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Shipping Policy |
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The Danish Shipowners' Association advocates free international trade and unhindered access to the shipping markets. Generally, international shipping is characterized by free and fair competition, with only a few markets or countries being hampered by restrictions which exclude foreign shipping companies from servicing their overseas trades.
International organizations such as the WTO and OECD embrace the principle of free market access in the shipping sector. An internationally supported liberal shipping policy clearly offers benefits not only to the shipping industry, but also to trade in general. Freedom of the seas without artificially created protectionist measures is central to Danish shipping policy. Consequently, the Danish government and Danish shipowners are keen supporters of the WTO attempt to extend liberalization measures on a worldwide scale, the intention being to clearly uphold and, hopefully, expand the fairly unrestricted access to international shipping markets that already exists. Regrettably, negotiations in the ongoing WTO-round are not progressing, but renewed efforts to pursue the principle of free maritime access are still anticipated. In this context, it is essential to convince the hitherto reluctant US Congress in particular that an agreement on maritime services will not be contrary to US maritime or trade interests.
Simultaneously, apart from eliminating restrictions between industrialized nations, the Maritime Transport Committee of the OECD has made significant advances in its maritime dialogue with countries in the Far East, including China, as well as Russia and countries in South America. Generally, agreement on a free and fair shipping policy has been reached with these important markets. It is to be hoped that these positive results will create a precedent for more comprehensive WTO attempts to maintain and enhance the high level of liberalization that characterizes modern international shipping.
Irrespective of the favourable development in international deep-sea shipping, the opening of so far closed coastal trades has proved difficult in many countries. Generally, only Northern European (and thus Danish), waters are open to all merchant fleets regardless of flag, but in most other countries, coastal trades are still subject to some degree of protectionism, being reserved for national tonnage. Preventing competing fleets from operating in coastal trades is detrimental to an efficient transportation pattern and will eventually lead to higher shipping costs for the customer. Due to their generally limited size, the opening of coastal trades would not as such have a major impact on an international merchant fleet, but particularly for such owners as the Danes, who focus on liner operations with connecting feeder services, the relaxation of such restrictive practices in the internationally related trades would enable improved services to local customers.
A substantial portion of Danish shipping investments is placed in liner service operations and associated modern port facilities. Should protectionist or discriminatory measures be introduced, the industry will thus have greater difficulty seeking alternative markets, as opposed to the traditional tramp traffic where shipowners have greater freedom to find cargoes in alternative trades free of flag discrimination. The move towards multimodal transport has increased the scope for possible discrimination. National restrictions, for example on trucking, stevedoring, the establishment of agencies and so on, will often limit the commercial options otherwise open to efficient liner operators. It is crucial to international trade that shipowners are not forced to pay for more port services than are in fact provided. If port authorities allow fiscal policy aims to prevail, this will hamper trade and efficient shipping services. Port charges are already a substantial part of shipping costs, and off-loading all portrelated costs on shipowners, as envisaged by a pending US Harbor proposal, should be vigorously resisted. The port policy adopted by the European countries is based on the assumption that the beneficiaries of port services are not restricted to the ship only, and it is vital that this policy be maintained and seen to prevail on a worldwide basis.
The European Union has become more visible in its efforts to assist the shipping industry by pressing for further liberalization in inaccessible markets or countries. Some improvements have recently been achieved in markets in the Far East, notably in China which has concluded a bilateral maritime agreement with the EU. A continued and intensified maritime dialogue is anticipated with such countries as China and India with a view to concluding bilateral agreements. European shipowners have repeatedly called for greater commitment to the formulation of an international shipping policy proposing that EU delegations worldwide participate in ongoing maritime deliberations. Such efforts could supplement and contribute to the coordination of the work already carried out in this field by the national embassies of EU member states. The Danish maritime authorities continuously strive to expand the numerous bilateral contacts and agreements between Denmark and third countries that are based on the principle of free market access. In the same vein, double taxation treaties are an important element in the reduction of overall taxation of Danish shipping activities. This work is fully supported by the industry, as are the continuing efforts to liberalize shipping policy in international fora such as the WTO, OECD and EU.

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