
The EU’s Gateway to the East is a Key Strategic Partner for UK Exporters
Since joining the EU in 2004, exports to Lithuania have steadily increased. It is now one of the most important strategic partners for UK businesses.
In the 2018 Doing Business Report published by The World Bank in October 2017, Lithuania was ranked 16th out of 190 countries in the world. This represented a rise of five places from the previous year.
Lithuania’s meteoric rise into the elite top 20 countries of the world with which to do business confirmed what many of the more forward-thinking UK companies have known for some time. Lithuanian businesses are among the most important trading partners they can engage with in the EU.
With UK transportation companies offering regular road freight to Lithuania, the country also represents the perfect gateway to the other Baltic states, plus of course to Russia and Belarus.
Top 20 performer
Lithuania’s rise up the rankings is all the more impressive in view of its having risen above European neighbours that include Germany, France, The Netherlands and Ireland. In part, this has been brought about by a number of reforms that the government has introduced relating to, among other things, business incorporation processes and taxation.
EU funding to the tune of €180 million per year has also helped the country make significant improvements to its communication and power distribution infrastructure.
Lithuania’s capital, Vilnius, has been the subject of significant investment and regeneration, thanks to funding from both the Lithuanian government and the EU. The city boasts one of the fastest and most reliable internet connections on the planet, and IT giant IBM has been heavily involved in bringing the government-backed Smart Vilnius project to fruition.
Add to this the fact that English is widely spoken, particularly in business, and all the ingredients are in place for the ideal trading partner.
UK / Lithuania trading on the up
The UK is the 11th largest investor in Lithuania, having invested €426 million in 2015, a year on year rise of more than 16 percent. More than half of this was invested in the finance and insurance sectors, with the next largest industries being manufacturing, wholesale and retail trade.
UK exports to Lithuania are also on the increase, with the top UK exports including electrical machinery, machinery equipment, optical equipment, medical devices, chemical products, essential oils, cosmetics, toiletries, footwear, furniture and food products.
Imports to the UK from Lithuania have risen in step with exports, and amounted to around €800 million in 2017. The top imports included furniture, lighting, plastics, wood, fertilizers, electronics, clothing, pharmaceuticals and machinery.
Connections with Lithuania
Take a look at it on a map and Lithuania seems to be a long way away. To many of us, the 1,300 miles that separate London and Vilnius might appear daunting. However, transit time by road is only 3-4 days. With groupage shipments leaving the UK every Friday, shipment sizes become an irrelevance, and anything from a full container load to a single box can be with your Lithuanian business partner in next to no time.