Finland was a province and then a grand duchy under Sweden from the 12^th to the 19^th centuries and an autonomous grand duchy of Russia after 1809. It won its complete independence in 1917. During World War II, it was able to successfully defend its freedom and resist invasions by the Soviet Union – albeit with some loss of territory. In the subsequent half century, the Finns made a remarkable transformation from a farm/forest economy to a diversified modern industrial economy; per capita income is now on par with Western Europe. As a member of the European Union, Finland was the only Nordic state to join the euro system at its initiation in January 1999.

COUNTRY NAME

Republic of Finland

Helsinki

Northern Europe, bordering the Baltic Sea, Gulf of Bothnia, and Gulf of Finland, between Sweden and Russia.

Total : 338,145 sq. km.
Land: 304,473 sq. km.
Water: 33,672 sq. km.

Cold temperate; potentially subarctic but comparatively mild because of moderating influence of the North Atlantic Current, Baltic Sea, and more than 60,000 lakes

Timber, iron ore, copper, lead, zinc, chromite, nickel, gold, silver and limestone

5,231,372 (July 2006 est.)

Finnish 92% (official), Swedish 5.6% (official), other 2.4% (small Sami-and Russian-speaking minorities) (2003)

NATIONAL HOLIDAY

Independence Day, 6 December (1917)

Republic

Executive Branch Chief of State: President Tarja HALONEN (since 1 March 2000)

Head of Government: Prime Minister Matti VANHANEN (since 24 June 2003) and Deputy Prime Minister Eero Heinaluoma (since 24 September 2005)

Cabinet: Council of State or Valtioneuvosto appointed by the president, responsible to parliament

Elections: president elected by popular vote for a six-year term (eligible for a second term); election last held 15 January 2006 (next to be held January 2012); the president appoints the prime minister and deputy prime minister from the majority party or the majority coalition after parliamentary elections and the parliament must approve the appointment

Legislative Branch Unicameral parliament or Eduskunta (200 seats; members are elected by popular vote on a proportional basis to serve four-year terms)

Elections: last held 16 March 2003 (next to be held March 2007)

Judicial Branch Supreme Court or Korkein Oikeus (judges appointed by the president)

International Organization Participation: AfDB, Arctic Council, AsDB, Australia Group, BIS, CBSS, CE, CERN, EAPC, EBRD, EIB, EMU, ESA, EU, FAO, G-9, IADB, IAEA, IBRD, ICAO, ICC, ICCt, ICFTU, ICRM, IDA, IEA, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, Interpol, IOC, IOM, IPU, ISO, ITU, MIGA, NAM (guest), NC, NEA, NIB, NSG, OAS (observer), OECD, OPCW, OSCE, Paris Club, PCA, PFP, UN, UNCTAD, UNESCO, UNFICYP, UNHCR, UNIDO, UNMEE, UNMIL, UNMIS, UNMOGIP, UNTSO, UPU, WCO, WEU (observer), WFTU, WHO, WIPO, WMO, WTO, ZC

Finland has a highly industrialized, largely free-market economy with per capita output roughly that of the UK, France, Germany, and Italy. Its key economic sector is manufacturing-principally the wood, metals, engineering, telecommunications, and electronics industries. Trade is important; exports equal two-fifths of GDP. Finland excels in high-tech exports, e.g. mobile phones. Except for timber and several minerals, Finland depends on imports of raw materials, energy, and some components for manufactured goods. Because of the climate, agricultural development is limited to maintaining self-sufficiency in basic products. Forestry, an important export earner, provides a secondary occupation for the rural population. Rapidly increasing integration with Western Europe – Finland was one of the 12 countries joining the European Economic and Monetary Union (EMU) – will dominate the economic picture over the next several years. High unemployment remains a persistent problem.

GDP (purchasing power parity) $161.5 billion (2005 est.)

GDP (official exchange rate) $184.2 billion (2005 est.)

GDP – real growth rate $2.2% (2005 est.)

GDP – per capita (PPP) $30,900 (2005 est.)

Inflation rate (consumer prices) 0.9% (2005 est.)

Born December 24, 1943

Married, one daughter, born 1978

Master of Laws, University of Helsinki, 1968

Member of the Finnish Social Democratic Party 1971-2000

Minister for Foreign Affairs 1995-2000

Minister of Justice 1990-1991

Minister of Nordic Cooperation 1989-1991

Minister at the Ministry of Social Affairs and Health 1987-1990

Member of Parliament 1979-2000

Chairman of the Parliamentary Grand Committee 1995-1995

Chairman of the Parliamentary Law Committee 1991-1994

Chairman of the Parliamentary Social Affairs Committee 1984-1986

Member of the Helsinki City Council 1977-1996

Prime Minister’s parliamentary secretary 1974-1975

Lawyer with the Central Organization of Finnish Trade Unions SAK 1970-1974 and 1975-1979

Social Affairs Secretary and General Secretary of the National Union of Finnish Students 1969-1970

Honorary positions

The Oslo Center for Peace and Human Rights, member of the board, 2006 –

Member of the "Panel of Eminent Persons" of the United Nations Conference on Trade and Development (UNCTAD), 2005-

World Commission on the Social Dimension of Globalization (ILO), Co-Chair, 2002-2004

Member of Representative Body of the Cooperative Retail Company Elanto since 1975, Member of the Supervisory Board 1980-96

Member of the Board of Directors of the International Solidarity Foundation

Chairman of the TNL Theatre Organization.

Honorary degrees

State University of Yerevan, Armenia, 2005

University of Tartu, Estonia, 2004

University of Bluefiels, Nicaragua, 2004

University of Turku, Faculty of Law, 2003

Finlandia University, USA, 2003

Chinese Academy of Forestry, Beijing, 2002

ELTE University, Hungary, 2002

University of Kent, U.K. 2002

Ewha Womens University, Republic of Korea, 2002

Helsinki School of Economics, 2001

University of Helsinki, Faculty of Law, 2000

Interests

Her interests include the history of art and she enjoys drawing and painting. Among her other interests are theatre and swimming.

The initiative for the Asia-Europe Meeting (ASEM) was proposed by Singapore in October 1994 and subsequently, endorsed by the ASEAN countries in March 1995. The objective was to establish a clear and open channel of dialogue between Europe and Asia – the "missing link" in the triangular global relations between Europe, North America and Asia – complementing what Asia had already established with America within the APEC framework.

ASEM is an informal process of dialogue and cooperation bringing together the ASEAN + 3 countries, the EU’s 25 member states and the European Commission. Since the first Summit, ASEM has become a platform for closer and constructive engagement between Asia and Europe in addressing issues of common interest and concern. ASEM cooperation and dialogue is structured along three pillars, i.e., political, economic and cultural, with the objective of strengthening the relationship between the two regions, in a spirit of mutual respect and equal partnership.

The ASEM dialogue addresses political, economic and cultural issues, with the objective of strengthening the relationship between the two regions, in a spirit of mutual respect and equal partnership. ASEM has provided the Philippines with a forum where it can:

a) Engage in substantial political dialogue with Asian and European countries on international issues of common concern;
b) Strengthen economic relations with Europe (through trade and investment facilitation, cooperation in sanitary and phytosanitary standards, customs procedures, dialogue on WTO issues and SMEs promotion);
c) Establish cooperation with European and Asian countries in various sectors which can facilitate human resource development, technology transfer and capacity-building programs;
d) Increase civil society and cultural/educational networks with Asian and European countries; and
e) Formulate initiatives which can further the country's strategic interests and promote a positive image of the Philippines and the region.

Since its establishment in 1996, ASEM has had a total of five (5) Summits. The first (ASEM I) was in 1996 in Bangkok, the second (ASEM II) was held in 1998 in London, the third (ASEM III) in 2000 in Seoul, the fourth (ASEM IV) 2002 in Copenhagen, and the fifth (ASEM V) in 2004 in Hanoi. Summits are held every two years. ASEM also conducts Foreign Affairs, Economic, Finance, Culture, Labor, Environment, Science and Technology Ministerial Meetings, as well as regular senior officials’ meetings.

The first ASEM Summit was held in Bangkok on 01-02 March 1996. President Fidel V. Ramos headed the Philippine delegation. ASEM I forged a new comprehensive "Asia-Europe Partnership for the Greater Growth". The main goal of this partnership was for Asia and Europe to share the responsibilities in building greater understanding between the peoples of both regions through closer people-to-people contacts, by way of (1) political dialogue; (2) economic cooperation; and (3) cooperation in other areas science and technology, environment; development cooperation; and cultural and educational exchanges.

President Ramos raised three possible (3) initiatives in ASEM: Asia-Europe Management Programme at the Asian Institute of Management (AEMP-AIM); Networking, Technology Exchange and Training among SMEs in Asia and Europe; and Marine Environmental Cooperation in the Seas of East Asia.

The second ASEM Summit was held in London on 02-04 April 1998. Senate President Neptali A. Gonzales attended in behalf of President Fidel V. Ramos. It reaffirmed the Asia-Europe partnership in carrying forward the three dimensions of political, economic and cultural dialogue. The review of progress made since the inaugural meeting revealed an increasing number of concrete activities which had been undertaken to strengthen links between the two regions.

The following were the highlights of ASEM 2:

A. Cooperation on the Financial Crisis in Asia

The Leaders' Meeting was dominated by discussions on the financial crisis in Asia. The Leaders agreed on the following:

1. Creation of an ASEM Trust Fund at the World Bank to help finance technical assistance on the restructuring of the financial sector and in addressing the social impact of the crisis,
2. Dispatch of high-level European business missions with a view to enhance investment projects in Asia from Europe, particularly in countries affected by the crisis,
3. Reform of the international monetary and financial system, particularly the need to reduce vulnerability of domestic financial systems to speculation-induced instability and to prevent countries from becoming victims of speculative sectors.

B. Reinforcement of Economic Cooperation

Leaders affirmed that trade and investment are vital for the future prosperity of both regions. They adopted the Trade Facilitation Action Plan (TFAP) and the Investment Promotion Action Plan (IPAP).

C. Promoting Cooperation on Global Issues

Leaders attached importance to the need to cooperate on global issues such as the environment, transnational crimes, human resources development, including management education, the fight against poverty, food supply, and the promotion of the welfare of women and children. The last four issues were Philippine inputs, which were reflected in the Chairman's Statement.

The Leaders welcomed the launching of the RP-UK Joint Initiative on the Promotion of the Welfare of Children, which commenced with a Preparatory Meeting on 15-16 June 1998 in Manila, followed by an Experts' Meeting in London on 04-06 October 1998.

D. Cooperation on Social and Cultural Issues

Leaders stressed the need to promote the human dimension in ASEM. They recognized the importance of strengthening links between the civil societies in both regions.

The Chairman's Statement included Philippine inputs on increasing exchanges of think tanks, research groups and universities. It noted the establishment of the Asia-Europe Management Programme at the Asian Institute of Management, which President Ramos announced two years ago during the Bangkok Summit.

E. Fostering Political Dialogue

Leaders had open discussions on regional and international security issues, such as the developments in Kosovo, Cambodia, the Korean Peninsula, EU enlargement and dialogues among Asian countries, including the expansion of ASEAN.

European Leaders assured Asian Leaders that the moves towards EU enlargement and the launching of a single European currency will not lead to an inward-looking Europe. European Leaders also welcomed the increasing interaction among Asian countries to enable Asians to agree on common positions and lessen the possibility of conflicts.

The Leaders welcomed the Philippine and Belgian proposed ASEM seminar on "Peace and Society Building."

THIRD ASEM SUMMIT

The Third ASEM Summit was held in Seoul, Republic of Korea, on 20-21 October 2000. Then Secretary of Foreign Affairs Domingo Siazon, Jr. attended in behalf of President Joseph E. Estrada.

The ASEM 3 Leaders adopted the Asia-Europe Cooperation Framework (AECF) 2000 which reaffirms the principles and objectives of ASEM, and sets forth ASEM’s Medium-Term Work Programme and activities. The principles for future ASEM enlargement were also embodied in the AECF, taking note of Asia’s proposal for the inclusion of Cambodia, Laos and Myanmar in ASEM. Lastly, AECF recorded the Leaders’ decision to enhance ASEM cooperation by instructing the foreign, economic and finance ministers to meet on a regular basis.

The Seoul Declaration for Peace on the Korean Peninsula was also adopted wherein ASEM Leaders agreed that peace and stability on the Korean Peninsula would greatly enhance the peace and stability of the Asia-Pacific region, and of the world as a whole.

Sixteen (16) new initiatives were endorsed at ASEM III, while seven (7) others were "noted".

On political issues, the Chairman’s Statement welcomed the 1^st Inter-Korean Summit held in June 2000 and the progress toward the restoration of peace and stability in East Timor, cooperation in southeastern Europe, and strengthening of regional and global initiatives on arms control. The ASEM Leaders’ reaffirmed their commitment to the purposes and principles of the United Nations Charter.

On the economic and financial areas, the Chairman’s Statement emphasized increasing investment flows, cooperation in information and communications technology, and promoting further trade liberalization through a new round of multilateral trade negotiations and noted Asia’s recovery from the financial crisis. Increased social and cultural cooperation among ASEM Partners through academic and student exchanges, human resources development and intellectual exchanges was called for in the Chairman’s Statement.

FOURTH ASEM SUMMIT

The Fourth ASEM Summit was held in Copenhagen, Denmark on 22-24 September 2002. The Philippines was represented by Secretary of Foreign Affairs Blas Ople.

The ASEM Leaders jointly endorsed the following outcome documents of the Summit: 1) Chairman’s Statement; 2) the ASEM Copenhagen Declaration on Cooperation against International Terrorism, to which is annexed the ASEM Copenhagen Cooperation Programme on Fighting International Terrorism; and 3) the ASEM Copenhagen Political Declaration for Peace on the Korean Peninsula. The two main themes of the Summit were globalization and counter-terrorism.

Following are the highlights of discussions:

Political dialogue

Counter-terrorism: The Leaders unanimously reaffirmed their commitment to battle terrorism in all its forms, and to work closely to attain global peace and security, sustainable economic development and political stability. They acknowledged the leading role of the United Nations and the principles of the UN Charter in the fight against terrorism and saw the need to jointly address terrorism’s root causes.

Korean Peninsula: Prime Minister Junichiro Koizumi of Japan briefed ASEM partners on his historic visit to Pyongyang on 17 September, which was highlighted by Kim Jong Il´s apology for abductions of Japanese nationals by North Korean operatives in the past. Noting the positive changes in North Korea, Prime Minister Koizumi called on the United States to resume talks with North Korea. President Kim Dae Jung expressed optimism at the unfolding North-South rapprochement, describing the situation as "moving away from conflict towards reconciliation" and "stable and developing," with Kim Jong Il adopting a "positive approach" in North Korea´s external relations. South Korea espoused its vision of an "Iron Silk Road" that will not only link North and South Korea, but Europe to Asia as well.

Iraq: The Leaders’ shared view was to favor multilateralism (action through the United Nations Security Council to ensure that Iraq complied with all resolutions and immediate readmission without any conditions and freedom of movement within Iraq of weapons inspectors). Due to some nuances in opinion, the ASEM Leaders decided not to issue a statement on Iraq.

Euro: The Leaders noted that the foreign reserves of Asian countries have started to include the Euro. Prime Minister Mahathir of Malaysia proposed the creation of a study group that will examine the impact of the increased use of the Euro in the world economy.

Dialogue on Cultures and Civilizations

A new format was introduced in ASEM 4, namely, a luncheon retreat session under the heading "Dialogue on Cultures and Civilizations." In this informal setting, Leaders emphasized that cultural diversity is an asset of humanity and that "unity in diversity" can and should be achieved to ensure peace and prosperity for all nations. The Leaders decided to pursue the idea of an ASEM Youth Games to foster closer contacts especially among the youth of Asia and Europe.

Dialogue on Economic Matters

The Leaders expressed their intention to revitalize their economies and further enhance economic relations between Asia and Europe. They pledged to continue efforts to complete the WTO Doha Development Agenda, and provide trade-related technical assistance and capacity-building programs to developing countries

Social, cultural and educational cooperatio

Leaders reaffirmed their commitment to strengthen people-to-people linkages between Asia and Europe through increased educational exchange by supporting the ASEM DUO Fellowship (Denmark pledged 4 million kronors for a period of three years as financial support for the program), and Japan’s new initiative for an ASEM Seminar on Educational Exchange, which will take stock and establish a database of all educational exchanges between Asia and Europe. On the environment, Leaders reiterated their commitment to keep their focus on environmental matters and full participation in the 2nd ASEM Environment Ministers Meeting.

FIFTH ASEM SUMMIT

The ASEM 5 Leaders’ Summit was held on 8-9 October 2004 in Hanoi, Vietnam. The event was themed "Further Revitalizing and Substantiating the Asia-Europe Partnership."

Leaders had the opportunity to discuss developments in the EU, ASEAN, ASEAN + 3, Myanmar, Korean Peninsula, terrorism, reform in the United Nations Security Council, environment, sustainable development, energy security, WTO Doha Round, economic relations between Asia and Europe, and dialogue between cultures and civilization.

Leaders agreed that ASEM’s potential to forge stable and strong links between Asia and Europe had not been fully tapped.

Leaders endorsed the concept of an ASEM "closer economic partnership," which expands cooperation into sectors such as SME’s, energy security, and discussions on possible ASEM free trade by 2025.

The Philippines, through the Department of Foreign Affairs (Office of European Affairs), and in consultation with the Department for Environment and Natural Resources (DENR) and the Maritime and Oceans Affairs Center (MOAC), drafted a concept paper for an ASEM OCEANS Initiative which seeks to promote Asia-Europe cooperation and dialogue in ocean governance, marine environmental protection and marine scientific research.

At FMM6 in Ireland, the Philippines’ proposal for an ASEM Oceans Initiative was noted and was placed on the agenda for the 5^th ASEM Leaders Summit t on 8-9 October 2004 in Hanoi. The Philippine ASEM Oceans Initiative, co-sponsored by Indonesia and Portugal, was officially endorsed during the 7^th ASEM Foreign Ministers’ Meeting held in May 2005 in Kyoto, Japan.

The Philippines eventually hosted the 1^st ASEM Technical Working Group Meeting on the ASEM Oceans Initiative on 29-31 March 2006 in Makati City. The meeting had 74 participants from 23 countries and the European Commission (EC). Representatives from the United Nations Environmental Programme (UNEP) and the Partnership in Environmental Management of the Seas of East Asia (PEMSEA) attended the meeting as observers and experts.

Portugal will host the 2^nd Technical Working Group Meeting of the ASEM Oceans Initiative.

The Manila Vision and Action Plan (MVAP)

The Manila Vision and Action Plan (MVAP) contains a whole menu of proposals, programs, and projects (which complements and maximizes use of existing cooperation and dialogue in various fora) that may be pursued by ASEM partners, individually or collectively, in areas of ocean governance, marine environmental protection and marine scientific research.

At the Second ASEM Summit in London on April 1998, the Philippines, together with the United Kingdom, proposed an ASEM Child Welfare Initiative that was endorsed by the ASEM Leaders. The initiative aims to foster closer collaboration amongst ASEM partners in sharing best practices and expertise in promoting child welfare including combating child abuse.

The Philippines hosted the ASEM Experts’ Meeting on Strengthening the Judicial Protection of Children on 3 -5 March 2003 in Manila. The experts’ meeting provided a forum for government, international organizations and non-government organizations to exchange experience on best practice models in promoting child welfare through the judicial system and focused on mobilizing international cooperation -- from debate to collaborative action in training, assistance, education and other undertakings.

3. Initiative to Combat Trafficking in Women and Children

During the ASEM 3 Leaders’ Summit in Seoul in October 2000, the ASEM Initiative to Combat Trafficking in Women and Children, co-sponsored by the Philippines, Sweden and Thailand, was endorsed.

In November 2000, a Core Group of Experts’ meeting convened in Stockholm to discuss the ASEM Initiative to combat trafficking in women and children. The meeting was attended by ASEM partners, NGOs and other international organizations, such as End Child Prostitution, Child Pornography and Trafficking in Children for Sexual Purposes (ECPAT) and INTERPOL.

The Experts’ Meeting welcomed the adoption of the United Nations Convention Against Transnational Crime. It also concluded that this ASEM Initiative could complement existing initiatives by focusing on two main factors a) gender equality and the role of cultural values and b) the demand factor. It was agreed that these two factors had either been overlooked or discounted in other global initiatives on trafficking. It was the Philippines that insisted that this ASEM initiative focus on the demand factor and proposed that ASEM partners consider the possibility of creating a fund from countries on the demand side for the reintegration of trafficked women into normal society.

As one of the follow-up activities of the ASEM Action Plan, a conference entitled "ASEM Seminar on Enhancing Support and Cooperation for Strengthening Social Policies to Assist Trafficked Women and Children" was held in Bangkok on 01 -0 3 September 2003. The conference focused on recovery, repatriation and reintegration of victims of trafficking and models of Government - NGO cooperation.

At the 5^th ASEM Leaders’ Summit in Hanoi in 2004, Leaders expressed their concern that the global HIV/AIDS epidemic, through its scale and impact, constitutes a global emergency. They noted that HIV/AIDS provides a formidable challenge to human life and dignity, undermining social and economic development throughout the world and affecting all levels of society. The Leaders also reaffirmed their commitment to the implementation of the Declaration of Commitment issued at the UN General Assembly Special Session on HIV/AIDS (UNGASS) in 2001 and they agreed that the fight against HIV/AIDS should feature in the framework of ASEM cooperation.

The first step of this commitment was the holding of the 1^st ASEM Workshop on HIV/AIDS in Ho Chi Minh City on 22-23 November 2005 organized by Vietnam and co-sponsored by The Netherlands, the Philippines, and Sweden, with technical assistance from UNAIDS in Vietnam.

The 2^nd ASEM Workshop on HIV/AIDS will be held in Stockholm in 2007.

5. Initiative for Strengthening Cyber Security within the ASEM Region

The Initiative for Strengthening Cyber Security within the ASEM Region was a joint proposal of China, Germany, South Korea, Singapore, the Philippines, Poland and Portugal and was endorsed during the ASEM 5 Summit in Hanoi in 2005.

The 1^st ASEM Cyber Security Workshop was held on 23-24 June 2005 in Seoul. The workshop discussed possibilities of building a cooperative response system among Asian and European countries in order to address the emergence of various cyber threats such as hacking and proliferation of malicious codes in the Internet due to its nature as an inter-connected system.

6. The ASEM Interfaith Dialogue

ASEM Leaders endorsed the ASEM Initiative on Interfaith Dialogue proposed by Indonesia and the United Kingdom during the 5^th ASEM Leaders’ Summit (ASEM 5) in Hanoi. President Gloria Macapagal-Arroyo strongly supported this initiative during the Summit.

As a sign of the President’s commitment, the Philippines was one the 11 co-sponsors of the 1^st ASEM Interfaith Dialogue themed "Building Interfaith Harmony Within the International Community" was held in Bali, Indonesia on 21-22 July 2005. The Philippines again co-sponsored the 2^nd ASEM Interfaith Dialogue in Larnaca, Cyprus on 03-05 July 2005. The theme for this year’s event was "Interfaith Understanding and Cooperation for a Peaceful World." The Dialogue’s main objective was to take stock of the conclusion reached in the 1^st ASEM Interfaith Dialogue in Bali and progress made towards implementation of the first Dialogue’s recommendations.

7. ASEM Information Board

The idea for an ASEM Information Board can be traced back to a Philippine proposal in 2000 to establish an ASEM SOM monitoring mechanism for initiatives. The idea gradually evolved and a detailed concept paper was drafted by OEA in June 2002. The paper proposed that a two-phased approach be implemented in setting up the ASEM Information Board:

1. That all ASEM–related websites be linked; and
2. That a comprehensive central repository of information on ASEM be established.

8. ASEM Permanent Secretariat

The Asia-Europe Framework of Cooperation of 2000 (AECF 2000) ruled out the need for the institutionalization of ASEM owing to its structure as an informal dialogue process. Since the ASEM IV Summit in 2002, ASEM member countries have been constantly calling for better working methods and the improvement of ASEM institutional mechanisms.

In her intervention during the ASEM V Summit in Hanoi, H.E. President Gloria Macapagal-Arroyo called for the institutionalization of the ASEM process through the establishment of a permanent ASEM Secretariat and announced that the Philippines was ready to host it.

I. POLITICAL RELATIONS

Diplomatic relations between the Philippines and Finland were established in 1946.

The Philippine Embassy in Stockholm, Sweden headed by Ambassador Victoria S. Bataclan, has diplomatic and consular jurisdiction over the Nordic and Baltic States. Mme. Bataclan is the Ambassador-designate to Sweden, which has jurisdiction over Finland, Norway, Denmark and the Baltic States.

Philippine relations with Finland have always have been friendly and cordial, nurtured by a shared commitment to the ideas of democracy and human dignity.

However, there is much room for improvement in the area of trade relations and that trade balance has consistently been in favor of Finland in the past five years. Nokia is the world’s largest buyer of electronic components whereas the Philippines supplies 12% of global demand for semi-conductor.

Exchange of Visits

Philippine Government Officials who Visited Finland:

Finnish Government Officials who Visited the Philippines:

BILATERAL MERCHANDISE TRADE (Value in US Dollars):

Source: DTI, Tradelinephil

TOP 5 PHILIPPINE MERCHANDISE EXPORTS TO FINLAND
FOB Value in US Dollars
2005

• Processed food (marine products, fruits, etc.);
• Sports shoes and other sportswear;
• Food Supplements;
• Organic products; and
• ICT products and services

B. INVESTMENTS

Finland has not been aggressive in expanding business operations in the Philippines compared with other EU member-countries, as illustrated in its investment profile over the past five (5) years. Finnish investments were concentrated in the public sector. It is worthy to note, however, the presence of NOKIA Philippines, Inc. which is 100% subsidiary of said Finnish Multinational in the Philippines. NOKIA marked its presence in the Philippines in the beginning of 1994 when it signed a US$100 million equipment contract for the first phase of the US$100 million digital cellular mobile telephone network for Globe Telecom and NOKIA Philippines.

Nokia Philippines has a 40% owned sister company, which is Site-Con, for site construction purposes. Nokia, furthermore, is partly outsourcing its production of components to Philips Laguna and Texas Instruments in Baguio.

A summary of Finnish Investments in the Philippines under E.O. 226 and RA 7103 are as follows:

TOTAL BSP-REGISTERED INWARD FOREIGN DIRECT INVESTMENT FROM FINLAND
(Amounts in Million US Dollars)

• Nokia Telecommunications, which continues to be involved in Globe Telecom’s GSM network and fixed telephone line project.

• IVO Power, which had finished a Scada-EMS power project in Mindanao, financed by ADB. They are looking for future commercial projects to undertake in this sector.

• KEMIRA Chemicals, a major Finnish chemical company project in Mindanao, which, following the visit of the Finnish Minister, entered into a joint-venture project worth Php400m for bottled water production with CHEMPHIL.

• WÄRTSILÄ NSD has delivered 1,600.54 megawatts of diesel engines in the past nationwide in various power and industrial projects.

The Agreement was signed on 25 March 1998 by the Finnish Secretary of State, Mr. Valtasaari and DTI Undersecretary Melito Salazar, immediately following the call of Foreign Affairs Minister Valtasaari on President Fidel V. Ramos. It entered into force on 16 April 1999.

The main objective of this Agreement is to maintain favorable conditions for investment by investors of the two countries and to recognize that the encouragement and protection of such investments on the basis of this agreement will be conducive to the stimulation of business initiatives, transfer of capital and technology, between both countries.

The Agreement has contributed towards a favorable and good investment climate for both countries. However, except for NOKIA, Finnish investments in the Philippines are still negligible.

The Philippines currently does not enjoy a "program country" status with Finland and is therefore not a regular recipient of Finnish ODA. Development cooperation activities in the country are generally coursed through multilateral organizations such as the International Labor Organization (ILO) and United Nations Industrial Development Organization (UNIDO).

Some completed & ongoing projects are: