Economic relations between the Republic of Azerbaijan and the Republic of Latvia
   (1999- 2009)

             
It’s necessary to note that as contrasted with previous years there is looking the growing the trade balance between two countries. Azerbaijan considers that there are a lot of potential for economic development between Azerbaijan and Latvia.  
Latvia's exports to Azerbaijan in the first half of 2007 reached 3,714,992 USD or 0.11% of Latvia's total export, import - 870,769 USD or 0.01%. In this period, Latvia has a positive trade balance with Azerbaijan in the amount of 2,843,429 USD. 
The main export goods to Azerbaijan are cattle production (23.56%), products of chemical and allied industries (20.86%), machinery, mechanical appliances, and electrical equipment (15.77%). Import from Azerbaijan - products of food industry (79.35%) and mineral products (16.13%).  

Between two countries signed bilateral Agreements in order to attract mutual investments both countries, Azerbaijan and Latvia for the last 2 years. Agreement on Promotion and Reciprocal Protection of Investments and Convention for the avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and on Capital, Agreement regarding mutual assistance in customs matters Agreement and Convention,  Agreement on Economic, Scientific, Technical and Cultural Cooperation have entered into force already. 

A number of business forums were held in Baku and in Riga. During the forums were discussed the concrete projects in order to expand economic relations between two countries. As of October 2007 there were 21 Latvian -Azerbaijani joint ventures registered on the State Enterprise Register of Latvia. No doubt, that the creation of an Intergovernmental Commission, the first meeting of which was held in Baku on 1-3 March 2007 will give its impulse to the bilateral relations.  During the meeting of the Commission were discussed specific issues affecting the growth of trade and development economic relations between two countries, namely, promotion of creation of economic relations between the regions of both countries, implementation of permanent exchange of information about the experience in the field of development of entrepreneurship and mechanisms of support to entrepreneurship between relevant authorities of both countries, arrangement of mutual visits, co-operation in arrangement of business forums, exhibitions and fairs for the purpose of supporting bilateral cooperation between Azerbaijan’s and Latvia’s entrepreneurs, co-operation in arrangement of training programs for the experts of the state economic institutions; the establishment of cooperation in the sphere of protection of consumer rights and control over the quality of consumer goods between the Ministry of Economic Development of the Republic of Azerbaijan and the Ministry of Economics of the Republic of Latvia; development of co-operation between the competent institutions of the Parties in the forest sector, and exchange of experience related to the forest sector governance, implementation of information exchange canals in the field of standardization, metrology and conformity assessment,  and est.
  
Meantime, while the session the Parties agreed on the importance of enhancing further cooperation between Azerbaijan and the European Union. The Parties mentioned start of new stage in relations between Azerbaijan and European Union with signing of Action Plan within the framework of the European Neighborhood Policy and especially the importance of the signed Memorandum of Understanding on the establishment of a Strategic Partnership between the European Union and the Republic of Azerbaijan in the field of energy. In the light of enhanced EU energy cooperation with Azerbaijan, it was agreed that both Parties will hold consultations for determining the perspective work on development of Azerbaijani oil and gas supply routes on a northwestern axis, which would include Latvia. The Parties agreed to develop exchange of information on relevant European Union legislation issues and enforcement mechanisms.

Taking into account, that the Government of the Republic of Azerbaijan has declared ICT development as the one of the priority issue the cooperation in this sphere is very positive factor in bilateral relations between two countries. In this regard, the mutual official visits of Ministers of information technologies in 2007, has also impacted on the development of the cooperation in this sphere.

During of 2007, the delegation of the Mortgage Fund of the Republic of Azerbaijan has paid experience exchange visit to the Republic of Latvia. The delegation has met with experts from the Association of Latvian Commercial Banks, the Financial and Capital Market Commission, the Riga Stock Exchange, the Central Depositary of Latvia, State Joint Stock Company Latvijas Hipoteku un zemes banka and JSC Parex Banka.  
On 24 January, 2008, Minister of Economic Development of the Republic of Azerbaijan, Mr. Heydar Babayev has paid the working visit to Latvia. During the visit he had meeting with the Mr. Kaspars Gerhards, Minister of Economic of Latvia and Co-chairman Latvia-Azerbaijan Intergovernmental Commission and with Mr. Janis Birks, Chairman of the Riga Council.
The visit has permitted to hold a broad exchange of views on topical bilateral issues, including the economic relation between two countries and Azerbaijan-EU cooperation in the economic field. The two Ministers confirmed, that they will continue their efforts in order to more develop of the cooperation in this sphere.