Trade Minister outlines the challenges ahead

Perhaps that note of spring was also reflected in the subtext of the Minister’s speech. Although she expressed certain concerns regarding current trends in Transatlantic and global trade, her message was largely hopeful. 

 
Filip Enocson and Sofia Losell from AmCham welcomes the guests.

Crisis threatens globalism
The Minister expressed concern that, facing the deepest recession in 70 years, governments would react by imposing tariffs and other protectionist measures. In the US, tendencies in this direction could be discerned during the presidential election campaigns, with Clinton and Obama accusing each other of favoring free trade agreements at the expense of domestic industry. Björling noted with a smile that a Swedish campaign would likely have seen candidates claiming the very opposite.

With EU feathers ruffled by the candidates’ rhetoric, President Obama has stated that his administration should not send a protectionist message. Although his stimulus package does contain some protectionist elements, all standing international agreements are to be upheld.

Conflict averted – for now
Although a trade war seems to have been averted, the US administration continues to face a challenge in balancing domestic concerns with international obligations. Some 47 percent of Americans view international trade as a threat.

In the Minister’s view, moving ahead with WTO negotiations is the best way to strengthen transatlantic trade. Despite emerging economies and new trading partnerships, the EU/US interaction remains the world’s most important trade relationship. And, in the current climate, “we need each other more than ever.”

Doha round is key
Björling believes firmly that the way out of the current crisis is not through economic nationalism and trade barriers but, through liberalization of global trade and further integration of emerging markets. On this score, US efforts to move ahead with the Doha round of WTO negotiations were music to her ears.

A concern is that protectionist forces may seek to impose new trade barriers under the guise of safeguarding fair trade. Although Sweden will be foregrounding climate issues during its upcoming EU presidency, Björling said that climate and other CSR requirements should not be used to conceal protectionism. She supports removing all tariffs on green technology.

Protectionism resembles virus
A former virologist, Björling likened protectionism to a virus. Once allowed to break out, it can spread quickly. While perhaps providing short-term fixes to domestic problems, if allowed to spread, the virus would only serve to deepen the recession and greatly delay recovery.

Watchdog
The Minister viewed Sweden’s role as that of a watchdog on free trade. In the short-term, however, with its upcoming EU presidency, the government will have to focus on negotiation and moving EU policies forward. While she said her long-term focus will remain “Doha, Doha, Doha,” the spotlight during Sweden’s presidency will be on “climate, climate, climate.”

 
Sheridan Tatsuno, Associate Dean Business Creation from Jönköping International Business School (JIBS).

 
Kjell Lindström, Nordic HR Director, Minister of Trade Ewa Björling, Berit Salheim, Managing Director, AmCham, Magnus Sjöqvist, President, Accenture, Lena Johansson, Managing Director, Kommerskollegium and Robert Silverman, DCM, U.S. Embassy in Sweden.

The Business Breakfast was organised in colllaboration with British-Swedish Chamber of Commerce (BSCC). In the picture are Berit Salheim, Managing Director, AmCham Sweden, Minister of Trade Ewa Björling and Ingrid Berggren, Managing Director of BSCC.