— Minister for Foreign Trade and Development Kai Mykkanen.
By Nnanna Okere
Possible shifts in US trade policy, although directed against China, would have implications even for Finland, the Research Institute of the Finnish Economy (ETLA) estimates in its report “Shield the US from Imports! GDP Impacts on Finland and Other European Union Member States”, which was commissioned by the Ministry for Foreign Affairs and the Ministry of Economic Affairs and Employment.
The report speculates on the effects of protectionist trade policies and the implications for the European Union, China and Mexico of the possible punitive tariffs imposed by the United States. Protectionism is gaining ground in international trade policy, threatening the operations of the global value chains.
The global value chains are not only about transit exports: Finnish added value is exported to the United States even as part of third-country products. This means that Finland exports intermediate products first to third countries for refining and then to the United States.
“The United States is Finland’s largest export market in terms of added value. If the US imposed punitive tariffs on imports from China, for example, it would lead to countermeasures and there would be serious implications even for Finland and the entire EU. A trade war between the two largest economies in the world would also harm third countries,” says Minister for Foreign Trade and Development Kai Mykkänen.
It is possible to countermeasure trade protectionism, according to ETLA. “The United States has yet to take action. Considering the interdependence in international trade, it is vital for Finland that free trade continues,” says Minister of Economic Affairs Mika Lintilä.
ETLA estimates that if the US imposed a 45% punitive tariff on Chinese imports and a 35% tariff on Mexican imports, the added value of Finnish exports would decrease by USD 0.21 billion, corresponding to 0.09% of Finland’s GDP. However, Finland would not be the worst off in the EU; the tariffs would harm Ireland, Germany and Luxembourg the most. The impact of the punitive tariffs would be greater if the US imposed them directly on imports from the European Union. A tariff of 15%, at the most, on European imports would reduce the Finnish added value to an amount corresponding to 0.58% of Finland’s GDP.
In terms of added value, the US is the largest destination for Finnish exports, and nearly one third of these exports are channelled through global value chains and third countries. The United States, too, has expressed protectionist views, which means that protectionist impacts on trade may reach even Finland.
Diasporas urged to restore Nigeria’s glory
Diaspora Nigerians have been implored not to forget their pivotal role in the collective task of restoring Nigeria’s glorious past. They have instead been advised to shun the lure of momentary gains which will jeopardise this lofty ideal.
The appeal was made by the Coordinator of the Center for African Child and War Victims, Mr. Anthony Sopuruchi Anih in an event in Vaasa, Finland to commemorate Nigeria’s 57th Independence anniversary said it is a collective task of all Nigerians irrespective of ethnic or religious background to make Nigeria great.
According to Mr. Anih, any Nigeria who gets involved in illegal activities would certainly have lost the opportunity of being a part of the great effort at uplifting the glory of Nigeria before the world.
The Coordinator of the Center for African Child and War Victims (CFACWV) an NGO based in Finland however, urged Nigerians back home to embrace dialogue as the only option in resolving the country’s challenges in order to promote peace, harmony and development.
He said the country cannot do without peace, unity and stability adding that there is a clarion call throughout the universe to make peace with one another.
His words: “There is violence, crime, self-centered thoughts and evil desires because humanity has failed in the art of peace and refuse to understand the essence of living together in a society. We need peace among Nigerian ethnic groups for sustainable economic development”.
According to him “Nigeria faces economic recession, violence, hunger and political wobbling because the ethnic groups do not have each other’s interest at heart. Thus, children have fallen victims of such ugly situation. The best gift Nigeria can give her future generation is culture of peace. Children need good education, healthcare service, protection and above all humanity to trust”.
The climax of the event features songs and praises by Nigerians living in Finland, one of the highest gathering of Nigerians in recent times.
Italy launches first official migrant integration plan
The Italian government has presented its first official plan for the integration of migrants, with key objectives such as teaching respect for women and the Italian language to new arrivals in the country both on the agenda.
Interior Minister Marco Minniti said the ministry’s goal was “to erase the word ’emergency’ which is so often put together with the word ‘immigration”.
Speaking in Rome, he outlined three ways the government hopes to do this: through deals with Libya and other African countries aimed at managing migration, through a ‘welcoming policy’ in Italy, and through encouraging and facilitation integration with the newly announced National Integration Plan.
Rather than targeting all migrants, the plan is aimed specifically at people holding refugee or subsidiary protection status, of which there are almost 75,000 in Italy.
In return for agreeing to respect Italian values and play an active part in their new communities by working, volunteering, and socializing, migrants in this group will be put on waiting lists for homes and jobs. The plan has been financed with EU funds and put together with collaboration from various government ministries, local authorities, and non-governmental organizations.
Migrants signing up to the project agree to adhere to Italian values as set out in the Constitution, including the separation of state and religion, and gender equality.
Learning the Italian language is a right but also a duty for new arrivals in the country, the plan states. Migrants will be required to sign up to language classes held in reception centres while under-18-year-olds must be enrolled in the Italian school system.
In return, the state will recognize qualifications obtained in migrants’ home countries, offer testing to ensure they are enrolled in the correct level of language course, and give special support to those who are illiterate when they arrive in Italy.
The government has committed to extending the housing options available to migrants when they leave reception centres, by including holders of international protection status (this includes refugees) in regional authorities’ emergency housing plans.
The plan also calls for migrants to be “distributed equally across the territory” in order to make the initiatives sustainable and avoid overcrowding in particular regions or towns.
Unemployment remains high in Italy following the financial crisis, and is disproportionately elevated among foreigners. In the new plan, the government commits to promoting careers guidance, training and apprenticeship schemes for migrants, and offering specialized support to vulnerable categories including women.
While healthcare is already provided for asylum seekers in Italy, under the new plan the government pledges to acknowledge the vulnerability of many people in this category, and pay particular attention to mental health, people with disabilities, female genital mutilation, and victims of gendered violence
Norway wealth fund hits ‘milestone’ $1 trillion value
Norway’s sovereign wealth fund, the largest in the world, on Tuesday reached the value of $1 trillion dollars for the first time, the Norwegian central bank, which manages the fund, said.
This amount equals nearly $189,000 (157,000 euros) for each of the 5.3 million people living in Norway.
Established in the 1990s to manage the Norwegian state’s oil revenues, the fund set the record thanks to the appreciation of the world’s major currencies against the dollar and a good stock market health.
The fund mainly invests in stocks (accounting for 65.1 percent of the portfolio at the end of the second quarter), but also in bonds and real estate.
With stakes in nearly 9,000 companies, it owns 1.3 percent of the world’s market capitalisation, and 2.3 percent in Europe.
“I don’t think anyone expected the fund to ever reach 1 trillion dollars when the first transfer of oil revenue was made in May 1996,” Yngve Slyngstad, Chief Executive Officer in Norges Bank Investment Management, said in a statement.
This jumbo piggy bank is intended to finance Norway’s welfare state when the oil wells one day run dry.
The government, which pours all of its oil revenues into the fund, is allowed to draw only the equivalent of the expected financial returns, a ratio recently reduced from four percent to three percent.
“Reaching 1 trillion dollars is a milestone, and the growth in the fund’s market value has been stunning,” Slyngstad said.
Last year, for the first time, the government began withdrawing more from the fund than it put in, as oil revenues slumped due to the tumbling price of crude.
