Mikael Hallbäck
DirectorOstrobothnia Chamber of Commerce
Finland
The United States is Finland's most important trading partner outside the EU, and its significance is rapidly growing. According to a survey by the Finland Chambers of Commerce, improved relations with the U.S. and the NATO membership benefit nearly 60 percent of exporting companies. Finland's total exports to the U.S. last year exceeded 11 billion euros. Notably, Finland's service exports to the U.S. have tripled in eight years and now represent a fifth of Finland's total service exports. When considering not only trade but also investments and innovation cooperation, the economic weight of the United States has surpassed Sweden and Germany in importance for Finland among individual countries.
A tense and uncertain geopolitical situation fuels even stronger interest towards the U.S. markets in Finland, as Russia remains in shadow for years, or even decades, and China raises uncertainty and suspicion. Global trade is seeking a new order, and companies must now assess their geopolitical risks more actively from their own business perspective. Transatlantic cooperation is deepening, which is also evident in the increasing collaboration between the EU and the U.S. However, protectionism in the U.S. continues to strengthen, with "America First" thinking prevailing. It is crucial to emphasize that cooperation strengthens competitiveness, and that protectionism weakens the ability to compete with China. Unlike the U.S., Finland cannot support investments in the same manner. The strength in investment competition lies in the fact that Finland, particularly the Western coastline, offers renewable, clean energy for industrial investments. One could say that investing in Finland equates to investing in responsibility and sustainability. The competition is fierce, and Finland is competing with its own strengths.
Numerous U.S. states are implementing massive green transition and digitalization projects, and at the federal level, agreements have been reached on substantial support packages targeted at green transition investments and climate change adaptation. Finland has entered into collaboration agreements with five different states, whose project plans and interests align with what Finnish companies can offer. The market is enormous and individual states would correspond to major economies, with California and Texas, for example, ranking sixth and ninth among world economies. Leading US corporations are also setting ambitious sustainability goals. Companies like Apple, Amazon, and Microsoft have pledged to become carbon-neutral or achieve 100% renewable energy use. This commitment to sustainability creates opportunities for suppliers of clean technologies and services. The U.S. climate investments present a significant opportunity for Finnish businesses to participate in the growing market for green solutions.
The future looks bright in Finland, Ostrobothnia. The Ostrobothnia companies are tackling the biggest and most pressing global challenges and contributing by solving them. Currently, around 13,000 people work in the EnergyVaasa cluster in Ostrobothnia region, and the expertise, products, solutions, and services are world-class. The region holds a potential worth billions of euros for major industrial investments, and thousands of new jobs are on the horizon, particularly in the battery industry, green hydrogen, and offshore wind power. These are remarkable opportunities and more will follow. Furthermore, Kokkola in the northern part of the region is developing into a significant hub for battery industry chemicals and minerals, while hydrogen production is growing in the southern parts of the region in Kristiinankaupunki. The entire region is strongly connected to future energy-related investments and expertise, and there is a demand for it.
Finnish companies must find new growth markets to replace Russia. This shift towards sustainability presents a significant opportunity for Finnish companies to leverage their expertise and innovative solutions. In conclusion, the green transition in the United States is a monumental undertaking driven by government policies, consumer preferences, and corporate responsibility. Finnish companies possess the expertise and innovation required to excel in this evolving landscape, whether through clean energy technologies, circular economy practices, sustainable transportation solutions, or energy efficiency advancements. However, to fully harness this opportunity, Finnish businesses must be prepared to navigate regulatory challenges, fierce competition from domestic and international players, and cultural differences. U.S. support packages with domestic content requirements do not make the situation easier, but the market's opportunities are immense. We recently heard news that a hydrogen technology growth company from Ostrobothnia entered into a preliminary agreement to supply equipment to a large gas company in the United States. This is just one example of many and more to come. With the right approach and strategic partnerships, Finnish companies can play a pivotal role in shaping a more sustainable future for both the US and the world.