U.S. ratifies pact with Lithuania

  • 2000-10-26
VILNIUS (BNS) - The U.S. Senate has unanimously ratified a bilateral agreement with Lithuania on the protection and encouragement of mutual investment, which is expected to promote the development of economic relations between the two countries, the Lithuanian Foreign Ministry said on Oct. 20.

The pact regulates Lithuanian-U.S. investment relations, guarantees bilateral protection of investment, stipulates procedures for solving possible disagreements and gives legal guidelines on other issues of interest to Lithuanian and U.S. investors.

The Lithuanian Foreign Ministry said that the ratification of the pact should become another factor encouraging economic relations between Lithuania and the United States.

The agreement is aimed at encouraging Lithuania and the U.S.A. to invest in each other's territories and creating better conditions for expansion of economic activities, including establishment of joint and foreign-capital firms and developing of production and trade.

The pact, which was ratified by Lithuania in June, will take force 30 days after Lithuania and the U.S.A. exchange ratification documents.

The agreement was signed in Washington on Jan. 14 1998.

According to data from the Lithuanian statistics department, the U.S.A. ranked second in terms of investments in Lithuania as of Jan. 1 2000. The country's investment in Lithuania totals over 1.10 billion litas ($275 million) and accounted for about 13.4 percent of all foreign investment.

Some 288 joint Lithuanian-U.S. firms and 181 U.S.-capital enterprises are listed in the Lithuanian register of companies as of this day.

Lithuanian companies with most U.S. capital are mobile operator Omnitel, confectionery Kraft Jacobs Suchard Lietuva, pet-food producer Masterfoods, oil concern Mazeikiu Nafta, hygiene-goods retailer Sanitex and others.