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Passage 2 A Healthy Appetite for World Markets The food industry accounts for a quarter of exports in Denmark and has been hit by the recent GATT deal. Denmark is the world's fifth-large exporter of food products. The food industry provides between 12 and 18 percent of Denmark's domestic employment Manufacturing industry long ago overtook agriculture as the country's main export industry, and now provide about 70 percent of the employment and roughly the same share of total production. The rise of the primary food industries-pig meat,dairy products and fish-has been accompanied by the development of compaues in assuclateu mnuustries, many of them world leaders. And the government helps to finance a research program to lift the quality of its products. The country's food and food technology industry has never looked back. Since entry into the European Community further support has come from the common agricultural policy, which subsidizes exports to non-member countries. Yet, a threat does now hang over the sector in the shape of the recent GATT agreement, which calls for a reduction of 34% in the volume of exports of subsidized products. The Danish minster for agriculture sees the GATT agreement as a challenge, which opens up opportunities to win new markets. And he is calling for an attacking policy on the part of Europe to make the best of the opportunities. Prospect for the riary food claly dend markets, Denmark has one important advantage, Pig meat is not directly supported under the common agricultural policy and its exports are therefore not threatened by the GATT agreement in the same way as dairy products and beef. Though pessimists focus on the food surplus in European countries in considering the future of the agriculture food industry, others focus on the global market. They predict a strong increase in demand for food and see limits to the potential for Danish production and exports.Danish exports of pig meat, dairy products and beef are threatened by the GATT agreement for the support under the common agricultural policy.