Sweden's trade policy is based on free trade. The Government's Statement on Trade Policy that was presented in the Riksdag on 14 April 2010 begins with phrase, "Sweden's development - from poverty to a welfare society - is the history of deregulation and free trade".
Sweden's development from a rural society to an industrial society gained real momentum during the 19th century. Today, Sweden has one of the highest standards of living in the world and this is closely linked with trade, both imports and exports. Free trade made it possible for entrepreneurs to found and develop many of the world-leading Swedish companies of today.
Free trade
The term 'free trade' covers much more than just the possibility to buy and sell products in other countries. Free trade helps decentralise decisions so that they are taken as close to the buyer and seller as possible. Free trade means that there should be no customs duties, for either imports or exports. This of course applies to both goods and services.
An integral part of the concept of free trade is that all forms of protectionism, such as prohibiting imports so as to protect domestic producers from foreign competition, is detrimental to both consumers and producers.
Sweden to belong to the core of the EU
Three quarters of Sweden's trade is conducted in the EU internal market. The Government's ultimate aim is for Sweden to belong to the core of the EU and to be an active and constructive force in EU cooperation. The Services Directive is an important component in the development of the EU internal market. The services sector is currently the fastest growing part of our economy and the Directive would entail good prospects for increased trade in services in the EU.
Sweden is also the strongest voice for free trade in the EU. By strengthening cooperation with other countries that favour free trade, we can do even more for free trade than we can accomplish on our own.
EU trade relations with the rest of the world
The EU Lisbon Strategy aims at achieving sustainable growth and increased employment, but above all making the EU the world's most competitive economy. Ever since the Lisbon Strategy was adopted, Sweden has maintained that a crucial piece of the puzzle is missing for it to be successful. It does not take sufficient account of EU trade relations with the rest of the world. The Government is working to change this.
Negotiations in the World Trade Organisation
The best way of opening up trade globally is via multilateral agreements. This is also the only way of ensuring a fair, stable and predictable international trade system. Completing the current trade round - the Doha Round - in the World Trade Organisation (WTO) is therefore one of the most important priorities of the Government's trade policy.
Welcomes globalisation
The Government welcomes globalisation and the fact that an increasing number of countries are part of the trade policy agenda. This means that completely new markets and opportunities are opening up for Swedish companies, and that an increasing number of people around the world can benefit from the wealth-creating forces that international trade entails.
