THE DEVELOPMENT OF FOREIGN TRADE IN THE BALTIC COUNTRIES- The potential of trade with the United Kingdom and the United States

Since their independence in 1991 Estonia, Latvia and Lithuania have struggled to transform into market-oriented economies. During a decade, the Baltic countries have accomplished an impressive reorientation of foreign trade, and today the EU represents the most important trading partner of the Baltics. However, foreign trade is still far from fully developed, which leaves opportunities for new foreign actors to participate and affect the growing trade volumes of the Baltic countries. The main purpose of this thesis was to investigate the further development of the Baltic countries’ foreign trade with special consideration to trade partners with the potential of reloading goods in Göteborg. The findings of the study are based on statistical data as well as on a field-study in Estonia where important export companies and trade organizations were interviewed. It was concluded that a number of factors could have an impact on the development of trade such as the world recession, membership of the EU, the development of trade with Russia and the development of industry structures. The results indicate that even though there are further potentials of trade with the United Kingdom and the United States, this potential is not very significant within the next 5 years. Key-words: Foreign trade, exports, imports, development, Baltic countries, transition, the United Kingdom, the United States.