The information was translated using the ChatGPT service.
During the cabinet meeting on June 13th this year, the Ministry of Economics' proposal was approved to allocate an additional 3.1 million euros to the support program implemented by the Investment and Development Agency of Latvia (LIAA) to enhance the international competitiveness of enterprises. The funds are redirected from other EU fund programs where they remained unspent.
The war in Ukraine and sanctions against Russia and Belarus have shaken global markets and impacted the world economy. The impact on European countries, especially those in Eastern Europe including Latvia, is significant. The main channels of economic impact are due to higher raw material prices, weakening sentiment, and reduced trade volumes with Russia, Belarus, and Ukraine. Given the current foreign policy crisis and imposed sanctions against certain Eastern countries, it's vital to support market reorientation and the implementation of business projects to prevent market downturn. At the same time, the Ministry of Economics has determined that in the current economic situation, it's especially important for businesses to receive support in mastering foreign markets, to find new business partners, and to sign new contracts.
The additional funding for international competitiveness activities was redistributed from the employee training program (1.5 million euros) and the production space and infrastructure creation program (1.6 million euros). Support for traders will be available until the end of June this year.
As reported by the Investment and Development Agency of Latvia, a total of 30.7 million euros in support has been provided to entrepreneurs under the "Promotion of International Competitiveness" (business) program until March 1st this year. This includes 1112 companies submitting support requests from November 2022 to the end of April 2023. Funding to enhance international competitiveness can be accessed by businesses for various export activities. Within the framework of the support program, up to 80% of eligible costs can be received for participation in exhibitions and trade missions, factory and product certification, product or service marketing, and other activities. Entrepreneurs most commonly use support for participation in international exhibitions (23% of applications), 15% for certification to adapt to foreign markets, and 14% for participation in digital platforms. Additional information on the international competitiveness promotion support program is available on the LIAA website: https://www.liaa.gov.lv/lv/programmas/skv-uznemejdarbiba.