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Country Commercial Guides FY 2000: Estonia Report prepared by U.S. Embassy Tallinn, released July 1999 Note*

CHAPTER III. POLITICAL ENVIRONMENT

Brief Synopsis of Political System

Estonia is an independent and sovereign democratic republic, wherein the supreme power is vested in its people. Estonia's government is divided into four branches: a president, the Riigikogu (a unicameral parliament), the Government (cabinet -- led by the prime minister), and the courts. There is universal suffrage for Estonian citizens over 18 years of age residing in Estonia or abroad. The party spectrum during election campaigns ranges from single issue parties to others that provide a complete political, social and economic program. Estonian citizens may be members of political parties formed in Estonia. Currently, there are about thirteen political parties registered in Estonia. All governments to hold power since 1992 general elections have proclaimed the development of an open market economy to be the main principle of economic reform.

Nature of Bilateral Relationship with the United States

In general, Estonian - U.S. bilateral trade and investment relations are of a strategic nature; the bilateral economic relations are closely linked to foreign policy and national security objectives. The strategic interests primarily rest with Estonia since it is significantly more interested in security policy considerations vis-à-vis economic integration with the West. As economic prosperity encourages stability, the economic relations between Estonia and the United States play a significant role in the development of a stable and prosperous Europe as a whole. This in turn benefits the United States with a stable market for U.S. companies and a friendly co-operative international partner.

The US has implemented several sound policies aimed at strengthening a prosperous trading relationship. Economic policies which have helped guide U.S. - Estonian co-operation include the most favored nation regime, the general preference system, and the financing programs of OPIC, U.S. TDA and the USA Export - Import Bank.

To date 7 economic agreements have been concluded between the U.S. and Estonia, 5 of which are ratified and in effect.