Greater free trade and an improved single market

Sweden will continue to press for greater free trade and competition. The development of trade is an important driving force for good globalisation. We also want to develop our economic relations with the growing economies in Asia. At the same time, European Union members must pull down the remaining barriers to full implementation of the single market.

The Government's policy of favouring enterprise, external openness and technological development strengthens our country's chances of remaining a winner in the increasingly tough competition born of accelerating globalisation. More effective promotion of trade and investment is another favourable factor.

Creating freer trade is a fundamental component of Sweden's foreign policy. This is particularly true in times when protectionist trends seem to be growing in strength. It is therefore natural for the Government to have a key role in driving for constructive action by the European Union in the Doha negotiations. More open world trade will also contribute to growth in developing countries. It will be decided this spring whether an agreement can be reached.

The Government also continues to work in this spirit for further improvement of the Union's single market. A particular challenge here is to harness the growth potential of the services sector. Economic openness is a necessary condition for stronger competitiveness in the European Union. The Government is working for an external dimension to supplement the Lisbon Strategy. Over the past year this idea has gained increasing support in the Union.

One of the most striking features of globalisation is the return of the countries of Asia. In response, we are developing Sweden's political and economic relations with the growing Asian economies, not least with China and India, as well as with other advancing economies such as Brazil, Mexico, Korea, Indonesia and Thailand.

We are maintaining and further developing the good and close links we have long enjoyed with Japan. The European Union's negotiations on free trade agreements with India, South Korea and the ASEAN countries are very important. We also hope that the Union will be able to complete its negotiations on a free trade agreement with the Gulf Cooperation Council and that the Mediterranean free trade process will move forward.

Before the end of last year, the European Union succeeded in negotiating provisional agreements on economic partnership and free trade with a large number of countries in Africa and the Caribbean. This was a success. The work is continuing. The Government is working to make it possible to hold final negotiations on broad pro-development agreements this year.

With regard to the opportunities and challenges of globalisation, the Government's Globalisation Council will deliver regular proposals on how Sweden should deal with these.