Estonia bats for India-EU Free Trade Agreement

Estonia has extended its support for the early conclusion of the India-European Union Free Trade Agreement. While several rounds of talks have happened for the FTA between two of the world’s largest single markets, negotiations have dragged on so far.

Vice Economy Minister of Estonia, Maria Alajõel told WION, ‘We see that there is a potential’ explaining that her country sees India as an ‘important partner in economy, and has a strategic role in the world’. 

India-Estonia trade ties are modest but growing, with a trade volume of €162 million in 2023, primarily in Estonia’s favour.

Estonia has been trying to attract Indian IT companies to set up their data centres in their country. Indian companies are beginning to engage with Estonian companies, given the latter’s positioning as a gateway to the EU, and its prowess in cyber security and blockchain. Another area which offers potential for collaboration between the two sides is in green-tech including green hydrogen and wind energy.

The minister explained, ‘I would say logistics, we see also see electronics as areas of future Cooperation and also maybe defense industry could be in the future.’

To attract Indian businesses, Estonia has offered e-residency to Indians, allowing them to establish and manage an EU business online without leaving India. It provides a digital identity for secure digital signatures, banking, and access to Estonia’s public e-services. Over 4000 Indians have become e-residents of the Baltic state.

The vice minister highlighted that ‘if you register, you can do it online business. You can communicate to the Tax Office, even not coming to Estonia, so everything can be done via e-residency’.