Globalization – a challenge for free trade

 
                                               The panel with moderator Magnus Aronsson, ESBRI.

The impressive venue at law firm Mannheimer Swartling, which sponsored the event together with Air France, lent additional gravity to the evening’s topic. But the mood among participants remained buoyant and the discourse was constructive and at times lighthearted.

The moderator for the evening was Magnus Aronsson, Managing Director of the Entrepreneurship and Small Business Research Institute.

 He kicked off by pointing out that the US and France are both countries that often figure in discussions on protectionism, while Sweden as the current president of the EU is doing all it can to deter protectionist reactions to the current economic situation.
 Jan Carlborg, Boyden, Kristina Hulteberg, 
CCFS, Sofia Losell, AmCham Sweden,
Katarina Barter, CCFS 

The first keynote speaker for the evening was Robert Bergqvist, chief economist at SEB, who reviewed general trends in international trade over the past few decades and the current situation in the wake of the global financial crisis. In looking ahead at what is needed to re-charge globalization, he argued that debt needs to come down, countries with trade deficits need to increase their savings and overcapacity must be managed. Robert appealed for a braver approach from governments in preventing economic bubbles, noting that such courage tends to be lacking while the party is in progress.


 - Robert Bergqvist's presentation    
                      

That was the cue for input from Gunnar Wieslander, the State Secretary to Sweden’s Minister for Trade, Ewa Björling. He explained that the Swedish government considers an open but rule-based trading system to be the cornerstone of economic development. While in the aftermath of the financial crisis, unemployment and poverty are on the rise, calls for protectionist strategies in various countries are shortsighted and unsustainable given the globe-spanning nature of production and exchange today. He pointed out that globalization was not the cause of the crisis but that it could be part of the cure. To this end, the Swedish government considers a successful conclusion of the Doha round of WTO negotiations to be the next important step.
Gunnar Wieslander

The final speaker, Carl B Hamilton, is a member of the Swedish Riksdag and the Liberal People’s Party (Folkpartiet). He eloquently explained that, from a Swedish perspective, protectionism threatens at three levels: domestically, at the EU level and globally. Domestically he feels Sweden’s stance is clearly exemplified by the government’s resistance to demands for protectionist policies vis-à-vis the Swedish automotive industry. At the EU level, Sweden has often disagreed with France, although currently, he feels, the greatest protectionist threat is posed by German subsidies to Opel. In his view, the extent to which the EU can prevent such subsidies will be crucial over the next few months because, as he puts it, “no protectionism is temporary.”

Catharina Kronström, US Embassy, Charlotte Nyberg, Stockholm
Chamber of Commerce, Carl B. Hamilton, Swedish Riksdag and
Magnus Aronsson, ESBRI

In the ensuing panel discussion, the speakers appeared to agree on the need to combat protectionism and promote free trade as a means to stimulating the global economy and aiding recovery. The speakers tended to agree that while protectionism may be good for speeches and often effective in attracting votes, it seldom achieves its stated economic objectives.

 Responding to a question from Fredrik Sjögren of IBM, the panel explained that while services corresponded to an increasing share of the trade surplus for countries like Sweden, the impact of the current downswing on manufacturing, which represents only 20 percent, has had a shocking knock-on effect.
The discussion was followed by an opportunity to mingle while enjoying delicious hors d’oeuvres and excellent wines.

 
Jean-Claude Celle, former CEO, l'Oréal and Olivier Rousseau,
Senior Commercial Advicer, French Embassy

Berit Salheim, AmCham Sweden, Caroline Meimoun, Ministry of Foreign Affairs,
Sigvard Beck-Friis, SEB and Kristina Hulteberg, CCFS

Gîta Paterson, Swedish Chamber of Commerce in France, Andreas Hallström,
Posten and Jean-Claude Celle, former CEO, l'Oreal.

Written exclusively for AmCham by Bryan Mosey,  Battison & Partners 
Photos by Rob Nelson

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