Finnish Trade Policies and Developing Countries: Case Africa Antti Loikas. Senior Adviser Department of Africa and the Middle East

Finland and African countries 9 Finnish embassies in the African continent which are in responsible of all political relations: political, security, trade, commercial and development policy relations As an EU member country Finnish Trade policy is competency of the EU The EU has a strong position as a partner for African countries as the EU, including its member states, is the biggest donor of African development cooperation and the most important trading partner for African countries.

Finland and African countries The emphasis of Finnish development policy and cooperation has traditionally been on Africa The objective of Finland’s development policy framework for Africa is to create a strategic framework for strengthening partnership between Finland and Africa through development policy measures Esityksen nimi / Tekijä 3

Roving ambassador to Algeria Areas covered by Ministry units and Finnish Embassies

African countries and Finland Despite the development challenges, Africa is moving: Number of conflicts reducing, peace agreements Economic growth AU, African ownership in affairs of the continent Impact of global economic crisis is temporary; Africa will integrate to global markets and rise it’s share in the market Africa will take it’s share as an important trade partner to Finland

What is Development Policy? Action in all national and international policy areas that affect developing nations, such as: - security - human rights - trade - agriculture and forestry - education - health and social policy - the environment - migration - ICT Development cooperation is one of the tools of development policy

Finland’s Development Policy Programme 2007 The main aim is the eradication of poverty in accordance with the objectives of the UN Millenium Development Goals Finland’s development policy will increasingly focus on: ”Towards a just and sustainable humanity policy” The eradication of poverty can only be achieved through sustainable development ecologically economically socially sustainable development Favourable economic development is the best tool against poverty

Africa in Finnish Development Policy Finland is committed to providing focused support for the implementation of the joint Africa-EU Strategy, that adopted in Lisbon in The strategy sets out four priority area: peace and security, good governance and human rights, trade and regional integration, and key development issues. Regional integration: Economic Partnership Agreements and Aid for Trade Finland is currently planning infrastructure and private sector support projects in eastern and Southern Africa and these projects can be merged into EPA process

Aid for Trade Developing countries and trade: WTO-rounds, EU-ACP economic partnership agreements (EPAs) The aim of Aid for Trade is to strengthen the trading and production capacity of developing countries through bilateral and multilateral cooperation (eg. competition policy, creating conditions for investment, etc.) Support for trade with developing countries by way of facilitating imports from developing countries and promoting investments

Regional approach: Energy and Environment Partnerships (EEP) Finland has a regional Energy and Environment Partnerships (EEP) - a Public Private Partnership programme aiming at promoting the use of renewable energy sources and clean technologies in Southern Africa and making energy services more accessible to the poor, particularly in rural areas. It has proved very successful elsewhere, especially in Central America

Trade Related Development Cooperation Instruments Finnfund is used to develop the production capacity of developing countries. Finnpartnership: cooperation between businesses in Finland and developing countries. Concessionary credits: especially for the support of environmental and infratructure projects that are based on the partner country’s PRSP Esityksen nimi / Tekijä 11

Import Policy A growing demand for new products and services opens up opportunities for both small and large exporters from African countries to enter Finnish and European markets. Through Finnish import policy it is possible to assist companies in complying with the required rules and regulations as well as in finding potential partners. There is an import officer at the MFA to give guidance to companies

Africa and Finland: Future Prospects Finland looks forward to strengthening its commercial relations further with the countries of Africa Finland is producing investment goods and services and we are one of the world’s net exporters of high technology in this respect. Therefore, I am confident that Finnish products and services could be in a key role also in the development of Africa’s own national investments and production. There are demand and supply and also financing available but still.. There are risks linked to business environment are restraining commercial relations. Development cooperation will lower these restrains