The Baltic States:
A Sea of Opportunity
by Andrea Lupo
Central and Eastern
Europe Business
Information Center (CEEBIC)
with additional
content
- by Paul E.
Litton
- Webmaster,
Export Michigan
 The
Baltic Sea region is
one of the fastest
growing commercial
areas in Europe. Trade
in the Baltic region,
which encompasses
Scandinavia, Germany,
Poland, Estonia,
Latvia,
Lithuania,
and northwest Russia,
increased 30 percent
annually between 1993
and 1998. The region
as a whole has a
population of
approximately 100
million people, which
represents a sizable
market with access to
the larger markets of
Western Europe and the
former Soviet Union.
As trade between the
West and the East
expands, the Baltic
Sea region will
continue to play a
pivotal role in the
global market, and it
will also be an
increasing target for
U.S. exports.
In the heart of the
Baltic Sea region,
nestled between
Finland and northwest
Russia, lie the Baltic
states of Estonia,
Latvia,
Lithuania.
Although these three
countries represent a
small portion of the
Baltic Sea region
(roughly 7.5 million
people and a total
territory of 175,015
square kilometers),
they have shown
promise in overcoming
the obstacles left
behind by the defunct
Soviet economy.
Upon gaining their
independence from the
Soviet Union in 1991,
the three Baltic
nations have made
vigorous strides to
privatize industries
as well as to
establish legal
systems conducive to
trade and protective
of investments. As a
result of these
efforts, all three of
the Baltic states have
been included in the
group of 10 countries
scheduled to join the
European Union in
2004.
In light of the
encouraging economic
developments in the
Baltics, the U.S.
Commerce
Department’s under
secretary of commerce
for international
trade, Grant Aldonas,
accompanied by Henry
Levine, deputy
assistant secretary of
commerce for Europe,
traveled to Lithuania
in October 2002, to
meet with Lithuanian
government officials
and business community
representatives to
explore commercial
opportunities for U.S.
firms and discuss
mechanisms to
encourage trade. As a
follow-up to the under
secretary’s visit,
Linda Conlin,
assistant secretary of
commerce for trade
development, will also
travel to Lithuania in
December 2002, to meet
with various
government ministries
to determine industry
sectors and projects
of possible interest
to U.S. businesses.
Each of the Baltic
states shares a
similar past and has
similar domestic and
foreign policy goals,
including joining the
European Union and
developing commerce.
However, these
countries have
different commercial
policies and different
economic strengths.
The key to the region
is identifying these
strengths and
navigating the sea of
opportunities.
CEEBIC trade
specialists Reene Sepp,
Jonas Vasilevicius,
and Aldis Celms
contributed to this
article. Main sources:
Country Commercial
Guide: Estonia;
Country Commercial
Guide: Latvia; Country
Commercial Guide:
Lithuania (all three
published by the U.S.
Commercial Service and
U.S. Department of
State, 2002); The
World Factbook (CIA,
2002); Estonian
Investment Agency;
Bank of Estonia;
Statistical Office of
Estonia; Direction of
Trade Statistics
Yearbook (IMF, 2000);
World Trade Atlas
(Global Trade
Information Services,
Inc., 2002);
Lithuanian Department
of Statistics;
Klaipeda State
Seaport; Lithuanian
Development Agency;
Latvian Development
Agency; and the
Central Statistical
Bureau of Latvia.
Date Updated: March 27, 2007
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