Estonia
GANG INFORMATION
PROFILE
OFFICIAL NAME:
Republic of Estonia
Geography
Area: 45,226 sq. km. (17,462 sq. mi.); about the size of New Hampshire
and Vermont.
Cities: Capital--Tallinn (pop. 397,150). Other cities--Tartu (101,190);
Narva (67,752); Kohtla-Jarve (46,765); Parnu (44,781); Viljandi
(20,509). The last population census was held in 2000.
Terrain: Flat, average elevation 50 m. Elevation is slightly higher
in the east and southeast. Steep limestone banks and 1,520 islands
mark the coastline. Land use--9.5% arable land, 47,4% forest and
woodland, 22% swamps and bogs, 21.5% other. Coastal waters are
somewhat polluted.
Climate: Temperate, with four seasons of near-equal length. Annual
precipitation averages 50-75 cm.
People
Nationality: Noun and adjective--Estonian(s).
Population: 1.332 million.
Annual growth rate: -0.65%. Birth rate--9.3/1,000. Death rate--13.6/1,000.
Migration--616 persons (1999). Density--30/sq. km. Urban dwellers--70%.
Ethnic groups: Estonians 65%, Russians 28%, Ukrainians 2.5%, Belarusians
1.4%, Finns 0.9%, other 2.2%.
Religions: Lutheran; the Estonian Apostolic Orthodox, subordinated
to Constantinople; the Estonian Orthodox, subordinated to the
Moscow Patriarchate; Baptist.
Languages: Estonian (official).
Education: Years compulsory--9. Attendance--218,600 students at
550 schools, plus 50,800 university students. Literacy--98.2%.
Health: Infant mortality rate--7.87 deaths/1,000 live births.
Life expectancy--65 yrs. men, 76 yrs. women.
Work force: 704,500.
Government
Type: Parliamentary democracy.
Constitution: On June 28, 1992 Estonians ratified a constitution
based on the 1938 model, offering legal continuity to the Republic
of Estonia prior to Soviet occupation.
Branches: Executive--president (chief of state), elected by Parliament
every 5 years; prime minister (head of government). Legislative--Riigikogu
(Parliament--101 members, 4-year term). Judicial--Supreme Court.
Administrative regions: 15 counties, 42 towns, and 205 municipalities.
Political parties/coalitions: Estonian Center Party--Chairman,
Edgar Savisaar/Coalition; Estonian Reform Party--Chairman, Andrus
Ansip/Coalition; Pro Patria Union--Chairman, Mart Laar; Estonian
People's Union--Chairman, Villu Reiljan/Coalition; Moderates--Chairman,
Ivari Padar; Estonian United People's Party--Chairman, Jevgeni
Tomberg; Estonian Social Democratic Labor Party--Chairman, Tiit
Toomsalu; Estonian Independence Party--Chairman, Vello Leit; Res
Publica--Chairman, Juhan Parts; Estonian Christian People's Party--Chairman,
Aldo Vinkel; Russian Party in Estonia--Chairman, Stanislav Cherepanov;
Estonian Democratic Party--Chairman, Jaan Laas; Republican Party--Chairman,
Kristjan-Olari Leping.
Suffrage: Universal at 18 years of age; noncitizen residents may
vote in municipal elections.
Government budget: $2.3 billion.
Defense: 2% of GDP.
National holidays: Jan. 1 (New Year's Day), Feb. 24 (Independence
Day), Good Friday, Easter Sunday, May 1 (May Day), Whitsunday,
June 23 (Victory Day--anniversary of Battle of Vonnu in 1919),
June 24 (Midsummer Day), Aug. 20 (Day of Restoration of Independence),
Dec. 25 (Christmas Day), Dec. 26 (Boxing Day).
Government of Estonia Web site: http://www.riik.ee/en/
Economy
GDP (2005 est.): $19.2 billion (World Bank).
Growth rate (2004): 6%.
Per capita GDP (2004): $14,500.
Inflation (2004): 3.0%.
Unemployment (2004): 9.6%.
Natural resources: Oil shale, phosphorite, limestone, blue clay.
Agriculture (3% of 2001 GDP): Products--livestock production (milk,
meat, eggs) and crop production (cereals and legumes, potatoes,
forage crops). Cultivable land--433,100 hectares.
Industry (26% of 2002 GDP): Types--engineering, electronics, wood
and wood products, and textiles.
Services (70% of 2002 GDP): Transit, information technology (IT),
telecommunications.
Trade: Exports (2004)--$5.7 billion. Partners--Finland 16.6%,
Sweden 11.1%, U.K. 8.6%, Russia 6.9%, Latvia 7.4%, Germany 7.2%,
U.S. 5.5%, Lithuania 4%. Imports (2004)--$ 7.3 billion. Partners--Finland
20%, Germany 11%, Russia 13%, Sweden 8%.
Exchange rate (2004): 12.5 kroon EEK=U.S.$1.
Foreign direct investment (June 2003): Sweden 39%, Finland 30%,
Netherlands 6%, U.S. 7%, Norway 3%, Denmark 2%, Germany 2%.
GEOGRAPHY
Between 57.3 and 59.5 latitude and 21.5 and 28.1 longitude, Estonia
lies on the eastern shores of the Baltic Sea on the level, northwestern
part of the rising East European platform. Average elevation reaches
only 50 meters (160 ft.).
The climate resembles New England's. Oil shale and
limestone deposits, along with forests that cover 47% of the land,
play key economic roles in this generally resource-poor country.
Estonia boasts more than 1,500 lakes, numerous bogs, and 3,794
kilometers of coastline marked by numerous bays, straits, and
inlets. Tallinn's Muuga port offers one of Europe's finest warmwater
harbor facilities.
Estonia's strategic location has precipitated many
wars that were fought on its territory between other rival powers
at its expense. In 1944 the Union of Soviet Socialist Republics
(U.S.S.R.) granted Russia the trans-Narva and Petseri regions
on Estonia's eastern frontier. Russia and Estonia signed a border
treaty in 2005 recognizing the current border. Estonia ratified
the treaty in June 2005, but Russia has not yet done so.
PEOPLE
The name "Eesti," or Estonia, is derived from the word
"Aestii," the name given by the ancient Germans to the
peoples living northeast of the Vistula River. The Roman historian
Tacitus in 98 A.D. was the first to mention the "Aestii"
people, and early Scandinavians called the land south of the Gulf
of Finland "Eistland," and the people "eistr."
Estonians belong to the Balto-Finnic group of the Finno-Ugric
peoples, as do the Finns and Hungarians. Archaeological research
supports the existence of human activity in the region as early
as 8,000 BC but by 3,500 BC the principal ancestors of the Estonians
had arrived from the east.
Estonians have strong ties to the Nordic countries
today stemming from strong cultural and religious influences gained
over centuries during Scandinavian colonization and settlement.
This highly literate society places strong emphasis upon education,
which is free and compulsory until age 16. The first book in Estonian
was printed in 1525. About 20% of the population belongs to the
following churches registered in Estonia: Estonian Evangelical
Lutheran Church, Estonian Apostolic Orthodox Church, Estonian
Orthodox Church subordinated to the Moscow Patriarchate, Baptist
Church, Roman Catholic Church, and others.
From 1945-1989 the percentage of ethnic Estonians
in Estonia dropped from 94% to 61%, caused primarily by the Soviet
program promoting mass immigration of urban industrial workers
from Russia, Ukraine, and Belarus, as well as by wartime emigration
and Soviet premier Josif Stalin's mass deportations and executions.
Written with the Latin alphabet, Estonian is the
language of the Estonian people and the official language of the
country. One-third of the standard vocabulary is derived from
adding suffixes to root words. The oldest known examples of written
Estonian originate in 13th century chronicles. During the Soviet
era, the Russian language was imposed for official use.
HISTORY
Estonians are one of the longest-settled European peoples, whose
forebears, known as the "comb pottery" people, lived
on the southeastern shores of the Baltic Sea over 5,000 years
ago. Like other early agricultural societies, Estonians were organized
into economically self-sufficient, male-dominated clans with few
differences in wealth or social power. By the early Middle Ages
most Estonians were small landholders, with farmsteads primarily
organized by village. Estonian government remained decentralized,
with local political and administrative subdivisions emerging
only during the first century A.D. By then, Estonia had a population
of more than 150,000 people and remained the last corner of medieval
Europe to be Christianized.
In 1227 the German crusading order of the Sword
Brethren defeated the last Estonian stronghold. The people were
Christianized, colonized, and enserfed. Despite attempts to restore
independence, Estonia was divided among three domains, and small
states were formed. Tallinn joined the Hanseatic League in 1248.
Despite successful Russian raids and invasions in
1481 and 1558, the local German barons continued to rule Estonia
and from 1524 preserved Estonian commitment to the Protestant
Reformation. Northern Estonia submitted to Swedish control in
1561 during the Livonian Wars, and in 1582-83 southern Estonia
(Livonia) became part of Poland's Duchy of Courland.
In 1625, mainland Estonia came entirely under Swedish
rule. In 1631, the Swedish king Gustav II Adolf granted the peasantry
greater autonomy, opened the first known Estonian-language school
in Tallinn, and in 1632 established a printing press and university
in the city of Tartu. Sweden's defeat by Russia in 1721 resulted
in the Uusikaupunki Peace Treaty, and Russian rule was then imposed
in what became modern Estonia. Nonetheless, the legal system,
Lutheran church, local and town governments, and education remained
mostly German until the late 19th century and partially until
1918.
By 1819, the Baltic provinces were the first in
the Russian empire in which serfdom was abolished, allowing the
peasants to own their own land or move to the cities. These moves
created the economic foundation for the Estonian national cultural
awakening that had lain dormant for some 600 years of foreign
rule. Estonia was caught in a current of national awakening that
began sweeping through Europe in the mid-1800s.
A cultural movement sprang forth to adopt the use
of Estonian as the language of instruction in schools, all-Estonian
song festivals were held regularly after 1869, and a national
literature in Estonian developed. Kalevipoeg, Estonia's epic national
poem, was published in 1861 in both Estonian and German.
As the 1905 revolution in Russia swept through Estonia,
the Estonians called for freedom of the press and assembly, for
universal franchise, and for national autonomy. The uprisings
were brutally suppressed, and Estonian gains were minimal, but
the tense stability that prevailed between 1905 and 1917 allowed
Estonians to advance the aspiration of national statehood.
With the collapse of the Russian empire in World
War I, Russia's provisional government granted national autonomy
to Estonia. A popularly elected assembly (Maapaev) was formed
but was quickly forced underground by opposing extremist political
forces. The Committee of Elders of the underground Maapaev announced
the Republic of Estonia on February 24, 1918, 1 day before German
troops invaded. After the withdrawal of German troops in November
1918, fighting broke out between Bolshevik and Estonian troops.
On February 2, 1920, the Treaty of Tartu was signed by the Republic
of Estonia and Soviet Russia. The terms of the treaty stated that
Soviet Russia renounced in perpetuity all rights to the territory
of Estonia.
Independence lasted 22 years. Estonia underwent
a number of economic, social, and political reforms necessary
to come to terms with its new status as a sovereign state. Economically
and socially, land reform in 1919 was the most important step.
Large estate holdings belonging to the Baltic nobility were redistributed
among the peasants and especially among volunteers in the War
of Independence. Estonia's principal markets became Scandinavia,
Great Britain, and western Europe, with some exports to the United
States and Soviet Union.
The first constitution of the Republic of Estonia,
adopted in 1920, established a parliamentary form of government.
The Parliament (Riigikogu) consisted of 100 members elected for
3-year terms. Between 1921 and 1931, Estonia had 11 governments.
Konstantin Päts was installed as the first President of the
republic in 1938.
The independence period was one of great cultural
advancement. Estonian language schools were established, and artistic
life of all kinds flourished. One of the more notable cultural
acts of the independence period, unique in western Europe at the
time of its passage in 1925, was a guarantee of cultural autonomy
to minority groups comprising at least 3,000 persons, and to Jews.
Estonia had pursued a policy of neutrality, but
the signing of the Molotov-Ribbentrop Nonaggression Pact on August
23, 1939 signaled the end of independence. The agreement provided
for the Soviet occupation of Estonia, Latvia, Finland, and later,
Lithuania, in return for Nazi Germany's assuming control over
most of Poland. After extensive diplomatic intrigue, the Estonian
Socialist Republic (E.S.R.) was proclaimed on July 21, 1940, 1
month after Estonia was occupied by Soviet troops. The E.S.R.
was formally accepted into the Soviet Union on August 6, and the
official name of the country became the Estonian Soviet Socialist
Republic (E.S.S.R.).
Soviet occupation was accompanied by expropriation
of property, Sovietization of cultural life, and Stalinist communism
permeating political life. On June 14, 1941, mass deportations
took place simultaneously in all three Baltic states. Officially,
nothing was said about the arrests, and no one was prosecuted
or sentenced.
When Nazi Germany attacked the Soviet Union on June
22, 1941, most Estonians greeted the Germans with relatively open
arms and hoped to restore independence. It soon became clear that
sovereignty was out of the question. Estonia became a part of
"Ostland." Massive repression continued. About 5,500
Estonians died in concentration camps.
In World War II Estonia suffered huge losses. Ports
were destroyed, and 45% of industry and 40% of the railways were
damaged. Estonia's population decreased by one-fifth (about 200,000
people). Some 10% of the population (more than 80,000 people)
fled to the West between 1940 and 1944. More than 30,000 soldiers
were killed in battles. In 1944 Russian air raids destroyed Narva,
and one-third of the residential area in Tallinn was destroyed.
By late September 1944, Soviet forces expelled the last German
troops from Estonia, ushering in a second phase of Soviet rule.
That year, Moscow also transferred the Estonian Narva and Petseri
border districts, which held a large percentage of ethnic Russians,
to Russian control. In 1944, there were massive arrests of people
who had actively supported the German occupation or been disloyal
to Soviet order.
An anti-Soviet guerrilla movement known as "the
Forest Brethren" developed in the countryside, reaching its
zenith in 1946-48. In March 1949, 20,722 people (2.5% of population)
were deported to Siberia. By the beginning of the 1950s, the occupying
regime had suppressed the resistance movement.
After the war the Communist Party of the Estonian
Soviet Socialist Republic (ECP) became the preeminent organization
in the republic. The ethnic Estonian share in the total ECP membership
decreased from 90% in 1941 to 48% in 1952.
After Stalin's death, party membership vastly expanded
its social base to include more ethnic Estonians. By the mid-1960s,
the percentage of ethnic Estonian membership stabilized near 50%.
On the eve of perestroika the ECP claimed about 100,000 members;
less than half were ethnic Estonians and comprised less than 2%
of the country's population.
A positive aspect of the post-Stalin era in Estonia
was a reopening in the late 1950s of citizens' contacts with foreign
countries. Ties were reactivated with Finland, and in the 1960s,
Estonians began watching Finnish television. This electronic "window
on the West" afforded Estonians more information on current
affairs and more access to Western culture and thought than any
other group in the Soviet Union. This heightened media environment
was important in preparing Estonians for their vanguard role in
extending perestroika during the era of Soviet President Mikhail
Gorbachev.
In the late 1970s, Estonian society grew increasingly
concerned about the threat of cultural Russification to the Estonian
language and national identity. By 1981, Russian was taught in
the first grade of Estonian language schools and also was introduced
into the Estonian pre-school teaching.
By the beginning of the Gorbachev era, concern over
the cultural survival of the Estonian people had reached a critical
point. The ECP remained stable in the early perestroika years
but waned in the late 1980s. Other political movements, groupings,
and parties moved to fill the power vacuum. The first and most
important was the Estonian Popular Front, established in April
1988 with its own platform, leadership, and broad constituency.
The Greens and the dissident-led Estonian National Independence
Party soon followed. By 1989, the political spectrum widened,
and new parties were formed and re-formed almost daily.
The republic's Supreme Soviet transformed into an
authentic regional lawmaking body. This relatively conservative
legislature passed an early declaration of sovereignty (November
1988); a law on economic independence (May 1989) confirmed by
the U.S.S.R. Supreme Soviet that November; a language law making
Estonian the official language (January 1989); and local and republic
election laws stipulating residency requirements for voting and
candidacy (August, November 1989).
Although not all non-Estonians supported full independence,
they were divided in their goals for the republic. In March 1990
some 18% of Russian speakers supported the idea of a fully independent
Estonia, up from 7% the previous autumn, and only a small group
of Estonians were opposed to full independence in early 1990.
Estonia held free elections for the 105-member Supreme Soviet
on March 18, 1990. All residents of Estonia were eligible to participate
in the elections, including the approximately 50,000 Soviet troops
stationed there. The Popular Front coalition, composed of left
and centrist parties and led by former Central Planning Committee
official Edgar Savisaar, held a parliamentary majority. In May
1990, the name of the Republic of Estonia was restored, public
use of the symbols of the E.S.S.R. (anthem, flag, and coat of
arms) were forbidden, and only laws adopted in Estonia were proclaimed
valid.
Despite the emergence of the new lawmaking body,
an alternative legislature developed in Estonia. In February 1990,
a body known as the Congress of Estonia was elected in unofficial
and unsanctioned elections. Supporters of the Congress argued
that the inter-war republic continued to exist de jure: Since
Estonia was forcibly annexed by the U.S.S.R., only citizens of
that republic and their descendants could decide Estonia's future.
Through a strict, nonconfrontational policy in pursuing
independence, Estonia managed to avoid the violence which Latvia
and Lithuania incurred in the bloody January 1991 crackdowns and
in the border-customs post guard murders that summer. During the
August coup in the U.S.S.R., Estonia was able to maintain constant
operation and control of its telecommunications facilities, thereby
offering the West a clear view into the latest coup developments
and serving as a conduit for swift Western support and recognition
of Estonia's redeclaration of independence on August 20, 1991.
Following Europe's lead, the United States formally reestablished
diplomatic relations with Estonia on September 2, and the U.S.S.R.
Supreme Soviet offered recognition on September 6, 1991.
After more than 3 years of negotiations, on August
31, 1994, the armed forces of the Russian Federation withdrew
from Estonia. Since regaining independence Estonia has had 12
governments with 8 prime ministers: Edgar Savisaar, Tiit Vähi,
Mart Laar, Andres Tarand, Mart Siimann, Siim Kallas, Juhan Parts,
and Andrus Ansip.
GOVERNMENT AND POLITICAL CONDITIONS
On June 28, 1992, Estonian voters approved the constitutional
assembly's draft constitution and implementation act, which established
a parliamentary government with a president as chief of state
and with a government headed by a prime minister.
The Riigikogu, a unicameral legislative body, is
the highest organ of state authority. It initiates and approves
legislation sponsored by the prime minister. The prime minister
has full responsibility and control over his cabinet. Parliamentary
and presidential elections were held on September 20, 1992. Approximately
68% of the country's 637,000 registered voters cast ballots. An
outstanding writer and former Minister of Foreign Affairs, Lennart
Meri, won on the first ballot and became President. He chose 32-year-old
historian and Christian Democratic Party founder Mart Laar as
Prime Minister.
In February 1992, and with amendments in January
1995, the Riigikogu renewed Estonia's liberal 1938 citizenship
law, which also provides equal civil protection to resident aliens.
In 1996, Estonia ratified a border agreement with
Latvia and completed work with Russia on a technical border agreement.
President Meri was re-elected in free and fair indirect elections
in August and September 1996. During parliamentary elections in
1999, the seats in Riigikogu were divided as follows: the Center
Party received 28, the Pro Patria Union 18, the Reform Party 18,
the Moderates 17 seats. Pro Patria Union, the Reform Party, and
the Moderates formed a government with Mart Laar as Prime Minister
whereas the Center Party with the Coalition Party, People's Union,
United People's Party, and members of parliament who were not
members of factions formed the opposition in the Riigikogu.
In the fall of 2001, Arnold Rüütel became
the President of the Republic of Estonia. In January 2002, Prime
Minister Laar stepped down, and President Ruutel appointed Siim
Kallas the new Prime Minister. The Reform Party and the Center
Party formed a new coalition government in power as of January
28, 2002. Parliamentary elections were held on March 2, 2003.
A coalition government comprised of the Res Publica, Reform, and
the Peoples' Union Parties took office in April 2003. President
Rüütel appointed Juhan Parts of Res Publica as Prime
Minister.
On March 24, 2005, the coalition government led
by Juhan Parts fell following passage of a no confidence motion
in the Riigikogu. Reform Party Chairman Andrus Ansip became the
new Prime Minister on April 13, 2005, leading a coalition of the
Reform, Center, and People’s Union parties.
Principal Government Officials
President--Arnold Rüütel
Prime Minister--Andrus Ansip (Reform)
Foreign Affairs--Urmas Paet (Reform)
Interior--Kalle Laanet (Center)
Social Affairs--Jaak Aab (Center)
Education-- Mailis Reps (Center)
Economy and Communications--Edgar Savisaar (Center)
Justice--Rein Lang (Reform)
Defense--Jürgen Ligi (Reform)
Environment--Villu Reiljan (People's Union)
Agriculture--Ester Tuiksoo (People's Union)
Finance--Aivar Soerd (People’s Union)
Culture--Raivo Palmaru (Center Party)
Population Minister--Paul-Erik Rummo (Reform)
Minister of Regional Affairs--Jaan Õunapuu (People's Union)
Riigikogu Chairman--Ene Ergma (Res Publica)
Estonia maintains an embassy in the United States
at 2131 Massachusetts Avenue, NW, Washington DC 20008 (tel: [1]
(202) 588-0101; fax: [1] (202) 588-0108). It operates a consulate
at 600 Third Avenue, 26th Floor, New York, NY 10016-2001 (tel:
[1] (212) 883-0636; fax: [1] (212) 883-0648).
ECONOMY
For centuries until 1920, Estonian agriculture consisted of native
peasants working large feudal-type estates held by ethnic German
landlords. In the decades prior to 1918 independence, centralized
czarist rule had contributed a rather large industrial sector
dominated by the world's largest cotton mill, a ruined postwar
economy, and an inflated ruble currency. In years 1920 to 1930,
Estonia entirely transformed its economy, despite considerable
hardship, dislocation, and unemployment. Compensating the German
landowners for their holdings, the government confiscated the
estates and divided them into small farms which subsequently formed
the basis of Estonian prosperity.
By 1929, a stable currency, the kroon (or crown),
was established. Trade focused on the local market and the West,
particularly Germany and the United Kingdom. Only 3% of all commerce
was with the U.S.S.R.
The U.S.S.R.'s forcible annexation of Estonia in
1940 and the ensuing Nazi and Soviet destruction during World
War II crippled the Estonian economy. Postwar Sovietization of
life continued with the integration of Estonia's economy and industry
into the U.S.S.R.'s centrally planned structure. More than 56%
of Estonian farms were collectivized in the month of April 1949
alone. Moscow expanded on Estonian industries that had locally
available raw materials, such as oil-shale mining and phosphorites.
As a laboratory for economic experiments, especially in industrial
management techniques, Estonia enjoyed more success and greater
prosperity than other regions under Soviet rule.
Since re-establishing independence in 1991, Estonia
has styled itself as the gateway between East and West and aggressively
pursued economic reform and integration with the West. Estonia's
market reforms put it among the economic leaders in the former
Council for Mutual Economic Assistance (COMECON) area. A balanced
budget, flat-rate income tax, free trade regime, fully convertible
currency, competitive commercial banking sector, and hospitable
environment for foreign investment are hallmarks of Estonia's
free-market-based economy. Estonia also has made excellent progress
in regard to structural adjustment.
The privatization of state-owned firms is virtually
complete, with only the port and the main power plants remaining
in government hands. The constitution requires a balanced budget,
and the protection afforded by Estonia's intellectual property
laws is on a par with that of Europe's. In early 1992 both liquidity
problems and structural weakness stemming from the communist era
precipitated a banking crisis. As a result, effective bankruptcy
legislation was enacted, and privately owned, well-managed banks
emerged as market leaders. Today, near-ideal conditions for the
banking sector exist. Foreigners are not restricted from buying
bank shares or acquiring majority holdings.
Tallinn's fully electronic Stock Exchange opened
in early 1996 and was bought out by Finland's Helsinki Stock Exchange
in 2001. It is estimated that the unregistered economy provides
almost 12% of annual gross domestic product (GDP).
Estonia is nearly energy independent, supplying
more than 90% of its electricity needs with locally mined oil
shale. Alternative energy sources such as wood, peat, and biomass
make up about 9% of primary energy production. Estonia imports
needed petroleum products from western Europe and Russia. Oil
shale energy, telecommunications, textiles, chemical products,
banking, services, food and fishing, timber, shipbuilding, electronics,
and transportation are key sectors of the economy. The ice-free
port of Muuga, near Tallinn, is a modern facility featuring good
transshipment capability, a high-capacity grain elevator, chill/frozen
storage, and brand-new oil tanker off-loading capabilities. The
railroad, privatized by an international consortium in 2000, serves
as a conduit between the West, Russia, and other points to the
east.
Estonia still faces challenges. Agricultural privatization
has caused severe problems for farmers needing collateral to be
eligible for loans. The income differential between Tallinn and
the rest of the country is widening. Standards of living have
eroded for the large portion of the population on fixed pensions.
The formerly industrial northeast section of Estonia is undergoing
a severe economic depression as a result of plant closings.
During recent years the Estonian economy has continued
to grow. Estonian GDP grew by 6.5% in 2001 and by 6.0% in 2002.
Inflation declined modestly to 4.2% in 2001; for 2002 the inflation
rate was 2.7%. The unemployment rate in 2002 was 10.6%. Estonia
joined the World Trade Organization in 1999. Estonia concluded
European Union (EU) accession negotiations in December 2002 and
signed the EU Accession Treaty in April 2003. In a September 2003
referendum, Estonian citizens voted to amend their constitution
and join the European Union. Estonia formally joined the EU on
May 1, 2004, one of 10 states, mostly from eastern Europe, to
join the Union on that date. While the effects of EU membership
will not be measurable in the short term, membership will likely
have a positive influence on Estonia's gross domestic product,
exports of goods and services, and the inflow of foreign investment.
Foreign Trade
Estonia's liberal foreign trade regime, which contains few tariff
or nontariff barriers, is nearly unique in Europe. Estonia also
boasts a national currency that is freely convertible at a fixed
exchange rate, and conservative fiscal and monetary policies.
Estonia's business attitude toward the United States
is positive, and business relations between the United States
and Estonia are increasing significantly. The primary competition
for American companies in the Estonian marketplace is European
suppliers, especially Finnish and Swedish companies.
Total U.S. exports to Estonia in 2002 were $164
million, forming 3% of total Estonian imports. In 2002 the principal
imports from the United States were meat and edible meat offal,
poultry, boilers, and other electrical machinery and transmission/recording
apparatus for radio/TV. The May 2004 round of EU expansion is
likely to yield, over time, positive benefits for U.S. business.
However, Estonia's membership is disadvantageous for certain U.S.
exports to Estonia. For example, since January 2000 Estonia has
imposed import tariffs on certain agricultural products from third
countries, including the United States, in accordance with EU
rules and regulations.
Estonia, being a small country of 1.4 million people,
relies on its greatest natural asset--its location at the crossroads
of East and West. Estonia lies just south of Finland and across
the Baltic Sea from Sweden, both EU members. To the east are the
huge potential markets of northwest Russia. Having been a member
of the former Soviet Union, Estonians know how to do business
in Russia and in other former Soviet countries. Estonia's modern
transportation and communication links provide a safe and reliable
bridge for trade with former Soviet Union and Nordic countries.
According to the RIPE Network Coordination Centre (www.ripe.net),
Estonia has the highest Internet-connected hosts/population ratio
in central and eastern Europe and also is ahead of most other
EU countries. Latest surveys indicate that 41% of the Estonian
population regard themselves as Internet users.
Country Commercial Guides are available for U.S.
exporters from the National Trade Data Bank's CD-ROM or via the
Internet. Please contact STAT-USA at 1-800-STAT-USA for more information.
Country Commercial Guides can be accessed via the World Wide Web
at the U.S. Department of Commerce's site. They also can be ordered
in hard copy or on diskette from the National Technical Information
Service (NTIS) at 1-800-553-NTIS. U.S. exporters seeking general
export information/assistance and country-specific commercial
information should contact the U.S. Department of Commerce, Trade
Information Center by phone at 1-800-USA-TRAD(E) or by fax at
1-202-482-4473.
DEFENSE
Estonia achieved its main security and defense policy objective
by accepting a formal invitation at Prague in November 2002 to
join the North Atlantic Treaty Organization (NATO) Alliance. Accession
to NATO has been included in all coalition agreements of all Estonian
governments since the 1991 restoration of independence, including
the present government. The same objective also is stated in the
National Security Concept of the Republic of Estonia, approved
by the Parliament in March 2001. Estonia officially became a member
of the North Atlantic Treaty Organization on March 29, 2004 after
depositing its instruments of treaty ratification in Washington,
DC.
The 2003 state budget allocated 2% of GDP for defense
expenditures. The United States is among the countries with which
Estonia has very intensive cooperation in the defense and security
field.
FOREIGN RELATIONS
Estonia is a party to 181 international organizations, including
Bank for International Settlements (BIS), Council of the Baltic
Sea States (CBSS), Customs Cooperation Council (CCC), Council
of Europe (CE), Euro-Atlantic Partnership Council (EAPC), European
Bank for Reconstruction and Development (EBRD), Economic Commission
for Europe (ECE), European Union (EU), Food and Agriculture Organization
(FAO), International Atomic Energy Agency (IAEA), International
Bank for Reconstruction and Development (IBRD, or World Bank),
International Civil Aviation Organization (ICAO), International
Confederation of Free Trade Unions (ICFTU), International Red
Cross and Red Crescent Movement (ICRM), International Finance
Corporation (IFC), International Federation of Red Cross and Red
Crescent Societies (IFRCS), International Hydrographic Organization
(IHO), International Labor Organization (ILO), International Monetary
Fund (IMF), International Maritime Organization (IMO), International
Criminal Police Organization (Interpol), International Olympic
Committee (IOC), International Organization for Migration (IOM,
observer), International Organization for Standardization (ISO,
correspondent), International Telecommunication Union (ITU), Organization
for the Prohibition of Chemical Weapons (OPCW), Organization for
Security and Cooperation in Europe (OSCE), Partnership for Peace
(PFP), United Nations (UN), United Nations Conference on Trade
and Development (UNCTAD), United Nations Educational, Scientific,
and Cultural Organization (UNESCO), United Nations Mission in
Bosnia and Herzegovina (UNMIBH), United Nations Interim Administration
Mission in Kosovo (UNMIK), United Nations Truce Supervision Organization
(UNTSO), Universal Postal Union (UPU), Western European Union
(WEU, associate partner), World Health Organization (WHO), World
Intellectual Property Organization (WIPO), World Meteorological
Organization (WMO), World Trade Organization (WTO).
U.S.-ESTONIA RELATIONS
The relationship between Estonia and the United States of America
has been constant and strong since Estonia first became independent.
Because of its global political and economic influence, the United
States is one of Estonia's most important partners.
The United States recognized the Republic of Estonia
on July 28, 1922. The first Estonian diplomatic mission in the
United States was opened in the same year. It continued its activities
throughout the period of illegal occupation by the Soviet Union
from 1940 to 1991. U.S. authorities recognized Estonia's diplomatic
mission as a legal representative of the Republic of Estonia.
Indeed, the recognition of the legal continuity of the Republic
of Estonia has been the cornerstone of Estonian-U.S. relations.
The U.S. reopened its Embassy in Tallinn on September
4, 1991, soon after the restoration of Estonia's de facto independence
on August 20, 1991. Relations between the two countries have since
developed at a rapid pace.
The U.S. Ambassador to Estonia is Aldona Zofia Wos.
Mr. Jüri Luik has been Estonia's Ambassador to the United
States since September 2003. Estonia also is represented in the
United States by a Consulate General in New York and three Honorary
Consuls: Jaak Treiman in Los Angeles, Mart Kask in Seattle, and
Scott E. Schul in Maine.
U.S.-Baltic Charter
The Presidents of the United States, Estonia, Latvia, and Lithuania
signed the U.S.-Baltic Charter in Washington on January 16, 1998.
The main goals of this charter are to support Estonia's, Latvia's,
and Lithuania's full integration into European and transatlantic
structures, and to establish the general principles and aims for
cooperation. The charter underlines the importance of political,
defense, security, and economic cooperation. It is a statement
of the United States' real, profound, and enduring interest in
the security and independence of the Baltic states.
The U.S. commitment toward the Baltic and Nordic
states has been reaffirmed with the articulation of the Enhanced
Partnership in Northern Europe (e-PINE) in October 2003. E-PINE
recognizes the progress made in the region over the preceding
decade as well as the challenges that remain, both in the region
and with states beyond the borders of an expanding EU and NATO.
E-PINE seeks to build on past success and existing habits of multilateral
cooperation in the region. Through e-PINE, the United States is
engaging all eight Nordic and Baltic states on a shared agenda
that focuses on three areas: political security; healthy societies
and healthy neighbors; and vibrant economies. To carry out this
coordination, e-PINE includes a forum for "8 plus 1"
cooperation as well as contacts among the states at the working
level.
E-PINE represents the evolution of the previous
guiding U.S. policy, the Northern Europe Initiative (NEI). NEI,
launched in 1997, promoted regional cooperation in northern Europe
as a way of further integrating the Baltic states and northwest
Russia and of strengthening our relations with the Nordic countries.
NEI programs addressed key problems in Estonia and its neighbors--including
HIV/AIDS, environmental pollution, corruption, and social integration--and
built cross-border linkages to contribute to stability and security.
Principal U.S. Officials
Ambassador--Aldona Zofia Wos
Deputy Chief of Mission--Jeffery Goldstein
Head of Political/Economic Section--Stuart Dwyer
Management Officer--Thatcher Scharpf
Legal Attaché--James Nixon
Consular Officer--Rodger Deuerlein
Public Affairs Officer--Eric Johnson
Defense Attaché--Commander Karin Shuey (USN)
Chief of Office of Defense Cooperation--LTC Kenneth Pope
The U.S. Embassy in Estonia is located at Kentmanni
20, Tallinn [tel. (372) 66 88 100].
TRAVEL AND BUSINESS INFORMATION
The U.S. Department of State's Consular Information Program provides
Consular Information Sheets, Travel Warnings, and Public Announcements.
Consular Information Sheets exist for all countries and include
information on entry requirements, currency regulations, health
conditions, areas of instability, crime and security, political
disturbances, and the addresses of the U.S. posts in the country.
Travel Warnings are issued when the State Department recommends
that Americans avoid travel to a certain country. Public Announcements
are issued as a means to disseminate information quickly about
terrorist threats and other relatively short-term conditions overseas
that pose significant risks to the security of American travelers.
Free copies of this information are available by calling the Bureau
of Consular Affairs at 202-647-5225 or via the fax-on-demand system:
202-647-3000. Consular Information Sheets and Travel Warnings
also are available on the Consular Affairs Internet home page:
http://travel.state.gov. Consular Affairs Tips for Travelers publication
series, which contain information on obtaining passports and planning
a safe trip abroad, are on the Internet and hard copies can be
purchased from the Superintendent of Documents, U.S. Government
Printing Office, telephone: 202-512-1800; fax 202-512-2250.
Emergency information concerning Americans traveling
abroad may be obtained from the Office of Overseas Citizens Services
at (202) 647-5225. For after-hours emergencies, Sundays and holidays,
call 202-647-4000.
The National Passport Information Center (NPIC)
is the U.S. Department of State's single, centralized public contact
center for U.S. passport information. Telephone: 1-877-4USA-PPT
(1-877-487-2778). Customer service representatives and operators
for TDD/TTY are available Monday-Friday, 8:00 a.m. to 8:00 p.m.,
Eastern Time, excluding federal holidays.
Travelers can check the latest health information
with the U.S. Centers for Disease Control and Prevention in Atlanta,
Georgia. A hotline at 877-FYI-TRIP (877-394-8747) and a web site
at http://www.cdc.gov/travel/index.htm give the most recent health
advisories, immunization recommendations or requirements, and
advice on food and drinking water safety for regions and countries.
A booklet entitled Health Information for International Travel
(HHS publication number CDC-95-8280) is available from the U.S.
Government Printing Office, Washington, DC 20402, tel. (202) 512-1800.
Information on travel conditions, visa requirements,
currency and customs regulations, legal holidays, and other items
of interest to travelers also may be obtained before your departure
from a country's embassy and/or consulates in the U.S. (for this
country, see "Principal Government Officials" listing
in this publication).
U.S. citizens who are long-term visitors or traveling
in dangerous areas are encouraged to register their travel via
the State Department’s travel registration web site at https://travelregistration.state.gov
or at the Consular section of the U.S. embassy upon arrival in
a country by filling out a short form and sending in a copy of
their passports. This may help family members contact you in case
of an emergency.
Further Electronic Information
Department of State Web Site. Available on the Internet at http://www.state.gov,
the Department of State web site provides timely, global access
to official U.S. foreign policy information, including Background
Notes and daily press briefings along with the directory of key
officers of Foreign Service posts and more.
Export.gov provides a portal to all export-related
assistance and market information offered by the federal government
and provides trade leads, free export counseling, help with the
export process, and more.
STAT-USA/Internet, a service of the U.S. Department
of Commerce, provides authoritative economic, business, and international
trade information from the Federal government. The site includes
current and historical trade-related releases, international market
research, trade opportunities, and country analysis and provides
access to the National Trade Data Bank.
