Estonia and Spain are situated at the opposite perimeters of Europe and appear quite different at first sight, and yet there are many similar characteristics and likenesses in the development of the two countries.

Spain was consistently supportive of Estonia’s strive to join the EU and NATO. The economic reforms of both countries have been fairly similar in their effort to reduce state interventions and increase the role of the private sector. The key words are openness, liberalisation and lowering the tax burden, priority areas are IT and new technologies.

In 2009, Spain was Estonia’s 22nd trade partner (21st in 2008) accounting for 0.8% of Estonia’s total foreign trade turnover. As an import partner, Spain ranks 20th (0.7%) and as an export partner 23rd (0.6% of total export). The majority of export comprised machinery and equipment (19.6%), followed by other industrial products (15.2%) and products of plant origin (15.1%). Import from Spain consisted mainly of products of plant origin (17.9%), followed by finished food products, drinks and tobacco (15.1%) and textile and textile products (13.8%).

According to 2008 data, Spanish investments in Estonia amounted to 386 million kroons, which is 0.2% of all direct investments into Estonia. In 2007, Spanish direct investments totalled 346.5 million kroons with companies such as Iberdrola and Marbella Club Hotel S.A. entering the Estonian market.The Spanish have mostly invested in financial intermediation. Estonian companies invested in Spain 798 million kroons in 2007, 772 million in 2008 and 802.6 million in 2009, which was 1% of all foreign direct investments made.

Estonia and Spain entered into double taxation avoidance agreement on 1st January 2005.

Spain being the 2nd most popular tourist destination in the world continues to attract Estonian tourists too. In 2008 Estonian travel agencies sent 541,915 people abroad, 33,208 or 6.12% of who went to Spain. Tourist numbers were boosted by Estonian Air direct flights to Barcelona, which have ceased since. At the same time more Spanish are interested in travelling to Estonia. The knowledge of Estonia however is relatively low among Spanish travel agencies and the population, so the main destination is limited to Tallinn.

The main obstacle to promoting tourism between the two countries currently is poor air connection, the lack of which also affects mutual investments. We are hopeful that the air service will improve and in 2011 Tallinn as the European Capital of Culture will be able to host Spanish visitors.

More information on Estonian and Spanish bilateral relations is available through the website of the Ministry of Foreign Affairs: http://www.vm.ee/?q=et/node/151#majandus.