The Minister of Finland of Trade and External Development, Tavio City, has put pressure for an early conclusion from India, the free trade agreement of the European Union and hoped that “flexibilities” reach “halfway”. Addressing Sidhant Sibal from Wion to Helsinki, Minister Tavio said: “Looking at geopolitical agitation”, Finland was “one of the countries that recommended for the EU, India FTA for a long time, and we set to the EU, by us, that we need to have a certain flexibility when we build the FTA”. The EU is the largest trading partner in India and the ALE’s objectives, among other things, include the reduction in prices and higher access to the market.
The minister spoke at length about Trump’s trade policies. Expressing concerns, he said, “You must have some conventional economy confidence, where you understand that you cannot make everything by yourself.” The American president, earlier this month, announced reciprocal prices around the world, sending shock waves in the world markets. He then announced a break to conclude trade agreements with countries and blocks like the EU. Complete maintenance:
Sidhant Sibal: How do you see India, the Finnish relationship in terms of commercial links?
Tavio city: It is a very important relationship. I had the pleasure of visiting Delhi with a commercial delegation a little over a year ago, and I noticed that we have a wide variety of companies that can work together. And of course, we have industries that we are very good at telecommunications, the renewable economy, the circular economy and the innovative technologies that we can share with our countries.
Sidhant Sibal: You have the Desi initiative, which is digitization, education, sustainability and innovation. Now Desi is also a Hindi word. So, can you explain our viewers, the desi strategy for India by Finland?
Tavio city: Thus, the desi strategy was founded by our regional team, which means digitization, education and sustainability and innovation. They therefore wanted to bring together our exports under this umbrella. I also wondered what Desi means, but that means something very local. It is a common word and a positive word for cooperation in Finland in India.
Sidhant Sibal: India is engaged with Finland. How do you see Indian investments in Finland?
Tavio city: I have met some companies that have now invested in Finland, and these are IT companies. You know, we are digital runners around the world, and we also have a very digitized public sector. Many services are available in digital format. For the moment, in fact, we are considering, for example, that you can request the digitally divorce. I do not know how common is, but I think it’s a new innovation, but I hope not to deposit too much divorce.
Sidhant Sibal: What is your opinion on the free trade agreement of India?
Tavio city: Looking at geopolitical disorders, Finland has been one of the countries that recommended for the EU, India has long been, and we set in the EU, by us, that we must have a certain flexibility when we build the FTA. The two parties must be a little halfway in order to make compromises, because unless we do it, we find ourselves in a worse state.
Sidhant Sibal: Donald Trump announced the prices. Of course, he also interrupted the prices. What is Finland’s position on the prices that have been announced? How much it can be disruptive not only for Finland, but the European Union?
Tavio city: The amount of prices is the same for everyone in the EU and it has a negative impact. Everyone understands that we do not want excess rates. We prefer to move on to a more open business. Finland recommends that we are a very free country of mind, since we started our industries, and now we hope that an agreement can be negotiated as the United States probably wish, but we are still examining the situation. You know, it changes so quickly. So, every day, we have different news, but it can certainly disrupt European trade, but also world trade. So, of course, we are very worried about the disturbances of world trade, because it will also have an impact on everyone. You have to have some conventional economy confidence, where you understand that you cannot make everything yourself. So I think we cannot abandon this idea. This is the principle of our global growth. And I understand that countries, India also, as a large country, have a certain interest in keeping a lot of manufacturing, all these things related to security as possible, but you must be careful. There is a thin red line when it is crossed, it means that the trade will stop and that everyone will lose.
Sidhant Sibal: How do you see the break and do it give the EU space to have a commercial agreement?
Tavio city: Yes, it’s very possible, but nothing is certain. For the moment, when these talks have also opened the negotiations, you can see them as a negotiation, we will see if it is possible to get a good deal. I mean, a lot of people in the United States would also argue against taxes. I mean the prices, but the prices are ultimately taxes for businesses, taxes for people, so they tend to increase inflation as well.
Sidhant Sibal: How do you see China, the American trade war?
Tavio city: First of all, we understand that the United States has a large trade deficit with China, which is not very lasting. And I think that the current model of cheap manufacturing in China is not the most sustainable in many aspects, but for the European Union, we share some of these problems for sure, and one of the possible consequences is, of course, that if, China will have the capacity, they could try to sell even cheaper products on the EU market. This could also cause market disturbances.
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