Baltic States – CIS, Forum, Latvia, Legislation, Markets and Companies

Pavluts emphasized that, after highly intensive effort over the past two years, WTO member states supported the completion of this process in December 2011. The Russian parliament will ratify these commitments in approximately six months, and Russia will become a WTO member.

Russia is important and prospective for Latvia's foreign trade, particularly in the food industry, pharmacy, mechanical engineering, tourism and freight transportation. "I see considerable gains from improving economic cooperation with Russia's regions. Latvian-Russian cooperation is already developing at intergovernmental and business levels with several Russian regions, as well as with Moscow and Saint Petersburg. We have already signed economic cooperation agreements with some of them," explained the minister.

Russia was Latvia's third most important export partner in 2010, behind Lithuania and Estonia. Even despite the recent global recession, Latvia's export development to Russia has been stable over the past five years. Each year, Latvia exports around 15 percent goods and 10 percent services to Russia. During this period, Latvia's direct investments in Russia increased nearly eight percent per year, indicating that Latvian businessmen are truly interested in the Russian market.

Pavluts believes that Russia's accession to the WTO has been similar to a marathon with considerable and difficult choices regarding the country's integration in global economy. Russia's trade will continue to undergo modernization and become more transparent even after this process. To ensure this, Russia fulfillment of its commitments will be closely observed.

"I am optimistic regarding Latvia's future economic cooperation with Russia and other countries of the Customs Union – Belarus and Kazakhstan. I hope that the sides will be able to gradually overcome limitations in mutual trade and agree on the establishment of a joint economic area in the foreseeable future, on the basis of WTO regulations and the principles of modern trade," said Pavluts.