Bilateral economic cooperation between Latvia and the Member-States of the European Union and the European Economic Area is implemented in accordance with the principles of the EU internal market, which provide for the free movement of goods, persons, services, and capital.

Economic cooperation with non-EU states is implemented at both the European Union and national levels. At the national level, it is implemented within the framework of bilateral economic cooperation agreements.

Latvia has entered into bilateral economic cooperation agreements with — Armenia, Azerbaijan, Belarus, China, Georgia, Kazakhstan, Kyrgyzstan, Kuwait, Moldova, Russia, Saudi Arabia, Ukraine, the United Arab Emirates, Uzbekistan, Tajikistan, Turkey, and Turkmenistan.

In response to Russia's brutal war of aggression against Ukraine and Belarus’ complicity in Russia's unlawful use of force, in 2022 the Latvian government suspended bilateral agreements with Russia and Belarus.

These agreements are the most important umbrella agreements regulating bilateral economic cooperation, encompassing collaboration in fields like industry, tourism, transport and logistics, pharmacy, agriculture, financial services, information and communication technologies, investment attraction, and innovations.

Each bilateral economic cooperation agreement of Latvia provides for the establishment of an Intergovernmental Commission (IGC) or a Joint Committee (JC), which ensures the regular supervision of the execution of these agreements. During IGC/JC meetings, economic cooperation issues that are topical for both countries at the level of government and entrepreneurs are discussed. Latvian entrepreneurs who require government support in implementing new business projects or resolving issues with an enterprise/entrepreneur of another country are invited to participate in IGC meetings.

In addition to the intergovernmental dialogue, activities aimed at promoting economic contacts at the level of entrepreneurs, including business forums, matchmaking events, and individual meetings of entrepreneurs, are implemented in cooperation with other Latvian institutions and foreign partners.