Estonia and Latvia

26.08.2011

The relations between Estonia and Latvia are friendly and close. Their shared interest in co-operation is based on their geographic proximity, historic and cultural similarities, common foreign policy goals, and their successfully developing trade and tourism.
Estonian and Latvian heads of state and members of government meet regularly. Frequent communication and productive co-operation exist also at the state institution level and in the business community.

Estonia and Latvia exchanged diplomatic representatives already in December 1918. Diplomatic relations between the two countries were restored on 6 September 1991. Leili Utno presented her credentials in June 1992 as the first Estonian Ambassador to Latvia following the restoration of independence.

Mati Vaarmann is the current Estonian Ambassador to Latvia, having presented his credentials on 7 September 2010. The Embassy of Latvia in Tallinn is headed by the ambassador Kārlis Eihenbaums since 28 August 2008.

Significant Visits and Meetings

In June 2007 the Estonian and Latvian prime ministers originated the idea for an Estonia-Latvia future co-operation report that would outline development directions in the various fields of co-operation between the two countries. This task was assigned to two rapporteurs: Anvar Samost on the Estonian side and Andris Razans on the Latvian side, who presented their report to Prime Minister Andrus Ansip and Latvian Prime Minister Valdis Dombrovskis on 11 June 2010.

Estonia-Latvia Future Co-operation Report

Agreements

Bilateral relations between Estonia and Latvia, primarily economic relations are as of 1 May 2004 regulated by EU internal market rules. The majority of agreements between Estonia and Latvia have been concluded trilaterally between Estonia, Latvia and Lithuania.

There are 16 bilateral agreements signed between Estonia and Latvia:

1. Agreement on the Renewal of the State Border and the Additional Protocol (came into force 13.09.93);
2. Agreement on Organising Common Border Control (came into force 30.08.94);
3. Agreement on the Activities of Border Representatives (came into force 30.08.94);
4. Air Services Agreement (came into force 01.02.96);
5. Agreement for the Promotion and Reciprocal Protection of Investments (came into force 23.05.96);
6. Agreement on the Maritime Delimitation in the Gulf of Riga, the Strait of Irbe and the Baltic Sea (came into force 10.10.96);
7. Agreement Regarding Border Points (came into force 21.10.96);
8. Agreement on Social Security (came into force 29.01.97);
9. Agreement on the Assessment of the Transboundary Effects on the Environment (came into force 14.03.97);
10. Agreement on the Transfer of the Right of Use of a Plot (came into force 28.06.99);
11. Framework Agreement on Mutual Assistance in the Event of Disasters (came into force 19.06.02);
12. Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and on Capital (came into force 21.11.02);
13. Agreement on Railroad Transport (came into force 16.05.2004);
14. Agreement on the Terms of the Use and Maintenance of the Valga1/Valka2 Joint Border Crossing Point (came into force 21.05.04);
15. Agreement on mutually storing crude oil and oil products (came into force 06.08.09);
16. Agreement of the Exchange and Mutual Protection of Classified Information (came into force 20.07.11).
     

Defence Co-operation

The three Baltic countries are engaged in active trilateral defence co-operation, which was formalised on 12 February 1995 when the Defence Ministers of Estonia, Latvia and Lithuania endorsed the trilateral agreement on defence co-operation.

Trilaterally several joint projects have been initiated, of which some have survived up to the present and some have been terminated upon the achievement of their goals (BALTBAT, BALTSEA).
At present, the Estonian, Latvian and Lithuanian defence co-operation has mainly been focused on four co-operation projects:

BALTRON (Baltic Navy Squadron) - A naval force with mine countermeasure capabilities was established in 1998 for the purpose of participating in international peace support operations. The first to participate in the NATO's mine countermeasure unit was the Estonian Command and Support Ship "Admiral Pitka". As of 2006, the Baltic States dispatch their vessels on a rotational basis to the NATO Response Force.

BALTNET (Baltic Airspace Surveillance Network) - A system for the co-ordination and distribution of air surveillance data, established in 1998. To launch the system a regional air surveillance and co-ordination centre (RASCC) was established in Lithuania, where servicemen of the Baltic States train together. The main task is to supply NATO and the NATO aircrafts performing the air policing in the Baltics with the relevant air surveillance data, fulfilling this way the function of air surveillance pertinent to air policing.

BALTDEFCOL (the Baltic Defence College) - A joint military education institution established in 1998 for the training of senior staff officers and civil servants to offer the officers of the Baltic States and of our partners military education in compliance with the uniform NATO standards. The main function of the College is to conduct the Joint Command and General Staff Course (JCGSC). In addition to that, the College annually arranges the Civil Service Course (CSC) and as from 2004, the Higher Command Studies Course (HCSC).

BALTIC BATTALION / NRF-14 – The participation of Baltic army units in the composition of the NATO Rapid Response Force NRF-14 is currently one of our co-operation priorities.

Environmental Co-operation

Most environmental projects operate trilaterally with the Baltic States working in co-operation with the member nations of the Nordic Council of Ministers and members of the Council of Baltic Sea States. Estonia and Latvia both support the banning of single hulled freighters in the Baltic Sea.

The Estonian-Latvian bilateral Fishery Commission is trying to approximate the interests and positions of the two states in the protection and administration of its fisheries. It meets at least once a year to determine fishery quotas in the Gulf of Riga and the Baltic Sea.

Economic Relations

* Pre and post 1 May 2004 data are incomparable. After accession to the EU, the import is calculated on the basis of the sending country, earlier this was based on the country of origin.

Bilateral trade between Estonia and Latvia has been facilitated after their re-independence by many primarily trilateral agreements, for example Estonia, Latvia and Lithuania’s trilateral free trade agreement (for manufactured goods starting 01.04.94 and agricultural produce 01.01.97) and the agreement on visa-free travel.

TRADE

Latvia remains among Estonia’s four main trade partners, being a growing export market for our products as well as services. In 2010:

- Estonian goods totalling 784 million EUR (2009: 616 million EUR) were exported to Latvia, increase on year 27.2%

- Latvian goods totalling 1.003 million EUR (2009: 764 million EUR) were imported to Estonia, increase on year 31.2%

Main export articles in 2010:

 
Main import articles in 2010:

All economic figures originate from the Statistical Office of Estonia

INVESTMENTS

According to Bank of Estonia data, as of 31 December 2010 Estonian companies had invested 1.143 billion EUR in Latvia, which makes up 25.3% of all direct investments made in foreign countries. As of the summer of 2006, in terms of foreign direct investments Estonia is Latvia’s #1 investor.

As of 31 December 2009, Latvian direct investments in Estonia made up 0.8% of direct investments, with a total value of about 97.3 million EUR. According to the Commercial Register, over 400 Latvian shareholding companies are registered in Estonia. The biggest investment has been made by Latvenergo, which owns 25% of shares in the stock company Nordic Energy Link, which built the Estlink sea cable. Other significant Latvian investments have come to Krediidipank, Parex bank, and Tallinn Pharmaceutical Company. In July 2007 Latvia’s biggest investment in industry was made when the company “Sakret” opened a concrete mix factory in Mäo. Since October 2009 the first Estonian location of the Latvian chain “Lido” can be found in the new Solaris shopping centre.

In order to support Estonian businesses in Latvia and facilitate better information exchange, an Estonian Chamber of Commerce was opened in Riga on 18 April 2007.

Regional Co-operation

Co-operation between local governments on the Estonian and Latvian border has been functioning for years. In 2004, the Estonian and Latvian Governments formed working groups for cross-border co-operation. The joint tasks of these working groups are the development of a cross-border co-operation strategy with the objective of developing Estonian-Latvian co-operation within EU border co-operation programmes, creating a favourable environment for enterprise in the border regions and facilitating the border-crossing procedure. Specific working areas would include environmental protection, tourism, development of transport services, co-operation in shaping a common educational space and the health care system. Larger projects include the establishing of a common hospital system for Valga-Valka.

Among the projects between the cities of the two countries, Riga's co-operation with Tallinn and Tartu as well as co-operation between Valmiera and Viljandi are most noteworthy.

The European Union also supports co-operation between border areas through territorial co-operation programmes (Estonia-Latvia Programme 2007-2013).

Culture and Education

Thanks to their being neighbours, the cultural and educational contacts between Estonia and Latvia have been close. Already in the 19th century some of Estonia’s future leaders of state and church were educated at the Seminary of Janis Cimze, the Higher Technical School of Riga and the Ecclesiastical Seminary of Riga. Due to the Agreement on Mutual Recognition of Documents Certifying Higher Education signed by Estonia, Latvia and Lithuania in 2000, several Estonian students study at Latvian post-secondary institutions. The Stockholm School of Economics in Riga has developed into one of the most popular educational institutions for Estonians.

Latvian is taught at the Estonian-Latvian Institute in Valga. In the autumn of 2005, in Valka a branch of the Latvian University started work, enabling also Estonian people to acquire higher education.

Approximately 2,600 ethnic Estonians reside in Latvia, of which one fifth are Estonian citizens. Modern times and economic activities in the open world have added to that niche several thousand Estonians, whose home is in Estonia, but who spend in Latvia a major part of their working time.

The Latvian Estonian Society was restored in 1988 as the legal successor to the Estonian Society of Education and Assistance, which was established in 1908 to unite Riga's Estonians. The Estonian congregation of the St. John's Church in Riga holds an Estonian-language service once a month. Once a month, a fifteen-minute Estonian language radiobroadcast can be heard on Latvia’s national radio station. In June 2004 the international expatriate Estonian cultural days "ESTO 2004" were held in Riga.

The Riga Estonian School restarted its work in 1989 and currently offers education to close to 170 students. The school, which is financed by the Latvian state, conducts most of its studies in Latvian; however, the Estonian language, culture and regional studies are taught there. Previously the Estonian school in Latvia operated out of the Estonian Society house. The conditions were tight, but with the assistance of the Estonian representation in Latvia, the 2003/2004 school year started in new rooms specially made for teaching. The schoolhouse needs repairs and extension, for which the Estonian state is prepared to render aid. The decision of the Latvian state and Riga's City Government is being waited for. However, the difficult economic situation in Latvia and the small number of students in the upper secondary level led to the decision that the Riga Estonian School will work as just an elementary school as of the fall of 2011. The upper secondary part of the school will be carried over to the Nordic upper secondary school.

On 18 February 2009 Estonian Foreign Minister Urmas Paet and Latvian Foreign Minister Māris Riekstiņš signed an agreement establishing the Estonian-Latvian and Latvian-Estonian translation award, with the goal of emphasising the importance of the Estonian and Latvian languages and of cultural exchange.