Speech by President of the Republic Tarja Halonen at a luncheon hosted by President Luiz Inácio Lula da Silva in Brasília on 31 October 2003

To begin with I would like to thank you, Mr President, for the kind words that you addressed to Finland and to my myself personally. Our delegation has been received with traditional Brazilian hospitality, which is a good reflection of the friendship that exists between our nations and countries.

We had the pleasant opportunity to meet in January at the World Economic Forum in Davos. You arrived there straight from another significant occasion, the World Social Forum in Porto Alegre. These two cities symbolize our internationalizing world, which is characterized by strong interdependence between states, nations and citizens. And your message at both these forums was the same: change is possible everywhere, just as it was possible in Brazil. The people gave you a strong mandate which you have been using energetically to overcome your country's great economic and social problems.

Democracy, the rule of law and human rights have gained strength in Brazil and the entire region at the same time that the region's economies have opened up. Finland supports the negotiations between the European Union and Mercosul and hopes that they will lead to the conclusion of an association agreement next year. The goal of free trade would create better possibilities to increase commerce, investments and travel between our regions. As a country which is highly dependent on foreign trade, Finland also supports the development and strengthening of the multilateral trade system. We hope that negotiations concerning the Doha Round can be quickly restarted.

Finland and Brazil have traditionally cooperated closely in the United Nations and other international forums. We both consider it important to strengthen the position of the world organization as one of the most important protectors of international peace and security. We also share an interest in promoting sustainable development.

You, Mr President, have often been concerned about the negative consequences of globalization on people living in the poorest countries. Together with President Benjamin Mkapa of Tanzania I have the pleasure of co-chairing the World Commission on the Social Dimension of Globalization, which was established by the International Labour Organization. Our purpose is to present a vision of how globalization could act better as a force promoting prosperity, employment and growth around the world. I hope that the commission's report at the beginning of next year will provide a constructive contribution to make globalization correspond better to people's needs.

Large geographical distances are not an obstacle to developing friendship and cooperation between our countries. Finns admire Brazilians' industriousness, multifaceted culture, positive attitude towards life - and artistry on the football pitch. The tango, which has strong traditions in Finland, now faces competition from the samba schools that have been established in different parts of the country. Finns have even been referred to as the Latinos of the Nordic region.

Today relations between Finland and Brazil are good and active. This is mirrored by the fact that my visit is the second visit to your country by Finland's head of state in a little over six years. Last year the Vice President of Brazil visited Finland. An historical curiosity of early travel is the visit which Brazilian Emperor Pedro II paid to southeastern Finland in 1876 to admire beautiful rapids.

Brazil is Finland's biggest trading partner in Latin America. Although trade has developed favourably between our countries in recent years, the rapid growth of direct investments has been even more significant. Finnish industry sees Brazil not only as a large market but also as a country which offers good conditions for industrial operations.

The world's largest pulp mill is presently being built in Brazil in cooperation with Finns and Swedes. This investment costing over 1.2 billion dollars will bring in 500 million dollars a year in foreign earnings when it is completed. A Finnish mobile phone company has also become one of Brazil's major exporters. Around 40 Finnish companies provide employment for over 4,000 people in Brazil.

At the Summit on Sustainable Development which was held in Johannesburg in August 2002, a new type of partnership between Finland and Brazil was registered in the forest field, and a protocol concerning this will shortly be signed at the ministerial level.

Our industry's interest in Brazil is demonstrated by the high-level business delegation that has accompanied me, in which the most significant Finnish companies are represented. On Monday a Finnish-Brazilian business forum will take place in São Paulo to discuss the further development of trade and economic cooperation. Our countries have the potential for much greater economic interaction in the forest, telecommunications, energy, environmental and health care sectors, for example.

Our interesting talks this morning showed that Finland and Brazil share similar views on many international issues. This offers a firm basis for developing our bilateral relations. I believe and hope that my visit will further strengthen the friendship between our nations.

Allow me to propose a toast to President and Mrs Lula da Silva's health and to the happiness and success of the Brazilian people.