Business Relations
The United States is an important economic partner for Estonia. As supply chains become increasingly global in nature, US companies are finding crucial links in those chains are European, and the positive, bilateral nature of the US-Estonian trade relationship means Estonia is increasingly a key piece of the overall picture for US companies. Furthermore, as the UK moves out of the European Union, Estonia has become a strong contender for US companies wishing to maintain a presence in the European Union.
Trade
According to data from Statistics Estonia, the USA was Estonia’s 4th largest trade partner in 2019, up from 14th in 2017. Estonian exports to the United States totalled 975 million euros, which was 6.8% of Estonia’s total exports. Imports from the USA totalled 229 million euros, and placed the USA in 17th place among Estonia’s import partners.
Estonia’s primary exports to the USA in 2019:
- Electrical equipment (48%)
- Mineral products (21%)
- Mechanical appliances (9%)
- Optical, measuring, and precision instruments (5%)
- Wood and articles of wood (5%)
Estonia’s primary imports from the USA in 2019:
- Electrical equipment (24%)
- Pearls, precious/semi-precious stones, precious metals, jewellery (21%)
- Mechanical appliances (12%)
- Optical, measuring, and precision instruments (11%)
- Wood and articles of wood (6%)
- Transportation vehicles (5%)
Investments
According to the Bank of Estonia, as of 31 December 2019 the total of US direct investments in Estonia was 344 million euros, which means 1.4 % of all investments come from the USA. Of this total, 34% went to financial and insurance activities, 18% to real estate activity, and 12% to the manufacturing industry.
Estonia’s direct investment position in 2019 totaled 169 million euros, which is 1.9% of Estonia’s investments abroad. Of this total, 28% went to financial and insurance activities, 15% to real estate activity, and 14% to the manufacturing industry.
Tourism
In 2019, there were approximately 193,000 US visitors (3% of all foreign tourists) visited Estonia, with just over 100,000 staying overnight for an average 3.3 nights/stay. This compares favorably to approximately 84,000 in 2017 and 36,000 in 2013. In addition to Tallinn, guests from the United States visited Tartumaa, Pärnumaa and Lääne- Virumaa the most. Of those not staying overnight, a large number came to Estonia on a cruise.
In the same time period, Estonian visitors to the US numbered nearly 25,000, essentially even with 2018 and in line with figures from 2013 through today. The vast majority (89% in 2019) stayed overnight for an average 8.7 nights/stay.
Sources: Statistical Office of Estonia (https://data.stat.ee/profile/partner/us?locale=en) and Bank of Estonia Statistics (https://www.eestipank.ee/en/statistics)
E-Residency
Estonia is the first world’s first digital state, with 99% of government services accessible online. It is also the first country to offer “e-Residency” to qualified non-citizens through a government-issued digital identity and status that provides access to Estonia’s transparent digital business environment. It is a program that allows an individual to digitally manage a business from anywhere.
Economic agreements
All major economic agreements have been concluded between Estonia and the US:
- Bilateral Investment Incentive Agreement (came into force 28 Oct 1991);
- Agreement on Trade and Investment Relations (came into force 17 Sep 1992);
- Agreement on Fishing in the Waters of the United States of America (came into force 28 Dec 1992);
- Agreement on the Promotion and Mutual Protection of Investments (came into force 16 Feb 1997);
- Bilateral Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income (came into force 30 Dec 1999);
- Agreement between the United States Trade and Development Agency (USTDA) and the Ministry of Economic Affairs and Communications of the Republic of Estonia on the funding of the Tallinn Port security assistance project. (signed on 21 September 2006)
In the areas in the European Union’s competence, Estonia’s economic relations with the US are also regulated by agreements concluded between the EU and the US, the list of which is available at www.consilium.europa.eu
Estonia’s Business Team USA:
Embassy of Estonia in Washington:
Iti Press, Counsellor for Cyber Issues and Economic Affairs (MFA)
Alvar Soosaar, Director of US Investment and Trade (MFA)
New York Consulate General:
Kairi Künka, Consul General (MFA)
James York, Director of US Business & Innovation (Enterprise Estonia)
https://www.eas.ee/export-advisers/?lang=en#articleblock-USA
San Francisco Consulate General:
Ann Hänni, Consul General (MFA)
Kairi Pirk-Vatunen, Consul (MFA)
Maris Priis, Director of FDI and Business Development in Silicon Valley (Estonian Investment Agency)
For more detailed information on the support offered by the Foreign Ministry and export possibilities, please contact the business diplomat, honorary consul or representative of Enterprise Estonia in the specific country.
https://vm.ee/en/activities-objectives/business-diplomacy