Changes of Lithuanian foreign trade in the integrated European Union market

After becoming the EU member, Lithuania effects its foreign trade in accordance with the common EU foreign trade policy requirements and measures by modelling the common trade policy together with other Member States. Lithuania’s accession to the EU had a positive impact on the expansion of its foreign trade. Export increased by 18.43% in 2006, and import increased by 22.98% within one year. Regionally, EU Member States are the key Lithuania’s export and import partners. In 2006, the further increase of internal demand encouraged import, therefore, export lagged behind import in terms of the rate of development (4.55 percentage points), and Lithuanian foreign trade deficit amounted to 14262.3 million LTL in 2006 and was further increasing rapidly. In 2006, the key Lithuania’s export partners were Russia (12.8%), Latvia (11.1%), Germany (8.7%), Estonia (6.5%) and the key import partners were Russia (24.4%), Germany (14.8%), Poland (9.6%), Latvia (4.8%). Export growth has been achieved in almost every section of the Combined Nomenclature in 2006. Mineral products (24% and 23.6% respectively) formed the largest part of Lithuania’s import and export, and Lithuania’s production and processing industry ensured the major part of the country’s export (about 60%). In developing its foreign trade, Lithuania still needs to overcome the problems inherent in new participants of the global economy. One of the key problems is the insufficient competitiveness of Lithuania’s industry