The President of the American-Lithuanian Business Council Eric Stewart: “It is impossible to separate business from politics, but the interests must be balanced”.

2013-06-07

15min.lt, 7 June, 2013.

The President of the recently established American-Lithuanian Business Council Eric Stewart is visiting Lithuania. The partner of a private Washington-based consulting firm “Williams & Jensen” is leading the organization that brings together the U.S. companies working in or interested in Lithuania. The Council is authorized to represent the interests of the business at the highest political level, as well as it has the opportunity to participate in the meetings of the Ministers or Presidents. 15min.lt asked Mr. Stewart in what ways Lithuania is attractive for the U.S. business as it is the largest economy in the world and what opportunities the U.S. market is able to provide Lithuania.

Why was the American-Lithuanian Business Council established?

- The American-Lithuanian Business Council was established a few weeks ago. It started functioning during the Lithuanian President Dalia Grybauskaite’s visit to Washington. There are currently 9 U.S. companies in the Council which have established their divisions abroad, including Lithuania.

It is not the only one Business Council in Washington. Usually the Councils are established for the big economies, such as Brazil, Russia, and China. They are also established for smaller states where the business environment is more complicated and the government is not always open to foreign investment.

Does this mean that the investors are not welcome in Lithuania?

- Lithuania is not included in either of the categories. It is not complicated to establish business in Lithuania. The Business Council for Lithuania was established because of the favorable opportunities in the country. We would like to be better prepared in order to use these opportunities.

What are the U.S. companies interested in exactly?

- The energy, transport, financial, IT, health security sectors. The companies within the Council are mostly interested in these sectors.

In what ways do you represent the interests of your country’s business?

- Currently, we are not facing serious problems in Lithuania; however, we want to ensure the cooperation between business and the government. At any time when the representative of the Lithuanian government comes to the U.S. we have a business agents group to discuss the most important issues.

You have probably noticed that in Washington the Baltic States are often mentioned, as well as the organizations of the Baltic States are established and various events regarding the Baltic States take place. So when the politicians from Lithuania come to the U.S. they are able to meet with the purposive group in order to discuss specific issues about the Baltic country.

You are not a politician yourself. In Lithuania the relation between business and politicians is a problematic issue. How are these problems regarded in the U.S.?

- The system of checks and balances is very good in the U.S. The government has a great power to solve the problems related to the business environment or the competition results. It is impossible to separate business from politics, but the interests must be balanced.

In the U.S. the businessmen have the opportunity to meet the politicians, share the information. The concept “lobbyism” is usually seen as a negative, even though the process of lobbyism is an essential element in the political system. The government cannot make decisions without discussing with the interest groups.

You also run an office at the American-Polish, American-Romanian, and American-Turkmenistan Business Councils. How are they different from the American-Lithuanian Council?

- There are more similarities than differences. It was not my idea to establish these Councils. The need for the Councils arose during the evaluation of the business opportunities in various countries. The companies are often willing to execute business in Poland, Romania and Lithuania. These countries are alike; therefore, it is practical to lead several Councils at once.

We understand that Russia might have some political and economic interests in Lithuania. But what about the U.S. companies – what are they interested in?

- The relationship between the U.S. and Lithuania has always been strong. Lithuania has not only made a progress, but also managed to overcome the economic crisis. The U.S. companies see that. They know how talented and educated Lithuanian society is; however, their services still cost more than in the Western Europe.

The population of Lithuania is 3 millions, so it is not considered a big state in comparison with other states in the world. Therefore, it is always competing to attract foreign investment. You have mentioned “Chevron”. It is a great opportunity for Lithuania to get bigger independence in terms of energy resources. In my opinion, Lithuania and the U.S. can be very reliable partners.

There are other successful foreign companies working in Lithuania. In the energy sector the most evident interests are those of Russia, in the financial sector the Scandinavian countries have the greatest interest. Do you see any sectors where the U.S. companies could compete with others?

- I would rank the U.S. companies and the technologies they dispose number 1 with no doubt. We might not always win, but we have great chances. For instance, we are the leaders in the shale gas sector.

When Lithuania regained independence, many Lithuanians emigrated to the U.S. Now they choose other countries to emigrate and it was mainly due to the recession in the U.S. and the distance between the countries. What, in your opinion, is the current situation? Is the U.S. attractive to Lithuanians?

- I believe that the U.S. is and has always been attractive to Lithuanians. There are big Lithuanian Diasporas living in the country. Also, many young people are coming to the U.S.

During my visit to Lithuania I met with the head of the ISM University. It is obvious that students find it easier to travel to the United Kingdom or Germany instead of the U.S. Mostly it is due to the distance. However, one cannot deny that the U.S. universities are among the best universities in the world. I offered the ISM University to establish new study programs, where students would be able to get a double diploma.

What is the purpose of your visit to Lithuania?

- To meet the representatives of the Executive Office of the President, the government, and the Ministry of Foreign Affairs. I spent much time discussing about the upcoming Lithuanian Presidency in the EU Council. I think it is a great opportunity for Lithuania to present itself as a reliable partner.

As soon as the period of Lithuania Presidency starts, we are organizing an event in Washington, the U.S. Capitol. The congressmen, ambassadors and business representatives are all going to attend the event. We think that the presidency period will demonstrate what Lithuania is capable of in the international arena.

When the Lithuanian President Dalia Grybauskaite was a Commissioner, we saw her as a courageous officer, not afraid to make difficult decisions. This feature is essential in Brussels as well as in Washington.

We have already discussed the opportunities. What problems do you see in Lithuania?

- Lithuania creates innovation but is still unable to apply them in the business sphere.

Another question is the mentality. It is great what Lithuania has achieved during the 2 decades. But for a long time the Lithuanian society had been affected by the communist philosophy. We see the change.

In the forum yesterday I had an opportunity to communicate with the founder of “GetJar”. It is a splendid company and an example, how the ideas can be realized worldwide. Also, I often associate with the U.S. companies that have their divisions in Lithuania. “Western Union” has about 800 employees. The companies see many smart, intelligent, innovative young people. This shows that the mentality if the Lithuanian society is changing. You will soon see even more Lithuanian-run businesses.

The U.S. established the Council for Lithuania, where the big business companies that are interested in establishing business in Lithuania were connected. Does Lithuania have certain business interests the U.S. and who is defending those interests?

- One of the best examples is “Versli Lietuva” (“Enterprise Lithuania”), which has its representatives in Chicago and Los Angeles. They help the Lithuanian companies to trade with the partners in the U.S. It is well known that the U.S. is a great country and the competition in the country is very tight. It is not easy to find opportunities for small Lithuanian companies there. During my visit to Lithuania I met with the leader of “Versli Lietuva” to discuss the Lithuanian business opportunities in the U.S.

You mentioned Ilja Laurs, the founder of “GetJar”. The U.S. is quite difficult to reach for the Lithuanian companies, but maybe there are some good examples that prove the chances of a great idea?

- If you take a look at your region, which is essentially important for your foreign trade, the tendency is not very cheerful. According to prognosis, The GDP of the EU will decrease by 0,4 %. The GDP of Russia should increase by 3 %, however, it is not very good news for such a big country.

Lithuanians should think globally instead of locally. It is not a very easy task for a state, but it is the best time to do so for Lithuania. The whole world will be watching your abilities during the EU Presidency. The U.S. is negotiating the free trade agreement with the EU. There are many other extremely important international questions. Lithuania must prove that it is capable of making difficult decisions.

Another direction the Lithuanian government should take into consideration is the Asian markets. It is a very fast-growing region. At the moment the concept of the “Silk Road” is being created. Lithuania has a great infrastructure of roads and transportation system; therefore, it could take part in this kind of initiatives and become able to reach Asia directly.

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