Trade relations

Trade relations between the UK and Latvia can be characterised as stable and mutually beneficial.  The UK is one of Latvia's major trade partners. In 2005 exports to the UK constituted 10.1% of the total export value. It was the 4^th largest export partner. Imports constituted 1.8% of the total imports value ranking the UK 13^th among importers. In 2005 export increased by 3.3% and import - by 9.7 in comparison with 2004. In 2005 the UK ranked 8^th among Latvia's trade partners. Latvian trade balance with the UK is positive and its value is USD 352,849,894.

Traditionally the most significant goods in the Latvian exports to the UK are wood and articles of wood (71.4%), base metals and articles of base metals (12.26%), miscellaneous manufactured articles (4%); the most significant import goods from the UK are machinery and mechanical appliances, electrical equipment (24.86%), base metals and articles of base metals (11.92%), products of chemical and allied industries (10.92%), and prepared foodstuffs (10.92%).

In 2004 Latvian timber export to the UK constituted 60% of the total Latvian timber exports and accounted for about 10% of the total timber market of the UK.  

Main exports to the UK in 2005 by type of goods
Type of goods	M USD	Proportion of total exports
Total	495.5	100%
Wood and articles of wood	353.79	71.4%
Base metals and articles of base metals	60.75	12.26%
Miscellaneous manufactured articles	19.8	4%
Products of chemical and allied industries	10.07	2.03%
Main imports from the UK in 2005 by type of goods
Type of goods	M USD	Proportion of total imports
Machinery and mechanical appliances; electrical equipment	35.46	24.86%
Base metals and articles of base metals	17.01	11.92%
Products of chemical and allied industries	15.57	10.92%
Prepared foodstuffs	14.46	10.13%
Textiles and textile articles	12.9	9.04%
Means of transport	11.97	8.39%
Plastic and plastic articles; Indian rubber and rubber articles	7.71	5.4%

UK Investment in Latvia

As of the end of 2005, the UK's investment in the equity of Latvian registered enterprises was LVL 103,893 million, ranking the UK 10^th among the largest foreign investors.

As of 10 June 2006, 629 companies containing UK capital in the equity were registered in the Latvian Enterprise Register.

Dynamics of UK Investment in Latvia
Year	Investment K LVL
2000	66,176
2001	76,405
2002	56,566
2003	48,214
2004	73,073
2005	103,893

In 1996 the British Chamber of Commerce was established in Latvia with the objective to foster the trade between the two countries. It embraces more then 100 British and Latvian enterprises of wood industry, insurance, transport, food processing, construction and other branches.

In order to promote business and tourism relations between two countries since 2003 the representations of the Latvian Investment and Development Agency (LIDA) and Latvian Tourism Bureau are actively operating in London.

Cooperation with Wales

On 13 May 2004, as part of the visit of the Latvian President to Wales, the then Minister of Economy, Juris Lujans, and Rhodri Morgan as First Minister for Wales signed a Latvia - Wales Memorandum of Understanding. Its goal was to review the existing areas of co-operation and to identify those for further co-operation. Latvia is the first EU member state, which has executed such a document with Wales. Coordination of implementation of the Memorandum of Understanding is carried out by the government of the National Assembly for Wales in conjunction with the Latvian Embassy in London. The Latvian Honorary Consul in Wales, Mr Andris Taurins, also makes a significant input.

Since execution of the Memorandum of Understanding co-operation has developed successfully; various projects have been implemented, including

• in July 2006, the Latvian Minister of Economy Aigars Stokenbergs visited Wales. Simultaneously, Latvian-Wales Business Forum took place.
• in August 2005, the Latvian Foreign Minister Artis Pabriks visited Wales;
• trade missions of the Welsh businessmen in Latvia in 2003 and 2005;
• traineeship of Indra Freiberga from the Latvian Investment and Development Agency (LIDA) in the Welsh Development Agency (WDA) in April 2005;
• establishment of academic contacts between the University of Wales and the University of Latvia;
• joint project by the Latvian Academy of Culture and Glamorgan University Digital Cities and Other Stories;
• visit by representatives of the Wales Tourist Board to Latvia in July 2004 and participation in a conference organized by the Latvian Tourism Development Agency. Participation of representatives from the Latvian Tourism Development Agency in the Cardiff Holiday and travel show in February 2005;
• several seminars for sharing experience arranged by the Welsh European Funding Office (WEFO) on management of EU Structural funds have taken place;
• a joint project by the National libraries of Latvia, Wales, Estonia and Finland is currently in the development phase;
• in 2005 a number of concerts by Latvian musicians took place in Wales;
• in October 2004, 11 representatives from Latvian local governments visited Wales. The Welsh Local Government Association is looking for local governments - co-operation partners in Latvia.

Latvian labour in the UK

As from 1 May 2004, the UK opened its labour market for citizens of the new EU members. A special schedule for recording the workforce was developed. According to data provided by the UK Home Office, in the period from 1 May 2004 to 31 March 2006, 24 thousand workers form Latvia had registered. It constitutes 6% of all registered workers from the new member states.