Trade with Denmark

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Canada’s Business Relationship with Denmark

Denmark and Canada have both sophisticated economies that continue to grow year-on-year at rates above OECD average.  Both economies feature strong knowledge intensive sectors, coupled with a vibrant Agri-food exporting sector.  They also feature an industrial tissue largely composed of small and medium size companies, and a great need for technologies in support of productivity and competitiveness in high labour cost environment.  One can say that both countries also share a similar economic and geographic situation “sitting on top” of the two largest economic blocks and, given the limited size of their domestic markets, a tradition for international business.  Finally, it is not uncommon to hear from business people who experienced work in both markets that strong affinities exist between Canadian and Danes in their approach to do business and values. 

Over the past decade, business co-operation between Denmark and Canada has enjoyed significant developments both in traditional areas such as the Agri-food and Sea-food and in knowledge-based industries such as Biotechnology, Information and Communication Technology, and Sustainable Energy where both countries concentrate a considerable amount of talents, research, investment, and business activity.  Many complementary strengths and interests also exist.  Current initiatives between Canadian and Danish private and public sector organizations prove that a significant potential for expanding cooperation and investment exist in increasingly intertwined science, technology, and business activities.  As an illustration of this mutual interest, Genome Canada and the Danish Government extended their Memorandum of Understanding (MOU) at a first bi-national Genomic seminar in Copenhagen in May 2005 in order to support a series of initiatives designed to increase scientific and industrial exchanges in the field of Genomics.  The NRC's Industrial Research Assistance Program (IRAP) has also been working for the past two years on a pilot project aiming at matching technology interests of Canadian companies with companies located on Danish sciences parks.

Two-way trade of goods between Canada and Denmark is healthy and has been increasing over the recent years to approximately C$1.3 billion in the year 2004. Canada's exports to Denmark totaled $289 million, with concentrations in sea-food products, telecommunication and electronic equipment, pharmaceutical products, food ingredients, aeronautics, light military weapons, and various raw mineral products.  On the other hand, Canada's imports totalled the same year approximately $1 billion, primarily consisting of  various bio-pharmaceutical and medical instruments (insulin, hearing aids), wind turbine equipment, petroleum products, fishing vessels, enzymes, valves and pumps, and some food products (cheese and pork)

More significantly however, Danish direct investment in Canada totalled $509 million in 2004, making Denmark the 19^th largest investor in Canada.  Most of the new investments coming from firms already located in Canada.  Key Danish investors in Canada include Lundbeck and NovoNordisk (bio-pharmaceuticals), Danfoss (refrigeration and heating) and Arla Food (dairy products).  Two constraints to increased Danish investment flows to Canada are Danish businesses current focus on labour-cost competitive Eastern European and Asian markets, and somewhat a misperception that the North American market comprises only the USA. Canadian investment in Denmark is increased over the recent years, reaching $263 million in 2004, with the major Canadian investors including Nortel (communications technology), Bombardier (transportation), and Husky (plastics). 

Canadian Embassy in Denmark, 08/2005