GÄST I FORUM FÖR EKONOMI OCH TEKNIK Transatlantic Economic Relationship Earle I. Mack U.S. Ambassador to Finland Things are not always what they appear. Sometimes they are better - much better! In spite of past foreign and security policy differences and media reports of trade wars, our transatlantic economic ties have only increased. Indeed, the economic relationship between Europe and the United States may be the most meaningful and profound relationship between any two continents in history. According to the Center for Transatlantic Relations, transatlantic trade increased from $422 billion in 2000 to an estimated $475 billion in 2004. And yet foreign investment, more than trade in goods, constitutes the greater part of our economic activity. Despite talk about investment being redirected to “big emerging markets,” the simple fact is that investment flows are directed to large, stable markets. 65% of U.S. FDI went to Europe in 2003. 75% of FDI in U.S. was from Europe in 2003. It should come as no surprise then that California (as the sixth largest economy in the world, just behind Britain and France) is Europe’s main commercial partner in the U.S; or that Texas is the top U.S. state for European investment. U.S. equity markets continue to attract foreign investment. Today NYSE-listed U.S. companies account for over 60% of the market capitalization of all publicly traded companies around the world! But U.S. firms also invest in Finland; in 2003, the stock of investment was about 1.5 billion USD. We hope to see this economic relationship broaden in 2005. While few barriers to transatlantic trade remain, much work can be done to further market integration, trade regime reform and regulatory regime harmonization. Given our shared science-based approach to biotechnology, we are actively seeking opportunities for U.S. and Finnish researches, companies and institutions to pool their abilities, expertise and resources. Cooperation on transportation security is critically important to secure the free (and safe) flow of people and goods to protect our economic interests and supply chains. To counter the direct assault on globalization launched by cross-border terrorism, Finland and the U.S. can work together in combating terrorist financing and improving maritime and aviation security.  The responsibility for security rests on both our countries’ shoulders. As we observed in the last Doha rounds, a majority of the global trade dilemmas are based on North-South rather than East-West tensions. Europe and the United States share a global agenda, which includes the integration of emerging economies. We hope to see China’s accession to the WTO followed quickly by Russia and Ukraine. We share an interest in eliminating global poverty and are working together to achieve the Millennium Development Goals, which vigorously address raising the standard of living in the developing world. Our economic development can and must be founded on principles of environmental stewardship and sustainability. The U.S. and Finland have both played important leadership roles within multilateral fora like the United Nations Environment Program, the Global Environmental Facility and the Arctic Council. We have also cooperated closely on maritime safety and oil spill prevention in the Baltic, sharing best practices and raising our standards of readiness. Given that the prosperity of one side of the Atlantic is integral to the economic prosperity of the other, it has never been more important for us to ensure that we both succeed.  It is my goal as U.S. Ambassador to maintain the vitality of our bilateral trade and investment ties and to work together with our Finnish friends and partners where we can make a difference on issues of global importance.