ABSTRACT

Introduction International trade became more regulated during the interwar period, creating problems for small countries like Sweden and Finland, who depended on the efficiency of the international trade for their growth.1 Recurring economic crises caused prices to fluctuate widely. This was a particular problem for forest products, since these commodities represented a large part of Swedish as well as Finnish exports. It was possible to some extent to level out price fluctuations at a national level by making agreements between companies within this line of business. But international cartel agreements for the regulation of supply were also necessary if prices were to remain fairly stable. This chapter follows the attempts to achieve international agreements for the regulation of exports of forest products during the interwar period. The attempts to achieve cooperation had a long history but were intensified during the crisis of the 1930s. Cartels were regarded as a way to avoid the terrible consequences of ruinous competition. Their aim was to make sure that supply and demand matched without unbearable problems for employment. This way of describing the problem can be compared to the way problems in the vehicle industry are described today (2009). It can thus be argued that the study of how the cartels related to societal goals has actuality today.