Swedish foreign policy is based on the premise that national security is best served by staying free of alliances in peacetime in order to remain neutral in the event of war. In 2002, Sweden revised its security doctrine. The security doctrine still states that “Sweden pursues a policy of non-participation in military alliances,” but permits cooperation in response to threats against peace and security. The government also seeks to maintain Sweden’s high standard of living. These two objectives require heavy expenditures for social welfare, defense spending at rates considered high by west European standards (currently around 2.2% of GNP), and close attention to foreign trade opportunities and world economic cooperation. Priorities in Swedish foreign policy include human rights, conflict management/resolution, nonproliferation, the environment, and building an influential role for Sweden within the European Union while maintaining a strong transatlantic link. Sweden places great importance on international law and multilateralism.

Sweden participates actively in the United Nations and other multilateral organizations. The strong interest of the Swedish Government and people in international cooperation and peacemaking has been supplemented in the early 1980s by renewed attention to Nordic and European security questions. In January 1995, Sweden became a full member of the European Union, in part due to its increasing isolation outside the economic framework of the Maastricht Treaty. It is an active member of NATO’s Partnership for Peace and the Euro-Atlantic Partnership Council. As of May 2004, Sweden had about 1,000 troops deployed in peacekeeping operations overseas, including the Balkans, West Africa and Afghanistan.

Swedish foreign policy has been the result of a wide consensus. Sweden cooperates closely with its Nordic neighbors, formally in economic and social matters through the Nordic Council of Ministers and informally in political matters through direct consultation.

U.S.-SWEDEN RELATIONS
Friendship and cooperation between the United States and Sweden is strong and close. The United States welcomes Sweden’s continued independence, secured through self-reliance or in cooperation with other democracies. Swedish-American friendship is buttressed by the presence of nearly 14 million Americans of Swedish heritage. Both countries in 1988 celebrated the 350th anniversary of the first Swedish settlement in the United States.

The United States and Sweden are partners with the other Nordic and Baltic States in the Enhanced Partnership in Northern Europe program (e-PINE). The e-PINE initiative and its associated programs attempt to promote stability, encourage cross-boarder cooperation, and investment between the U.S, Nordic, Baltic, and Western Russia. Sweden has been a valuable and strong participant in this program.

U.S. direct investment in Sweden in 2000 totaled $2.6 billion. There were major investments in computer software and hardware, IT/telecommunications, industrial goods, and healthcare.