Remarks for the Baltic Ambassadors to the U.S. Luncheon

Our nation’s foreign policy and economic/commercial interests are intricately tied together. U.S. businesses have and continue to demonstrate a commitment to expanding investment in, and trade with, our allies around the world. In doing so, the U.S. business community has played a key role in sustaining long-term growth in the global economy, creating jobs and improving the standard of living of nations around the world. Domestically, increased exports and foreign investments have led to the creation of new businesses, good jobs for American workers, and better choices for U.S. consumers. Accordingly, I am pleased that so many U.S. companies are represented here today – and I hope you find the program useful and helpful.

The struggle of the Estonian, Latvian and Lithuanian people for independence and freedom is a fascinating story of true bravery. For the greater part of the 20^th century the people of Eastern Europe endured the cruelty of dictators, and the aggression and occupation of foreign armies. Many patriots died in defense of their homeland to ensure that future generations would enjoy independence, democracy, religious liberty and personal freedom.

President Bush was the first American President to travel to Vilnius, Lithuania. In November of 2002, joined by the Presidents of Lithuania, Latvia and Estonia, he stood among a crowd of thousands in Rotuse Square to deliver a simple, yet powerful message – “We knew that this continent would not remain divided. We knew that arbitrary lines drawn by dictators would be erased and those lines are now forever gone. You have shown the qualities of vigour and strength to the world because you have known cruel oppression and withstood it. You were once held captive by an empire and outlived it.”

Very simply, the United States government and the American people value Estonians, Latvians and Lithuanians as allies and friends. President Bush, his Administration, and Secretary of State Rice are committed to lasting democracy, prosperity and economic success in the Baltic region. Since regaining their independence in the early 1990’s, the Baltics have worked to build lasting democracy and economic security. The road has not always been easy – many challenges and obstacles have been overcome, and some still remain – but the commitment to democratic principles is unmistakable.

This commitment is evident by the extraordinary efforts of Baltic government and business leaders in recent years to provide assistance to neighbors still struggling for democracy and freedom. Furthermore, each of these countries has committed troops to bring peace and prosperity to the people of Iraq; and each has been an important ally in our noble efforts in Afghanistan. Now members of the NATO Alliance and the EU, prospects for the people of Estonia, Latvia and Lithuania, appear excellent, as do opportunities for U.S. businesses.

I had the pleasure of meeting privately with the Baltic Ministers of Economy and Ambassadors just prior to this event. I appreciated the opportunity to exchange ideas on increasing U.S. investments in, and exports to, the Baltic states. The commitment demonstrated by the Ministers to take the time and effort to travel to Washington, D.C. is truly impressive.

We are committed to deepening our relationship with the Baltic states, and strengthening our economic and commercial ties. The Baltics are truly an extraordinary place for U.S. businesses to turn in search of new opportunities. Many of today’s speakers will provide numbers and figures demonstrating compelling reasons to consider investing in the region, so I will simply highlight a few key trends.

For the past five years GDP growth in the Baltic states has averaged more than 6% annually. Accordingly, the Baltics represent three of the fastest growing economies in Europe, and with GDP per capita less than half of the fifteen wealthiest EU economies, there are certain to be excellent opportunities for new investment in the coming years. Increasing domestic demand has continued to be a key driving force behind impressive economic growth, and households have benefited from an increase in wages, falling unemployment and low lending rates. It is no wonder that U.S. companies are increasingly looking to the Baltics.

The new EU member states, including the Baltics, have much to share in helping the European Union boost growth, opportunity and innovation. The Baltics offer U.S. investors the advantages of a highly educated workforce, low taxes on corporate profits, low cost of living, relatively low cost of labor by European standards, and a high quality of life.

Several of the companies represented here today are already benefiting from exports to, or established operations in, the region. The most recent reports reflect that the U.S. is the sixth largest source of foreign direct investment in Lithuania with $479.3 million in total investments. We are the third largest investor in Estonia with $358 million in investments. The American Chamber in Latvia reports its 130 company and individual members have invested nearly $500 million, creating more than 4,100 local jobs.
The U.S. Department of State will continue to work with the leaders of Estonia, Latvia and Lithuania to advance ideas to increase continuing prosperity in the Baltic states. We look forward to working with Baltic leaders who are making efforts to, among other things, streamline the business regulatory environment, improve transparency, enhance accountability and reporting, combat corruption, and protect intellectual property rights. Continued reform is the key to attracting U.S. investment, and maintaining impressive economic growth.

Frank Mermoud, State’s Special Representative for Commercial and Business Affairs, was an important catalyst for the recent “U.S. Ambassadors to the Baltics Trade and Investment Mission” in London. The focus of that event, led by our ambassadors to the Baltic states, was the same as today’s – reaching out to the U.S. business community and highlighting unique commercial opportunities in the region. I commend Frank and his team for providing superb leadership on that highly successful event in December – which attracted more than 160 U.S. executives from diverse industries. It is my understanding that in the past two months several U.S. companies represented at the conference have made a final decision, or announced plans, to invest a total of more than $200 million dollars in the Baltic States. Furthermore, a number of executives have already traveled, or anticipate traveling, to the region to explore opportunities. Impressive, but hopefully just the beginning. The benefits for the people of Estonia, Latvia and Lithuania, as well as for U.S. companies, workers and shareholders, clearly represent a “win-win” proposition.

I am pleased that all three of our U.S. Ambassadors are with us today. A special thanks to our Ambassador to the Republic of Lithuania, Stephen Mull, and Ambassador to the Republic of Estonia, Dr. Aldona Wos, for hosting the December conference. Our new Ambassador to the Republic of Latvia – Catherine Todd Bailey – congratulations on your appointment. Our ambassadors, and their dedicated staffs, are excellent resources to U.S. companies and are available to assist you as you explore potential opportunities.

I would like to thank the Baltic Ambassadors for hosting this luncheon, as well as the numerous people at the U.S. Chamber of Commerce who generously made today possible. General Christman, thank you for your excellent leadership at the Chamber. You and your team are a valuable partner for the Department of State, and true champions of U.S. businesses. I also understand that many of you here today will be participating in the Baltic events being held this week and weekend by the U.S. Baltic Foundation and the Joint Baltic American National Committee (JBANC). Both organizations have been quite successful in promoting the Baltic region, and we applaud their tremendous efforts.

In conclusion, this Administration and the U.S. Department of State are committed to enhancing commercial ties with Estonia, Latvia and Lithuania. I challenge each of you to explore strategic business opportunities in the region and, if you have not done so already, make plans to travel to the Baltics by the end of this year. State’s Office of Commercial and Business Affairs, our ambassadors, and excellent commercial/economic officers are invaluable resources, and I hope you will not hesitate to call on them as you continue to evaluate opportunities.