Trade policy and external economic relations
In Finland, the Ministry for Foreign Affairs bears the main responsibility for trade policy. However, the policies are often closely connected with the branch of the Ministry of Agriculture and Forestry, and our Ministry is actively involved in the policy-making processes, for example, through EU sub-committees. External economic relations and activities promoting internationalisation are supported by the Team Finland network.
Trade policy influences the import and export conditions of agricultural products and food and has an impact on aid rules, which guide the achievement of agricultural policy objectives. Trade policy is largely based on international agreements. Like agricultural policy, it is also an EU competence.
WTO
The World Trade Organization (WTO) deals with the international rules of global trade, based on agreements negotiated among its member countries. The WTO monitors the application of jointly agreed rules, functions as a forum for negotiating new agreements and provides a framework for settling trade disputes. In the sector of the Ministry of Agriculture and Forestry, key WTO agreements include the Agreement on Agriculture and the Agreement on the Application of Sanitary and Phytosanitary Measures (the “SPS Agreement”), governing the global trade in agricultural products.
Negotiations on further liberalization of agricultural trade within the WTO began as early as 2000 on the basis of the mandate of the Agreement on Agriculture, and the agricultural package was also included in the Doha Round launched the following year. The overall liberalization of agricultural trade also covers rules and restrictions on agricultural subsidies. However, the negotiations have progressed slowly.
In Finland, the Ministry for Foreign Affairs has the overall responsibility for WTO matters, but the Ministry of Agriculture and Forestry actively participates in monitoring the application of rules through the WTO Committees on Agriculture and Sanitary and Phytosanitary Measures. The Ministry is also active in the preparation of Finland’s official positions in the Doha Round negotiations.
Useful external websites
EU’s bilateral free trade agreements
The European Union has bilateral free trade agreements (FTA) with many countries. It is also currently negotiating several new agreements. The scope of the agreements varies, but particularly the more recent trade agreements cover a wide range of trade-related matters in addition to the traditional trade in goods and services.
The liberalisation of agricultural trade plays a key role in almost all agreements and negotiations. Agriculture and food matters are also related to the sections concerning sanitary and phytosanitary measures and negotiations on the protection of geographical indications. Unlike WTO negotiations, bilateral trade agreements usually do not include provisions on aid to agriculture.
The EU is currently negotiating free trade agreements with, among others, Indonesia, India, Thailand, Malaysia, and Australia. A political agreement on a partnership deal was reached with the MERCOSUR group in 2024.
In Finland, the Ministry for Foreign Affairs has the overall responsibility for trade policy and bilateral agreements, and the European Commission represents the EU in FTA negotiations. The Ministry of Agriculture and Forestry actively participates in the agreement preparations, particularly in matters concerning agriculture and SPS issues.
Useful external websites
The European Commission’s Directorate-General for Trade
The European Commission’s Directorate-General for Trade: countries and regions