Isabella Carter
Denmark is a coastal territory in Northern Europe with a strong diplomatic relationship with the United States. Denmark has been one of the United States' closest allies since its liberation in 1945, with diplomatic relations established as early as 1801. Denmark is a founding member of the United Nations and the North Atlantic Treaty Organization (NATO), and its strategic location at the entrance to the Baltic Sea has made Copenhagen a hub for US agencies and private sector engagement with the Nordic and Baltic regions. Denmark has a modern market economy and is highly dependent on foreign trade, making it a strong supporter of liberal trade policy. Its foreign policy is founded on its involvement with the United Nations, NATO, the EU, and Nordic cooperation.
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What You'll Learn
Denmark's diplomatic relations with the US
Denmark and the United States have a long history of diplomatic relations, which began in 1783 when Denmark signed a commercial treaty with the US. In 1792, Denmark recognised the independence of the United States, and in 1801, diplomatic relations were established and an American legation was opened in Denmark. Since then, the two countries have enjoyed uninterrupted diplomatic ties.
Denmark and the US are members of many of the same international organisations, including the UN, NATO, the Organization for Security and Cooperation in Europe, the Organization for Economic Cooperation and Development, the International Monetary Fund, the World Bank, the World Trade Organization, and the Arctic Council, of which they are both founding members. Denmark is also a member of the EU. This shared involvement in international organisations forms a cornerstone of Danish foreign policy, along with the UN, NATO, and Nordic cooperation.
The two countries consult closely on European and other regional political and security matters, cooperating extensively to promote peace and stability beyond Europe's borders. Denmark is a reliable contributor to multinational stability operations and international assistance initiatives, with forces deployed worldwide to NATO, the UN, and the Global Coalition to Defeat ISIS. Denmark also took over leadership of NATO Mission Iraq in November 2020.
In 2004, the US and Denmark signed an update to the 1951 Defense of Greenland Agreement, which broadened and deepened cooperation between the two countries. The Igaliku Agreements created a Joint Committee to promote cooperation across a diverse range of policy areas, including the environment, science, health, technology, trade, tourism, education, and culture. The US and Denmark also have a strong relationship with the Faroe Islands and Greenland, semi-autonomous regions within the Kingdom of Denmark, with regular dialogues on commercial, scientific, and cultural cooperation.
In recent years, Denmark has shown its commitment to standing with Ukraine in the war with Russia, for which it received praise from US President Biden. Denmark also sanctioned Russia following the invasion of Ukraine.
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Denmark's role in the Napoleonic Wars
At the start of the Napoleonic Wars (1803–1815), Denmark was officially neutral. However, its government faced mounting pressure from France and Russia to commit its fleet to Napoleon, which would have helped secure the North Sea and Baltic Sea and excluded British commercial shipping from Nordic ports. Denmark's fleet was highly capable, including around 20 ships of the line, 17 frigates, and numerous gunboats. The British were alarmed at the prospect of this force falling into French hands. Initially, the British attempted to negotiate with the Danes, promising to return the warships once the war with Napoleon was over if they handed over the fleet peacefully.
However, Denmark refused to end its neutrality, and the British decided to act. In 1807, they dispatched a force of 400 ships and transports, along with over 25,000 sailors and soldiers, under the command of Admiral James Gambier and General Sir William Cathcart. This force reached Denmark in early August, securing the waters around Zealand, the island on which Copenhagen is located, to isolate the capital. This campaign became known as the Copenhagen Expedition. Despite some small naval clashes and the isolation of Copenhagen, there were no further land battles between Britain and Denmark. The Treaty of Kiel in 1814 formally ended hostilities between the two nations.
The Napoleonic Wars had severe economic consequences for Denmark, with trade being severely impacted. Copenhagen, in particular, was devastated, and its role as an international financial and trading centre was taken over by Hamburg. Inflation exacerbated the economic crisis, and in 1813, Denmark formally declared bankruptcy. The loss of Norway and high import duties on grain imposed by Great Britain further compounded Denmark's economic woes, depriving it of crucial grain export markets. The agricultural crisis led to the compulsory auctioning of many estates and farms, and agrarian reforms were stalled.
The eventual defeat of Napoleon brought about the dissolution of the Denmark-Norway union. Denmark remained neutral during World War I but was occupied by Nazi Germany in 1940 during World War II. In more recent times, as a member of the United Nations and NATO, Denmark has participated in military operations in Bosnia, Afghanistan, Iraq, and Libya.
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Denmark's foreign policy cornerstones
Denmark's foreign policy is founded upon four cornerstones: the United Nations, NATO, the European Union (EU), and Nordic cooperation.
Denmark has been a member of NATO since its founding in 1949, and membership in NATO remains highly popular. Danish troops support International Security Assistance Force-led stabilization efforts in Afghanistan. Denmark also participated in the Afghanistan and Iraq Wars and has increased its participation in military and peacekeeping operations compared to the pre-Cold War period. Denmark's active liberal trade policy in the EU, Organization for Economic Cooperation and Development, and World Trade Organization largely coincides with U.S. interests. Denmark has, at times, also shown strong leadership within the European Union, as it did during its 2002 European Union presidency, when Denmark took a lead role in successful negotiations for the EU's inclusion of 10 new members from Central and Eastern Europe.
Denmark and the United States belong to many of the same international organizations, including the UN, NATO, the Organization for Security and Cooperation in Europe, Organization for Economic Cooperation and Development, International Monetary Fund, World Bank, World Trade Organization, and the Arctic Council. Denmark and the U.S. also consult closely on European and other regional political and security matters and cooperate extensively to promote peace and stability beyond Europe’s borders. The U.S. is Denmark’s largest non-European trade partner, and over 400 U.S. companies have subsidiaries in Denmark.
In recent years, Greenland and the Faroe Islands have been guaranteed a say in foreign policy issues, such as fishing, whaling, and geopolitical concerns. Denmark is also a member of the Council of Europe, the Nordic Council, the Baltic Council, and the Barents Council. Denmark emphasizes its relations with developing nations and remains a significant donor, exceeding the UN goal of contributing 0.7% of GNP to development assistance.
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Denmark's diplomatic relations with Greenland
Greenland is part of the Kingdom of Denmark and has an extensive type of self-government. The Danish Constitution stipulates that the foreign and security interests of all parts of the Kingdom of Denmark are the responsibility of the Danish government. However, the Self-Government Act of 2009 allows the government of Greenland to open diplomatic offices within areas of full jurisdiction, such as foreign trade, industry, fisheries, education, science, and mining. Greenland has representative offices in several countries and is otherwise represented by embassies of Denmark worldwide. The Premier of Greenland cannot speak to a foreign leader without a Danish ambassador present.
Greenland is not part of the European Union (EU), unlike Denmark proper. Instead, it has the status of an Overseas Country and Territory (OCT) associated with the EU. However, Greenland remains part of the Council of Europe and NATO as part of Denmark. Denmark is responsible for Greenland's international affairs, and other countries' embassies or consulates in Denmark manage their relations with Greenland. Greenland is represented internationally by Greenland Representations and the embassies and consulates of Denmark.
Greenland participates in several organisations, including the parliamentary Nordic Council, the Nordic Council of Ministers, the West Nordic Council, and the EU-based Overseas Countries and Territories Association. There has been a growing international focus on the Arctic Region and, consequently, Greenland. Denmark has supported US operations in Afghanistan and Iraq, and there is interest in the future of Danish-Greenlandic relations under the Trump administration.
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Denmark's economy and trade
Denmark's economy is characterised by its support for liberal trade and investment policies, and it actively encourages foreign investment. The country has a high standard of living, with a GDP per capita of USD 68,827 in 2022, according to the World Bank. Additionally, Denmark has a low unemployment rate of 2.7%, which is below the Eurozone average. The Danish labour market exhibits "flexicurity," combining flexibility with a robust social safety net, enabling the country to adapt to economic shocks while minimising the social cost of unemployment.
Historically, Denmark's economy relied heavily on agriculture, but over the 20th century, the importance of agriculture decreased relative to industry. During this period, Denmark was impacted by the two world wars and the Great Depression. After World War II, the country actively engaged in international cooperation, joining organisations such as the OEEC/OECD, IMF, GATT/WTO, and the European Economic Community (later the European Union). Foreign trade became a significant component of Denmark's economy, contributing heavily to its GDP.
Denmark's trade policies are founded on its membership in international organisations such as the United Nations, NATO, the EU, and Nordic cooperation. The country has strong economic ties with its Nordic neighbours and is a member of the European Union, promoting free trade within the single market. Additionally, Denmark has diversified its economy by investing in sectors like tourism and mining, particularly in Greenland, and has expanded its partnerships in education, scientific research, and environmental initiatives.
In summary, Denmark's economy and trade are characterised by a strong emphasis on foreign trade, liberal investment policies, and a dynamic partnership with its Nordic neighbours and international organisations. The country has successfully navigated economic challenges and adapted to changing circumstances, contributing to its high standard of living and economic resilience.
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Frequently asked questions
Denmark's foreign policy is founded upon four cornerstones: the United Nations, NATO, the EU, and Nordic cooperation.
Denmark and the US have a close and mutually beneficial relationship. They are each other's largest non-European trading partner. The two countries have never experienced an interruption in their diplomatic relations since they were first established in 1801.
Denmark and Greenland have a dynamic partnership, with Greenland being a semi-autonomous region within the Kingdom of Denmark. The US Air Force base at Thule, Greenland, is vital to both the US and Denmark's NATO alliance.
Denmark joined the European Economic Community, the forerunner to the EU, in 1973 and was incorporated into the EU upon its founding in 1993.
