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Address by Minister of Foreign Affairs Antanas Valionis to Association of American Chamber of Commerce in LithuaniaVilnius, 23 January 2003First of all, let me thank you for this invitation to speak on the issue of Lithuanian foreign policy in the coming years. It is quite a challenge discussing an issue-in-the-making. But I’m pleased to take up this challenge with you. Particularly because I hope to hear your ideas as well. I’m looking forward to a good and open exchange of views during this lunch.Admittedly, the goals we had declared upon regaining independence have been largely accomplished.Today good neighbourly relations are a fact. Lithuania was invited to join NATO and concluded negotiations with the EU. This year will be marked by our efforts to ensure the success of accession referendum at home and a smooth ratification process in the EU and NATO capitals so that by the year 2004 Lithuania joins both. And then, what?Recent statements by President-elect Rolandas Paksas point to the continuity of foreign policy goals. Indeed, foreign policy priorities express the fundamental interests of the nation- to ensure peace, security, prosperity, and respect for the individual.They cannot but remain constant.Yet, a gradual evolution of our goals and objectives in the coming years is only natural. On the basis of the long-term development strategy of the state adopted by the parliament last year, I would distinguish the following priorities:- A secure and prosperous Baltic region in a strong and secure Europe;- Maintaining the trans-Atlantic link and NATO’s viability as a collective defence organisation;- Effective promotion of Lithuania’s economic interests in an era of increasing globalisation;- Contribution to maintaining a stable international system based on the UN, the rule of law and multilateral cooperation; and- Protection of the interests of Lithuanian nationals and support for Lithuanian communities abroad. Let me briefly point out the following.Our membership in the EU will have profound civilisational, security, economic, and social consequences. We have to make sure that all of Lithuania gains from this membership.Therefore, without going into detail, I will only note that we have to make sure that the enlarged European Union is responsive to and equitable with its smaller member states. As members we shall certainly seek to make best use of the EU principles of solidarity and structural assistance, in order to win adequate and lasting assistance needed to overcome current development gap between rural and urban population in Lithuania and to promote a balanced regional development.In terms of external policy, I would emphasise our determination to be the shapers of EU policy towards our eastern neighbours.The New Neighbours Initiative gives us an important tool to encourage democratic transformations and to reduce differences in social and economic development in countries extending from the Baltic to the Black Sea. We shall further support the Northern Dimension Initiative as a way of consolidating reforms in the European regions of Russia. As we transform the instrument of good neighbourhood into a policy of regional cooperation, we shall seek further improvement of regional infrastructure, including energy and transport networks and their inclusion into trans-European network as a necessary condition for building prosperity of our nation. We are ready and open to share our experience with the nations that are yet to pursue the road of Euro-Atlantic integration- such as Ukraine, South Caucasus, and the Balkan states. As Europe gains new neighbours through our accession and becomes more united, more complete, we too acquire new neighbours through Europe. Thus issues like the Mediterranean dialogue or the Middle East, to mention but a few, will require our increased awareness, improved expertise, and wider participation. In terms of security, NATO will remain the cornerstone of our security policy. Therefore, it is our interest -to keep it a strong collective defence organisation maintaining Article 5 guarantees; - to maintain a viable trans-Atlantic link and, specifically, US interest in the Baltic region;- to contribute to the continuity of NATO enlargement process; and- to ensure Lithuania’s role in the Alliance in order to influence its decisions and actions in line with our security needs. At the same time, Lithuania will be increasingly dealing with global security challenges, such as fight against international terrorism, proliferation of weapons of mass destruction, conventional arms control, illegal migration and human trafficking. Drawing on proper experience, Lithuania will contribute to international fora for promoting democracy, rule of law, and human and civil rights. To this effect, Lithuania will seek to upgrade its role in the UN system, by applying for elected seats and further contributing to peace keeping operations. Lithuania’s emerging development co-operation policy is part of this effort. Promotion of Lithuania’s economic interests will gain increasing weight in our foreign policy, including more aggressive export promotion and attraction of investments into priority sectors of national economy.Our tools will include economic round tables, business clubs, and field trips, to name but a few.Lithuania’s pursuit of Organisation for Economic Co-operation and Development membership will also contribute to improving the overall business environment. To facilitate international investment, Lithuania has already joined the OECD Declaration on International Investment and Multinational Enterprises. Our expected accession to the OECD Anti-Bribery Convention will be an extra tool in combating corruption. This being said, I guess you as ACC members expect to hear also, what will or may change for you as our nation moves from a candidate country status to full membership. Let me mention a few general points.First, NATO and EU memberships give Lithuania added security and stability. Second, the synchronisation of Lithuania’s policies and laws with those of the EU will mean greater stability and predictability. Third, manufacturers will have broader possibilities to operate on the EU markets, entering the single market with lesser costs and offering their products to millions of consumers in an enlarged EU. Lithuania’s proximity to the vast CIS market, including its wealth of natural resources, is also an advantage.Other factors include the financial allocations from the EU budget and the expected GDP growth rate. EU financial allocations are expected to account for more than four per cent of Lithuania’s GDP and are to facilitate Lithuania’s economic growth and structural changes in the economy. US companies will be able to participate in the projects jointly financed by Lithuania and the EU. As for the GDP growth rate, it is estimated that in the period up to the year 2009, it will be growing by an annual average of seven per cent, thus improving the purchasing power in Lithuania.Of course, some changes are inevitable as Lithuania adopts the European Union’s external trade policy. However, the impact analysis of trade regime following Lithuania’s accession to the EU shows that the total effects of the adoption by Lithuania of EU external trade policy are likely to be limited due to the fact that seventy per cent of Lithuanian trade already takes place under free trade agreements with EU, EFTA and EU associated countries. The most visible changes in Lithuanian – US trade policy will be due to: (1) the abolition of preferences granted to Lithuanian exporters to the United States under the Generalised System of Preferences (GSP), and(2) adoption by Lithuania of EU most favoured nation duties which are higher than the ones currently applied.However, we believe that the potential for further development of trade co-operation remains high and growing. To conclude, change is inevitable. Yet if we accept change as a resource, a potential for growth, a whole new world of opportunities, we all gain- you as investors and businesses; we as a nation eager to face the challenges and turn these challenges into lasting peace and prosperity.Thank you. And let us have the floor open for your questions and comments.