The first half of 2025 confirmed that trade relations between Estonia and Latvia remain close but are changing.

Estonia and Latvia are historically closely connected countries with economic relations that date back centuries. Both Estonia and Latvia are members of the European Union and use the euro, which facilitates smooth and bureaucracy-free cross-border trade. In recent decades, trade between these countries has grown significantly, forming an important part of both countries' foreign trade today. While Estonia and Latvia have relatively small economies, their geographical and cultural proximity creates favorable conditions for strengthening bilateral trade flows.

Estonia and Latvia are known for their rich peatlands, which have been a significant part of their economies for decades. Peat is a valued resource widely used as a soil conditioner in horticulture and as fuel in the energy sector. In recent years, peat exports from these countries have grown considerably, but environmental concerns related to peat extraction and use have also emerged.

Estonia, known for its beautiful landscapes and rich cultural heritage, is also one of the most forest-rich countries in Europe. Approximately 50% of our country's territory is covered by forests, making us a true forest nation. But what does this mean for us, and what are the challenges and opportunities that come with such abundant natural wealth?

Estonia and Latvia are Baltic neighbors with deep trade ties that date back centuries, but have grown particularly close in recent decades. After regaining independence from the Soviet Union in the 1990s, the two countries rapidly developed strong bilateral economic and trade relations, becoming key trading partners for each other.