Latvia and Azerbaijan to Sign Agricultural Cooperation Memorandum in Fall 2024

Latvia and Azerbaijan are set to sign a comprehensive agricultural cooperation memorandum in fall 2024 during President Ilham Aliyev's official visit to Latvia. The agreement aims to bolster collaboration between the two countries in the agricultural sector, focusing on developing enterprises in dairy and fish products.

Why this matters: This agreement has the potential to increase trade turnover and investment between the two countries, contributing to economic growth and development. Furthermore, the strengthened ties between Latvia and Azerbaijan could have a positive impact onregional cooperation and stability in the European and Eurasian regions.

Raivis Kronbergs, State Secretary of the Latvian Ministry of Agriculture, emphasized the importance of the planned memorandum at the Azerbaijan-Latvia Business Forum in Baku. "We want to sign a new memorandum, which envisages the strengthening of cooperation in terms of the exchange of experience in business and educational issues in the field of agriculture, and the development of business solutions," stated Kronbergs.

The strengthened ties between Latvia and Azerbaijan come as the two countries seek to expand their trade turnover, which reached $65 million in 2023, with Azerbaijani exports to Latvia surging by 64% to $45 million. In January-February 2024, trade turnover amounted to $6 million, with imports totaling $4 million and exports standing at $2 million.

From 1995 to 2023, Latvian investment in Azerbaijan amounted to $166 million, matching Azerbaijan's investment in Latvia. As of February, there are 69 Latvian-capital companies in Azerbaijan, spanning industries such as manufacturing, transportation, trade, and services, with 48 currently operational.

In addition to the agricultural cooperation memorandum, Azerbaijan has invited Latvian companies to participate in projects on the development of agriculture and the restoration of occupied territories of Azerbaijan. Latvia has also expressed interest in collaborating with Azerbaijan in logistics and cargo transportation along international transport corridors, given Azerbaijan's strategic location and infrastructure.

The upcoming memorandum signing is expected to take place during the 29th session of the Conference of the Parties to the UN Framework Convention on Climate Change (COP29) in Baku, where a business forum will be held on May 17, 2024. Latvian parliament speaker Daiga Mieriņa is also scheduled to visit Azerbaijan next week, further strengthening ties between the nations.

Key Takeaways

• Latvia and Azerbaijan to sign agricultural cooperation memorandum in fall 2024.
• Agreement aims to boost trade and investment in dairy and fish products.
• Strengthened ties to positively impact regional cooperation and stability.
• Latvia and Azerbaijan's trade turnover reached $65 million in 2023.
• Latvian investment in Azerbaijan amounts to $166 million from 1995 to 2023.