Denmark And European Union Case Study Solution
In addition to this, Denmark wants to stop the irregular immigrants. These centers are overcrowded and large numbers of immigrants live in tents. Well-trained soldiers kill people, they don’t take care of them, and it’s obviously not the right people to do the job. At the same time, the majority of Maltese public views “boat fishermen” as a burden, so local residents are reluctant to use “boaters”. In addition to this, European Union Member States must accept Malta and asylum seekers in their own countries and work to eradicate poverty in poor countries to which these people are trying to emigrate for solidarity (AARHUS UNIVERSITY, 2000).
Prosperity of Farmers & the Agricultural Sector Community
The Scandinavian countries including Denmark and Ireland, hoped to attain benefits from the European Union accession, but the opposition to such accession was not much strong and the situation for these Scandinavian countries were different. These countries had their own Nordic Group, which didn’t trust the centralism and interventionism policies by the European Union Institutions. It is because these countries followed a democratic system in their political and social environment.
The European Economic Community used to follow a supranational approach, whereas, these Scandinavian countries used to follow the intergovernmental modem in maintaining an international cooperation. Both the countries, including Denmark and Ireland, had to decide upon accession by the European Economic Community as the accession could lead to surrendering the sovereignty to the EEC’s institutions, among few areas.
Denmark and other Scandinavian countries including Norway, Ireland etc. have been very loyal their solidarity, unanimity and their national independence. Since 1949, these countries had remained members of NATO i.e. North Atlantic Treaty Organization and the Council of Europe. Moreover, Norway and Germany had been a part of the Nordic Council, which was created in the year 1952 (CVC.EU, 2014).
Denmark was also a founding member of the EFTA (European Free Trade Association). The association was formed on the basis of intergovernmental cooperation among the association members, as an international organization. The main tasks of the association included administration in free trade and the relationships with the European Economic Community. The decisions were unanimously by the association members. The main goal of the association was to ensure free trade of industrial goods in accordance with the EEC’s timetables.
However, the association did not ensure the free trade of agricultural commodities and fisheries, which remained vital to the economic growth of Denmark and Norway. The free trade was ensured among the industrial products basically and the agricultural products and fisheries were categorized on the criteria of being processed or a non-processed item. If the commodities were non-processed then they were not categorized as industrial products and trade was not free over these commodities.
In 1974, Nordek was formed as a result of tariff measures impositions in the Kennedy round of the GATT i.e. “General Agreements on Trade and Tariff” between Denmark, Norway, Sweden and Finland. The Nordek was formed with an objective to make it more convenient for the Nordic countries to access the larger European market and to develop the trade with the whole world. The usage of Nordek was considered as a best alternative to reach out to a vast market, as France used Veto against British and indirectly against Danish in 1967.
For Scandinavian exports, the United Kingdom was the principal market. The Danes were successful in putting up the agricultural as the key sector of the economy and exports, among the Nordic negotiations. The main objective of the negotiations was to protect the national farmers, with the introduction of fixed commodity prices and preferences for the Nordic Community. In addition to this, the Danes also passed a regulation, whereby they made agriculture, a condition for their participation in the Nordic Union.
The key reason behind the Denmark membership in the European Union was to protect its agricultural sector and fisheries and to reach out a vast European market through EEC. The Denmark’s agricultural sector proved to be an efficient sector, similar to the Netherlands's structure. Denmark’s major exports also included butter. By joining hands with the European Economic Community, the Danes wished to expand their exports to Britain and Germany, which had been the principal markets for its butter exports and were planning to join the EEC.
Moreover, in reality the agricultural sector of Denmark, was forecaster to invite foreign direct investment, provide finances for the industry and eliminate the deficit in balance of payments. But their main concern was to loose sovereignty as a result of accession by the European Union.
The motive to grow the agriculture sector was to prosper the domestic farmers and the agricultural sector community as the improved exports and prices would ultimately provide social benefits to the community i.e. it would develop the farmers community by increasing their purchasing power, reducing inflation, improving the educational and infrastructure systems, ultimately improving the living standards of the whole community.
Protecting the Society from Price Discrimination
The protection of domestic customers and the producers from the price monopoly and cartels was the other key factor, contributing towards the Denmark’s membership in the European Union. The government aimed to keep the price regulated free from any monopoly or the cartels’ powers. The European Union kept the competition smooth for all of its members, which benefited Denmark in reaching out to a larger customer base with its major exports from specialized agricultural commodities. The country didn’t have to bother about the prices rather it enjoyed the free access to a market of 450 million people from different parts of the world. Moreover, it kept the prices of imported goods at reasonable prices for the domestic consumers in Denmark. It created a social benefit of price equality for consumers, which did not let the monopolists and cartel group to snatch the social benefits from the customers.
Cultural Affiliation
The possible reason for Denmark to join the European was to gain cultural affiliation by having an access to a vast European market, which comprised 450 million-consumers. As the country had been a major exporter of agricultural commodities. The agricultural commodities were not granted with free trade access, being a member of the European Free Trade Association. It is because the association granted free trade access on the basis of processed or non-processed commodities. The fisheries and the agricultural commodities, which remained vital for the economic growth of Denmark and other Scandinavian countries. The European Union provided free trade access to the 450 million consumers around the world. More specifically, the country enjoyed a good position as a free trade exporter of agricultural commodities and fisheries in the United Kingdom, Britain and Germany (the primary markets for the Denmark’s exports). The country got its agriculture sector affiliated with the European members, who started relying on the imports from Denmark as a part of their improved living standards....................
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