Latvia and Lithuania were invited to join Estonia and seven other Central and Eastern European countries to membership talks with the EU in December 1999. The aspiration of EU membership in the all three Baltic countries has promoted the implementation of new policy objectives for the agriculture and food sectors and reoriented agro-food trade from the former Soviet bloc to the EU. The Russian economic crisis affected the Baltic countries most severely in the fourth quarter of 1998 in the form of falling exports of agro-food products. The objective of this study is to examine the current structure and future possibilities in trade policies and agro-food trade between the Baltic countries and the EU. Special attention is given to the evaluation of agro-food trade between the Baltic countries and Finland. The agro-food trade volumes are analysed by using the concept of intra-industry trade. The EU has strenghtened its position as the main source of food products, accounting for approximately half of total imports to the Baltic countries in 1998. Especially imports for high value added food products like beverages, roasted coffee and dairy products has rised. In 1992 more than 70 per cent of the agro-food import consisted of grain, but in 1998 its share was only 1 per cent. The agro-food trade between the Baltic countries and the EU increased strongly after Finland and Sweden became members of the EU. The trade deficit in agro-food trade has traditionally been very high because of the limitations concerning export to the EU region. Although the agro-food exports to the EU has increased faster than imports, the volume of agro-food imports from the EU is still four times bigger compared to agro-food exports. The share of intra-industry trade in agro-food trade with the EU has been growing continuously which reflects the positive developments in the economies of the Baltic countries.