Hit by the European financial crisis, Denmark saw its economy shrink in the third quarter, raising prospects the country will soon slump into recession.
To boost growth, the country has decided to expand its export ties with more emerging countries.
In an exclusive interview with CNC, Pia Olsen Dyhr, Danish Minister for Trade and Investment, talks about how Denmark will open more for business.
Pia Olsen Dyhr, Danish Minister for Trade and Investment, says Denmark will expand economic ties with emerging markets as trade with developed economies stagnates.
According to data from Denmark's Foreign Ministry, some 70 percent of Danish exports currently go to "near markets" in Europe, while 7 percent go to the U.S. -- the next biggest export destination outside the EU.
In comparison, exports to the BRIC countries of Brazil, Russia, India and China, contribute only 5 percent of Denmark's overall total.
But as demand in the EU and U.S. declines as a result of low economic growth and the debt crisis, emerging markets look increasingly attractive.
The minister says spurring exports to BRICS countries and greater openness to foreign investors can help Denmark's economy regain growth momentum.
SOUNDBITE (ENGLISH) PIA OLSEN-DYHR, DANISH TRADE MINISTER:
0005"There are three areas which my ministry is going to work with. Increasing investments in Denmark, also hopefully from Chinese companies. Focusing on exports from this country; more than half of our GDP comes from exporting goods and services. And third, international trade, that is both with the EU and within the WTO. For myself, I think the mission for my ministry is more than that: it is actually about showing the rest of the world that Denmark is open for business."
According to the minister, Denmark has a lot to offer based on experience and skills.
But she stresses that Denmark would not pick-and-choose green technologies to promote in a specific emerging economy. That would depend on the target country's needs.
SOUNDBITE (ENGLISH) PIA OLSEN-DYHR, DANISH TRADE MINISTER:
0055"I am not going to prioritize special industries; I am going to be focused on areas or sectors. A small economy like Denmark cannot prioritize. We have to be focused on what we put on the international trading agenda. We know we are very good in green technology, both on the energy side as well as clean water solutions, waste water management. We have skill since Denmark because of our experience with environmental pollution in the 1970s, the oil crisis where we could see we could not being dependent on oil and went in for renewables instead. Having this history makes us world leading in these technologies. We will focus on what we are good at and what we can deliver global solutions for, and which are needed."
Denmark's government has decided to publish a BRICs strategy next February.
Dyhr says new legislation will make it easier for foreign labor to come to Denmark and work.
SOUNDBITE (ENGLISH) PIA OLSEN-DYHR, DANISH TRADE MINISTER:
0200"We are examining all the legislation that makes it difficult for foreign investors to come to Denmark. We are looking at visas, as we know it is more difficult to get a visa to Denmark than our neighboring countries, that is going to change. Looking into work permits, if a Chinese investor comes to Denmark and wants to establish a production line in Denmark, of course they want Chinese to follow as well. And why shouldn't we make it easier for them to have, for example, three or four Chinese nationals at a factory in Denmark where, for example, you have 1,000 Danish employees?"
The new Danish openness will look for partnership opportunities across all sectors, rather than being limited to specific industries.
SOUNDBITE (ENGLISH) PIA OLSEN-DYHR, DANISH TRADE MINISTER:
0320"I hope we can go into some partnerships where Denmark has strengths, such as the green sector, health sector where we have much technology in the health and welfare system. We have a public system but also private companies strong in this field. I see China has more and more elderly people, and fewer younger people. There is going to be a change there, and I think some of the technologies we know and have developed, would be obvious to have some interaction with Chinese investors."
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Globo News Painel - Entrevista com Christine Lagardeby apregoa472 views
This country started all the trouble in world today.
loom67 3 weeks ago