As part of an ongoing series of discussions held with members of the diplomatic and international business community in Hungary, we had the privilege to conduct an in-depth interview with Her Excellency Agnese Kalnina, Ambassador of the Republic of Latvia in Hungary and non-resident Ambassador of the Republic of Latvia in Slovenia, Croatia, and Montenegro.
The interview is included in our portfolio together with the ambassadors of Austria, Brazil, Estonia, India, Italy, and Morocco and with the Minister Counselor at the Serbian Embassy in Budapest.
This conversation provided an insightful and comprehensive understanding of various aspects related to commerce, bilateral relations, and the business landscape within the Hungarian-Latvian context. We express our sincere gratitude once more to the Ambassador.
Could you briefly summarize Latvia’s role in the region and its relationship with Hungary?
I would evaluate our bilateral relations as good, close, and mutually beneficial. Latvia, as a relatively small nation, has consistently underscored the significance of robust regional cooperation.
Our international connectivity extends not only to Baltic neighbors but also encompasses collaborative engagements with esteemed entities such as the European Union and NATO, fostering positive relationships throughout the continent.
Despite the geographical distance between Hungary and Latvia, our shared membership in both the European Union (EU) and NATO has helped develop a closer connection within the modern global context.
Could you elaborate on the diplomatic engagements between the two countries and common foreign policy goals?
In recent years, Latvia and Hungary have actively participated in diplomatic engagements, marked by notable official visits from our President and our Minister of Foreign Affairs to Budapest and reciprocal visits by the Hungarian President to Riga, notably participating in a summit connected with the Three Seas Initiative.
These high-level engagements are complemented by consistently positive connections. A recent visit by our undersecretary for European affairs to Budapest has furthered fruitful discussions, particularly in anticipation of Hungary’s presidency of the Council of the European Union between July and December 2024.
Could you elaborate on how Latvia and Hungary cooperate in the field of culture, science, and education?
The Ministries of Culture in Latvia and Hungary have recently renewed a bilateral agreement in the field of culture cooperation. We have also witnessed a relevant movement of artists and performers between the two countries.
Noteworthy collaborations in science, particularly in the fields of pharmacology and medical science, have been recently emphasized. A memorandum of understanding on cancer research was signed during the visit of our President to Budapest, extending our collaboration to the pharmaceutical sector. Specifically, the Latvian company Greentex, active in cancer treatment research, is also active in Hungary.
I would like to highlight our collaboration in the tourism sector. Our national airline, airBaltic, has expanded its operations in Budapest to operate throughout the entire year, as opposed to just seasonally. This extension certainly facilitates easier connections between the two countries.
Notably, Budapest is a popular tourist destination for Latvians, particularly during summer.
We are working to promote Latvia as a tourist destination here in Hungary, also considered our possible function as gateway to our neighboring countries. The embassy recently organized an event for tourism operators, featuring representatives from airBaltic and other companies from Riga. The event proved to be a successful business meeting. We are committed to supporting and promoting travel and tourism connections in both directions.
What are the main regional cooperation programs in which the two countries jointly participate?
Both Latvia and Hungary actively participate in the Three Seas Initiative, recognizing its pivotal role in connecting North Europe, Central Europe, and the southern part of Europe.
Furthermore, Latvia’s participation in the Rail Baltica project entails active collaboration and possibility for Hungarian partners to maybe play a role in the construction of the necessary infrastructure to complete the project.
It is essential to note that railways continue to play a significant role in international trade and have the potential to enhance continental connections in the realm of international commerce.
What are the institutions supporting business development between the two countries such as business clubs, trade agencies and governmental offices?
While business relations are not very active on everyday scale due to distance and size, it is possible to rely on the business associations in Latvia actively promoting investment abroad.
Specifically, the Latvia Investment and Development Agency that oversees economic and investment plans globally, offering support and consultation when needed.
The Embassy is happy to advise Latvian as well as Hungarian entrepreneurs on possible cooperation areas and instruments needed to achieve good results to foster economic ties between two countries.
Could you delineate the key areas of cooperation and the potential challenges that lie ahead?
Considering situation in today`s world security issues are paramount in our cooperation, we value very much our membership within NATO and Hungary has provided on various occasions air policing in the Baltic airspace.
We are committed to continuing and strengthening cooperation in various areas, not just economically.
What can you tell us about Latvia’s investment in Hungary and bilateral trade?
By the end of year 2022 there was 2 million eouros in accumulated investment from Latvian companies in Hungary, whereas Hungary invested 53,000 euros in Latvia in 2022, ranking 88th among investing countries.
In terms of import-export relations, last year, Latvia exported approximately 54 million euros to Hungary, while Hungary exported 108 million euros to Latvia. This distribution aligns logically with the respective sizes and business communities of the two countries.
Latvia exported to Hungary mainly pharmaceuticals products, timber, wood, and heating pallets, whereas Hungary exported electronic equipment and parts, pharmaceuticals products, and machinery.
Discussing bilateral relations, what potential sectors of cooperation between the two countries
do you anticipate in the future?
In terms of economic cooperation, Latvia can offer contribution in 5G equipment as well as other high technological solutions in a constantly changing global circumstances. Cooperation in science field can be definitely elaborated in future, as well as security, cultural ties and political dialogue.
