Tal
1 februari 2010
Ewa Björling, Handelsminister

Anförande av handelsminister Ewa Björling vid invigningen av Latinamerikanska företagarförbundet i Sverige

Excellencies, Ladies and Gentlemen, Dear Friends,

I would like to start by expressing my sincere condolences and deep sympathy to the victims, their families and to the people of Haiti who have suffered huge losses of life and vast damage due to the earthquake that struck Haiti on 12 January 2010.

Having said this, I would like to move on and tell you how very pleased I am to be here today at this significant event. It marks both a strong legacy of our relations with Latin America and promises for the future, in the development of contacts and commerce.

Finding and fostering new business ideas and trade opportunities is essential for creating prosperity and overcoming the economic crisis. A Latin American Business Association can play a decisive role in this process. I would like to convey the Swedish Government's support of your initiative.

This enterprise is very timely. There are good conditions to increase business and trade between Sweden and Latin America. It is an exciting challenge, close to our hearts and with many potential rewards.

Let us look at the present conditions that can help us towards these ends.

In brief, I would like to state the following: when it comes to creating new business and trade between Sweden and Latin America, we can, together, benefit from a number of favourable factors for creating and fostering a fruitful future. I believe that factors that can be expected to work increasingly to our advantage include the following:

• The competence, knowledge and contacts of Swedes of Latin American origin.
• A strong, constructive, highly appreciated Latin American diplomatic community in Stockholm.
• The already strong and long-standing presence of Swedish industry and business in several parts of Latin America - São Paulo being the foremost, but far from only, example.
• Latin America is opening up to the global economy and handled the worst parts of the economic crisis remarkably well, considering the severity of the crisis.
• I'm also hopeful that we will be able to conclude new trade agreements between the EU and countries and regions of Latin America, something that will create new important business opportunities.

I am well aware of the all too familiar tendency to depict the vast Latin American region as homogenous, and of the risk of over-generalisation. Still, having seen the latest analyses from CEPAL and OECD, I would add that, in fact, the economic outlook as such will also soon work to our advantage.

In saying so, I do not in any way wish to extenuate the most severe economic and financial crisis in decades. Economic retraction in Latin America stood at approximately 3.6 per cent last year, after several years of annual growth rates of - typically - 5 per cent. Exports from countries in Latin America and the Caribbean fell by 24 per cent in 2009. The crisis might increase poverty in Latin America by as much as 7 per cent by the end of 2010. This could only make us more motivated to create business and - thus - prosperity. The good news is that growth is expected to resume, hopefully reversing this effect in due course.

The crisis, hard as it can be for individuals, has, furthermore, brought about one important piece of good news in particular that I wish to emphasize: several Latin American countries have been able to prove that they stand better prepared than ever for exposure to, and interaction with, the global economy. The OECD even qualifies this new sturdiness as 'astounding'. The organisation concludes: 'Latin America has moved away from the false sense of security that protectionism provided and begun to reap instead the long-term benefits of globalization'.

I readily admit that this, today, may not present the whole picture for all parts of the region and for all parts of the population. The point, however, is that we are seeing significant changes and improvements. This tendency will reinforce itself, and it will propagate to new regions and population groups.

Latin America's plentiful youth, better educated than ever, will naturally seek to reap the benefits of these favourable factors. Whereas China will face demographic difficulties, Latin American countries typically have a very favourable demography, that in a few years will prove to be a strong comparative advantage. We can already see this in Brazil.

In connection to this, I would like to stress the importance of international migration as a tool to enhance trade, growth and prosperity worldwide. Migration has been central to Sweden throughout history. Before the 1930s, Sweden was a country of emigrants, very much like many Latin American countries today. Emigration benefited both Sweden through remittances going back to the country from the emigrants living abroad, and also more generally through the inflow of new ideas.

After the 1930s, Sweden became an important host country of immigrants, and today, close to 13 percent of the Swedish population is foreign born. Last year we experienced a historic record high in the number of immigrants coming to Sweden. A considerable share of immigrants come from Latin America.

People with foreign backgrounds have superior knowledge of the business culture, politics, religion and language of their former home countries. They are in a particularly good position to conduct trade themselves and to guide the way for other Swedish companies. This - in turn - leads to improved trade relations between Sweden and immigrant source countries.

Therefore: it is clear that we can make use of migrants to facilitate trade! I have launched a special initiative, the Kosmopolit Project, to make use of the special knowhow and linkages to the region of our foreign-born entrepreneurs. The aim is to improve the scope for small and medium-sized companies by reducing information frictions between our own and foreign markets, which will lower trade costs and spur trade.

Young Latin Americans will find it even more natural to act in a global interface. They will seek opportunities from new and existing free trade arrangements with the EU. Already this year we expect new deals with Central America, as well as with Colombia and Peru. Eventually, Mercosur, and - we hope - Bolivia and Ecuador will follow. Chile and Mexico already have free trade arrangements with the EU. Another decisive step that was taken recently was the accord for future trade in bananas. With the giant banana obstacle now finally being pushed aside, we have every reason to be optimistic that this has cleared the way for further significant boosts to trade.

This is where you come in. Latin American business has opportunities for an excellent interface here in Sweden.

Trade and business bring change, friendship and contacts, paving the way for development and increased wealth. I appreciate the vulnerability of developing economies, labourers and indigenous populations. Non-governmental organisations have reminded us of the risks and challenges associated with opening up economies. They are right in doing so, thus clarifying the problems. If you can't see the problem, you can't see the solution.

My bottom line here would be the following: trade and business not only foster profit, but also, by means of clear rules and commitments, promote a more diverse and complex - say pluralistic - society. Complexity is positive. It is not hard to say that we can all share in a commitment to human rights and good governance. Increased trade and business will promote those universal objectives. And vice versa. Positive effects will bounce back, creating a virtuous circle. This is the Swedish experience, and this is why we so ardently promote free trade, just as we promote human rights.

Ladies and Gentlemen,

On its website, this new Latin America Business Association summarises its mission in a slogan that is short and simple, yet so excellently clear and focused:

¡Juntos creceremos más..!

Juntos implies partnership, friendship and affection. Crecer implies development, maturity and hope. The legacy of our relations with Latin American countries, as well as Sweden's prominent population group of Latin American origin - and an ever increasing interest in Sweden in Latin American culture, music and gastronomy - warrant my earnest assertion: 'We love Latin America!'.

I wish the Association the best of luck and success in its endeavours and look forward to following with interest the activities in the Swedish-Latin American business community as they evolve. And, finally, as for the time perspective, I would like to cite the pop group ABBA - a prominent and long-standing music exporter. They sang 'Why don't we start right away?'. (The title of this song is, incidentally, 'Lovers Live a Little Bit Longer.')

¡Muchas gracias! Muito obrigada!