Speech by President of the Republic of Finland Tarja Halonen at the opening of the Asia Europe Business Forum on 10 September 2006

I am delighted to address this top-level gathering of Asian and European business leaders at the tenth AEBF meeting. In a few hours, I will be welcoming the political leaders of 37 ASEM countries to the ASEM6 Summit.

Finland has traditionally had good and close relationships with Asian countries. Our bilateral trade has developed strongly, particularly in recent years. Finland has been a member of the European Union since 1995. The membership has also brought a new and important dimension to our Asian relations: ASEM cooperation. Our country has participated in all ASEM summits and now we have the special honour of hosting the largest ASEM Summit ever. I have personal memories already since the first meeting in Thailand.

I believe that the ASEM6 meeting will feature important informal discussions on a number of issues that our governments tackle every day. We value the informal nature of the ASEM forum. On the other hand, we also consider it important for the governments of the ASEM countries to establish a consensus in matters that can be promoted on a voluntary basis and by concerted efforts.

The economic pillar has always been an important part of ASEM cooperation. Trade and economic cooperation between Asia and Europe is significant for both continents; we are positively economically dependent on one another.

It has been of prime importance throughout the existence of the ASEM that the social partners have their forums and that their messages are heard. It is important for business and trade unions to shed light on the reality in which they operate so that governments can take decisions based on accurate information.

Over the past ten years, the Asia Europe Business Forum has done valuable work. This period has seen a considerable change in challenges and in problems. Restrictions and barriers to trade are nowadays mainly domestic, less tariffs and quotas, more “behind the border” –issues. The overall volume of trade and investments has increased many times over. Production has shifted particularly from Europe to many Asian countries. Globalization has had a good and bad impact on many forms of cooperation.

In fact, we need fair rules for globalization. Globalization should be a resource that promotes decent work, reduces poverty and unemployment and promotes growth and development. The rules governing globalization must be equitable. Adequate attention must be paid to the common good in multilateral rules concerning trade, investment and work.

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Our continents are linked by a number of challenges and opportunities. The importance of ASEM cooperation is that it provides a forum for exchanging ideas. Sustainable development and the availability of clean energy is a cause for concern for us all. We realize that investing in education, research and product development is a key response to this and many other challenges that have emerged with globalization.

Boosting innovation ability is essential for Europe to remain competitive in the world economy. Indeed, Europe still has a lot of work to do in this respect. We are happy to exchange ideas with the ASEM leaders on this topic and on the opportunities and challenges of globalization in general.

I consider the theme of this meeting very appropriate; it highlights the importance of cooperation in our future work. I am also happy to see plenary sessions on important matters such as globalization, competitiveness and energy. The ASEM will be discussing these same matters, and I hope that your discussions will result in a message that will make us think more clearly and better understand the realities of the business sector and the markets.

There is a long tradition of cooperation between social partners and the government in Finland. It is commonplace for us to meet, talk and try to establish a consensus on many economic and social issues. The government supports by its own policies long-term incomes policy agreements. This has proved to be a good way to develop the society and to strengthen societal tranquillity. The views of the business sector are valued and taken into account in government decisions. This is equally true of the views of the trade unions, which are also vital to the balanced development of society.

Finland has always emphasized the importance of education and expertise. In recent decades, we have invested heavily in research and development. We have also chosen to defend and develop the Nordic welfare society, which guarantees equal education and social security to all citizens. Furthermore, I believe that the welfare society is one of the main factors behind Finland’s development from a post-war agrarian society to the high-technology leader of today.

The transparency of our society and its low level of corruption mean that businesses have a stable and predictable operating environment in Finland. Democracy, human rights and the rule of law are important in our country. They are also the pillars of a healthy business environment, which is a requirement for ensuring economic growth and welfare.

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We Finns have realized for a long time that the business sector and the public sector are mutually dependent. Similar dependences between countries and continents have become increasingly important with globalization. We can no longer plan for the future without taking worldwide trends into account. Trade fluctuations between Asia and Europe, financial crises and possible obstacles or barriers to trade are immediately reflected in our own society and economy in many ways. Finland can no longer focus only on the importance of exports, even though we have traditionally relied heavily on them for our well-being. We are today increasingly reliant on imports too.

Finland has always been a supporter of gradual liberation of world trade. We believe that free trade and competition combined with appropriate social measures can contribute to welfare. We are very disappointed in the considerable difficulties that the World Trade Organization talks are facing. We hope that the absence of our friends Pascal Lamy and Peter Mandelson from today’s meeting is a sign that there are serious efforts underway to continue the talks. That would be in all our interests.

I wish you a successful meeting, and I hope it will reinforce the partnership between our continents on its journey towards sustainable development.