Minister for Foreign Trade and Development Ville Tavio's speech at the 2026 Annual Meeting of Heads of Mission

“Finnish exports are on the rise. During this Government term, we have strengthened trade promotion, deepened the connection between trade and development, and reformed the implementation of development policy. The era of traditional development cooperation has run its course.”

Distinguished Heads of Mission, dear colleagues,

It is an honour and a pleasure to begin my last speech at the Annual Meeting of Heads of Mission in this government term on a positive note.  Finnish exports are on the rise. Last year, goods exports from Finland grew by 3 per cent, and this year we are expecting growth to be 4 to 5 per cent. Service exports are also showing positive development. There is demand for Finnish products, services and solutions around the world.

Over the course of this government term, we have made determined efforts to strengthen Finland's competitiveness and support Finnish businesses in expanding into international markets.  I would like to thank everyone present for putting our policies into practice.

One of the most significant reforms during the government term has been integrating export promotion activities abroad into the Foreign Service. We have combined expertise, reduced overlaps and, most importantly, improved services provided to Finnish businesses. I have established a Business Services Unit at the Ministry for Foreign Affairs.

We have had excellent cooperation with my ministerial colleague Sakari Puisto. The Ministry of Economic Affairs and Employment will remain responsible for international activities in Finland while the Ministry for Foreign Affairs will continue to promote Finnish exports abroad. Together we will develop a comprehensive service package that supports businesses as they expand from domestic to international markets.

The Team Finland Strategy adopted last year sets a clear direction for our work. For this strategy to be effective, we have had to make priorities. The new strategy focuses resources on the markets and sectors where Finland is best positioned to succeed. We have set up national sectoral groups for this work.

Dear Team Finland country managers,

Finland's prosperity is largely based on exports. For this reason, promoting exports is a shared responsibility across the Foreign Service. You, as Heads of Missions, are at the forefront of this work.

Finland has strong expertise in sectors where global demand is growing, such as defence, digitalisation and the maritime industry. Last year, total exports of defence materiel increased by a record 241 per cent. Companies such as Patria and ICEYE are succeeding because European defence spending and demand have risen significantly. The central government and the Ministry for Foreign Affairs in particular play a key role in promoting defence trade.

Demand for digital innovations is growing rapidly. Finnish businesses provide solutions in a range of areas from cyber security and telecommunications to the utilisation of artificial intelligence. A telling sign of the times was Nokia's return in spring 2026 to the top spot as the most valuable company on the Helsinki Stock Exchange.

With a value of around EUR 12 billion, Finland's maritime industry is a major driver of exports and one of our key high-tech growth sectors. The order books of Finnish shipyards are filling up, with Meyer Turku almost fully booked up to 2036. The Turku Shipyard has subcontracting chains in more than a hundred Finnish municipalities. Our shipbuilding industry also has a strong tradition of Arctic expertise.

Moving forward, we must be more active in identifying new opportunities. We must do more than just respond to the immediate needs of businesses and help them identify new markets, prospective partners and opportunities for growth.

This is why the Ministry for Foreign Affairs is actively enhancing its business services. Our goal is to ensure that they are of the highest quality and aligned with the real needs of businesses. In October, the Ministry for Foreign Affairs will launch a pilot introducing fees for selected business services. We will collect experiences from both businesses and our networks and fine-tune services based on the feedback.

Systematic country branding work supports our long-term export promotion efforts by reinforcing Finland's reputation for reliability and high-tech excellence.

Dear friends,

The developments in the Gulf earlier this year again demonstrated just how quickly the international environment can shift. In today’s world, the economy, security and foreign policy have become increasingly intertwined. For an export-driven country such as ours, an active trade policy is also part of our security policy.

The Government has made it a key priority to conclude new free trade agreements. During this government term, we have concluded an exceptionally large number of them. The EU has brought into force its agreements with New Zealand, Chile and the South American Mercosur countries. The Mercosur Agreement forms a free-trade zone with 700 million people. Negotiations have been concluded with India, Indonesia, Australia and Mexico, among other countries.

Free trade agreements open up new markets for businesses, reduce barriers to trade and increase predictability. They create better opportunities for Finnish businesses to grow, invest and go global. We have seen the tangible benefits of these agreements: Finland's exports to countries such as Korea and Vietnam increased by double-digit percentages following the conclusion of free trade agreements with them.

These examples show in concrete terms why we need the rules-based international order. This is particularly important for a small country whose success is built on an open global economy and effective rules.

Competition for technologies, investment and critical raw materials is tightening. In this situation, it is important for Finland, as part of the European Union, to strengthen its economic security and reduce harmful dependencies. It is crucial for Finland to systematically build partnerships.

So I think it is important that we strengthen our relations with our key EU trading partners, such as Poland, Germany and France. It is also essential to reinforce our trade relations with priority countries outside the EU, including the United States, Canada, Japan and South Korea.

In today's world, the work of our diplomatic missions is more important than ever. They provide Finnish businesses with the support they need to succeed in export markets and us in the central government with the high-quality information on developments, opportunities and risks in the business environment. Finland must be present where the market is growing, investment is flowing and decisions are made. For this reason, we have strengthened our export network by opening the Consulate General in Houston and establishing a new consulate in Munich. Both consulates have a strong focus on trade and economic affairs.

Distinguished colleagues,

The era of traditional development cooperation has run its course. In Finland and around the world, the peak years of official development assistance are behind us. Last year, the volume of ODA fell by a record 23 per cent globally, and the downward trend continues this year.

As part of the necessary effort to restore balance to general government finances, Finland has adjusted its ODA appropriations on no fewer than five occasions during this government term, including this year. Over the course of the parliamentary term, these savings will amount to EUR 1,340 million, an unprecedented figure. As a result of these cuts, Finland has ended its country programmes in four countries. Other major savings include reduced contributions to the Green Climate Fund and the World Bank's International Development Association.

The Ministry for Foreign Affairs is likewise implementing reforms as part of the central government savings measures. We are bringing all development cooperation implementation under the Department for Development Policy and streamlining the Ministry's management structure. The package of savings measures includes the decision to abolish the position of Under-Secretary of State responsible for development policy. The position of Under-Secretary of State for trade policy will remain unchanged.

Development policy today places greater emphasis on reciprocity. Development cooperation is not an automatic entitlement. It must deliver results and rest on shared objectives.

As ODA declines, effective allocation becomes even more important. We must maximise the impact of every euro we invest. That is why we need more private investment, stronger financial leverage, new sources of funding and a greater capacity among partner countries to generate revenue and finance their own economies.

We have effective private-sector financing instruments at our disposal, and we use them to help Finnish businesses enter new markets.

The most significant new instrument introduced during this government term is the Finland–Ukraine Investment Facility. Through this mechanism, Finland is financing the largest export project in our history to be supported primarily by development funding. The project will see Wärtsilä supply desperately needed power plant engines to Ukraine's energy sector, with a value of more than EUR 45 million. The project will improve Ukrainians' access to electricity while creating jobs and business opportunities in Finland.

Finland will continue its long-term development policy efforts in areas where we have strong expertise and credibility. These include, above all, the rights of women and girls, education and climate action. In line with the Sustainable Development Goals, we aim to ensure that no one is left behind and that support reaches those who need it most. We also continue to provide life-saving humanitarian assistance based on need.

Education remains one of Finland's best-known strengths. School meals offer an excellent example of a Finnish solution that combines education, health, nutrition and local economic development. More than 110 countries have now joined the School Meals Coalition led by Finland, France and Brazil. Developing countries themselves finance most of the coalition's activities. School meal programmes improve learning outcomes, increase school attendance and support local agriculture and employment at the same time. They demonstrate how international cooperation can strengthen countries' own development efforts.

Finnish expertise also plays a prominent role in climate action. Finland has supported the development of weather, climate and early warning systems in developing countries by drawing on Finnish knowledge and technology. The Finnish Meteorological Institute and Finnish companies contribute to projects that help partner countries prepare for extreme weather events while creating new opportunities for Finnish expertise. Last week, we announced a meteorological project in Indonesia worth more than EUR 24 million, to be delivered by Vaisala and the Finnish Meteorological Institute.

The decline in development funding is also affecting the UN system. The ongoing UN80 Initiative must deliver substantial savings and efficiency gains if the UN is to continue fulfilling its mandate and achieving results at country level. We welcome the reform's efforts to identify new savings and efficiency measures while ensuring that the UN system continues to advance objectives that align with Finland's values and interests.

Between 2022 and 2025, Finland's core contribution to UN organisations helped prevent an estimated 66 million unintended pregnancies and 142,000 maternal deaths, while protecting 820,000 girls from female genital mutilation. Finnish support has strengthened legislation combating violence against women around the world. More than 1.6 million women have received services that improve their livelihoods.

For the first time, we have made Finland's own economic interests a part of our development policy. The Report on International Economic Relations and Development Cooperation, published during this government term, highlights the increasingly close link between trade and development. Developing countries cannot achieve greater stability without sustainable economic growth and jobs. That is why we want to strengthen their economic development while supporting the creation of a functioning business environment. This also opens up new opportunities for Finnish businesses.

Our message to partner countries is clear: cooperation rests on shared benefits. Development cooperation is no longer unconditional. Finland does not cooperate with parties that support Russia's war of aggression, and we expect our partners to uphold the principles of the rules-based international order.

This principle of conditionality lies behind our decision to suspend Finland's country programme in Somalia. We suspended the programme because intergovernmental cooperation did not produce the desired results in matters related to the return of Somali citizens. At the same time, we continue discussions with Somalia to find a solution. We can reconsider future funding if return cooperation begins to progress in the way we expect.

Although this government term has seen a shift away from bilateral country programmes, the Government has chosen to preserve funding for Finnish civil society organisations. As part of this shift in focus, I have encouraged civil society organisations to work more closely together to promote local economic development.

The EU's common development policy and financial instruments are important means for Finland to exert global influence.  It is therefore welcome to see the EU adopting a more strategic and comprehensive approach to its external relations.

In this government term, we have achieved our goal of channelling a substantial amount of EU delegated development cooperation funding for management by Finland. At the beginning of the government term, EU delegated funding amounted to approximately EUR 10 million. It has since increased to EUR 119 million and is projected to exceed EUR 200 million next year. Finland is currently managing twenty EU delegated cooperation projects. In addition to the Ministry for Foreign Affairs, these projects involve other Finnish organisations that have passed the EU's eligibility assessment, such as Finnfund.

The EU has been developing its extensive Global Gateway strategy for some years, and it now aligns closely with Finland's objectives. The strategy brings together development, investment and trade in a way that Finland has long considered important. We want to build partnerships that support both development and economic growth.

A EUR 3.6 billion Global Gateway flagship project, led by Finland, is about to be launched in Paraguay. The project will promote the country’s economic reform through the development of sustainable forest industry, logistics, clean energy, digital infrastructure and expertise. The project is expected to generate billions of euros in business opportunities and hundreds of jobs in Finland.

Dear Ambassadors,

As Foreign Minister Valtonen said in her speech, support for Ukraine has been one of this Government’s key foreign and security policy priorities. Since the start of Russia’s war of aggression against Ukraine, Finland has provided more than EUR 4.6 billion in support to Ukraine. Of this amount, EUR 1.2 billion has been allocated for development aid and humanitarian assistance. Relative to the size of our economy, Finland is one of the leading supporters of Ukraine. Ukraine has become Finland's biggest partner country for development cooperation and the largest recipient of humanitarian assistance.                   

We support Ukraine's needs amid the ongoing war. Our goal is to strengthen the country’s resilience, support its reconstruction and help it move closer to EU membership. Reconstruction is not a task for the future; it is already underway. A good example is the Wärtsilä power plant project that I mentioned earlier.

As we help rebuild Ukraine, we are also building a long-term partnership. We also have a great deal to learn from Ukraine, especially when it comes to security, preparedness and the resilience of society. This cooperation makes both parties stronger.

Finland must be an active partner in Ukraine’s reconstruction and create opportunities for Finnish businesses to participate in these efforts responsibly and on a long-term basis. Energy technology, digital infrastructure, education and security solutions are areas where Finland has a great deal of expertise to offer.

One of the most significant new initiatives of the past year is the civil defence coalition launched by Finland and Ukraine, for which the EU and various other countries have pledged more than EUR 50 million in funding. The coalition aims to enhance the protection of civilians and to strengthen societal resilience in the midst of Russia’s continuing air strikes.

Distinguished Ambassadors,

We have taken decisive steps to reform the work of the Ministry for Foreign Affairs during this government term. We have strengthened trade promotion, deepened the connection between trade and development, and reformed the implementation of development policy. Our goal is to create stronger conditions for Finnish businesses, investments and expertise to succeed internationally.

Your contribution to this work has been, and will remain, invaluable.

Thank you.