Main Guidelines of Estonia's Foreign Policy
Address by Kristiina Ojuland, Minister of Foreign Affairs, to the Riigikogu, on behalf of the Government of Estonia, 13 June 2002
Honourable Mr. Chairman, respected Members of the Riigikogu!
As I am beginning this address dealing with the basic guidelines of our foreign policy, I would like to draw your attention to a basic truth which we take for granted, and therefore, far too often, tend to forget. Foreign policy is not an entity onto itself, which is separated from the state’s other duties and obligations. But rather, it is an integral part of the complex of measures and activities which enables the state, as stipulated in the preamble of the Constitution, to protect internal and external peace, to function as a pledge to present and future generations for their social progress and welfare, and to guarantee the preservation of the Estonian nation and culture through the ages.
To be able to fulfil the obligations set forth in the Constitution, two conditions have to be met - both a favourable security environment; and a favourable economic environment for all the people as a whole, and for each separate individual, must be ensured.
In today’s address I will be focusing precisely on these two aspects - on what has been achieved during the last half a year, and what still needs to be done to ensure the security of the state and the people, and for the protection and promotion of our economic interests.
I
Respected representatives, I will begin the national security segment of my address with developments concerning NATO. During the eight months which have passed since the previous parliamentary foreign policy debate, NATO enlargement has developed favourably and has become more concrete.
At the NATO foreign ministers’ meeting in Reykjavik on May 14, the preparations being done by the candidate states were evaluated within the MAP, or membership action plan framework, and plans were drawn up for the Prague summit preliminary work. The final decision concerning which states will be invited to join will probably be made immediately before the Prague summit, which will take place less than half a year from now, on November 21 – 22. This means, that all the candidate countries are continuing with their regular preparatory procedures. The MAP process will continue even after the presentation of the invitations, until all member states have ratified the appropriate changes in the Washington treaty.
The NATO foreign ministers decided in Reykjavik, that the invitations to join, which will be presented at the Prague summit, will be concrete (which means, unconditional), and that the accession negotiations must end with the signing of the accession protocols at the spring 2003 foreign ministers meeting, in other words, by next May. This will be followed by the ratification process in the member states (lasting, presumably, 1 – 1.5 years), and the invited states will all join NATO together before the next summit.
Presently, it is still open as to what exactly the accession negotiations, the MAP, and their relationship will be like. Likewise, it is still open as to how the new member states will be integrated into the NATO structure, and as to how and when they will join the NATO defence planning cycle. We can expect answers to these questions from the Prague summit.
As we know, one of the essential criteria for evaluating candidates is the fact that the country should not be just a security consumer, but should also be capable of contributing to the collective security effort, and capable of partaking in NATO missions. The continuation of defence reforms also means that in the future we have to maintain our defence expenditures at least at the present level -- 2% of the GDP.
At this point, I would like to stress the fact that by preparing for NATO accession, we are carrying out national defence reforms that we would, at any rate, have to undertake. The modernising and rationalising of our defence forces is inevitable. The preparations for joining NATO are only speeding up and simplifying this process.
The USA’s continuous, and it could be said, even growing support for the Baltic states’ future NATO membership is having an encouraging effect. Both the US administration and the legislators are supporting extensive enlargement. This is illustrated, among other things, by the fact that Congress approved the Freedom Consolidation Act, which calls for supporting the 7 NATO candidate countries. On the basis of this, Estonia is, within a year, being given 100 million kroons worth of aid, which is naturally strengthening Estonia’s defence capability and candidature.
Also, the US Secretary of Defence, Donald Rumsfeld, during his recent visit to Tallinn, commended our NATO preparations and the efficient defence co-operation with Latvia, Lithuania and the Nordic countries. At the same time, he recommended us to concentrate on developing some specific defence capability that would also be essential as Estonia’s contribution as a future member of the Alliance.
In parallel with the domestic accession preparations, Estonia has also actively participated in the Vilnius process encompassing 10 candidate countries. Within this framework, there has been a foreign ministers’ meeting in Skopje on March 8, and a meeting of the heads of government in Bukarest on March 24 – 25. In the near future, a prime ministers’ meeting will take place in Riga on July 5 – 6. We are aware of the candidate countries’ different levels of preparedness and differing outlooks. But we find that it is essential that all these countries are capable of cooperating in the interest of preparing for NATO enlargement, which confirms our readiness for constructive cooperation also in the future. At the same time, the carrying on of the Vilnius process helps to prevent senseless one-upmanship between the candidates.
When talking about NATO enlargement, we cannot bypass the organisation’s relations with Russia. As the government has previously repeatedly confirmed, Estonia completely supports the positive adjustment of Russian and NATO relations. The agreement concerning the creation of a NATO-Russian Council is a very essential step. In the future, the Council could become a valuable mechanism for developing cooperation between all NATO member states and Russia. Also, from the point of view of NATO enlargement, the adjustment of NATO-Russian relations and the increasing of mutual trust can be evaluated as positive developments.
During the last half-year, there have been significant developments concerning security matters also within the sphere of European Union activities. More than ever before, the EU has actively made efforts to further develop the Common Foreign and Security Policy (CFSP) and the European Security and Defence Policy (ESDP). The significant increasing of the civilian and military rapid response capability is seen as playing a large future role in the struggle against terrorism. Estonia supports the further development of the European Security and Defence Policy, and participates in it within the limits of its capabilities.
As everybody remembers, last year, on September 18, the European Council, during its extraordinary session, decided to cooperate with and support the United States, with the aim of forming as encompassing a global coalition as possible for countering terrorism. Along with the other candidate countries, Estonia also had the opportunity to align itself with the EU’s anti-terrorist measures, and in accordance with our status as an associated state, we have proceeded to do so.
At the moment, one of the most significant achievements within the framework of the European Union is probably the EU interior and justice ministers’ decision to partially establish a common arrest and extradition system already at the beginning of the year 2003. Concrete results can also be brought forth in conjunction with the improving of police cooperation and the strengthening of air transport security. By way of participating in stipulated European Union activities, Estonia is being drawn more intensely into European cooperation, and into increased cooperation with the United States and various security structures.
Estonia has decided, within the limits of its capabilities, to go along with all anti-terrorist measures enacted by the EU. The Government of Estonia decided, on May 21, to join the EU declaration concerning the common positions taken in the struggle against terrorism, which concretely specify the measures for the fight against terrorism and how they are to be utilized. The declaration also defines the activities which are associated with terrorism. Since, according to the EU common stance, it is also a crime to acquire the resources and tools needed for carrying out terrorist acts, accounts in financial institutions, associated with terrorism, are frozen, so that they cannot be used.
The Foreign Ministry is making preparations for alignment with, and the domestic application of the EU’s amended common stance concerning the struggle against terrorism, which was adopted this May.
Estonia has ratified all international conventions dealing with the fight against terrorism, and has enacted measures for fulfilling the UN Security Council’s appropriate resolutions. On March 19, the Government approved the draft of the International Sanction Act, which by now has gone through the first reading here in the Riigikogu. In cooperation with Latvia and Lithuania, and also within the framework of the Council of the Baltic Sea States, Estonia has formulated measures which would be used in the case of a terrorist attack. Both the European Union and the United States have been informed of these measures.
In the struggle against terrorism, a high quality export control system also has an important role. In the opinion of several international experts, Estonian export controls are thorough and well carried out. But further developments in this sphere are hampered by the fact that we, subject to the political will of member states, do not belong to the Wassenaar agreement group of states. Membership would create better opportunities for internationally coordinating export control measures and improving these activities. It would then be possible to reduce to a minimum the risk that high technology products manufactured in Estonia, or passing through Estonia in transit, would end up in the hands of “wrong” end-users or states, who endanger international security.
At the instigation of the Foreign Ministry, Estonia has applied for membership in the organisation, as a result of which, intensive consultations have been held with Wassenaar Treaty member states. Hopefully, the member states will reach an agreement concerning Estonian membership by the end of 2002.
Respected Representatives, please allow me to hereby end the overview of the developments connected with the security sphere, and to continue with European integration and foreign economic relations.
II
Accession to the European Union has been Estonia’s foreign policy priority since 1995, when the Riigikogu unanimously approved the association agreement between Estoniaand the European Union. The Government, which came into office this January, has confirmed its clear aim of concluding the accession negotiations by the end of the year, so that Estonia will be able to join the European Union at the beginning of 2004.
Estonia’s accession negotiations with the EU began in 1998. By now, we have reached the point where, a year from now, Estonia will, probably, be already participating in the work of European Union structures. Though, not yet as a full member. Nevertheless, Estonia will be able to acquire its first experiences representing the country and its people at the European Union council table.
At this point, we have to ask ourselves, firstly, if we have thoroughly informed ourselves about the rights and obligations which come with the approaching accession opportunity? Secondly, if we are ready to fulfil them? I would now like to deal with the intermediate steps which we still have to take:
Concluding the accession negotiations;
Finalising the domestic accession preparations;
The accession treaty and referendum.
- Since the previous address concerning our basic foreign policy guidelines, we have taken a big step forward. In March, we were able to provisionally close four chapters -- Justice and Home Affairs, Customs Union, Transport Policy, and Free Movement of Persons -- and we reached an agreement in veterinary and phytosanitary field in the Agriculture chapter.. In April, we started negotiations concerning the Institutions’ chapter. Two days ago, during the Accession Conference at ministerial level, we provisionally closed the chapters of Regional Policy , and Institutions. Thereby, Estonia has provisionally closed 26 chapters. A significant point agreed upon the day before yesterday, is that upon accession Estonian language will become an official working language of the EU.
Agreements still have to be reached in connection with four chapters -- Energy, Taxation, Agriculture, and Financial and Budgetary Provisions. In connection with the Taxation chapter, the EU has brought forward the question of corporate income tax. Finding a mutually satisfying solution to this matter requires careful consideration and constructive approach. As was to be expected, the financial questions will be concentrated upon in the final phase of the negotiations, which means that a work intensive autumn awaits us.
Financial questions are connected with our domestic ability to fully and rationally utilise the still to be agreed upon monetary aid. Upon accession, Estonia would have at its disposal about three times the monetary aid that is available during the pre-accession period. But only on the assumption that various government institutions will effectively cooperate establishing and fulfilling priorities, working on projects of good quality, will be able to co-finance projects, and manage the support funds properly.
Even before accession, we have shown how we can absorb the money which has been assigned to us The application for and distribution of the financial assistance meant for the development of agriculture and rural life through the SAPARD fund has progressed quite successfully (at the beginning of this year, we had 606 million EEK left of the funds allocated for 2000-2002, in the expenditure of the funds allocated for the year 2000, we are reaching 100%). At the same time we are behind schedule with the ISPA projects – so far no environmental projects have reached the implementation stage. This is partly due to lack of experience, partly to a shortage of personnel dealing with these matters. To be able to absorb, after accession, three times amounts of support than today, the situation needs to be improved radically.
- Perhaps even more important than reaching agreements regarding conditions for accession, which establish the general framework for our future membership, is the timely completion of Estonia’s domestic preparations. Without domestic preparedness, it is very difficult, if not impossible, to properly fulfil the role of a member state.
On the 14 June, in other words, tomorrow, we will be presenting the European Commission with a review of our pre-accession preparations, covering the period from last autumn till now. The Commission’s progress report, to be issued this coming fall, will be instrumental for the successful completion of the negotiations. This year, the reports will be issued one month earlier -- in the middle of October -- so that the member states will have the Commission’s evaluation well before the enlargement discussions in the European Council in Brussels on October 24-25. If we want to be among those states which, in 2004, will become European Union members, we have to earn the Commission’s positive evaluation. But to achieve that, we have to make major domestic efforts, since only concrete results will convince the Commission that we are serious about our accession preparations, and that we are prepared to fulfil our pre-accession obligations in time. I can assure you, that the Government is taking its work very seriously, and that the questions dealing with European integration are discussed at the weekly Cabinet sessions.
During the final phase of the talks, Estonia’s administrative capacity becomes more important than ever before. Since the beginning of the year, the European Commission has intensified the monitoring of the functioning of the Estonian administrative and judicial structures. The evaluation of Estonia’s administrative capacity will be one of the most important components of this year’s progress report.
- With the conclusion of the accession negotiations, the accession treaty will become the issue of the day. The drafting of the accession treaty has already been started during the present Spanish Presidency. In the course of this process, the agreements reached during the negotiations are formed into a legally binding text. Present plans call for the treaty to be completed by February 2003, and to be signed at the European Union summit in April of the same year.
Although it will become possible for Estonia’s representatives to participate in the work of European Union structures already upon the signing of the accession treaty, actual accession cannot take place until the treaty has been ratified by the parliaments of all member states, by the European Parliament, by the Riigikogu, and an Estonian accession referendum approves the accession.
Despite the fact that in the European Union there is presently strong political support for enlargement, problems with the ratification of the accession treaties cannot be ruled out. be. But let’s hope, that the concept and significance of uniting Europe will, at the decisive moment, outweigh any tentative temporary practical difficulties.
Estonia’s accession is of course dependent upon a positive result of the referendum, and the approval of the accession treaty by the Riigikogu. In this context, it is decisively important that the public is well informed about the accession terms, and their effect on people’s daily lives. The ongoing exchange of ideas in Estonia about the European Union is substantially a discussion concerning the plusses and minuses of accession. Our general public’s support for accession has during the last few months remained stable at over 50%. Most recently, in May, it was 55%. This, however, does not provide the basis for the assumption that doubts concerning accession outcomes have disappeared. All of us, both the members of the Government and the Riigikogu, have a very significant role to play in informing the public, and we must take this responsibility very seriously.
In this context, it would be appropriate to also briefly talk about the Europe Agreement, which, so far, is the only legal basis to our relations with the European Union.
Within the framework of the Agreement, we have continued negotiations for the final liberalisation of trade in agricultural products. As the result of two negotiation sessions (17 December 2001 and 31 January 2002), we have achieved agreements which will be the basis for what will, starting July 1, practically be free trade for all product categories, in which trading is already taking place. These new conditions are creating an opportunity for a noticeable increase in the export of several Estonian agricultural products (e.g. powdered milk, butter, cheese) to the European Union.
Also, the European Union agreed to eliminate, from 1 July, export subsidies for all agricultural products exported to Estonia (except sugar and rice). Hopefully, by that time, the necessary formalities will be completed for implementing also the respective Council ruling.
On the 1 February, new rules became effective for the trade in seafood between Estonia and the European Union. These enable Estonian entrepreneurs to increase the export of fish and certain fisheries products to the EU market. In two years, all trade limitations in this category should have been eliminated.
It is also essential to note that an agreement was arrived at concerning the elimination of a Europe Agreement addendum, which regulated the trade in textiles and garments. This meant the annulment of double tariffs, which had been in force, on the basis of the agreement, for textile products and the establishment of simplified trade regulations.
To end the European Union topic, I find it necessary to remind everyone that our approaching membership means, among other things, that we will have to be ready to significantly expand our representation in the European Union. This will entail not only increased expenditures, but also the sending of a fairly large number of well-trained and efficient personnel off to work in European Union institutions, which in turn, will require additional resources for training and education of personnel, especially specialists in the field of European affairs.
I would also like to use this opportunity to especially thank the European Affairs Committee members for their activeness and efficiency, and their cooperation in the European integration sphere.
One generally accepted measure for strengthening international economic cooperation and security is development cooperation, within the framework of which, Estonia has been sharing its reform experiences with many countries in Central Asia, the Southern Caucasus and South-Eastern Europe. Estonia has also increased its activities in connection with the work being done by international organisations. The ever increasing interest that developing countries are showing in the Estonian experience, and the wish of other donor states to carry out trilateral projects in cooperation with Estonia, is proof that our activities, till now, have, according to the criteria of both aid receivers and other aid givers, been serving the right purposes.
Our upcoming accession to the European Union does not only entail benefits, but also obligations. On the international level, developed states have set as their goal the raising of the amount used for aiding poorer states to 0.7% of GDP. The European Union member states decided in Barcelona to raise the amount used for aid to 0.39% of GDP by the year 2006. Estonia’s present contribution is below 0.01%. But in the very near future, we have to start to seriously plan our strategy for increasing the appropriate amounts, if we want to be taken seriously as a partner not only by EU states, but also by all donor states everywhere in the world. I would, however, like to remind that already at the UN development aid conference in Monterrey, this March, I had the opportunity to voice the standpoint of the Government - the success of a developing country depends not only on the amount of aid received but just as much on the will and capability to use the aid rationally for proper purposes.
In the near future, the Foreign Ministry will be presenting the principles of development cooperation to the Riigikogu for renewal.
I would now like to briefly stop on the World Trade Organisation, the WTO, which Estonia joined in 1999, after five years of negotiations and noteworthy efforts. Regardless of the fact that there are more than just a few people who regard the WTO more or less critically, it cannot be overlooked that this forum holds the central position when it comes to directing and regulating the relationships which dominate world trade.
At the beginning of this year, a new round of WTO multilateral trade negotiations was initiated. This has been Estonia’s first opportunity to participate in global trade negotiations as a WTO member. At the Foreign Ministry’s initiative, a Government delegation is being formed which will encompass representatives from the Estonian government agencies, which deal with the different matters under discussion at the negotiations. The Foreign Ministry’s objective is to create an effectively functioning structure for formulating and protecting Estonia’s interests during the recently started round of negotiations, which in turn presumes constructive participation by all concerned Estonian government agencies in the work of the delegation.
In connection with the WTO, I would like to stress that Estonia is closely following Russia’s WTO joining process. Estonia in every way supports Russia’s speedy movement towards being able to fulfil the necessary criteria for becoming a WTO member. On the one hand, this will significantly help to promote Russia’s integration into the world economy, and thereby increase general stability. On the other hand, Russia’s future WTO membership will definitely help to expand Estonian-Russian trade relations.
Parallel to the constant work being done in the European integration sphere and in international organisations, Estonia has, during the last half year, also continued the efforts to create better conditions for our producers and business circles by developing bilateral economic relations with other countries.
In addition to the agreement reached with the European Union mentioned above, progress was also made in opening up the Hungarian and Czech agricultural markets. With regard to the former, the already agreed upon tariff quotas will become effective on 1 July, with regard to the latter, we hope to put the previously fixed agreements into effect by the end of the summer. Estonia has also endeavoured to start negotiations with Poland to ensure a freer access to that country’s market for Estonian agricultural products even before both countries join the European Union.
On 1 January 2002, the Estonian and Bulgarian free trade treaty became temporarily effective. On April 30, the Estonian and Belarus treaty concerning the establishment of a mutual most-favoured-nation status relationship came into effect. This means that Estonian products will be ensured a most-favoured-nation treatment also on the Russian border, since Russia and Belarus have formed a customs union. An agreement has also been made with Armenia for the establishment of a most-favoured-nation relationship.
Respected Members of the Riigikogu. At this point, we can ask a rhetorical question: But what about Russia? On the one hand, I would like to bring forth the clearly increasing positive activity in Estonian-Russian relations. On the other hand, I would like to remind you, that Estonia’s policy towards Russia is increasingly becoming an organic part of the European Union’s and NATO’s Russian policy. As already pointed out above, parallel to the positive development of the Russia-NATO and the Russia-EU relations, there is also a positive activity in the Estonia-Russia relations. This was affirmed by the recent meeting of the both heads of government in St Petersburg. I would like to express the hope that the increased activity will also lead to concrete positive results.
In conclusion, please allow me to return to two key terms -- NATO and the European Union. I am convinced that this assembly is unanimous in its conviction that membership in these two organisations will create the best preconditions for ensuring the security and welfare of both the state and every single citizen. The achievement of these aims is greatly dependent on our joint efforts. And, at this point, I must stress that our future in the European Union can already be influenced by the active participation of the representatives of both, the Riigikogu and government, in the discussions of Convention on the Future of Europe, offering their utmost for the development of Europe that would meet the challenges of the globalising world as well as satisfy the expectations and needs of its citizens. And with this in mind, I would also like to remind the respected legislators that the Estonian representation in the Convention on the future of the European Union is not yet fully complete.
I wish you vigour in our common endeavours for a rational and successful foreign policy!
Honourable Mr. Chairman, respected Members of the Riigikogu!
As I am beginning this address dealing with the basic guidelines of our foreign policy, I would like to draw your attention to a basic truth which we take for granted, and therefore, far too often, tend to forget. Foreign policy is not an entity onto itself, which is separated from the state’s other duties and obligations. But rather, it is an integral part of the complex of measures and activities which enables the state, as stipulated in the preamble of the Constitution, to protect internal and external peace, to function as a pledge to present and future generations for their social progress and welfare, and to guarantee the preservation of the Estonian nation and culture through the ages.
To be able to fulfil the obligations set forth in the Constitution, two conditions have to be met - both a favourable security environment; and a favourable economic environment for all the people as a whole, and for each separate individual, must be ensured.
In today’s address I will be focusing precisely on these two aspects - on what has been achieved during the last half a year, and what still needs to be done to ensure the security of the state and the people, and for the protection and promotion of our economic interests.
I
Respected representatives, I will begin the national security segment of my address with developments concerning NATO. During the eight months which have passed since the previous parliamentary foreign policy debate, NATO enlargement has developed favourably and has become more concrete.
At the NATO foreign ministers’ meeting in Reykjavik on May 14, the preparations being done by the candidate states were evaluated within the MAP, or membership action plan framework, and plans were drawn up for the Prague summit preliminary work. The final decision concerning which states will be invited to join will probably be made immediately before the Prague summit, which will take place less than half a year from now, on November 21 – 22. This means, that all the candidate countries are continuing with their regular preparatory procedures. The MAP process will continue even after the presentation of the invitations, until all member states have ratified the appropriate changes in the Washington treaty.
The NATO foreign ministers decided in Reykjavik, that the invitations to join, which will be presented at the Prague summit, will be concrete (which means, unconditional), and that the accession negotiations must end with the signing of the accession protocols at the spring 2003 foreign ministers meeting, in other words, by next May. This will be followed by the ratification process in the member states (lasting, presumably, 1 – 1.5 years), and the invited states will all join NATO together before the next summit.
Presently, it is still open as to what exactly the accession negotiations, the MAP, and their relationship will be like. Likewise, it is still open as to how the new member states will be integrated into the NATO structure, and as to how and when they will join the NATO defence planning cycle. We can expect answers to these questions from the Prague summit.
As we know, one of the essential criteria for evaluating candidates is the fact that the country should not be just a security consumer, but should also be capable of contributing to the collective security effort, and capable of partaking in NATO missions. The continuation of defence reforms also means that in the future we have to maintain our defence expenditures at least at the present level -- 2% of the GDP.
At this point, I would like to stress the fact that by preparing for NATO accession, we are carrying out national defence reforms that we would, at any rate, have to undertake. The modernising and rationalising of our defence forces is inevitable. The preparations for joining NATO are only speeding up and simplifying this process.
The USA’s continuous, and it could be said, even growing support for the Baltic states’ future NATO membership is having an encouraging effect. Both the US administration and the legislators are supporting extensive enlargement. This is illustrated, among other things, by the fact that Congress approved the Freedom Consolidation Act, which calls for supporting the 7 NATO candidate countries. On the basis of this, Estonia is, within a year, being given 100 million kroons worth of aid, which is naturally strengthening Estonia’s defence capability and candidature.
Also, the US Secretary of Defence, Donald Rumsfeld, during his recent visit to Tallinn, commended our NATO preparations and the efficient defence co-operation with Latvia, Lithuania and the Nordic countries. At the same time, he recommended us to concentrate on developing some specific defence capability that would also be essential as Estonia’s contribution as a future member of the Alliance.
In parallel with the domestic accession preparations, Estonia has also actively participated in the Vilnius process encompassing 10 candidate countries. Within this framework, there has been a foreign ministers’ meeting in Skopje on March 8, and a meeting of the heads of government in Bukarest on March 24 – 25. In the near future, a prime ministers’ meeting will take place in Riga on July 5 – 6. We are aware of the candidate countries’ different levels of preparedness and differing outlooks. But we find that it is essential that all these countries are capable of cooperating in the interest of preparing for NATO enlargement, which confirms our readiness for constructive cooperation also in the future. At the same time, the carrying on of the Vilnius process helps to prevent senseless one-upmanship between the candidates.
When talking about NATO enlargement, we cannot bypass the organisation’s relations with Russia. As the government has previously repeatedly confirmed, Estonia completely supports the positive adjustment of Russian and NATO relations. The agreement concerning the creation of a NATO-Russian Council is a very essential step. In the future, the Council could become a valuable mechanism for developing cooperation between all NATO member states and Russia. Also, from the point of view of NATO enlargement, the adjustment of NATO-Russian relations and the increasing of mutual trust can be evaluated as positive developments.
During the last half-year, there have been significant developments concerning security matters also within the sphere of European Union activities. More than ever before, the EU has actively made efforts to further develop the Common Foreign and Security Policy (CFSP) and the European Security and Defence Policy (ESDP). The significant increasing of the civilian and military rapid response capability is seen as playing a large future role in the struggle against terrorism. Estonia supports the further development of the European Security and Defence Policy, and participates in it within the limits of its capabilities.
As everybody remembers, last year, on September 18, the European Council, during its extraordinary session, decided to cooperate with and support the United States, with the aim of forming as encompassing a global coalition as possible for countering terrorism. Along with the other candidate countries, Estonia also had the opportunity to align itself with the EU’s anti-terrorist measures, and in accordance with our status as an associated state, we have proceeded to do so.
At the moment, one of the most significant achievements within the framework of the European Union is probably the EU interior and justice ministers’ decision to partially establish a common arrest and extradition system already at the beginning of the year 2003. Concrete results can also be brought forth in conjunction with the improving of police cooperation and the strengthening of air transport security. By way of participating in stipulated European Union activities, Estonia is being drawn more intensely into European cooperation, and into increased cooperation with the United States and various security structures.
Estonia has decided, within the limits of its capabilities, to go along with all anti-terrorist measures enacted by the EU. The Government of Estonia decided, on May 21, to join the EU declaration concerning the common positions taken in the struggle against terrorism, which concretely specify the measures for the fight against terrorism and how they are to be utilized. The declaration also defines the activities which are associated with terrorism. Since, according to the EU common stance, it is also a crime to acquire the resources and tools needed for carrying out terrorist acts, accounts in financial institutions, associated with terrorism, are frozen, so that they cannot be used.
The Foreign Ministry is making preparations for alignment with, and the domestic application of the EU’s amended common stance concerning the struggle against terrorism, which was adopted this May.
Estonia has ratified all international conventions dealing with the fight against terrorism, and has enacted measures for fulfilling the UN Security Council’s appropriate resolutions. On March 19, the Government approved the draft of the International Sanction Act, which by now has gone through the first reading here in the Riigikogu. In cooperation with Latvia and Lithuania, and also within the framework of the Council of the Baltic Sea States, Estonia has formulated measures which would be used in the case of a terrorist attack. Both the European Union and the United States have been informed of these measures.
In the struggle against terrorism, a high quality export control system also has an important role. In the opinion of several international experts, Estonian export controls are thorough and well carried out. But further developments in this sphere are hampered by the fact that we, subject to the political will of member states, do not belong to the Wassenaar agreement group of states. Membership would create better opportunities for internationally coordinating export control measures and improving these activities. It would then be possible to reduce to a minimum the risk that high technology products manufactured in Estonia, or passing through Estonia in transit, would end up in the hands of “wrong” end-users or states, who endanger international security.
At the instigation of the Foreign Ministry, Estonia has applied for membership in the organisation, as a result of which, intensive consultations have been held with Wassenaar Treaty member states. Hopefully, the member states will reach an agreement concerning Estonian membership by the end of 2002.
Respected Representatives, please allow me to hereby end the overview of the developments connected with the security sphere, and to continue with European integration and foreign economic relations.
II
Accession to the European Union has been Estonia’s foreign policy priority since 1995, when the Riigikogu unanimously approved the association agreement between Estoniaand the European Union. The Government, which came into office this January, has confirmed its clear aim of concluding the accession negotiations by the end of the year, so that Estonia will be able to join the European Union at the beginning of 2004.
Estonia’s accession negotiations with the EU began in 1998. By now, we have reached the point where, a year from now, Estonia will, probably, be already participating in the work of European Union structures. Though, not yet as a full member. Nevertheless, Estonia will be able to acquire its first experiences representing the country and its people at the European Union council table.
At this point, we have to ask ourselves, firstly, if we have thoroughly informed ourselves about the rights and obligations which come with the approaching accession opportunity? Secondly, if we are ready to fulfil them? I would now like to deal with the intermediate steps which we still have to take:
Concluding the accession negotiations;
Finalising the domestic accession preparations;
The accession treaty and referendum.
- Since the previous address concerning our basic foreign policy guidelines, we have taken a big step forward. In March, we were able to provisionally close four chapters -- Justice and Home Affairs, Customs Union, Transport Policy, and Free Movement of Persons -- and we reached an agreement in veterinary and phytosanitary field in the Agriculture chapter.. In April, we started negotiations concerning the Institutions’ chapter. Two days ago, during the Accession Conference at ministerial level, we provisionally closed the chapters of Regional Policy , and Institutions. Thereby, Estonia has provisionally closed 26 chapters. A significant point agreed upon the day before yesterday, is that upon accession Estonian language will become an official working language of the EU.
Agreements still have to be reached in connection with four chapters -- Energy, Taxation, Agriculture, and Financial and Budgetary Provisions. In connection with the Taxation chapter, the EU has brought forward the question of corporate income tax. Finding a mutually satisfying solution to this matter requires careful consideration and constructive approach. As was to be expected, the financial questions will be concentrated upon in the final phase of the negotiations, which means that a work intensive autumn awaits us.
Financial questions are connected with our domestic ability to fully and rationally utilise the still to be agreed upon monetary aid. Upon accession, Estonia would have at its disposal about three times the monetary aid that is available during the pre-accession period. But only on the assumption that various government institutions will effectively cooperate establishing and fulfilling priorities, working on projects of good quality, will be able to co-finance projects, and manage the support funds properly.
Even before accession, we have shown how we can absorb the money which has been assigned to us The application for and distribution of the financial assistance meant for the development of agriculture and rural life through the SAPARD fund has progressed quite successfully (at the beginning of this year, we had 606 million EEK left of the funds allocated for 2000-2002, in the expenditure of the funds allocated for the year 2000, we are reaching 100%). At the same time we are behind schedule with the ISPA projects – so far no environmental projects have reached the implementation stage. This is partly due to lack of experience, partly to a shortage of personnel dealing with these matters. To be able to absorb, after accession, three times amounts of support than today, the situation needs to be improved radically.
- Perhaps even more important than reaching agreements regarding conditions for accession, which establish the general framework for our future membership, is the timely completion of Estonia’s domestic preparations. Without domestic preparedness, it is very difficult, if not impossible, to properly fulfil the role of a member state.
On the 14 June, in other words, tomorrow, we will be presenting the European Commission with a review of our pre-accession preparations, covering the period from last autumn till now. The Commission’s progress report, to be issued this coming fall, will be instrumental for the successful completion of the negotiations. This year, the reports will be issued one month earlier -- in the middle of October -- so that the member states will have the Commission’s evaluation well before the enlargement discussions in the European Council in Brussels on October 24-25. If we want to be among those states which, in 2004, will become European Union members, we have to earn the Commission’s positive evaluation. But to achieve that, we have to make major domestic efforts, since only concrete results will convince the Commission that we are serious about our accession preparations, and that we are prepared to fulfil our pre-accession obligations in time. I can assure you, that the Government is taking its work very seriously, and that the questions dealing with European integration are discussed at the weekly Cabinet sessions.
During the final phase of the talks, Estonia’s administrative capacity becomes more important than ever before. Since the beginning of the year, the European Commission has intensified the monitoring of the functioning of the Estonian administrative and judicial structures. The evaluation of Estonia’s administrative capacity will be one of the most important components of this year’s progress report.
- With the conclusion of the accession negotiations, the accession treaty will become the issue of the day. The drafting of the accession treaty has already been started during the present Spanish Presidency. In the course of this process, the agreements reached during the negotiations are formed into a legally binding text. Present plans call for the treaty to be completed by February 2003, and to be signed at the European Union summit in April of the same year.
Although it will become possible for Estonia’s representatives to participate in the work of European Union structures already upon the signing of the accession treaty, actual accession cannot take place until the treaty has been ratified by the parliaments of all member states, by the European Parliament, by the Riigikogu, and an Estonian accession referendum approves the accession.
Despite the fact that in the European Union there is presently strong political support for enlargement, problems with the ratification of the accession treaties cannot be ruled out. be. But let’s hope, that the concept and significance of uniting Europe will, at the decisive moment, outweigh any tentative temporary practical difficulties.
Estonia’s accession is of course dependent upon a positive result of the referendum, and the approval of the accession treaty by the Riigikogu. In this context, it is decisively important that the public is well informed about the accession terms, and their effect on people’s daily lives. The ongoing exchange of ideas in Estonia about the European Union is substantially a discussion concerning the plusses and minuses of accession. Our general public’s support for accession has during the last few months remained stable at over 50%. Most recently, in May, it was 55%. This, however, does not provide the basis for the assumption that doubts concerning accession outcomes have disappeared. All of us, both the members of the Government and the Riigikogu, have a very significant role to play in informing the public, and we must take this responsibility very seriously.
In this context, it would be appropriate to also briefly talk about the Europe Agreement, which, so far, is the only legal basis to our relations with the European Union.
Within the framework of the Agreement, we have continued negotiations for the final liberalisation of trade in agricultural products. As the result of two negotiation sessions (17 December 2001 and 31 January 2002), we have achieved agreements which will be the basis for what will, starting July 1, practically be free trade for all product categories, in which trading is already taking place. These new conditions are creating an opportunity for a noticeable increase in the export of several Estonian agricultural products (e.g. powdered milk, butter, cheese) to the European Union.
Also, the European Union agreed to eliminate, from 1 July, export subsidies for all agricultural products exported to Estonia (except sugar and rice). Hopefully, by that time, the necessary formalities will be completed for implementing also the respective Council ruling.
On the 1 February, new rules became effective for the trade in seafood between Estonia and the European Union. These enable Estonian entrepreneurs to increase the export of fish and certain fisheries products to the EU market. In two years, all trade limitations in this category should have been eliminated.
It is also essential to note that an agreement was arrived at concerning the elimination of a Europe Agreement addendum, which regulated the trade in textiles and garments. This meant the annulment of double tariffs, which had been in force, on the basis of the agreement, for textile products and the establishment of simplified trade regulations.
To end the European Union topic, I find it necessary to remind everyone that our approaching membership means, among other things, that we will have to be ready to significantly expand our representation in the European Union. This will entail not only increased expenditures, but also the sending of a fairly large number of well-trained and efficient personnel off to work in European Union institutions, which in turn, will require additional resources for training and education of personnel, especially specialists in the field of European affairs.
I would also like to use this opportunity to especially thank the European Affairs Committee members for their activeness and efficiency, and their cooperation in the European integration sphere.
One generally accepted measure for strengthening international economic cooperation and security is development cooperation, within the framework of which, Estonia has been sharing its reform experiences with many countries in Central Asia, the Southern Caucasus and South-Eastern Europe. Estonia has also increased its activities in connection with the work being done by international organisations. The ever increasing interest that developing countries are showing in the Estonian experience, and the wish of other donor states to carry out trilateral projects in cooperation with Estonia, is proof that our activities, till now, have, according to the criteria of both aid receivers and other aid givers, been serving the right purposes.
Our upcoming accession to the European Union does not only entail benefits, but also obligations. On the international level, developed states have set as their goal the raising of the amount used for aiding poorer states to 0.7% of GDP. The European Union member states decided in Barcelona to raise the amount used for aid to 0.39% of GDP by the year 2006. Estonia’s present contribution is below 0.01%. But in the very near future, we have to start to seriously plan our strategy for increasing the appropriate amounts, if we want to be taken seriously as a partner not only by EU states, but also by all donor states everywhere in the world. I would, however, like to remind that already at the UN development aid conference in Monterrey, this March, I had the opportunity to voice the standpoint of the Government - the success of a developing country depends not only on the amount of aid received but just as much on the will and capability to use the aid rationally for proper purposes.
In the near future, the Foreign Ministry will be presenting the principles of development cooperation to the Riigikogu for renewal.
I would now like to briefly stop on the World Trade Organisation, the WTO, which Estonia joined in 1999, after five years of negotiations and noteworthy efforts. Regardless of the fact that there are more than just a few people who regard the WTO more or less critically, it cannot be overlooked that this forum holds the central position when it comes to directing and regulating the relationships which dominate world trade.
At the beginning of this year, a new round of WTO multilateral trade negotiations was initiated. This has been Estonia’s first opportunity to participate in global trade negotiations as a WTO member. At the Foreign Ministry’s initiative, a Government delegation is being formed which will encompass representatives from the Estonian government agencies, which deal with the different matters under discussion at the negotiations. The Foreign Ministry’s objective is to create an effectively functioning structure for formulating and protecting Estonia’s interests during the recently started round of negotiations, which in turn presumes constructive participation by all concerned Estonian government agencies in the work of the delegation.
In connection with the WTO, I would like to stress that Estonia is closely following Russia’s WTO joining process. Estonia in every way supports Russia’s speedy movement towards being able to fulfil the necessary criteria for becoming a WTO member. On the one hand, this will significantly help to promote Russia’s integration into the world economy, and thereby increase general stability. On the other hand, Russia’s future WTO membership will definitely help to expand Estonian-Russian trade relations.
Parallel to the constant work being done in the European integration sphere and in international organisations, Estonia has, during the last half year, also continued the efforts to create better conditions for our producers and business circles by developing bilateral economic relations with other countries.
In addition to the agreement reached with the European Union mentioned above, progress was also made in opening up the Hungarian and Czech agricultural markets. With regard to the former, the already agreed upon tariff quotas will become effective on 1 July, with regard to the latter, we hope to put the previously fixed agreements into effect by the end of the summer. Estonia has also endeavoured to start negotiations with Poland to ensure a freer access to that country’s market for Estonian agricultural products even before both countries join the European Union.
On 1 January 2002, the Estonian and Bulgarian free trade treaty became temporarily effective. On April 30, the Estonian and Belarus treaty concerning the establishment of a mutual most-favoured-nation status relationship came into effect. This means that Estonian products will be ensured a most-favoured-nation treatment also on the Russian border, since Russia and Belarus have formed a customs union. An agreement has also been made with Armenia for the establishment of a most-favoured-nation relationship.
Respected Members of the Riigikogu. At this point, we can ask a rhetorical question: But what about Russia? On the one hand, I would like to bring forth the clearly increasing positive activity in Estonian-Russian relations. On the other hand, I would like to remind you, that Estonia’s policy towards Russia is increasingly becoming an organic part of the European Union’s and NATO’s Russian policy. As already pointed out above, parallel to the positive development of the Russia-NATO and the Russia-EU relations, there is also a positive activity in the Estonia-Russia relations. This was affirmed by the recent meeting of the both heads of government in St Petersburg. I would like to express the hope that the increased activity will also lead to concrete positive results.
In conclusion, please allow me to return to two key terms -- NATO and the European Union. I am convinced that this assembly is unanimous in its conviction that membership in these two organisations will create the best preconditions for ensuring the security and welfare of both the state and every single citizen. The achievement of these aims is greatly dependent on our joint efforts. And, at this point, I must stress that our future in the European Union can already be influenced by the active participation of the representatives of both, the Riigikogu and government, in the discussions of Convention on the Future of Europe, offering their utmost for the development of Europe that would meet the challenges of the globalising world as well as satisfy the expectations and needs of its citizens. And with this in mind, I would also like to remind the respected legislators that the Estonian representation in the Convention on the future of the European Union is not yet fully complete.
I wish you vigour in our common endeavours for a rational and successful foreign policy!
© Estonian Foreign Ministry
- Islandi väljak 1
- 15049 Tallinn
- TEL (+372) 6 377 000
- General Info: vminfo@vm.ee
- Documents: post@vm.ee
- For consular and visa-related information:: konsul@vm.ee
