At the joint meeting of the Latvian and Estonian governments, which took place on Wednesday, 27 August, in Tartu, Estonia, Minister of Economics Viktors Valainis highlighted the potential of cooperation between the two countries in promoting exports and investment, emphasizing the ability of the Baltic States to jointly enter new markets and strengthen their positions in existing ones.
By 1 November 2025, ministries and responsible institutions in the field of export and investment promotion will prepare an action plan for 2026, coordinated by the Investment and Development Agency of Latvia (LIAA) in cooperation with Estonian partners and with an invitation for Lithuania to join. Such a joint plan is essential, as pooling the strengths of the Baltic States enables more effective support for entrepreneurs and stronger representation of the region in new, strategically important, and distant markets, where it would be more difficult for each country individually to ensure sufficient visibility. A joint approach also makes it possible to expand networks, attract investment, and build a reliable Baltic brand on the international stage. A successful example of such cooperation is the joint participation of Latvia and Lithuania in Expo 2025 Osaka, which has demonstrated that pooling resources can bring significantly greater visibility and benefits to entrepreneurs. To further promote exports and attract investment, joint visits abroad by Baltic economy ministers and entrepreneurs are also planned.
Latvia and Estonia are ready to cooperate in the development of innovation and startups, as well as in reducing bureaucracy to enhance competitiveness, by developing and expressing common positions at the European Union level. For both Latvia and Estonia, coordinated planning for the future needs of the workforce and a joint action plan are of key importance.
In his opening address, Latvia’s Minister of Economics Viktors Valainis emphasized the close cooperation between the two countries in the field of security, noting that serious threats no longer affect only one country but also have an impact on neighbors. Therefore, it is necessary to find ways to further strengthen and improve this cooperation. As a strong example, the Minister pointed to Latvian–Estonian cooperation in the energy sector, referring to the memorandum of understanding on gas reserves signed in 2023, which serves as a model of successful cross-border cooperation.
“Joint investment and export initiatives between Latvia and Estonia not only strengthen the region’s competitiveness and economic growth but also help adapt to external market challenges, while at the same time promoting security and resilience throughout the Baltics,” stressed Latvia’s Minister of Economics Viktors Valainis.
The joint meeting also endorsed Latvian–Estonian cooperation in preparing for crisis situations, aligning views on energy and strategic reserve management, improving transport and infrastructure connectivity, and advancing digital solutions and competitiveness. Both countries confirmed their shared commitment to continue cooperation in strengthening regional resilience, while at the same time seeking new solutions that promote economic growth, innovation, and a unified response to common challenges.
During the visit, a bilateral meeting between the Estonian and Latvian Ministers of Economics also took place. The discussions focused on cooperation in green technologies, bioeconomy, biomedicine, ICT, energy, and the development of smart materials.
Although the Baltic States’ venture capital and private equity markets have grown significantly over the past decade, there remains a considerable gap between the Baltics and the rest of Europe, particularly at the company growth stage. Therefore, Latvia, Lithuania, and Estonia are implementing the Baltic Innovation Fund (BIF) initiative, which aims to attract additional private capital by developing investments in small and medium-sized enterprises and fostering growth in the Baltic region. Work is currently underway on BIF 3, with the investment strategy between Estonia, Latvia, Lithuania, and the European Investment Fund in its final stages. The signing of the agreement is planned for early September 2025, with the new fund’s presentation to market participants scheduled at the Baltic VCA Summit in Riga on 4–5 September 2025.