Estonia and Luxembourg

11.11.2009

The Grand Duchy of Luxembourg recognised the Republic of Estonia on 22 February 1923 and re-recognised Estonia on 27 August 1991. Diplomatic relations were re-established on 29 August 1991.

There is no embassy of Estonia in Luxembourg and all Estonia’s Ambassadors to the Grand Duchy of Luxembourg have resided in Brussels. Estonia's first Ambassador to Luxembourg was from 1993-1996 Clyde Kull. From 1996-1999 Ambassador Jüri Luik represented Estonia in Luxembourg, from 1999-2003 Sulev Kannike and from 2004-2009 Malle Talvet-Mustonen. From 18 March to 7 October 2009 Karin Jaani was Estonian Ambassador  to the Grand Duchy of Luxembourg.
Estonia’s Honorary Consul in Luxembourg is Alexis Thielen.

Ambassador from Luxembourg to Estonia Jean Faltz presented his credentials on 31 January 2008. The ambassador resides in Prague. Since 26 February 2009, Luxembourg also has an honorary consul in Estonia, Vahur Kraft.

The bilateral relations of Estonia and Luxembourg are very good and quite close. Estonian Prime minister Andrus Ansip made his last visit to Luxembourg in July 2009; a couple of weeks later followed the visit to Estonia of Deputy Prime Minister and Minister for Foreign Affairs and immigration Jean Asselborn. Prime Minister of Luxembourg Jean-Claude Juncker’s official visit to Estonia took place in September 2007.

Visits

Agreements

• Agreement on Road Transport between Estonia, Latvia, Lithuania, Belgium, Luxembourg and the Netherlands (came into force 1.12.94);
• Agreement Between Estonia and the Belgo-Luxembourg Economic Union on the Reciprocal Promotion and Protection of Investments (came into force 23.09.99);
• Agreement Between Estonia and the States of Benelux on Readmission of Persons (came into force 1.02.05)
• Agreement on the Avoidance of Double Taxation and the Prevention of Income and Capital Tax evasion (signed 23.05.2006)

Economic Relations

There are regulary reciprocal visites of business delegations taking place (1999, 2003, 2005...).

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.

Commodity exhange between Estonia and Luxembourg is relatively restricted.

The mutual visits of business delegations have taken place regularly (1999, 2003, 2005), but trade between Estonia and Luxembourg is modest.

Total trade turnover with Luxembourg in 2008 was 209 million EEK (13.3 million EUR). The trade balance was strongly in deficit—129.4 million EEK (8.3 million EUR). On the basis of total turnover, Luxembourg ranked as Estonia’s 49th trade partner.

Estonian exports to Luxembourg in 2008 totalled 39.8 million EEK (2.5 million EUR) and imports from Luxembourg totalled 169.3 million EEK (10.8 million EUR). There was over four times as much import as export. Compared with 2007, export grew by 1.6 (58%) and import decreased by 0.8 (15%). In the ranking of export partners Luxembourg was in 64th place and among import partners it was in 42% place (0.1% of total imports).

Main export articles in 2008:

• Machinery and equipment - 54.4%
• Wood and wood products - 16.1%
• Animal products - 12.5%

Main import articles in 2008:

• Metals and metal products - 46%
• Machinery and equipment - 30.2%
• Plastics, plastic and rubber products - 10.5%

All economic figures originate from the Ministry of Economic Affairs and Communications

Investments

According to Bank of Estonia data, as of 31 December 2008 Luxembourg had made direct investments in Estonia in the value of 3.3 billion EEK (208 million EUR). This made up 1.79% of total foreign direct investments. Luxembourg ranked 10th among direct investors. The investments were made primarily in real estate rental and business activity (57%), financial intermediation (16%), the manufacturing industry (6.5%), and the rest in wholesale and retail trade and the transportation and communication sector.

As of the same date, Estonian direct investments in Luxembourg totalled 30.9 million EEK (1.9 million EUR), primarily in the real estate and financial sectors.

Culture

Cultural relations between Estonia and Luxembourg are developing.

Within the last five years, concerts have been given in Luxembourg by Villu Veski and Tiit Kalluste together with the Argentinean Pipi Piazolla, Vox Clamantis and Olav Ehala, Andres Mustonen and Ivo Sillamaa. Christmas concerts have been arranged and Aldo Järvsoo’s and Tanel Veenre’s creative works in the field of fashion demonstrated. The Luxembourgish have also had an opportunity to watch Priit Pärn’s animations and Liina Siib’s poster art works. In May 2006, Luxembourg Philharmonic Orchestra was at a concert tour in Estonia. In the autumn of 2006, there was a joint exhibition of four Estonian artists at the Castle of Bourlingster in Luxembourg (Siim-Tanel Annus, Maara Vint, Andres Tolts and Mare Vint). In February 2007, it was possible to watch”The Singing Revolution”, a documentary treating Estonia’s regaining of independence. In November, the embassy organised the concert of an international quartet made up of Belgian, French and Estonian musicians.

Estonians in Luxembourg

There live about 300 Estonians in Luxembourg; the majority of them work in the EU institutions. The Luxembourgish Estonian Society (LES) arranges numerous joint events. Also a home page for the Luxemburgish Estonians has been created at www.les.lu.