Boycott costing Danish business dear
      
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2006, 5:22 Makka Time, 2:22 GMT    [input]          
                      Supermarkets have removed Danish products from shelves
                 Related:
          Danish businesses hit by boycott      Danish PM tries to ease cartoon 
row      Fury grows over Denmark cartoons      Danish Muslims denounce newspaper
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  Consumer boycotts of Danish goods in Muslim countries in protest at 
publication of caricatures of the Prophet Muhammad are costing Denmark's 
companies millions, and has raised fears of irreparable damage to trade ties. 
    From Havarti cheese to Lego, Danish products have been yanked off the 
shelves of stores in Saudi Arabia, Kuwait and other countries around the Middle 
East as Muslims await an apology for the cartoons, which the Copenhagen 
government has said it cannot give.
   
  The boycotts began in Saudi Arabia on 26 January when supermarkets either put 
up signs saying to stop buying Danish goods or removed products from shelves. 
Since then it has spread to other Muslim nations, and even to Western stores 
doing business there.
   
  A supermarket in Cairo run by France's Carrefour has had signs, for example, 
saying that it is not offering Danish products "in solidarity with Muslims and 
Egyptians."
   
  Carrefour said the store was a franchise run by a local company.
   
  Carrefour said it is "strictly neutral" but "stores operated by our partners 
or franchises are free to make commercial decisions according to the local 
situations".
   
  Indonesia's importers association on Wednesday began boycotting Danish goods, 
which it said made up $74 million (€ 62 million) in 2005, about 1% of the 
nation's annual imports.
   
  Serious call 

In Syria, banners on walls and storefronts all call for consumers to avoid 
Danish products.

"It's a situation that causes a great concern from our members," said Henriette 
Soltoft, director of international market policy for the Confederation of 
Danish 
  Industries.
   
            
      Danish firms are worried about
long-term business damage
"There's also the fear (for the future) ... that the consumer will not remember 
exactly what happened, but they will remember the connection to Denmark," she 
said, noting that the Middle East is seen as a growth area. 
   
  "Our good relations with these countries have been damaged but we do not know 
yet to what extent - that we'll see in the future and it will depend on how 
soon this crisis will be solved and how it will be solved."

The drawings published by newspaper Jyllands-Posten in September have sparked 
protests, sometimes violent, in Muslim countries. Islam widely holds that 
representations of Muhammad are banned for fear they could lead to idolatry.

Common position 

Manushehr Mottaki, Iran's foreign minister, reiterated a common position on 
Thursday, saying on a visit to Lebanon that "in order for the Danish government 
to mend its relations with the Islamic world and Muslim peoples, it should 
issue a formal apology". 
   
  Anders Fogh Rasmussen, the Danish prime minister, has repeatedly rejected 
such demands, saying the government cannot be held responsible for the actions 
of an independent newspaper.
  

                Denmark cannot take action if
the boycott is consumer-driven

  The paper itself has apologized for offending Muslims, but has stood by its 
decision to print the drawings, citing the freedom of speech.

Peter Mandelson, the EU trade commissioner, has warned governments that if they 
are behind the boycotts that they could face action at the WTO if the EU proves 
they are involved.
   
  If the boycotts are purely consumer-driven, however, little can be done.

Denmark's Danske Bank estimates Danish goods worth 10 billion kroner (€ 6.3 
billion; $1.6 billion) annually are threatened in 20 Muslim countries by the 
boycott.
   
  Denmark's overall 2004 exports totalled 452 billion kroner, or about $73 
billion.

Damage 

But Soltoft cautioned that the damage goes beyond exports, extending to service 
contracts, shipping and production facilities in the area - losses that cannot 
yet be 
  quantified.

"It's really difficult to give an exact picture of the situation for the time 
being," she said.
  
          "We have sympathy for Muslims over this issue and we encourage a 
dialogue between the parties"

Jacob Mikkelsen,
Arla Foods Manager for UAE and Oman
Arla Foods, one of Europe's largest dairy companies, is thought to be the worst 
hit. Jacob Mikkelsen, the company's manager for the United Arab Emirates and 
Oman, said it has lost an estimated $1.36 million each day of the boycott.
  
"We have sympathy for Muslims over this issue and we encourage a dialogue 
between the parties," he said, also calling on the government to issue a formal 
apology over the issue.

Arla, which draws some 6% of its revenues from the Arab Gulf states, employs 
about 1500 people in the region.

Mikkelsen warned the company may have to start laying off workers if the 
boycott continued.
  
                Agencies
                
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