HELSINKI — The Nordic defense industry could potentially emerge as the biggest winner in the wake of the common military materials procurement deal reached by Sweden, Norway, Finland and Denmark.

The Nordic Joint Procurement Agreement (NJPA) was signed by the four governments in Helsinki against the backdrop of the Nordic Defense Industry Seminar (NDIS).

The NDIS brought corporate and political leaders to the Finnish capital to discuss industrial defense deepening, the strengthening of trans-Atlantic relations and global security.

The NJPA could have far-reaching consequences for the entire spectrum of Nordic military and industrial collaboration, said Finland's defense minister Jussi Niinistö.

"Nordic countries can achieve important savings through cooperation in joint procurements. We need to develop this area of cooperation. We also need to identify ways to involve our national defense industries in a greater way," Niinistö said.

Nordic Defense Cooperation (NORDEFCO), the inter-state military-led vehicle tasked with driving collaboration, has cited the development of a closer collaborative relationship with the defense sector as one of its primary objectives.

"The Nordic defense industry can be an important resource for cooperation. There is a range of expertise across different product sectors. Many Finnish and Nordic companies are global players in their niche areas," said Niinistö.

The NJPA will give a critical structure and clarity to the overall framework and procedures for joint procurement between the Nordic states.

In particular, it will focus on promoting legislative changes at the national level to deliver solutions that offer greater cost-efficiencies, security of delivery and enhanced implementation of joint procurement projects.

"The procurement model would involve three primary templates; an Actual Joint Tender, A Coordinated Tender and a Government-to-Government Joint Procurement Procedure. Agreement should be based on these three templates," said Tommi Nordberg, a senior adviser to the Finnish Ministry of Defense.

The NDIS included a gathering of all of NORDEFCO's Cooperation Area Armaments (COPA ARMA) Working Groups.

NORDEFCO is working to develop common procurement models, as well as templates for technical and program agreements that promote the removal of rules and other official obstacles to achieving full-scale collaboration between Nordic governments and militaries.

Enhanced Nordic cooperation embodies smart defense, offering value, better and more cost-efficient products, said Brig.adier Gen. Peter Kølby Pedersen, chairman of COPA ARMA.

A "common framework" agreement increases volume and can translate in to lower prices and better business opportunities for both Nordic defense and industry sectors, said Pedersen, who is also Deputy National Armaments Director (Planning & Coordination Division) with the Danish Defense Acquisition & Logistics Organization.

"This is about how we work together to strengthen cooperation," Pedersen said, adding that a more holistic approach to common procurement will form the basis for future armaments cooperation between the Nordic militaries.

The COPA ARMA's role will be to identify and exploit possibilities for joint development programs. This includes acquisition and life cycle support to achieve financial, technical and/or industrial benefits for Nordic states within the area of armaments cooperation.

"The prospect of reducing costs through common procurement is in the interest of all Nordic states. This agreement will help achieve savings and deepen cooperation," said Raimo Jyväsjärvi, the director general of the Finnish MoD's Resource Policy Department.

NORDEFCO has begun the process of improving channels between COPA ARMA's Working Groups (CAWG) and defense industries in the four participating Nordic countries.

The CAWG's project development portfolio includes potential joint procurement within the areas of long range air surveillance, tactical data links, soldier protection equipment and clothing, base camp management, and dismounted arms and ammunition.

The future emphasis will be on prioritizing joint procurement projects that are short and focused and offer significant economies of scale.

Ideally, joint acquisitions will involve multinational cooperation and international participation with the NATO Support Agency (NSPA) or the European Defence Agency, particularly in relation to the development of NATO/ISO standard weapons and equipment.

The CAWG is also working to develop Alternate Landing Base (ALB) cooperation that would extend to armed aircraft and include Iceland.

Moreover, NORDEFCO wants to advance the Nordic Enhanced Cooperation on Air Surveillance platform, and formulate possible coordinated responses to incidents and violations of nation's respective air space.

This will require changes in national legislation that ensure easier and less bureaucratic procedures for cross-border access within Nordic territories by naval, air and land forces from all four Nordic states.

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