Implications Of Finnish Import Restrictions And Agricultural Protection On Agricultural Imports From Less Developed Countries

Finland, in spite of her small size, has developed rather diversified trade relationships with the industrialized countries. The main trade flows are to the European Economic Community (EEC), the European Free Trade Association (EFTA) and to the Socialist countries in East Europe. Finland became an associate member of EFTA in July 1961 and in October 1973, after the expansion of EEC with England, Denmark and Ireland, negotiated specials trade arrangements with the EEC to secure her future trade relations. This arrangement is mainly for forest-based industries and agricultural exports and to avoid the tariff increases on exports from England and West Germany. With the Socialist countries, the trade is based on bilateral agreements which define the composition and volume of the trade for two to five years and therefore is relatively free from year to year fluctuations. Finland, unlike many of the industrialized countries, does not have any historical or colonial relationships with the Less Developed Countries (LDC). Neither has Finland any industries which are entirely based on imported raw materials from LDC's. Consequently, the volume of trade with LDC's has not developed as fast as in some developed countries. This study deals with the import restriction in Finland which originate in or are closely related to the protection of domestic agriculture and therefore directly or indirectly restrict imports from LDC's.