What news in the sphere of external economic relations, Under-Secretary of State Esko Hamilo?

"Finland’s trump cards on global markets are found in small export sectors and sound expertise," says Under-Secretary of State Esko Hamilo.. "One’s own game must be in good shape in order to remain competitive in economic relations and achieve results."

Competitiveness and international agreements

Esko Hamilo, who took up the post of Under-Secretary of State for External Economic Affairs at the beginning of August, sees many opportunities for Finnish exports and internationalization.

“With reason, the so-called continental shifts, or the rise of Asian countries and especially China, should still be kept in mind. We must be able to steer exports and to internationalize in a new direction.”

Aside from shifts in the focal points of international markets, Hamilo experiences the recent increase in protectionism as a challenge of the future.

“Owing to the global economic crisis, protectionism and governments’ interference in international trade are on the rise. Aiming for world trade and economic relations that are as free as possible, we must continue our earlier policy, opposing restrictions.”

As concerns preparing for challenges to trade policy, Hamilo stresses Finland’s own internal actions.

“The most important is to be able to maintain our own competitiveness and our stance in relation to other countries.”

The Doha negotiations of the World Trade Organization (WTO) on liberalization of world trade have been on hold largely because of the economic crisis. The situation was near a solution in 2008 but no final agreement was reached.

“Our departure point is that the Doha negotiations are our top priority, even though achieving a solution this year does not seem likely. Alongside this, some 15 different free trade arrangements are under preparation between the European Union and others; on the whole, these have been progressing well.”

Seen from a wider perspective, in Hamilo’s view, entering into individual agreements, however, obstructs and complicates the sector of economic relations. An all-encompassing arrangement would function considerably better.

As to the trade policy strategy under work by the Commission of the European Union, Hamilo raises the prevention of new trade barriers as one of the most important objectives.

Russia always of interest

Russia submitted its application to the WTO already 17 years ago. Hamilo is optimistic with regard to progress in the negotiations.

“In the last few months the negotiations have again been proceeding well. Now that Russia has decided to apply on its own, without the previous idea of a customs union with Kazakhstan and Belarus, the situation is much clearer. If things go really well, it might be possible for the negotiations to come to a final conclusion already at the end of this year.”

Whatever happens in our Eastern neighbour is of interest to Finland. According to Hamilo, Finland would benefit from Russia’s membership of the WTO.

“Membership would bring real benefits for Finnish entrepreneurs, because then Russia would be committed to international trade regulations. If and when Russia gains WTO membership, the uncertainty over whose game rules are followed would disappear. We hope that Russia will accede to the WTO as soon as possible.”

Exporting Finland to the world

Promotion of exports and internationalization is one core area of economic relations for the Ministry for Foreign Affairs. In what sectors is Finland exported to the world?

“Finland cannot succeed as a producer of bulk goods; instead, we have to find suitably small or defined export sectors. One very good possibility on today’s markets is cleantech, and much input has been focused here. There are suitably narrow partial sectors, for instance, in the wood processing industry.

Other sectors presenting possibilities for success that come to mind are education, water technology and services for senior citizens as well as functional foods, a sector which has been included in export planning for years. The IT sector of course remains one of the strongest sectors.”

It seems there are many opportunities, but what about realization?

“Much promotion work is done in the sector of exports and culture. One example is the quiet signals approach launched by Tekes – the Finnish Funding Agency for Technology and Innovation. Effort is made in this way to provide information about what might be successful sectors.

Export promotion trips are another very important method. These trips preferably take place at the highest possible level, starting from the President of the Republic and Ministers as well as the senior public servant level. Finland has been very active in this, and results have been achieved.”