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 of goods

According to data from the Statistics Estonia, in 2023, the trade of goods between Estonia and US amounted to 816,8 million euros, which was 2,1% of the total trade of goods and placed the US 11th in the list of trade partners.

In 2023, exports to the United States added up to 501,5 million euros – 2,8% of all exports – which placed the US 11th in the list of export partners. The year prior, exports were 1.16 billion euros, so the year-on-year decline is 56,7%. The decline has occurred in the commodity group of machinery and equipment and mineral products. Machinery and mechanical appliances made up the majority (37,8%) of the goods exported to the United States in 2023.

In the first six months of 2024, exports were 336,2 million euros; during the same period of the previous year, exports amounted to 281,4 million euros (year-on-year increased: 19,4%). During the first six months of this year, machinery and mechanical appliances have still been the main export articles (30%), followed by products of the mineral (19,4%).

In 2023, imports from the US amounted to 315,3 million euros, which was 1.5% of all imports (ranking 14th in the list of Estonian import partners). The year before that, imports added up to 313,2 million euros (year-on-year increase: 1%). The main import articles in 2023 were machinery and mechanical appliances (45%), mineral products (11,4%) and optical, measuring, and precision instruments, clocks/watches, and music instruments (9,14%).

In the first half of 2024, imports from the US to Estonia amounted 160.4 million euros, and in the same period of the previous year was also 160,4 million euros. During the six months of this year, machinery and mechanical appliances have made up the majority (50,7%) of all imports.

Estonia’s primary exports to the US in 2023:

Machinery and mechanical appliances (38%)

Products of the chemical or allied industries (13%)

Optical, measuring, and precision instruments (12%)

Wood and articles of wood (11%).

Base metals and articles of base metal (6%)

Estonia’s primary imports from the US in 2022:

Machinery and mechanical appliances (45%)

Mineral products (11%)

Optical, measuring, and precision instruments (9%)

Transport equipment (6%)

Pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin (4%).

 

In 2023, exports of services amounted to 821,1 million euros and imports of services amounted to 357 million euros.

Compared to the previous year, exports (659,2 million euros) increased 25%. The imports of services (262,3 million euros) increased by 36% over the year.

In the first quarter of 2023, export of services amounted to 192,6 million euros and import 93,8 million euros, and in the same period of the year before, export were 163 million (year-on-year growth:  18%) and import were 67,8 million euros ( year-on-year growth: 38%)

There were 923 Estonian companies exporting their goods and services to the United States in 2023. The largest exporters among them were AS HELMES (computer programming, consultancy, and related activities), OÜ DSVH (legal operations and accounting), Helmes Group AS, NPM Silmet OÜ (production of chemicals and chemical products), Rush Street Interactive Development Estonia OÜ (computer programming, consultancy, and related activities), Clevum OÜ (retail trade, except of motor vehicles and motorcycles), AS LTH-Baas (Repair and installation of machines and equipment), NoCry OÜ (retail trade, except of motor vehicles and motorcycles), SaleMove OÜ (computer programming, consultancy, and related activities), Ericsson Eesti AS (production of computers, electronic and optical equipment).

Trade of goods between Estonia and US from 2020 to the first six months of 2024

 

(Source: Statistics Estonia)

Direct investments

The amount of direct investments by the US companies in Estonia (as of March 2024) is 379 million euros, which amounts to 1% of all foreign direct investments in Estonia. Most investments have been made in real estate activities – for a total of 134 million euros. Other larger investments have been made in processing industry with 98 million euros and information and communication with 86 million euros.

The amount of Estonian direct investments in the United States is 603 million euros, which is 4,3% of all Estonian direct investments to foreign countries. The largest investment, 281 million euros, has been made in information and communication sector. Other larger investments have been made in processing industry with 243 million euros.

Tourism

Residents of US made a total of 122,654 visits to Estonia in 2023, of which 67,200 were multi-day visits. A year earlier, there were 96,825 visits, which means that the annual increase is 26,7%.

Residents of Estonia made a total of 23,622 visits to US in 2023, of which 21,570 were multi-day visits. A year earlier, 23,433visits were made to US. Visits by Estonians to US have remained largely unchanged over the year.

 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 June 2024, there are 4,133 Estonian e-residents who are US citizens. 702 of them have registered their company in Estonia.

https://vm.ee/en/activities-objectives/business-diplomacy