Summary:
The CETA free trade agreement between the EU and Canada came into force on 27 September. Minister for Foreign Trade and Development Kai Mykkänen says Finnish businesses benefit from the agreement e.g. through the disappearance of customs duties and the opening up of service markets. Mr Mykkänen is travelling to Canada in October with a trade delegation and he has high expectations for advancing trade between Finland and Canada. He adds that the CETA agreement will create new opportunities for Finnish businesses in e.g. environmental and transport services as well as make investments in Canada easier.

Summary:
The European Union’s plans to tighten the screening of direct investments from outside the Union will not bring the wanted benefits, Minister for Foreign Trade and Development Kai Mykkänen estimates in an interview with the Financial Times. In a worst case scenario it could lead to a trade war. The objective of the more extensive vetting is to respond to the increase in Chinese investment in the European technology, energy and infrastructure sectors. Mr Mykkänen notes that the initiative is meant to please France and Germany but at the same time it could provoke China, India and the United States.

Summary:
Minister for Foreign Trade and Development Kai Mykkänen predicts that there will be changes to EU regional and agriculture policy after Brexit. He says it is in the best interests of Finland if Europe develops as a region based on know-how, research, and security, which is why the main focus of EU funding should be on these sectors. He also comments on the Monetary Union by saying that in the EMU structures, there should be a clear sentence ruling out the joint responsibility of debt as well as defining how a member state go bankrupt.

Summary:
Finland’s Minister for Foreign Trade Kai Mykkänen is concerned about European Commission President Jean-Claude Juncker’s proposal to create a system on the EU level to supervise investments coming from third countries. Many member states are especially worried about Chinese investments in strategic sectors, but Mr Mykkänen says that the power should rest in the hands of the member states. Mykkänen is afraid that the measure might provoke a trade war. Mr Mykkänen does support Mr Juncker’s promises to advance free trade deals with Japan and Latin American countries.

Media:  Helsingin Sanomat
Date: 13.9.2017
Journalist: Pekka Mykkänen
Main source: Minister for Foreign Trade Kai Mykkänen

Summary:
Minister for Foreign Trade and Development Kai Mykkänen urges Finnish businesses to be cautious when trading with Chinese or Russian companies that have connections to North Korea. Mr Mykkänen believes US President Donald Trump’s threat of stopping trading with countries that trade with North Korea is unrealistic, but he says one option could be that the United States poses sanctions against companies that trade with North Korea in China and Russia. Mr Mykkänen estimates that stopping trade completely between the United States and China would be an impossible situation, and China’s countermeasures would affect Europe and the western world as a whole.

Summary:
Minister for Foreign Trade and Development Kai Mykkänen criticises strongly a report by NGO Finnwatch that suggests that Finnish development aid funds have been used in questionable investments. According to the report, state-owned development finance company Finnfund had invested through funds e.g. in fossil fuels, meat production and private schools. Mr Mykkänen points out that the investments mentioned in the report are old and similar investments would no longer be made. He says the majority of Finnfund’s investments this decade have been in renewable energy and other priority industries targeted in Finland’s development policies.

Summary:
Britain is considering entering into a temporary customs union with the EU after the country leaves the Union in spring 2019. Minister for Foreign Trade and Development Kai Mykkänen estimates that this strengthens the hopes for a marriage of convenience between the two parties as it indicates that Britain wants to ensure that industrial trade to Europe continues uninterrupted. He says a customs union would definitely be a good thing for Finland.

Media:  Turun Sanomat
Date: 15.8.2017
Journalist: STT / Olli Kuivaniemi
Main source: Minister for Foreign Trade and Development Kai Mykkänen

Summary:
The EU Trade Commissioner Cecilia Malmström met Japanese Foreign Minister Fumio Kishida in Tokyo on June 30th, discussing a free trade agreement. Ms Malmström said that a broad agreement could be ready for signing on Thursday, July 6th. Finnish Minister for Foreign Trade and Development Kai Mykkänen believes there is a real chance that a political consensus about the agreement will be reached by then. He says the sensitive issues in the overall agreement relate to the access of European food products on the Japanese market and to the concessions the EU will make to customs duties for cars imported from Japan. Mr Mykkänen estimates that the European market opening up to Japanese competitors would not create any significant challenges for Finland and notes that the trade agreement could increase Finland’s exports of lumber, health technology and food products to Japan.