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Viewing cable 09STOCKHOLM83, SWEDISH TRADE MINISTER ON PROTECTIONISM, TRADE WITH IRAN,

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Reference ID Created Released Classification Origin
09STOCKHOLM83 2009-02-09 14:42 2011-08-24 01:00 UNCLASSIFIED Embassy Stockholm
VZCZCXRO6400
OO RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN
RUEHLZ RUEHNP RUEHPOD RUEHROV RUEHSK RUEHSR RUEHVK RUEHYG
DE RUEHSM #0083 0401442
ZNR UUUUU ZZH
O 091442Z FEB 09
FM AMEMBASSY STOCKHOLM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4095
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC IMMEDIATE
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
UNCLAS STOCKHOLM 000083 
 
DEPT PLEASE PASS TO USTR 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ETRD PREL IZ IR SW
SUBJECT: SWEDISH TRADE MINISTER ON PROTECTIONISM, TRADE WITH IRAN, 
AND INVESTMENT IN IRAQ 
 
1.  This cable contains an action request at para 4. 
 
2.  On February 3, Swedish Minister for Foreign Trade, Ewa Bjorling, 
discussed with Charge the following issues: 
 
-- Fears of protectionism 
 
Bjorling expressed Swedish concerns about protectionist tendencies 
detected in the "Buy American" language in the U.S. stimulus package 
working its way through Congress.  Charge replied that the White 
House is aware and is working on the issue.  He cautioned that 
Europe should also be vigilant regarding its fiscal stimulus 
measures. 
 
-- Trade in Environmental Goods and Services 
 
Charge noted that given the current focus on the climate issue and 
the huge importance of technology transfer to accomplish climate 
policy goals, we need to move forward reducing tariffs and barriers 
on environmental goods and services.  Charge expressed that unless 
we succeed, we will essentially be giving massive budgetary support 
to developing countries, by paying the tariffs.  Bjorling agreed, 
saying Sweden is interested in exploring this further. 
 
-- Trade and Investments in Iraq 
 
Charge and Bjorling discussed the encouraging developments on the 
ground in Iraq.  Bjorling told Charge that the GOS hopes to 
inaugurate the Swedish Embassy in Baghdad this year.  She is very 
pleased with her trade mission to Baghdad last year.  Truck 
manufacturer Scania signed a MoU for 500 Scania trucks with the 
Ministry of Industry, and Telecom giant Ericsson has a partnership 
to supply base stations to Korek.  In closing, Bjorling noted that 
doing business in Iraq still requires government to government 
engagement to a very large extent, and she said she hoped to return 
there soon. 
 
-- Iran trade and sanctions 
 
Ewa Bjorling raised trade with Iran, saying that "Iran is a major 
problem for the GOS."  The GOS is following all EU and UN sanctions 
decisions, she told the Charge, and even stopped export credits to 3 
Iranian banks before the EU-level sanctions were announced. 
However, Swedish businesses have a long-standing commercial 
relationship in the trucks and telecom industries.  Sweden is far 
from the top exporter to Iran in Europe, she said, singling out 
Belgium, Germany, and Italy.  However, she expressed concern about 
the fact that U.S. exports to Iran increased substantially in 2008. 
 
Charge noted that U.S. trade sanctions with Iran are far more 
restrictive than those of Europe's.  Charge explained that the 
reason for the increase in U.S. exports was primarily an increase in 
wheat exports.  The background is a liberalization of trade in 
agricultural and medical goods, intended to send a message that 
sanctions are aimed at the Iranian leadership, not its people. 
Wheat constituted 82 percent of total U.S. exports to Iran in 2008, 
without which the level of exports would have remained the same as 
in the previous five years. 
 
-- Bjorling trip to Washington 
 
Bjorling told us about a conference which she will host at the House 
of Sweden in Washington, D.C. on March 25, on the "The Future of 
Trade Policy".  Paul Krugman will give a keynote address; other 
senior level participants they hope for are EU Trade Commissioner 
Ashton, and WTO DG Pascal Lamy.  The Swedes hope to attract some 100 
high-level participants, and we understand the invitations are being 
sent out shortly. 
 
3.  Charge expressed appreciation for Bjorling's balanced approach 
to the Arab-Israeli issue, especially during the recent Gaza crisis 
(Note. For example in her internet blog entries, Bjorling has pushed 
back on Swedish opposition calls for boycotts of Israeli goods.) 
 
4.  Action request.  We recommend that Bjorling receive a senior 
State meeting during her late March trip to Washington, as well as a 
USTR meeting.  She is a strong supporter of European engagement with 
Iraq and of a moderate, balanced approach on the Arab-Israeli front. 
 
 
SILVERMAN