I.  COMMERCIAL OVERVIEW (EXECUTIVE SUMMARY)

Overview of Import Market:  In an average year the United
States has about six percent of the Danish import market as a
whole which includes about four percent of Danish agricultural
imports.  This places us behind Germany, Sweden, and the
United Kingdom in total sales and about the same as the
Netherlands.  The United States is seventh among Denmark's
suppliers and first among non-European sources.

Trade between the United States and Denmark was almost exactly
balanced in 1992 but tipped to a deficit in favor of Denmark
of about a half billion dollars in 1993.  U.S. firms sell
Denmark computers, medical equipment, and military equipment.
Other important U.S. sales include aircraft, tobacco, plastic
products and pharmaceuticals.

The share of market figure noted above underestimates the U.S.
commercial presence in Denmark.  This is because it is based
on U.S. exports to Denmark and doesn't include services or the
sale in Denmark of products manufactured by U.S.-owned
companies in Denmark and in third countries.  We estimate that
total sales of American companies in Denmark are between 5 and
6 times direct exports.  One example of this is computers.
American companies have the bulk of the Danish market but only
18% of Danish computer imports are from the United States.
Most of the American brand computers sold in Denmark are
actually imported from third countries.  This pattern is
repeated to a greater or lesser extent with many other
products.  Whether originating in the United States or
elsewhere, American services and branded products reach most
aspects of the average Dane's life.  In addition to computers,
this would include automobiles, music and film, breakfast and
fast food, soft drinks, personal care items and advertising.

The sale of services is another important facet of the U.S.
commercial presence in Denmark.  U.S. firms are a major factor
in the Danish service economy especially in management
consulting, accounting, and computer applications.  Danish
tourism to the United States is also important and has held
steady at around 100,000 Danish visitors annually over the
last five years.

The product composition of U.S. agricultural exports to
Denmark consists mainly of leaf tobacco, soybeans, almonds,
seeds, raisins and prunes, canned corn, popcorn, softwood
plywood, cotton lint, confectionery sunflowerseed, lemons,
grapefruits, essential oils, pet food and wines.  U.S. exports
of consumer-ready food products to Denmark consist mostly of
"shelf-stable" canned or dried food products and wines.
The United States is the dominant supplier in such retail food
product areas as prunes (91%), raisins (98%) almonds (81%) and
confectionery sunflower seeds (53%) and holds an appreciable
share of several other important retail markets.  However, in
total the United States is the source for only 2-3% of
Denmark's overall roughly $2.0 billion in retail food imports.

Brief Synopsis of Commercial environment:  Denmark is a highly
industrialized country with a long-standing tradition of
foreign trade, political stability, an efficient and well-paid
labor force, a modern infrastructure, an efficient banking
sector and free capital movements.  The factors deciding where
importers place their orders are almost purely commercial,
although cultural/historical or social ties with a long-
standing trading partner may play a role.

Denmark hosts about 250 American companies.  Foreign
investment is actively sought especially for high technology
products.   American companies have invested about $1.7
billion in Denmark which is close to 10% of total foreign
investment.

Future prospects for U.S. trade and investment in Denmark
appear good.  Both our exports and our sales of services are
likely to improve with the four percent growth rate expected
in the Danish economy this year.  American companies will
continue to make Denmark a part of their European strategy.
Denmark has an important role as a regional sales center and
as a springboard to Scandinavia and the Baltics.  This role
may be diluted if the other Scandinavian countries enter the
EU but it is unlikely to be eliminated entirely.  Denmark has
many virtues as a regional distribution center and will
continue to be attractive to U.S. companies.

Continued investment interest in Denmark from the United
States is also anticipated.  In recent years, U.S. direct
investment in Denmark has averaged about $65 million per year.
Most of this has been spent on acquisition of well established
competitive Danish companies or on expansion of existing
operations.  This level of investment appears likely to
continue.

Host Country  Business Attitude Toward the United States:
Denmark is a friend and ally of the United States.  Close
cultural ties exist including Danish immigration to the United
States, large scale mutual tourism and a long history of
trade.  Denmark is a sizable recipient of American investment
and invests almost as much in the United States as we do in
Denmark.  Almost all Danes speak English.  Commercial law and
practices in Denmark are similar to those in the United States
and American companies suffer no discrimination in doing
business in Denmark.  There is a widespread and well received
American cultural and commercial presence in Denmark and U.S.
goods and services are broadly available.

Major Business Opportunities:  Denmark is currently in the
process of modernizing and improving its infrastructure.  This
will create opportunities for multi-million dollar contracts
for civil engineering companies.  Forthcoming projects include
modernization of public transportation (railroad and light
rail systems), expansion of freeways, and the construction of
three major tunnels and bridges.  Each of the bridge and
tunnel projects are valued at over three billion U.S. dollars.
The first, connecting the Eastern and Western parts of Denmark
across the Great Belt is in progress, and will be inaugurated
in 1996/97.  This will be followed by a connection between
Denmark and Sweden, from Copenhagen to Malmo and, possibly (a
formal Danish-German government decision is expected during
1996), a connection across the Baltic Sea from Southern
Denmark to Northern Germany (the Fehmar Belt Connection).
These projects offer excellent opportunities for large U.S.
civil engineering and construction companies.  Modernization
and expansion of Kastrup airport in Copenhagen including new
radar systems and an automated baggage handling system also
should be of interest to U.S. companies.  Other sectoral
prospects are listed in section II below.  U.S. firms should
also give consideration to Denmark as a regional distribution
center or manufacturing site to serve the broader Scandinavian
market and the Baltic Republics.  Denmark's small size and
comparative accessibility also make it an interesting test
market site.

Major Roadblocks to Doing Business:  Denmark is a full member
of the European Union (EU) and EU tariffs are applicable on
all products entering from non EU countries including the
United States.  Other than these tariffs, which run from 5 to
14% on industrial goods, there are no major barriers affecting
trade of industrial goods and services between the United
States and Denmark.  Also as a consequence of EU membership,
Danish agricultural trade is governed by the EU's Common
Agricultural Policy (CAP).  The CAP includes a system of
levies and duties on imported agricultural products to assure
that imported products cannot be sold at levels which
undermine EU support price levels.  Because of the effects of
the CAP, U.S. agricultural exports have declined from 18 to
about 4 percent since Denmark joined the European Union in
1973.

The only restricted areas for foreign investors in Denmark are
arms and hydrocarbon production, aircraft ownership and the
stock brokerage business.  None of these restrictions are
unilateral and they are not considered serious obstacles to
U.S. investment.

Nature of Local and Third Country Competition:  General
competitive factors such as price, quality, availability, and
after sales service are those which determine the success of a
supplier in the Danish market as in the American market.
Denmark is an EU member which means that other EU members have
access to the Danish market on better terms than non EU
members (see above).  Other than this, American suppliers
suffer no competitive disadvantage in Denmark.