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Valdis Dombrovskis and Ilham Aliyev. Baku, 28.11.2012. Photo: flickr.com

Development of new export markets is one of the key preconditions to ensure further economic growth in Latvia. "Participation of more than 90 entrepreneurs in this visit is indicative of the fact that Latvia sees great potential for cooperation with Azerbaijan," said the Prime Minister.

The officials held the same opinion regarding the rapid improvement of economic cooperation, emphasizing that during the first half of 2012, the trade turnover amounted to USD 12.2 million, ranking Azerbaijan as the main trading partner of Latvia in the South Caucasus region, reported BC press secretary to the prime minister of Latvia Mārtiņš Panke.

Currently, there are 64 companies with Azerbaijan's capital operating in Latvia and Azerbaijani investments in the fixed capital of Latvian companies amount to LVL 378 000. During the meeting with Azerbaijani officials, V.Dombrovskis mentioned transit, logistics, ICT, education, food industry, energy, tourism and financial sector as the most promising fields for investment.

During his meeting with the President of Azerbaijan, V. Dombrovskis particularly emphasized Latvia’s advantages in the fields of transport, logistics, aviation and energy. In addition, Latvia expressed support to strengthening the cooperation between the EU and Azerbaijan in the energy sector and Eastern Partnership. I. Aliyev confirmed that Azerbaijan is interested in developing strategic relations with the EU.

An important part of the meeting was devoted to the development of transport networks and specific projects to strengthen the economic cooperation of the two countries in this field. The Prime Minister of Latvia and the President of Azerbaijan also discussed the cooperation between both countries in Afghanistan with a view to support the stabilization process.

The parties also discussed cooperation in the field of education. Currently, Latvia offers study opportunities for 50 students from Azerbaijan, and higher educational institutions of Latvia that teach in English and Russian languages are interested in attracting more students from Azerbaijan. V. Dombrovskis expressed satisfaction that study programs of the Latvian higher educational institutions are included in the list of target countries of the Azerbaijan State scholarship recipients program to study abroad.

During the meeting with the Prime Minister of Azerbaijan, both parties stressed the great potential for bilateral economic cooperation. The Prime Minister of Azerbaijan confirmed his interest in cooperation, paying a tribute to the Latvian people and confirming a common understanding of values. V.Dombrovskis presented a number of specific proposals regarding investment in Latvia to the Head of Government of Azerbaijan.

The responsible ministers participated in the discussion with the Prime Minister of Azerbaijan with a view to discuss concrete forms of cooperation, incl. potential cooperation in the textile industry and air transport. Azerbaijani Prime Minister confirmed that the country pays great attention to the development of air transport and, therefore it will analyse the opportunities for cooperation with Latvia. Dombrovskis confirmed Latvia's commitment to cooperate in developing the social services.

Currently, Azerbaijan already uses the experience of Latvian experts in the development of social services. The officials intend to continue cooperation, , incl., by organizing consultations with Latvian experts regarding matters of formation and development of social insurance system, as well as solving the employment issues.

The sides expressed their readiness to promote political dialogue and economic cooperation, stating that the visit of the Prime Minister and the delegation is an important step in the establishment of new contacts.

yesterday, the Prime Minister met Ali Hasanov, Deputy Prime Minister of Azerbaijan, Kamaladdin Heydarov, Minister of Emergency Situations of Azerbaijan and other officials, as well as opened the Latvian-Azerbaijan Business Forum that brought together nearly 200 entrepreneurs from the two countries. Within the framework of the Business Forum, various opportunities to promote investments and trade were presented.

Tonight, the Prime Minister will also participate in the reception hosted by the Embassy of Latvia in honour of Latvia's proclamation day and in the opening event of "Taste Latvia" days. With the view of promoting export of the Latvian products to Azerbaijan, as well as recognisability and sales of the Latvian products which are already on the Azerbaijan's market, the first "Taste Latvia" days were organized last year. This year, Latvia's days will begin during the visit of the Prime Minister and will run until the beginning of December.

The Prime Minister will return to Latvia on Friday, November 30.

The visit takes place upon the invitation of the President of the Republic of Azerbaijan that was extended in 2011, during his visit to Latvia.

Economic cooperation between Latvia and Azerbaijan

In 2011, the turnover of foreign trade in goods and services between Latvia and Azerbaijan amounted to EUR 27 million, i.e., by 45% more than in 2010 – export of goods and services amounts to EUR 23 million (+45%), while import of goods and services – EUR 4 million (+50%). In 2011, Azerbaijan was the 38th largest export partner and the 56th import partner of Latvia. Latvia's export of goods to Azerbaijan amounted to EUR 18.1 million and import of goods – EUR 3.3 million.

In three quarters of 2012, Azerbaijan was the 41st major partner of Latvia in export of goods and the 66th largest partner in import of goods. Latvia's export of goods to Azerbaijan amounted to EUR 12.1 million, while import of goods from Azerbaijan amounted to EUR 1.3 million. The main Latvia's export goods to Azerbaijan are animal products, metal products, food items and chemical products, while mineral products and food products are major imports from Azerbaijan.