Export is backbone of Latvian economy - foreign minister

  • 2025-01-21
  • LETA/TBT Staff

RIGA - Export is the backbone of the Latvian economy, Foreign Minister Baiba Braze (New Unity) said while meeting with representatives of the Latvian Industry Development Confederation (LIAK) on Monday.

As LETA was told at the Foreign Ministry, Latvia's foreign and security policy priorities and Latvia's priorities for the European Union's (EU) next multiannual budget are security and defense, Cohesion Policy, Common Agricultural Policy (CAP) and support for the Rail Baltica railway project.

atvian Industry Development Confederation has united the representatives of five industries - Latvian Electrical Engineering and Electronics Industry Association (LETERA), Mechanical Engineering and Metalworking Industry Association (MASOC), Latvian Information and Communication Technology Association (LIKTA), Latvian Chemical and Pharmaceutical Industry Association (LAKIFA), and the Latvian Wood Industry Federation (LKF). The main activity of the LIAK is the development of products and technologies for innovation, security and defense. Together, the companies in the sectors represented by LIAK account for around two thirds of Latvia's exports.

Braze and LIAK representatives discussed export promotion, representation of interests within the EU, activities and support in developing new markets, as well as sectoral and the priorities of Latvia's foreign and security policy. The minister also informed about Latvia's priorities for the next EU multiannual budget.

The participants of the meeting also discussed the development of artificial intelligence, drones, 5G, 6G and quantum technologies in Latvia. The representatives of the sectors stressed the importance of the representation of Latvia's interests in the EU, as well as the importance of close and practical cooperation between the public and private sectors, especially in attracting investment.

The participants of the discussion agreed on the need to further reduce economic dependence on Russia and Belarus and that doing business with Russia and its co-aggressors is not sustainable in the long term. Braze stressed the need to further strengthen and expand sanctions against Russia, including by denying it access to Western technology, in order to minimize Russia's revenues and weaken its military capabilities, in order to prevent it from continuing its war against Ukraine.

Braze stressed that supporting businesses in raising their profile, accessing foreign markets and attracting foreign investment and partners is one of the priorities of the foreign services. Last year, the foreign service, including embassies and honorary consuls, actively supported Latvian exporting businesses by helping them solve problems and establish business contacts.

The foreign minister noted that CIS countries, including Russia and Belarus, have a decreasing share in Latvia's total exports. In contrast, Latvian companies' exports increased last year not only to European countries, but also to more distant markets such as the US, India, Japan, Egypt, Korea, Australia and Canada.

According to the minister, Latvia is using all available EU instruments and opportunities to enable entrepreneurs to succeed in new markets. Braze promised that the foreign service would continue to work to strengthen Latvia's trade ties with reliable partners around the world and to attract investment from the EU, NATO, OECD and other partners with similar values.

Braze indicated that in 2024, the work of state institutions, including the foreign service, the Economics Ministry, the Investment and Development Agency of Latvia and other organizations had resulted in attracting and implementing major investment projects. For example, thanks to the Foreign Ministry's involvement, Origin Robotics raised EUR 4.5 million from the European Defense Fund for the development of a portable ISTAR UAV with laser target designation.

The minister invited the confederation and its members to inform the Foreign Ministry about their plans, objectives, funds, projects and companies, with which they would be interested to start business cooperation, especially in countries where Latvia has embassies or honorary consuls.