Latvia's important diplomatic link with Canada may be dealt a blow, with plans by the conservative Canadian to cut costs by closing its embassy.
The Canadian Press news agency reported that its government was considering slashing the budget of the Foreign Affairs Department, which could lead to the closure of 19 diplomatic missions.
As well as Latvia, embassies in several Balkan, Asian and African countries might also be closed. Late last year Canada closed its consulates in St Petersburg, Milan and two in Japan.
Such an action would be a heavy blow for relations between the two countries, which have always remained close because of the large number of Latvians who reside in Canada.
Latvia's president Vaira Vike-Freiberga was raised and educated in Canada. Canada was also the first country to ratify Latvia's accession to NATO in 2003.