Washington

The United States is an important economic partner for Estonia. As supply chains become increasingly global in nature, US companies are finding that crucial links in those chains are European, and the positive, bilateral nature of the US-Estonian trade relationship means Estonia has an increasing attractivenes as a trade partner for American companies. Furthermore, as the UK has moved 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, in 2022 the U.S. was Estonia’s 9th largest trade partner, up from 14th place in 2017. Estonian the trade of goods between Estonia and the United States amounted to 1,475 billion euros, which was 3.3% of Estonia’s total trade of goods in 2022.

In 2022, exports to the United States added up to 1.16 billion euros – 5.4% of all exports – which placed the US sixth in the list of export partners. The year prior, exports were 1.67 billion euros, so the year-on-year decline is 30%. Machinery and mechanical appliances made up the majority (58%) of the goods exported to the United States in 2022. In the six months of 2023, exports were 282.8 million euros; during the same period of the previous year, exports amounted to 638.7 million euros (year-on-year decline: 55.8%). During the six months of this year, machinery and mechanical appliances have still been the main export articles (44.7%), followed by products of the chemical industry (12.6%).

In 2022, imports from the US amounted to 313.9 million euros, which was 1.3% of all imports (ranking 15th in the list of Estonian import partners). The year before that, imports added up to 324.6 million euros (year-on-year decline: 3.4%). The main import articles in 2022 were machinery and mechanical appliances (40%), optical, measuring, and precision instruments, clocks/watches, and music instruments (11%), as well as precious metals and precious and semi-precious minerals (9%). In the first half of 2023, imports from the US to Estonia amounted 160.4 million euros, and in the same period of the previous year, they amounted to 138.4 million euros (year-on-year growth: 15.9%). During the six months of this year, machinery and mechanical appliances have made up the majority (54%) of all imports.

Estonia’s primary exports to the US in 2022:

• Machinery and mechanical appliances (58%)
• Wood and articles of wood (9%)
• Optical, measuring, and precision instruments (8%)
• Mineral products (5%)
• Furniture, lamps and lighting, prefabricated buildings (4%)

 

Estonia’s primary imports from the US in 2022:

• Machinery and mechanical appliances (40%)
• Optical, measuring, and precision instruments (11%)
• Precious/semi-precious stones, precious metals, pearls, jewellery (9%)
• Wood and articles of wood (7%)
• Vehicles and other means of transportation, incl parts (7%)

 

In 2022, imports of services from the US to Estonia amounted to 262.4 million euros, and in 2021, to 193.4 million euros (year-on-year growth: 35.7%). In the first quarter of 2023, imports of services amounted to 67.7 million euros, and in the same period of the year before, to 55.6 million euros (year-on-year growth: 21.8%).

There were 894 Estonian companies exporting their goods and services to the United States in 2022. The largest exporters among them were Veriff OÜ (computer programming, consultancy, and related activities), NPM Silmet OÜ (manufacture of chemicals and chemical products), Clevum OÜ (retail trade, except of motor vehicles and motorcycles), Magnetic MRO AS (repair and installation of machinery and equipment), SaleMove OÜ (computer programming, consultancy, and related activities), Arte Bunkering OÜ (wholesale trade, except of motor vehicles and motorcycles), AS Norma (manufacture of motor vehicles, trailers, and semi-trailers), Monday Media OÜ (headquarters; management consultancy activities), Windak OÜ (manufacture of machinery and equipment n.e.c.), Hireright Estonia AS (computer programming, consultancy, and related activities).

Trade of goods between Estonia and the United States of America from 2019 to 2022:

(source: Statistics Estonia)

Direct investments

The amount of direct investments by the US companies in Estonia (as of March 2023) is 536 million euros, which amounts to 1.6% of all foreign direct investments in Estonia. Most investments have been made in information and telecommunications – for a total of 166 million euros. The next largest investments have been made in real estate activities with 118 million euros and the processing industry with 104 million euros.

The amount of Estonian direct investments in the United States is 449 million euros, which is 3.8% of all Estonian direct investments to foreign countries. The largest investment, 230 million euros, has been made in the processing industry and 148 million euros have been invested in information and communication.

Tourism

In 2022, there were approximately 96,825 US visitors in Estonia, with just over 53 000 staying overnight. This compares favorably to approximately 84,000 in 2017 and 36,000 in 2013. Of those not staying overnight, a large number came to Estonia on a cruise. In addition to Tallinn, guests from the United States visited Tartumaa, Pärnumaa and Lääne- Virumaa the most.

In the same time period, Estonians made a total of 23,433 visits to the United States in 2022, of which 21,156 were multi-day visits. The year before, the number of visits to the United States was 6,121 (year-on-year growth: 282.8%).

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.

As of July 2023, there are 3,897 Estonian e-residents who are US citizens. 624 of them have registered their company in Estonia.

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 in the U.S.:

Embassy of Estonia in Washington, D.C.:

Iti Press, Counsellor for Cyber Issues and Economic Affairs (MFA)

Alvar Soosaar, Director of US Investment and Trade (MFA)

https://washington.mfa.ee

 

Estonian Consulate General in New York:

Arvo Anton, Consul General (MFA)

https://newyork.mfa.ee/

Silve Parviainen, Director of US Business & Innovation (Enterprise Estonia)

https://www.eas.ee/export-advisers/?lang=en#articleblock-USA

 

Estonian Consulate General in San Francisco:

Maria Belovas, Consul General (MFA)

Juuli Hiio, Consul (MFA)

https://sanfrancisco.mfa.ee/

Maris Prii, 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