The U.S. Is Denmark’s Largest Export Market, and the Outlook for the Future Is Even More Promising
Despite President Trump’s aggressive trade policy and a raging pandemic that has paralyzed much of the global economy, export of goods and services from Denmark to the United States has hit record-highs and the future of Danish-American trade relations looks bright, no matter who is elected President on November 3.
In 2019, Denmark exported more than DKK 159 billion worth of goods and services to the U.S. The export numbers have been steadily increasing since 2016 and the U.S. has recently surpassed Germany as Denmark’s largest export market.
There are three main reasons for this positive development:
First, one of the key sectors driving this increase is life science. The life science industry, with companies such as Novo Nordisk, Lundbeck, Leo Pharma and Coloplast, have been increasing their sales and now account for more than 65 % of total exports.
Secondly, the American political system of federalism gives states and local authorities significant influence over energy supply policy, allowing each state to decide how it invests and develops its energy supply, independent of the federal government. Therefore, the clean energy sector, which is the second industry propelling the increase, now accounts for 19 % of exports – and given the urgency of climate change challenges, the demand for Danish clean energy solutions will only grow.
Third, the Trump Administration’s aggressive trade policies have not had a significant impact on Danish export of good and services to the United States. Fortunately, the industries in which Danish export numbers are strongest – life science, sustainable energy, the environmental and agriculture – mostly avoided U.S. tariffs on exports from the European Union.
Looking forward, despite concerns of increased ‘Buy American’ initiatives, which both presidential candidates support, there are clear indications that export of Danish goods and services to the United States will continue to expand in the coming years.
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