New study: Free Trade Agreements will Increase Welfare in Denmark

New study: Free Trade Agreements will Increase Welfare in Denmark

April 13, 2015

Copenhagen Economics has conducted a study on the consequences on the Danish economy of the free trade agreements with USA, Japan, Canada, and South Korea. The study was conducted for the Ministry of Foreign Affairs in Denmark.

 

The free trade agreement between the EU and South Korea is currently being implemented, negotiations with Canada are completed, and negotiations with USA and Japan are still going on.

 

Under each agreement, tariffs on all goods will be fully removed while it is assumed that non-tariff barriers (e.g. regulatory differences) will be reduced by up to 25%. Reducing bilateral trade barriers will ensure better export opportunities for Danish firms abroad as well as increased access to cheaper intermediate and final products for Danish companies and consumers. This will result in an overall increase in welfare in Denmark.

 

Key findings of the report are:

  • Danish exports of goods and services to increase by 2-3% as a result of all four free trade agreements. This is equivalent to an increase of approximately 33 billion DKK.
  • Danish GDP to increase by 0,7-1,3%.
  • Real wages to increase by 1-2% in Denmark for both skilled and unskilled workers.
  • Jobs in the export sector in Denmark to increase by 15.000-24.000.

Download the full report at the Ministry of Foreign Affairs in Denmark’s website For further information please contact Partner Martin H. Thelle