What are Latvia’s most prominent accomplishments?
Latvia is an integral part of Europe and in May 2019 will celebrate 15 years as a part of the European Union. We are part of the eurozone, Schengen, and the OECD. Latvia operates according to similar legislation, rules, and principles as The Netherlands, Germany or Ireland. Therefore, Latvia is more developed than other post-Soviet countries and is viewed as a success story when compared to other countries in the Eastern neighborhood of the European Union. Latvia certainly has its own challenges to address, such as raising competitiveness in addition to managing its geopolitical situation.
What are Latvia’s key competitive advantages?
The first is the political will to conduct necessary reforms. This dates back to the 1990’s. Becoming part of the European Union required enormous modifications to the nations economic, political, legal, judicial and social systems. Through strong determination, Latvia implemented the necessary steps, measures, and reforms even if it was not easy politically. This continues to be the case. A second asset is our geographical position as part of Northeast Europe. On the one hand, we have good connections with our Eastern neighbors; Belarus, Russia and the Ukraine. On the other hand, we are part of the European Union. The combination has given Latvia a valuable competitive advantage. The third is being a small open economy, and the way we quickly adjust to changing situations.
What new trends are present in Latvia’s foreign policy?
Latvia is finding ways to engage businesses in the East. Latvia’s foreign economic policy is increasingly focusing on the Gulf, Central Asia, Southeast Asia and China. There is considerable interest. We have particularly worked on building bridges with Central Asia and are currently addressing the “One Belt, One Road Initiative.” There is an advantage in the Baltic states, and in Latvia mainly. When it comes to business, virtually everyone speaks English and Russian, and many people have good knowledge of German and Scandinavian languages. So this is something that creates a perfect environment for conducting business between Asia, Europe, Russia, and CIS.
What challenges do you foresee in the Baltic States?
A major misconception we commonly address is that the region is viewed as a potential trouble spot. We are currently in an unpredictable situation, especially with the ongoing troubles in Eastern Ukraine. Many investors, particularly after 2014, are worried that the Baltic region may become the source of World War III, which is not going to be the case. The message we are sending is the contrary. We all share the same values in human rights, democracy, and market economy. NATO plays a decisive role in Latvia’s security policy, and currently, this is probably the most secure region within Europe. I strongly believe that whatever geopolitical challenges we see, The Baltic States are part of NATO and the EU. So this is probably the place to invest, as investments are going to be protected in every way, including with military action if necessary. Canada’s Foreign Trade Minister, François-Philippe Champagne, often communicates to his Canadian businessmen: If we have sent Canadian troops to Latvia as part of NATO’s reassurance force, then you can understand that we are seriously involved.
