Estonia and Sweden

24.05.2007

The Kingdom of Sweden re-recognized the Republic of Estonia on 27 August 1991, being the first country to appoint its Ambassador to Estonia. Swedish Ambassador Lars Arne Grundberg commenced his assignment in Tallinn in August 1991.

Sweden's current Ambassador, Dag Hartelius, has been in office since August 2003. Since February 2007 is Estonian Ambassador to Sweden Alar Streimann.

Estonia also has five Honorary Consuls in Sweden: Veljo Pärli in Visby, Lars Johan Söderström in Malmö, Lars Werner in Karlskrona, Harriet Lagebo Eskilstuna and Lars-Eric Boreström in Gothenburg. Sweden has two honorary consuls in Estonia - Katri Raik in Narva and Madis Kanarbik in Tartu.

Bilateral relations

Estonian-Swedish bilateral relations have traditionally been very good and close in the areas of economic affairs, defence and culture. Openness, mutual understanding, trust and goodwill characterize these relations. As countries of the Baltic Sea region, Estonia and Sweden also promote active co-operation in the area of environmental protection.

Already in July 1990, Sweden started providing state assistance to various fields in Estonia. Swedish aid represents 14.2% of the total aid Estonia has received to date.

A significant dimension was added to the bilateral relations in the year 2000, which was named as the year of the Baltic countries. The main objective of this initiative was to introduce the Baltic countries to the European Union and to inform the public in the three Baltic countries of European Union-related matters. Sweden was also one of Estonia's greatest supporters in its integration process with the European Union.

Defence co-operation between the two countries is also important. In 1998, an arms purchase agreement was signed; co-operation is conducted in the fields of counseling-, logistics-, training- and environment. In the course of the visit of Swedish Defence Minister Björn von Sydow in October 2001, Estonia was handed over equipment for an infantry battalion and a new study room called the hall of Björn von Sydow was opened at the Defence College in Tartu.

In January 2002, two intergovernmental agreements were signed: general security agreement concerning the protection of classified information and agreement on collaboration within the field of emergency prevention, preparedness and response. In the same year also the agreement on development co-operation and technical assistance in the area of justice and home affairs was signed.

Also, upon Estonia's joining NATO, Sweden continued to render military aid to Estonia. But closer co-operation is conducted in the framework of the European Union's Common Security and Defence Policy (ESDP).

In the course of Prime Minister Juhan Parts' visit to Sweden in January 2005, Sweden's Prime Minister Göran Persson invited Estonia to participate in the so-called Nordic combat group to be established together with Sweden, Finland and Norway within the framework of the ESDP. The goal has been set to conclude the forming of the combat group and to achieve complete readiness by 1 January 2008.

Visits of importance

In April 1992, King Carl XVI Gustaf of Sweden and Queen Silvia visited Estonia. This was the first royal visit to the restored Republic of Estonia. In June 1995, Princess Lilian visited Estonia. In May 2002, King Carl XVI Gustaf of Sweden and Queen Silvia paid a private visit to Estonia.

In addition to bilateral visits, the members of Estonian and Swedish cabinets often meet at different international and regional forums; especially close is communication at the so-called NB8 (Nordic-Baltic) co-operation forums. Co-operation and exchange of information at the level of specialists of state agencies of both countries has turned out to be regular and business-like.

Economic relations

ECONOMIC CO-OPERATION

Since the restoration of Estonia's independence in 1991, Sweden has rendered significant economic support to Estonia. Co-operation continues at bilateral and multilateral levels within SIDA's (Swedish International Development Co-operation Agency) programmes, in the Council of Baltic Sea States and in various EU projects.

Direct contacts between the regions and the local governments play a significant role in economic co-operation and have become very extensive (there are more than one hundred co-operation projects between Estonian and Swedish local governments).

Recent projects of importance include the co-operation between the Union of Swedish Chambers of Commerce and the Estonian Export Agency in developing co-operation between small and medium size enterprises.

The so-called Baltic Billion Funds I and II have been noteworthy in promoting (respectively from 1996-1998 and from 1999-2003) economic growth of the region, trade and investments.

To actively promote Estonia's economic interests in Sweden, Enterprise Estonia opened its representation in Stockholm in March 2002.

TOURISM

Estonia's attractiveness as a destination for Swedish tourists has grown from year to year. In March 2004, a new ship “Victoria” began transporting tourists between Tallinn and Stockholm. This has given a new impulse to the development of tourism.

As to the ratio of foreign tourists visiting Estonia, the Swedish place third after tourists from Finland and Germany. While in 2004, the number of tourists from Sweden increased nearly by 30% compared to the previous year, reaching in absolute numbers slightly over 90,000, in 2006 the service of Estonian accommodation enterprises was used by 106 000 Swedish tourists.

TRADE

* Pre and post 1 May 2004 data are incomparable. After accession to the EU, the import is calculated on the basis of the sending country, earlier this was based on the country of origin.

For Estonia, Sweden is the second largest trade partner beside Finland.

Sweden's share in Estonia's foreign trade has constantly been growing. Since 1995, Estonia's exports to Sweden have increased from 146.4 million EUR to 939.5 million EUR in 2006 and imports from Sweden have at the same time decreased from 157.2 million EUR to 945.9 million EUR. On account of rapid export growth and a moderate decline in imports by the end of 1998 for the first time at last a situation emerged, in which the trade balance between Estonia and Sweden turned out to be positive for Estonia. That remained so until 2006, when in connection with a notable growth in Sweden's imports the trade balance turned negative for Estonia by 8.1 million EUR.

Estonian - Swedish trade 1998-2006 (in millions of EUR)

Main export articles in 2006:

• Machinery and equipment - 40.2%
• Wood and wood products - 9.8%
• Textiles and textile products - 9.7%
• Transport/automotive products - 9%
• Other manufactured goods - 7.9%

Main import articles in 2006:

• Machinery and equipment - 33%
• Metals and metal products - 13%
• Transport/automotive products - 12.7%
• Mineral products - 7.6%

Export and import structure has been relatively stable throughout the years.

All economic figures originate from the Statistical Office of Estonia

Among Sweden's trade partners, Estonia was in 2006 in terms of the turnover the 22nd largest export partner with 9.04 billion SEK or 0.8% of total exports (cf. 5.64 billion in 2005). Estonia's share in Sweden's total imports in 2006 accounted for 0.9% (7.51 billion SEK), with which Estonia took 21st place among import partners. Estonia continues to figure among Sweden's 25 largest trade partners, outstripping at that all new EU member states, except Poland.

INVESTMENTS

Sweden is Estonia's largest foreign investor, whose volume of direct investments as of 31.12.2006 reached nearly 100 billion kroons (51.4% of the total volume of investments). The major part investments have been made into the banking, transport and communications sector. The Swedish investors consider Estonia attractive primarily due to its qualified, motivated and productive labor as well as due to its economic climate, flexible and open to innovations and renewals. Upon accession to the European Union, the access to the EU funds has added attractiveness.

According to the Estonian Enterprises Register, as of the end of 2006, there were 1068 businesses registered in Estonia partly or fully based on the Swedish capital. The biggest direct investments made in Estonia on the basis of the Swedish capital have been channeled into the following enterprises: Hansapank, SEB Eesti Ühispank, Eesti Telefon, EMT, Eesti Statoil, Krenholm Manufacture, Saku Brewery, Estonian Air etc.

Sweden as a destination country of Estonia's direct investments is in a modest place (the total volume of investments as of 31.12.2005 was 2.4 million EUR); the percentage of investments share is only 0.1%. In 2006, Tallink through acquiring Silja Line' became the biggest shipping company on the Baltic Sea, whose market share on the routes between Sweden and Finland surpasses 55%.

AGREEMENTS

After accession to the European Union, Estonia's free trade agreements with EU member states were terminated. The economic relations are governed by the regulations of the EU's internal market.

All the important bilateral economic agreements have been signed:

• Environment-related Co-operation Agreement (came into force 30.03.92);
• Agreement on the Promotion and Mutual Protection of Investments (came into force 20.05.92);
• Agreement on the Organizing of International Highway Transportation of Passengers and Goods (came into force 30.07.92);
• Agreement on Mutual Assistance in Customs Matters (came into force 30.10.93);
• Agreement on Rendering Medical Aid to Temporary Visitors (came into force 01.11.93);
• Aviation Agreement (came into force 30.11.93);
• Convention on the Avoidance of Double Taxation of Income and Capital and on the Prevention of Tax Evasion (came into force 31.12.93);
• Agreement on the Abolition of Visa Requirements (came into force 01.05.97)
• Co-operation agreement in the field of maritime and air search and rescue (came into force 06.03.2007).

Cultural relations

The beginning of a new era in the cultural ties between Estonia and Sweden was marked by the establishment of the Estonian Institute in Stockholm in 1999, which was opened by Foreign Minister Toomas Hendrik Ilves on 3 November 1999.

Estonia has become richer thanks to Swedish assistance given to renovate several valued architectural sites. In the framework of a Swedish governmental project, “Österled” , Kadriorg Palace, the Swedish St Michael's Church and a wooden house in the Kalamaja district on Väike-Patarei tänav were renovated.

In March-April 2003, one of the most extensive events presenting Estonian culture, the festival “Estival”, was arranged in Göteborg (Gothenburg).

In the autumn of 2007, Estonia will be the chief guest of the popular Gothenburg Book Fair. In that connection, a series of all Swedish Estonia-related cultural events have been launched, in which in addition to literature and language Estonian culture is being introduced also more broadly - through art, music, theatre and film. Neeme Järvi has served for a long time (since 1982) as principal conductor of the Gothenburg Symphony Orchestra.

In the spring of 2005, as an outcome of a long-lasting and thorough co-operation between Estonian and Swedish experts, the long-expected most voluminous Swedish-Estonian Dictionary of all times containing 100,000 key words was published.

In June 2006, a separate section of the Läänemaa Museum in Haapsalu was openened for a permanent exposition of the works of Ilon Wikland, an artist born in Estonia, but raised in Sweden. Ilon Wikland won fame for her illustrations of Astrid Lindgren's books. The Gallery's name is Iloni Imedemaa (Ilon's Wonder Land) and later on is expected to grow into Ilon Wikland's Centre.

Estonians in Sweden

Unlike the coastal Swedes, who lived on the Estonian Islands and on the west coast for centuries, the significant Estonian communities in Sweden were established in the 20th century. However, Estonians have travelled throughout Sweden and taken up residence there for centuries.

The 20th century cardinally changed this situation. If pre-World War II, only a few hundred Estonians lived in Sweden, then Estonians fleeing the war in 1943-1944 swelled the number to some 20,000 after the war. With the birth of new generations in the 1950s and 1960s this figure rose to 30,000. All 7 000 coastal Swedes fled from Estonia to Sweden.

Estonians and coastal Swedes organised several events in the spring and summer of 2004 commemorating the 60th anniversary of the escape from the Soviets. Among other things, on the coast of Dalarö in Haninge commune, a monument for WW II boat refugees "Departure and Homecoming" was unveiled; in the Museum of Occupations in Tallinn an exhibition dedicated to the massive flight from Estonia was exposed, opened by the Swedish Minister for Policy Co-ordination (current Minister for Finance), Pär Nuder, who is also the descendent of an Estonian boat refugee.

Presently, more than 10,000 Estonians live in Sweden, and most of them have located in the larger cities or their suburban neighbourhoods - 4,000 in Stockholm, 2,000 in Gothenburg.

From the post-war years onward, the Estonian community successfully integrated into the Swedish community. The Estonian community also worked actively to preserve its national heritage and to raise awareness about Estonia through its many associations, societies and unions (the Estonian Committee, the Union of Estonians in Sweden, the Estonian Culture Society, the Estonian Committee (liquidated in 2006) etc). During the peak period, some 400-500 Estonian organizations had been active in Sweden. Today approximately 100 are still functioning. Also, many Estonian language periodicals are published - as the newspaper Eesti Päevaleht and the journal Rahvuslik Kontakt. In Stockholm, an Estonian kindergarten and Estonian school with ca 180 students function (from 1st-9th form). In Gothenburg, Estonians are planning to re-open its school alongside the Estonian nursery school.

Estonian Houses function as important centres for preserving and developing the Estonian heritage in Sweden.

Estonians in Sweden: www.rel.ee