Kõuts graduated from Tallinn Maritime School in 1973 and from Kaliningrad Technical Institute in 1985.

From 1973 to 1990 he worked in various positions in the Estonian Shipping Company.

In September 2000 Rear Admiral Kõuts was appointed commander of the Estonian Defence Forces.

Having been promoted to the rank of vice admiral in 2002, Kõuts retained the position until 2006, when he stepped down to move into politics.

He joined the right-wing Union of Pro Patria and Res Publica and successfully ran for a seat in the parliament in the 2007 elections.