Swedish Trade Minister sees the bright side of the economic crisis

The economic crisis still has a firm grip on large parts of the world. But Sweden’s Minister for Trade Ewa Björling can see bright spots. In her view, when the protectionist tendencies that follow the economic crisis are forced into the light, more people see that they are not the right way forward. She hopes instead for progress in the Doha Round and is pleased that a large number of EU Member States have formed a strong faction in favour of free trade.

“I think that the crisis has contributed to an increase in people’s awareness of how damaging protectionism can be. Protectionism leads to reduced trade, lower GDP, less jobs and more expensive products.”

Protectionist tendencies

Ewa Björling says that it can seem logical that countries suffering an economic crisis show protectionist tendencies, i.e. they think first about how they can protect their own country. And she sees protectionist tendencies everywhere. She gives the example of the new influenza. When it first struck, there were a number of countries that were terrified to import pigs and pork, despite the fact that they posed no threat.
“It doesn’t exactly promote trade. Rather the opposite”, she says.

Ewa Björling has a number of international free trade agreements on her agenda for the autumn. The most significant is the WTO’s Doha Round, which began just over seven years ago in Doha, the capital of the Arab emirate Qatar. It deals with trade in agricultural products, industrial goods and services. On behalf of the EU Presidency, she hopes for a major step forward in the negotiations. Last summer the negotiations collapsed over the area of agriculture, but Ewa Björling now has a positive view of the future.
“Now we want to resume the negotiations. And the situation has changed a lot since last summer. The EU countries were, and still are, united. But the economic crisis has made everyone more aware of what protectionism means and what consequences it can have for trade and prosperity in the world. I think that can benefit the Doha Round and get the negotiations back on track”, says Ewa Björling.

Almost EUR 200 better off

There are calculations that show that, if the Doha Round reaches a successful conclusion, citizens of EU countries will be almost EUR 200 better off, as a result of the boost to trade.
“But more free trade doesn’t only mean more money in our wallets. It also means everything from safer toys to improved opportunities to live and study in other countries, which makes it easier for capital and services to move across national borders, as well as increased prosperity. I think it is the only way forward”, says Ewa Björling.