Ministerial Committee on EU Affairs discusses EU–US trade, border control and Carbon Border Adjustment Mechanism

Ministerial Committee on EU Affairs discusses EU-US trade, border control and Carbon Border Adjustment Mechanism

In its meeting on Friday 26 September, the Ministerial Committee on European Union Affairs discussed trade relations between the EU and the United States, the development of the European Border and Coast Guard, the reform of the Carbon Border Adjustment Mechanism and the issues on the agenda for the next Competitiveness Council.

The Ministerial Committee on EU Affairs outlined Finland's positions on EU-US trade relations and the European Commission's proposals for a regulation to adjust the EU's customs duties and tariff quotas. The proposed regulation would eliminate customs duties on industrial products and certain agricultural products imported into the EU from the United States and would modify the tariff quotas for agricultural and fishery products originating in the United States. In the Government's view, maintaining and strengthening the transatlantic relationship is important for Finland. The Joint Statement on a United States-European Union framework agreement has brought more stability to the trade relationship. The Government notes that the joint statement is the first step in developing the trade relationship and improving market access. It is important that the trade relationship between the EU and the United States is built on the international rules-based system. The Government will continue to promote the interests of Finnish businesses by advocating for their interests in the negotiations between the EU and the United States and through export promotion measures.

The Ministerial Committee on EU Affairs agreed on Finland's negotiating positions concerning the development of the European Border and Coast Guard Agency Frontex. The European Commission will submit a proposal to amend the legislation governing the agency's activities in 2026. Finland welcomes efforts to strengthen the work of Frontex as part of the EU's border security. Finland considers it important to strengthen the operating conditions for Frontex in order to secure the Union's external borders, combat illegal immigration and improve the effectiveness of returns. This should be at the heart of Frontex's work. In Finland's view, Member States should continue to be primarily responsible for the control of their external borders and the implementation of returns.

The Ministerial Committee also discussed Finland's positions for the negotiations on the reform of the Carbon Border Adjustment Mechanism (CBAM). The European Commission has announced that it will submit a proposal by the end of the year on extending the CBAM to lower-stream products and preventing carbon leakage related to the export of EU-produced goods. The Commission will submit a more extensive legislative proposal on the reform of the CBAM in 2026.

The Ministerial Committee on EU Affairs also outlined Finland's positions for the upcoming meeting of the Competitiveness Council on 29-30 September. In its meeting, the Competitiveness Council will approve Council conclusions on the importance of research and innovation for the EU Startup and Scaleup Strategy and on the role of life sciences in boosting the Union's competitiveness. Other topics on the agenda include the European Competitiveness Fund and how it functions for businesses, simplification of regulation, and Horizon Europe's framework programme for research and innovation.

Inquiries: Juuso Kilpinen, Special Adviser for EU Affairs, tel. +358 50 323 9636, Satu Keskinen, State Under-Secretary for EU Affairs, tel. +358 295 160 302, and Anne Sjöholm, Head of Communications for EU Affairs, tel. +358 40 537 0733, Prime Minister's Office