"Globalisation - a challenge for free trade?"

On October 7 the French Chamber of Commerce together with the American Chamber organised a seminar entitled "Globalisation - a challenge for free trade?".
More than 80 people showed up at Mannheimer Swartling to listen to the interesting panel of experts:
- Robert Bergqvist, Chief economist at SEB
- Gunnar Wieslander, State Secretary to Minister for Trade Ewa Björling
- Carl B Hamilton, Member of the Swedish parliament
Moderator was Magnus Aronsson, Managing Director of ESBRI, Entrepreneurship and Small Business Research Institute.

Robert Bergqvist started out with a short presentation with the title “Changing the landscapes”  where he talked about the current situation, where we are coming from and how to re-charge globalisation. Robert meant that we have underestimated the speed and effects of globalisation and now the challenges are to create a level playing filed with a new global agenda. We are all sharing the same challenges: climate, ageing population, natural resources and there is no easy way forward. We are facing a jobless growth, we have a new global financial system and the global production chains must include all costs (climate etc).
However, Robert is optimistic, especially regarding the creation of G20 – a new forum for cooperation. To view Roberts PP presentation 

Gunnar Wieslander talked about the position of the Swedish government which is very positive to increased free trade. He meant that in trade there are no losers, only winners and that globalisation has brought enormous benefits in terms of international welfare. This has resulted in efficiency gains, and a greater supply of goods and services at lower prices as well as more variety. An open, rule-based, international trading system is a cornerstone of the globalized economy. Trade and investment fosters economic growth and employment. It lifts people out of poverty, it promotes stability and peace, and it contributes to sustainable development.
Mr Wieslander meant that the most important step to be taken now is to conclude the Doha round. A new multilateral trade deal would give the world economy an important and much needed boost. It would also send a clear signal saying that the world rejects protectionism.

Carl B. Hamilton focused on Sweden, France and the USA and the different levels (domestic, EU and world level) of globalisation and protectionism. There is increased protectionism in times of recession; increased subsidies etc. Small countries, such as Sweden, are generally pro free trade because they depend on exports. Big markets, such as France, are generally the ones using protectionist measures to protect the domestic industry.

The USA was very pro free trade after the Second World War but as the competition from China and other low cost countries grew they became more protectionists.

The biggest threat right now according to Carl is the subsidies that Germany wants to give to Opel. This will hurt all other car producers.

Robert finds it OK to give some subsidies in times of crisis but they must then be withdrawn.
Carl does not agree since it’s very hard to withdraw subsidies so the risk is they become permanent. He also claimed that it has been proven several times that subsidies are economically inefficient.
Carl also pointed out the problem that politicians lack a long-term perspective since they only have the election perspective in mind.

According to Carl Sweden accepts unemployment due to trade and new technology.

One question in the audience was how come we have not seen more of protectionist measures during this serious crisis. Carl says that it’s thanks to globalisation. Companies are importers and exporters, producers and buyers. Since all international groups have a global production chain protectionist measures would hit back on them.

Robert emphasis that the costs for the climate must be included in the global production chain.

After an animated debate we can conclude that they do not always agree but they do agree on one thing: that the most important step to move forward is to close the Doha deal.

We thank the panellists and the moderator as well as our partners in this event; AmCham, Air France KLM and Mannheimer Swartling! Photos from the cocktail that followed here below.

Text by Kristina Hulteberg, French Chamber of Commerce in Sweden, photos by Robert Nelson AmCham.

 
Jean-Claude Celle and Olivier Rousseau from the French Embassy 

Berit Salheim - AmCham, Caroline Meumoun - Ministry of foreign affairs, Sigvard Beck Friis from SEB and Kristina Hulteberg - French Chamber of Commerce