"It is true that it will be ended. The minister of defense will talk more about this later tonight," Swedish Prime Minister Stefan Lofven told reporters during an official visit to Kiev.
The trade agreement, which included the export of military arms to Saudi Arabia – Sweden’s fourth-biggest export market for arms outside the European Union – was up for renewal this year.
On Monday, Swedish Foreign Minister Margot Wallstrom accused Riyadh of “reacting strongly” to Sweden’s position on human rights issues, and of blocking her speech at an Arab League meeting in Cairo.
“The explanation we have been given is that Sweden has highlighted the situation for democracy and human rights, and that is why they do not want me to speak,” she told TT news agency in Cairo. “It’s a shame that a country has blocked my participation.”
Wallstrom had been invited to the meeting as a guest of honor in a nod to Sweden’s recognition of Palestine last autumn.
Arab foreign ministers on Tuesday defended their human rights record and criticized Wallstrom’s accusations.
“The ministers have voiced their condemnation and astonishment at the issuance of such statements that are incompatible with the fact that the Constitution of the Kingdom of Saudi Arabia is based on Sharia,” the ministers said in a statement, according to Swedish media.
“Sharia has guaranteed human rights and preserved people’s lives, possessions, honor and dignity. The ministers consider the comments as irresponsible and unacceptable,” the statement added.
Sweden nonetheless went ahead and published Wallstrom’s planned speech Monday on its government offices’ website, and the foreign minister tweeted a link to the speech.
— Margot Wallström (@margotwallstrom) March 9, 2015
Prime Minister Lofven refuted speculations that the move to cancel the deal was in response to the diplomatic standoff.
"This has been agreed for some time now. It has nothing to do with what has happened in recent days," he was quoted as saying by Swedish Radio.
The trade agreement, first signed in 2005, was renewed by the previous center-left government five years ago. The accord netted Swedish firms more than $560 billion between 2011 and 2014.
Last Friday, Foreign Minister Wallstrom voiced her support for the accord, saying: “We have a very extensive trade with Saudi Arabia and economic ties and opportunities we all are anxious to retain.”
