Both the government and business are hoping for a boost to exports to Canada as duties are waived on the world’s tenth largest economy. Despite protests the CETA agreement will be implemented in February and trade minister Ann Linde (S), says, “I believe that CETA will be a vitamin injection and a lift for Swedish exports to Canada, bringing both new jobs and more growth to Sweden.”
DI reports that exports to Canada fell by 23% between 2006 and 2015, something Ann Linde puts down to high duties and complicated procedures.
With just over ten weeks remaining until the election in the USA more economists are warning of the effects of a Trump victory. Many dread that, as promised, he will tear up existing trade agreements. Arne Bigsten, professor in economy at the Gothenburg School of Business, says, “Sweden is very integrated and very dependent on the world markets being open.”
Willem Buiter, head economist at Citigroup, predicts that global growth could fall by 0.7-0.8% if Trump wins, but warns that the world is facing more protectionism whoever wins. Professor Bigsten agrees: “It could lead to some kind of more or less declared trade war in which we trade less with one another.”