Finland wants closer trade with Australia to protect international rules-based order

The northern European nation wants closer co-operation to help Australia hit net zero, saying that it has never been more important to work with like-minded countries.

Finland Ambassador to Australia, Satu Mattila-Budich (left), and Business Finland senior adviser Eero Toivainen, want better ties between the two nations.

Finland has called for closer co-operation with Australia to defend the international rules-based order amid growing uncertainty, and says it can boost domestic manufacturing and digitisation and help achieve net zero emissions targets.

The European country sees Australia as a target market for economic expansion, with less competition than other markets like South Korea.

It hopes to export its manufacturing and engineering prowess to a nation that expects a shortfall of 200,000 engineers by 2040.

The Finnish government is backing corporate expansion, with more than $1bn invested into Australia in the past 12 months, helping to drive a strong uplift in two-way goods and services trade, which amounted to $2.3bn in 2022.

Relations between the two countries have been improving in recent years after Finland backer of a free trade deal with the European Union and then prime minister Sanna Marin visited Australia in 2022.

Finland’s ambassador to Australia for the past three years, Satu Mattila-Budich, told The Australian that closer corporation between the two countries was important, given growing uncertainties including Russia’s war with Ukraine, to ensure that liberal democratic values were ­upheld.

“There’s a lot of potential for closer co-operation and when we are living in a world which is more unstable and fuller of uncertainties, we need to work closely with like-minded partners and to also defend the international rules-based order,” she said.

Ms Mattila-Budich said her compatriots were eager to support Australia’s ambition to develop domestic manufacturing, digitisation and innovation – and address a chronic skills shortage in STEM-related areas.

“There’s a lot of potential for Finnish companies to do business here. Manufacturing and digitalisation are cornerstones of the Finnish economy,” she said. “And furthermore, the mutual success stories and shared values in education, manufacturing and support for local companies make Australia a congenial environment for Finnish companies.”

Anthony Albanese welcomed the first visit by a Finnish leader to Australia last year when then prime minister Sanna Marin visited. Picture: NCA NewsWire / David Swift

She added that Australia’s commitment to enhancing domestic manufacturing, digitisation and innovation aligned with Finland’s expertise, and said leaders in Australia could take inspiration from Finland on how to improve domestic manufacturing and ways to decarbonise the economy. “Australia could take inspiration for the Finnish investment model that focuses on education and innovation, especially in the integration of digitalisation to future-proof its economy and embracing sustainability. This could benefit Australia’s economic diversification,” she said.

“(Australia) aims to have a carbon-neutral economy, and the mining sector is one of the key industries where co-operation with Finnish companies would work well as they are finding very innovative solutions to make mining more sustainable.”

Prime Minister Anthony Albanese has promised to increase manufacturing with the government’s flagship $15bn ‘‘Future Made in Australia’’ fund designed to improve sovereign capabilities.

Trade between the two countries is firmly in favour of Finland. It exported $1.55bn of goods to Australia in 2022, driven by civil engineering equipment and goods vehicles, according to the Department of Foreign Affairs and Trade. Australia’s exports were worth $742m, mostly coal, copper ore and precious metals.

Business Finland senior adviser Eero Toivainen said that Finland had 547,000 civil engineers – 20 per cent of its workforce – who could help as Australia decarbonised its ­economy.

“Finland can give Australia help to transform its minerals sector, so that you would produce more in Australia in a green way. Our forestry industry has transformed itself into biomaterials,” he said.

“We don’t have any oil, but yet we have an oil company in Neste that is one of the world’s leading companies for sustainable aviation fuels and they have a refinery in Singapore and hope to have one some day in Australia,” he said.

Mr Toivainen said Finland was hoping to expand its relationships with many businesses, including AGL and Origin Energy.