Minister Vilén: EU and US economies increasingly interdependent

The World Trade Organisation’s on-going negotiations have generated more attention than earlier negotiation rounds on trade liberalisation. Interest has increased among non-governmental organisations and media. Attention has been paid to the demonstrations, the organisation’s alleged lack of democracy and the status of developing countries within the trade system. The elements of globalisation can best be controlled by the WTO and the UN, stated Foreign Trade Minister Jari Vilén at a seminar organised by the Confederation of Finnish Industry and Employers in Rovaniemi on Thursday, 17 October.

“In the current talks less emphasis seems to be given to the fact that the WTO is specifically a trade organisation, whose agreements greatly benefit the export industry – in the industrial countries as well as in the developing countries”, said Minister Vilén.

The World Trade Organisation is concerned that the upper corporate management does not seem to have enough interest towards WTO operations. It may be that WTO is viewed by the industry at the moment as a decision forum for disputes. Lately because of the trade disputes between the EU and the US, the use of WTO counter-custom regulations are being prepared. These actions might have negative impacts also on the domestic industry.

Despite the recent trade disputes, the EU and the US economies are increasingly interdependent, says Foreign Trade Minister Jari Vilén. It is estimated that 3,5 million jobs on both side of the Atlantic are dependent on each other’s investments. These trade relations can be viewed to form the continuous core issue to the transatlantic relations, estimates Minister Vilén.

The many benefits of the WTO system are manifested when we look at the concrete repercussions of China’s WTO entry or particularly the changes for our business community brought by Russia’s future entry. Many practical problems, including rigid border formalities, would then be removed. The system based on WTO rules protects the interests of industries in smaller nations in particular. Without a regulatory system we would be living in a jungle, said Vilén.

The successful follow-through of Doha negotiation round is very important due to uncertainties in the world economy. The European Union plays an important part in the progress of Doha round. It is important to Finland to be active in the EU, so that Finland’s national benefits will be noted in the negotiations.

Last year the world trade decreased for the first time since the year 1982. Finland’s economic success depends largely on the fact that the export industry is doing well. This will be supported, among other things, with budgeted additional resources to promote export and internationalisation. Minister Vilén has also started an export forum, in which central areas of emphasis are China, Russia, the US and the future EU member states’ markets, and to strengthen our export industry’s possibilities in these central economic areas.