“California is the world’s fifth largest economy, and our interests are very practical on both sides: to develop cooperation in the areas with high potential, and those are technological development, including defence and dual-use technology development, creative industries, renewable energy resources, and others. We also discussed our geopolitical priorities, border management solutions, and achievements in innovation. There are many opportunities for cooperation and they need to be exploited in a targeted manner,” the Minister of Foreign Affairs, Baiba Braže, emphasised following a meeting with California State Treasurer Fiona Ma, Senator Josh Newman, former Senator Bob Hertzberg, and a business delegation.
A high-level delegation of public officials and businesses from the state of California have arrived in Latvia for a three-day working visiting from 25 to 28 July. The aim of the delegation is to explore Latvia’s economic potential, companies and essential investment projects.
Baiba Braže informed the delegation about Latvia’s achievements in the fields of technology and IT, high-value-added digital solutions, as well as 5G services.
“Economic cooperation between Latvia and the state of California has been steadily increasing over the past few years, and it is important for Latvia to expand and develop economic cooperation with like-minded countries, and we have the knowledge, skills and achievements to strengthen mutual trade and economic ties. I agree with what Ms Fiona Ma said that we – both Latvia and California – are “dreamers and doers”,” Baiba Braže underlines.
The Foreign Minister also highlighted the significant investments made by Latvia in security, which amount to 4 per cent of GDP in 2024. As for the security sector, the Minister also emphasised Latvia’s responsibility and contribution to security at the eastern border of the European Union and NATO. Baiba Braže stressed that 1 per cent of GDP has been channelled in support of Ukraine as military assistance, humanitarian aid and public donations.
Valdis Dombrovskis, Executive Vice President of the European Commission, joined the meeting with the California state delegation via videoconferencing. He emphasized the investment opportunities that Latvia and the EU can offer to U.S. companies, as well as the fact that the U.S. is the EU’s largest and most important trading partner. In 2022, the EU-US bilateral trade totalled 1.6 trillion dollars. The U.S. and EU economies account for 42% of global GDP overall.
After the meeting, the Foreign Minister Baiba Braže, the Minister of Economics, Viktors Valainis, and the U.S. Ambassador to Latvia, Christopher Robinson, launched the Latvia-California Business Forum. In order to promote bilateral trade between Latvia and California, and the attraction of U.S. investments in the technology and innovation sector, the key discussion addressed sustainable energy technologies and innovations. It was attended by a U.S. company, Clean Energy Technologies, and Latvian companies – Lightspace Labs and Change Ventures – as well as the RTU Prorector for Innovation, Liene Briede.
From California, the Business Forum was attended by executives from Hermes Deployment Corporation, Morrison Consulting, and Clean Energy Technologies, representing the U.S. energy, financial, private equity and robotics industries.
55 companies from Latvia participated in the forum, representing high technology sectors – green technologies and energy, ICT solutions, and legal consulting. The participants included representatives from universities, placing emphasis on the importance of cooperation in higher education.
As part of their visit, the officials and businesspersons from the state of California met with Prime Minister Evika Siliņa, the Deputy Speaker of the Saeima, Zanda Kalniņa-Lukaševica, the Minister of Finance, Arvils Ašeradens, officials from the State Treasury, the Investment and Development Agency of Latvia, the Riga Investment and Tourism Agency, and the Valmiera municipality.
The delegation visited the Startup House, the TestDevLab and SAF Tech companies, as well as Riga Technical University.
FACTS / STATISTICS
- Trade: According to the Central Statistical Bureau, in 2023, the total foreign trade in goods with the U.S. amounted to 737 million euros. The U.S. ranked 15th among Latvia’s foreign trade partners. Lat year, Latvia’s external trade balance with the U.S. was positive: EUR 278.4 million.
- The main export commodities to the U.S.: wood and articles made of wood, wood charcoal, electrical appliances and electrical equipment and parts thereof, apparatus for sound and video recording and reproducing, apparatus for television image and sound recording and reproducing and parts and accessories thereof, optical devices and apparatus, photographic and cinematographic apparatus and equipment, measuring and checking instruments and apparatus, precision instruments and apparatus, medical and surgical instruments and apparatus, parts and accessories thereof.
- Main import commodities from the U.S.: were aircraft, spacecraft and parts thereof, electrical machinery and equipment and parts thereof, apparatus for television image and sound recording and reproducing and parts and accessories thereof, optical devices and apparatus, photographic and cinematographic equipment and apparatus, measuring and checking instruments and apparatus, precision instruments and apparatus, medical and surgical instruments and apparatus, parts and accessories thereof.
- Services: According to the Bank of Latvia, exports of services to the United States in 2023 amounted to EUR 444 million, while imports of services, to EUR 270 million.
- Investment: According to the Bank of Latvia, the balance of U.S. investments in Latvia in the first quarter of 2024 was EUR 451 million. The balance of Latvia’s direct investment in the U.S. was EUR 61 million in the first quarter of 2024.
