The Swedish-Portuguese trade forum takes place at Malmöhus Slott Castle in Malmö (Sweden) during the first months of 1961. The building, originally built in 1434, has been renovated several times and now has a wing for high-level executive meetings. A perfect setting for this conference.
Sweden acts as host and gives a warm welcome to the Portuguese delegation, who are received at Malmö-Sturup airport and then transferred to the iconic castle. Inside the castle, different rooms have been set up for the meetings so that the Portuguese delegation can enjoy all the necessary comforts.
The conference was attended by the Swedish delegation:
Gunnar Lange
Position: Minister of Commerce and Industry
Role in the Conference: Senior government representative overseeing industrial and trade aspects of the agreement. Leads economic policy coordination and ensures alignment with Sweden’s commercial interests.
Östen Undén
Position: Minister for Foreign Affairs
Role in the Conference: Ensures all agreements comply with Sweden’s neutrality policy and international obligations. Monitors political and diplomatic implications.
Colonel Lennart Sundqvist
Position: Director of Tactical Procurement, Swedish Air Force
Role in the Conference: Provides military evaluation of equipment standards and compatibility. Ensures the terms meet defense requirements.
Lt. Colonel Karl-Erik Nyström
Position: Army Materiel Liaison Officer
Role in the Conference: Advises on land equipment, standards, and interoperability. Reviews technical specifications and licensing impact on national defense.
Mr. Harald Sandström
Position: Senior Legal Advisor, Ministry of Trade and Industry
Role in the Conference: Oversees legal framework of the licensing deal. Ensures all agreements comply with Swedish export and arms control laws.
Role in the Conference: Technical consultant for defense manufacturing. Evaluates feasibility of local production and quality control mechanisms.
Erik Lundberg
Position: Director of International Relations, Volvo AB
Role in the Conference: Represents automotive and vehicle manufacturing interests. Assesses potential for industrial cooperation.
Nils Johansson
Position: Director of Exports, Saab AB
Role in the Conference: Represents the Swedish defense and aerospace sector. Advises on potential for technology transfer and licensing of platforms.
Gustav Pettersson
Position: Director of International Development, Ericsson
Role in the Conference: Provides expertise on communications and telecom systems. Explores cooperation in dual-use technologies.
Lars Bergström
Position: Delegate, Confederation of Swedish Enterprise (Svenskt Näringsliv)
Role in the Conference: Coordinates input from the broader Swedish industrial sector. Ensures private sector interests are reflected in the final agreement.
Jose Correia Secretary of State for Commerce
Head of Portuguese Trade Delegation
The Portuguese Government is grateful for the positive response from the Swedish government visavi improvements in trade and the expansion of industrial cooperation between our nations. Initially, Portugal is interested in the the products provided by the companies of:
Electrolux
Crescent
Husqvarna
BM-Volvo
Most of the goods are what would be considered consumer goods (Electrolux), transport (Crescent and Husqvarna), forestry equipment (Husqvarna) and agricultural equipment (BM-Volvo). We hope that these areas are acceptable to the Swedish delegation.
Gunnar Lange Minister of Commerce and Industry Head of Swedish Trade Delegation
The Swedish Government warmly welcomes the Portuguese delegation’s response and its interest in deepening our bilateral ties through trade and industrial cooperation.
We take note of the interest in products and sectors represented by Electrolux, Crescent, Husqvarna, and BM-Volvo. These areas, ranging from consumer appliances to personal transport, forestry, and agricultural equipment, represent not only sectors of economic vitality, but also fields well-suited to meaningful and constructive cooperation.
We believe these industries offer an excellent foundation upon which to strengthen commercial ties and develop mutually beneficial ventures. In particular, they allow for cooperation models that respect Sweden’s strategic industrial framework while opening new opportunities for joint ventures, local assembly, and market expansion.
Sweden is therefore open to hearing the proposals that the Portuguese Government may wish to present in relation to these companies. We will be pleased to facilitate dialogue between the interested parties under the framework of the Swedish-Portuguese Trade Forum.
Jose Correia Secretary of State for Commerce
Head of Portuguese Trade Delegation
Minister Lange, it is heartening that Sweden is interested in furthering trade between our nations in this way. The means in which we see the cooperation would be through the manufacture of goods for sale in Portugal, and possibly into Spain (due to our proximity), in Portugal, where the production would be done by a new company, equally owned by the Swedish company and a Portuguese holding company, with an equal profit share.
This would, as an example, mean that BM-Volvo would own 50% of the Portuguese Agricultural Machine Company (PAMC). BM-Volvo would contribute an agreed amount of designs for tractors and other machines, as well as technical and production experts to assist in the opening of the production, while the Portuguese holding company takes all the financial burden and risk. For this, we would seek a 50/50 split of the profits.
Gunnar Lange Minister of Commerce and Industry Head of Swedish Trade Delegation
Secretary Correia, I am encouraged by the constructive spirit in which your delegation has approached these discussions. We recognize the value of your proposal and see it as a fair and forward-looking basis for cooperation, especially in view of Portugal’s development objectives and regional context.
I can affirm that we will support this concept of a joint venture structure with shared ownership and benefits and, of course, shared responsibilities.
However, we consider it essential that all joint ventures operate under:
A framework of shared ownership of intellectual property, where the use of designs is subject to joint governance.
A case-by-case negotiation process in relation to the export of products to third countries outside Portugal and Spain.
We are not opposed to localized production of consumer or light industrial goods, as long as the partnership continues to reflect Swedish quality standards and long-term brand value. To this end, if necessary, we could offer training to their technicians in our factories so that they can observe, first hand, what standards we are looking for.
This agreement fits perfectly with an approach that the Swedish government is trying to pursue in different areas and I see this initiative as a first concrete example of a broader policy of industrial partnership with nations that are striving to modernize: partnerships based on equality, mutual respect and peaceful cooperation.
If you could let me know the products and which companies would be involved, we could finalize the details of the agreement.
Jose Correia Secretary of State for Commerce
Head of Portuguese Trade Delegation
If you add “agricultural” to “consumer or light industrial goods”, I would agree that we are ready to finalize the agreement. And, to clarify, the participating Swedish companies would, at this time, be Electrolux, Husqvarna, Crescent and BM-Volvo.
Gunnar Lange Minister of Commerce and Industry Head of Swedish Trade Delegation
Let us then add agriculture to the list. We will contact the management of all the companies mentioned above to inform them of the terms and get back to you as soon as possible.
Preamble
Recognizing the mutual desire to strengthen economic ties and promote industrial development, the Governments of the Kingdom of Sweden and the Portuguese Republic have agreed to cooperate in the establishment of key industries in Portugal focused on agricultural, consumer, and light industrial goods.
This Treaty outlines a framework for long-term economic collaboration through joint ventures between Swedish industrial firms and a Portuguese state-backed holding company.
Article I – Purpose and Scope
The objective of this treaty is to encourage the establishment of joint venture enterprises between Swedish industrial firms and a Portuguese national holding company in strategic sectors.
These sectors include:
Agricultural machinery and equipment
Light consumer goods (e.g., home appliances, tools)
Small-engine manufacturing and light vehicles (e.g., mopeds, small tractors)
Components and systems for industrial and rural electrification
Article II – Participating Entities
The following Swedish companies shall participate in joint ventures under this treaty:
Electrolux AB – Home and industrial appliances
Husqvarna Vapenfabriks AB – Tools, small engines, and agricultural equipment
AB Bolinder-Munktell (BM-Volvo) – Tractors and farm machinery
Crescent (Nymanbolagen AB) – Mopeds, bicycles, and light motor vehicles
Portugal shall designate a national industrial holding company, hereinafter referred to as “Indústrias Luso-Nórdicas”, to act as the Portuguese partner in these ventures.
Article III – Investment and Operational Framework
Capital and Infrastructure:
The Portuguese partner shall provide capital investment, factory construction, machinery and production tools, basic infrastructure, and workforce recruitment and training.
Technical Contributions:
The Swedish partners shall provide:
- Technical expertise and managerial training
- Licensing of intellectual property and designs
Ownership and Governance:
Each joint venture shall be established as a 50-50 ownership entity between the Swedish company and Indústrias Luso-Nórdicas.
Governance shall be shared, with management boards comprising an equal number of Portuguese and Swedish representatives.
Profit Sharing:
Net profits from joint venture operations shall be divided equally between both parties.
Article IV – Market Access and Trade
Products manufactured by these joint ventures shall be:
- Primarily sold in the Portuguese and Spanish markets
- Eligible for further export upon agreement of both partners
Both governments commit to facilitating favorable customs treatment, export certification, and transportation infrastructure to support this regional trade.
Article V – Duration and Review
This treaty shall remain in effect for 15 years, subject to renewal by mutual consent.
A bilateral commission shall meet annually to review progress, resolve disputes, and propose adjustments.
We are pleased to confirm our approval of the treaty in its current form, with only one proposed addition for consideration prior to formal signing. We would welcome the inclusion of an additional article concerning the confidentiality of shared technologies and the safeguarding of intellectual property. We suggest the new article along the following lines:
Article VI – Confidentiality and Technology Safeguards
The Parties agree that all technical documents, designs, and intellectual property shared under this Treaty shall be protected by strict confidentiality agreements and used exclusively within the scope of the joint ventures established herein.
Any transfer of technology or licensing beyond the agreed sectors and scope shall require express written consent by both parties.
Would the inclusion of this article be acceptable to the Republic of Portugal?
If so, we could confirm the signing of the treaty.
Preamble
Recognizing the mutual desire to strengthen economic ties and promote industrial development, the Governments of the Kingdom of Sweden and the Portuguese Republic have agreed to cooperate in the establishment of key industries in Portugal focused on agricultural, consumer, and light industrial goods.
This Treaty outlines a framework for long-term economic collaboration through joint ventures between Swedish industrial firms and a Portuguese state-backed holding company.
Article I – Purpose and Scope
The objective of this treaty is to encourage the establishment of joint venture enterprises between Swedish industrial firms and a Portuguese national holding company in strategic sectors.
These sectors include:
Agricultural machinery and equipment
Light consumer goods (e.g., home appliances, tools)
Small-engine manufacturing and light vehicles (e.g., mopeds, small tractors)
Components and systems for industrial and rural electrification
Article II – Participating Entities
The following Swedish companies shall participate in joint ventures under this treaty:
Electrolux AB – Home and industrial appliances
Husqvarna Vapenfabriks AB – Tools, small engines, and agricultural equipment
AB Bolinder-Munktell (BM-Volvo) – Tractors and farm machinery
Crescent (Nymanbolagen AB) – Mopeds, bicycles, and light motor vehicles
Portugal shall designate a national industrial holding company, hereinafter referred to as “Indústrias Luso-Nórdicas”, to act as the Portuguese partner in these ventures.
Article III – Investment and Operational Framework
Capital and Infrastructure:
The Portuguese partner shall provide capital investment, factory construction, machinery and production tools, basic infrastructure, and workforce recruitment and training.
Technical Contributions:
The Swedish partners shall provide:
- Technical expertise and managerial training
- Licensing of intellectual property and designs
Ownership and Governance:
Each joint venture shall be established as a 50-50 ownership entity between the Swedish company and Indústrias Luso-Nórdicas.
Governance shall be shared, with management boards comprising an equal number of Portuguese and Swedish representatives.
Profit Sharing:
Net profits from joint venture operations shall be divided equally between both parties.
Article IV – Market Access and Trade
Products manufactured by these joint ventures shall be:
- Primarily sold in the Portuguese and Spanish markets
- Eligible for further export upon agreement of both partners
Both governments commit to facilitating favorable customs treatment, export certification, and transportation infrastructure to support this regional trade.
Article V – Confidentiality and Technology Safeguards
The Parties agree that all technical documents, designs, and intellectual property shared under this Treaty shall be protected by strict confidentiality agreements and used exclusively within the scope of the joint ventures established herein.
Any transfer of technology or licensing beyond the agreed sectors and scope shall require express written consent by both parties.
Article VI – Duration and Review
This treaty shall remain in effect for 15 years, subject to renewal by mutual consent.
A bilateral commission shall meet annually to review progress, resolve disputes, and propose adjustments.
