sector. New generation bilateral trade agreement also serve to promote high standards for global trade, including in such areas as product standards, workers’ rights and environmental protection.
