Negotiating bilateralism: the Finnish-Soviet clearing trade and payment system, 1952–1990

Finland and the Soviet Union had a special trade partnership based on bilateral clearing trade and payment system and five-year agreements 1952–1990. While other market economies, and eventually even socialist countries, opted for multilateral trade and convertible currencies, the clearing system was popular in Finland until its termination. The end of the bilateral trade was a surprise for many, but this article shows how the continuance of the Finnish-Soviet bilateral trade had been under discussion from the 1960s onwards. This article examines the agency and attitude of the Finnish foreign trade administration in questions related to the continuance of the bilateral trade system. It underlines three aspects. Firstly, the bilateral clearing trade and payment system was not self-evident but a choice and as a choice it had political and economic consequences. Secondly, the decision to maintain the clearing system was a negotiation and in this negotiation both Finland and the Soviet Union had agency. Finally, the meanings connected to the clearing trade and payment system were not stabile but changed over time.