Bilateral trade between France and Estonia has witnessed significant development over the past few years, particularly in the post-COVID period. Between 2020 and 2021, trade between the two nations surged, and by 2023, Estonian service exports to France were especially notable, growing by an impressive 22%. Services now make up 40% of the total trade value between the two countries, reflecting a broader shift towards a service-driven economy.

On the goods side, French exports to Estonia reached €755 million in 2023, highlighting the strong trade ties and the potential for further growth. In fact, France’s standing as a key trading partner for Estonia has steadily improved. While France was Estonia’s 13th largest customer and supplier in 2022, it advanced to become the 12th largest supplier by 2023.
Overall, France is now Estonia’s 12th largest economic partner, with bilateral trade representing 1.9% of Estonia’s foreign trade, a modest but steady increase of +0.2 points over the previous year.

Key Figures from the First Half of 2024

The first half of 2024, however, saw some fluctuations in French exports and imports. French exports to Estonia decreased by 13.5%, falling from €235 million in the first six months of 2023 to €203 million during the same period in 2024. The largest declines were recorded in sectors such as electronics and computer products, which dropped by 19%, and transport equipment, which saw a significant 37% decrease.

On the other hand, French imports of Estonian products remained relatively stable, amounting to around €170 million in the first half of 2024. Within this, there were notable sectoral changes: wood imports decreased by 9% (approximately €45 million), but imports of computer and electronic equipment saw a significant jump of 54%, accounting for around €30 million. These two sectors alone represent half of the value of all Estonian goods imported by France.

However, French imports in sectors such as agricultural products experienced a steep decline of 96%, along with declines in hydrocarbons and pharmaceutical products.

Main Trade Categories

Estonia’s primary exports to France remain dominated by wood and wood products, with other key categories including machinery and electronic equipment, as well as manufactured goods, chemicals, and industrial products. On the other side, France exports vehicles and transport equipment, machinery, prepared foods, beverages, tobacco, and chemicals to Estonia, highlighting a broad spectrum of goods exchanged between the two countries.

Estonia’s Trade Performance in July 2024

According to Statistics Estonia, Estonia’s trade deficit narrowed by €59 million on-year as of July 2024, with goods exports rising by 5% and imports increasing by 1%. The total exports in July amounted to €1.3 billion, while imports reached nearly €1.7 billion, resulting in a trade deficit of €321 million.

The growth in exports was largely due to an increase in the export of Estonian-origin goods, which rose by 12% compared to July 2023. Notably, the main commodities exported were electrical equipment (16% of total exports), agricultural products and food preparations (13%), and wood products (10%).

France continues to be a key export partner, with Estonia exporting substantial volumes of machinery and electronic goods. Wood and agricultural products also feature prominently, reflecting Estonia’s rich natural resource base and strong industrial capacity.

Shifts in Import and Export Sectors

In July 2024, there were notable shifts in Estonia’s trade dynamics. Exports to Finland, Latvia, and Lithuania continued to dominate, with electrical and transport equipment being key export categories. However, Estonia saw a remarkable 17-fold increase in exports to Singapore, driven by an increase in mineral product sales, while exports to Latvia dropped by 16%, primarily due to a decrease in mineral products exports.

On the import side, the most significant increases were seen in raw materials and chemical products, which grew by 19% in value. Agricultural products and food preparations also saw a 13% increase in imports. The largest decline in imports was in the mineral products category, which dropped by 30%.

Estonia’s top import partners in July 2024 were Finland, Germany, and Lithuania, with transport equipment and mineral products being the key import categories. Notably, imports from Turkey saw a significant increase, more than tripling, driven by an influx of transport equipment.

A Positive Outlook for Bilateral Trade

The overall trends in bilateral trade between France and Estonia reflect both the challenges and opportunities that lie ahead. While certain sectors, such as transport equipment, experienced declines, the rise in digital services and electronic equipment exports demonstrates the evolving nature of trade between these two countries. Both nations stand to benefit from continued cooperation, particularly in areas such as technology, services, and
sustainability. As Estonia continues to strengthen its industrial base and expand its global footprint, the potential for further growth in trade with France remains robust.

For both nations, these trade figures signal a continued partnership with room for expansion, particularly as they navigate the complex post-pandemic economic landscape.

(Sources: General Directorate of the Treasury, Ministry of the Economy, Finance, and Industrial and Digital Sovereignty of the French Republic; ERRNews; Statistics Estonia)