Thailand and SwedenA truly sustainable relationship!

The Swedish Government has recently adopted a new ambitious trade and investment strategy aimed at increasing trade and boosting the participation of Swedish companies in the global economy. Increasing trade and investment flows with Southeast Asia – a key growth engine for the world – forms an important part of this aim. Facing up to global trade tensions, it is more important than ever for staunch supporters of free and fair trade like Thailand and Sweden to jointly stand up for the open, rules-based and fair global trade regime that the wellbeing of our nations depends on. Sweden also supports resumed FTA negotiations between the EU and Thailand, a key step in broadening our relations.

First of all, free education for everyone has played an important role in raising awareness of the importance of sustainability among decision makers, the public and among the business community. Second, strong democratic institutions and a vibrant civil society have played a key role in fostering dialogue, support and solutions for sustainable development and also social dialogue. The third contributing factor is strong political leadership for equality and commitment to adopt economic instruments to foster the market incentives necessary to achieve results.

The Government can put regulations in place, but if they are developed in isolation without the proper input from industry, you risk ending up with something counterproductive that does not spur competition and innovation. Sustainability provides comparative advantages for companies and policy innovation can support development, but the technological innovation must be run by companies. The Swedish climate policy framework, which stretches until 2045, aims to provide clarity and support so that businesses can adapt and become more competitive in a green economy.

Climate change and the loss of biodiversity will affect security and wellbeing, the economy, health, food security and all aspects of life on this planet. It all comes down to the way we produce and consume the goods and services we need and want. Economic incentives are of paramount importance to create a level playing field for sound competition on a global market, and especially to involve developing countries.

Free, fair and sustainable trade constitute a key enabler to disseminate common standards, facilitate technology transfers and allow sustainable enterprises to access larger markets. Increased trade in green technology can also facilitate access to renewable energy and climate-friendly solutions at a lower price, which is crucial for a green transition. Trade policies can furthermore contribute to positive environmental effects by creating conditions for a more efficient use of resources across global value chains and by generating revenues for improved environmental measures.

I see how Swedish companies daily work with sustainability issues. For example, the reform of the EU Emissions Trading System (EU ETS) post-2020 in 2017 is a great achievement that I would like to particularly underline, championed by Sweden within the EU. The agreement from 2017 includes important measures for strengthening the EU ETS price signal and adapting the system to the Paris Agreement.

It is important to integrate climate into all policy areas. Removal of fossil fuel subsidies constitutes one of the most important policies to kick-start a sustainable development, reduce stress factors on the environment and promote the long-term health and competitiveness of the economy. One of the top Swedish environmental policy success stories is the carbon tax. Our experience in Sweden shows that a carbon tax can be easy to implement and administer at low costs to authorities and operators.

As many countries in the Southeast Asia are developing rapidly, the need for infrastructure is huge and the demand for solutionsin areas such as transport, healthcare and industry is increasing. These are all areas where Swedish businesses are in the lead, and the case is strong for them to expand or start their business in Southeast Asia. The Swedish Government launched the Global Deal initiative, a partnership of governments, businesses and employers’ organisations, trade unions, civil society and other organisations for social dialogue and inclusive growth. I really want to encourage more companies and organisations to join this initiative.

Sustainability is a matter of course, not only for policy makers and politicians but also for businesses and consumers. Sustainability is a key prerequisite for long-term prosperity which both the public and decision makers have realised, especially in light of recent issues such as heavy air pollution and increased flooding. Democratic participation and inclusive dialogues have played a key part in putting the issue at the top of the agenda, and Sweden has launched the Global Deal initiative. Highlighting the economic opportunities and how a sustainable transition unlocks new competitive advantages, increased efficiency and new job opportunities has been vital for securing a strong buy-in.

As Minister for Foreign Trade, I have seen how the pandemic has affected the way we work. The main opportunity for the environment in light of the COVID-19 crisis lies in the prospect of building back better by directing the large stimulus packages to investing in competitive, innovative and sustainable solutions. This presents a unique opportunity to make a decisive shift that benefits the long-term health of the economy, the people and the environment.