Geographical distance is not an obstacle if we are able to provide high-quality, competitive and contemporary solutions. Economic sectors such as electronics, biomedicine, digital solutions are currently developing rapidly in Latvia. These are sectors that have high demand in global markets, so in the next few years we can expect many new success stories also in Australia, where Latvian entrepreneurs are almost not present,” Sabīne Kazaka, Head of Economic Representation of the Investment and Development Agency of Latvia (IDAL) in Australia, says.
The decision to establish an economic representation in Australia followed as a logical follow-up to the opening of the Latvian Embassy in Canberra in August 2022. “Negotiations between the EU and Australia on a free trade deal are currently on the home straight, which will significantly reduce tariffs on exports of various goods to Australia. The active and vast Latvian diaspora in Australia is an additional stimulus for strengthening economic cooperation with this country” Kaspars Rožkalns Director of IDAL, says emphasising that the entry into distant markets is one of the biggest challenges of Latvia’s economy, as it will greatly expand the possibilities for entrepreneurs to manoeuvre during various economic crises.
The economic representation of IDAL in Melbourne, Australia, started work at the end of February and consultations have already been provided to dozens of Latvian companies. “In Australia, everyone is used to long and expensive deliveries, so the distance between Latvia and Australia is not a significant barrier to building economic relations, especially at the moment when container delivery prices are slowly approaching pre-pandemic levels after the records seen in recent years,” Sabīne Kazaka said adding that Australia is a country that values innovation and is ready to invest in quality solutions. “Companies are often frightened by extensive certification and documentation requirements, which together with logistical issues can take a lot of time and resources, but the key thing is to remember that all the rules are clear and enforceable. Everything depends on how ready the company is for a new export market and what its past export experience in Europe has been. I have no doubt that with the conclusion of a free trade agreement and the opening of the representation, we can significantly strengthen bilateral economic relations between Latvia and Australia,” Sabīne Kazaka emphasises.
Various agrobusiness and bioeconomy solutions, including timber and mineral products, rank at the top of the most exported product groups in Latvia, however, it would be worth thinking about cooperation with Australia directly in the segment of high value added products and services. There is demand in the medical field, from pharmacy to top-level medical technology. In Australia, much is invested in energy, space industry development, as well as mechanical engineering and electronics. Like in many countries around the world, in Australia digitisation and financial technologies have received increased attention in recent years, and the possibilities for different digital services are wide ranging, especially for electronic identity verification, electronic signatures and payment systems. However, businesses operating in all these sectors must take into account that internet coverage in Australia is variable and there are many unexplored areas with limited data coverage and transmission speeds.
From the perspective of attracting investment, Latvia is interesting to Australia both in the field of research and development, where we can offer highly qualified specialists and innovative testing equipment, as well as being a great starting point for production and further marketing of products in the European market,” Sabīne Kazaka emphasises.
In 2022, Latvia’s total trade turnover of goods and services with Australia was EUR 81.7 million, which ranked Australia 50th among Latvia’s foreign trade partners. Total exports of goods and services to Australia amounted to EUR 52.5 million, which represents 0.2% of Latvia’s total exports, while imports of goods and services – EUR 29.2 million representing 0.1% of Latvian imports. Exports increased by 31% compared to 2021, while imports rose by 11%. In 2022, Australia was Latvia’s 47th most important export and 47th most important import partner.
Companies which see a market potential for their product or service in Australia are urged to contact Sabīne Kazaka, Head of the IDAL external economic representation: sabine.kazaka@liaa.gov.lv. To help better understand Australia’s business environment, a representative cycle of seminars on various topics is currently planned, so we encourage you to follow IDAL news.
IDAL Department of Communication and Information
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E-mail: prese@liaa.gov.lv