The emphasis on free trade can be a perfect way to save money and increase your company`s imports and exports. For more information, see the trade council`s short guidelines and the EU`s bilateral free trade agreements (in Danish). But your company is not automatically eligible for tariff exemptions if it exports to a country or imports from a country with which the EU has a free trade agreement. For Danish export companies, free trade agreements mean above all that companies become more competitive in the sale of goods in the countries concerned, since their products are not subject, in whole or in part, to local tariffs. The possibility of exemption from tariffs applies only to products originating in the EU (on exports) or from the country with which they are traded (for imports). 1 Free trade agreement BETWEEN the EU and Korea in practice – see page 3 2 South Korea: Trade Image, European Commission, December 2019 For Danish importing companies, free trade agreements mean that companies can increase their profit margins because they do not have to pay tariffs on imported products and/or can increase their competitiveness by reducing their prices. In order for your company to benefit from the duty-free benefits of EU free trade agreements, the most important condition is that these products be manufactured in Denmark or another EU Member State and that products imported into Denmark be manufactured in one of the 70 countries with which the EU has signed a free trade agreement. The prerequisite is also that the origin of the product can be documented. A new free trade agreement between the EU and Singapore has recently entered into force. It is likely that the EU will also conclude a free trade agreement with the UK. Regardless, trade between the UK and the EU will not be subject to tariffs for the remainder of 2020, a transition period after the UK`s withdrawal from the EU earlier this year. Denmark`s international trade policy is in principle aimed at promoting free trade on a global basis and ensuring open markets with important trading partners.
The Danish economy can be characterized as a small open economy, which depends to a large extent on the ability to freely exchange goods, goods and services with other countries. Denmark believes in principle that the global economy, including developing countries, will benefit from an increase in international trade. Denmark`s international trade policy is implemented in close cooperation with other EU member states. Through the European Commission, the EU speaks with one voice in international trade negotiations, giving the EU – the world`s largest trading bloc – a considerable influence on international trade. The fact that a product may contain components imported from China.B does not exclude that it be sold duty-free under a free trade agreement if it changes. B the position of the tariff when it is processed in the EU. Bilateral trade agreements are an important complement to the outcome of multilateral WTO negotiations. Bilateral trade agreements can open up market access and remove trade barriers with major trading partners for export growth and employment. Next-generation bilateral trade agreements also aim to promote high standards for global trade, including in areas such as product standards, workers` rights and environmental protection.