10/12/2001 - Strong growth in the services sector is driving the economies of Estonia, Latvia and Lithuania, creating employment and boosting external accounts. In 2000, services in the three Baltic States attracted an average of 75% of foreign direct investment and accounted for 70% of GDP. At a meeting in Tallinn, Estonia, on 13-14 December, the OECD will present the findings of a survey designed to help underpin growth in these countries' service sectors. Participants will include business and government officials from the three Baltic States and from Russia, Romania, Bulgaria, Croatia and Slovenia.

Journalists are invited to attend the opening of the meeting by Mr. Henrik Hololei, Minister of Economic Affairs of Estonia. More information and the agenda can be found at: http://www1.oecd.org/ech/tallinn/index.htm

The Baltic States' recent accession to the WTO, their candidature for EU accession, and the adherence of Estonia and Lithuania to the OECD Declaration on International Investment and Multinational Enterprises demonstrate their commitment to liberalised trade to boost economic modernisation, enhance foreign trade and attract foreign investors. But despite excellent progress in creating a favourable economic and business environment for service providers in the Baltic States, some difficulties persist.

The OECD survey (available through the above website) collected responses from almost 200 companies in Estonia, Latvia and Lithuania. It reviewed transportation and tourism, the two main currency-earning sectors in the Baltic States, as well as wholesale and retail trade, storage, communications, financial services, and real estate management.

Respondents noted the need for better consultations between governments and stakeholders, particularly the business community, and for stronger government support for small and medium enterprises (SMEs). Foreign investors cited inadequate law enforcement as a major factor discouraging investment in the Baltic States. Both national and international businesses complained about red tape in state agencies and difficulties in obtaining visas and work permits.

For more information about this meeting and the OECD's work with the Baltic States, journalists should contact Helen Fisher, OECD Media Relations Division (tel. [33] 1 45 24 80 97).