Trade policy and markets
To counter the tough international competition, the Swedish steel industry has been rationalised, year after year, and companies have specialised in niche products, which has led to enhanced productivity and world-leading highly finished products.
Large export share...
About 85% of the products that the steel companies manufacture – e.g. plate, strip, wire, rods, profiles and tube – are destined for export. During 2008 Sweden exported just over 4 million tonnes of steel to 140 countries to a value of SEK 69 billion.
...and a trade surplus
Since the Swedish steel industry concentrates on manufacturing specialised steel grades and products, steel of simpler qualities must be imported. In fact, around 85 per cent of all steel that is used in Sweden is imported.
The fact that Sweden exports highly finished steel and imports simpler products means that a significant trade surplus is generated every year. In 2008 this surplus amounted to SEK 26 billion.
Trade policy arenas
For the steel industry, a favourable trade policy climate with free trade is of particular importance. The EU’s trade policy is common for all member states since the EU is a customs union. Trade issues are managed by the EU Commission and the Council of Ministers in the EU. They are actively promoted by the steel industry’s European trade organisations i.e. Eurofer (the European Steel Association) and ESTA (European Steel Tube Association), within which Jernkontoret represents Swedish interests.
At the national level, Jernkontoret maintains close contacts with the Ministry of Foreign Affairs, the National Board of Foreign Trade - the Swedish expert authority for foreign trade and trade policy matters - as well as with the Confederation of Swedish Enterprise.
The World Trade Organisation (WTO), whose purpose is to promote an open world trading system with stable and fair rules, operates at the global level. For Sweden’s export-oriented steel industry it is essential that the international regulations on trade e.g. General Agreement on Tariffs and Trade (GATT), are maintained and followed.
