OREANDA-NEWS. On October 06, 2008 in the framework of the official visit of the President of the Latvian Republic Valdis Zatlers to the Republic of Uzbekistan an Uzbek-Latvian business forum was held.

More than 200 representatives of the businesses of two countries have participated in the sectoral sessions of the working groups, where matters of cooperation in such spheres of economy as transportation, banking sector, information technologies and telecommunications, industrial production, tourism, food industry, light and furniture production industries were considered. At the same day cooperation board with the participation of the businesses of two countries was held.

During the plenary session of the business forum in presence of the Prime Minister of the Republic of Uzbekistan and the President of the Latvian Republic the Agreement for cooperation between the Chamber of Industry and Commerce of the Republic of Uzbekistan and the Chamber of Industry and Commerce of the Latvian Republic and of the Memorandum of understanding between the “UZINFOINVEST” Information Support & Foreign Investments Promotion Agency and Latvian Agency of Investments and Development were signed.

During the business forum participants were familiarized with the prospects of the reciprocal cooperation in different sectors of economy, investment potential of Uzbekistan, prospects of the cooperation in the sphere of banking services and also with opportunities of Latvian companies’ participation in the privatization processes in Uzbekistan.

A number of memorandums of understanding in the spheres of paper products manufacture, construction materials, meat and milk products production, information technologies and telecommunications, signed during the Uzbek-Latvian business forum will promote further development of the reciprocal relations between two countries.

A number of contracts for export of Uzbek manufactured goods, in particular medical products, fertilizers and cathode copper, for the total sum of over USD 18 mln. was concluded by the State stock foreign trade companies of the Republic of Uzbekistan “UZPROMMASHIMPEKS” and “MARKAZSANOATEXPORT” with such Latvian companies as “VIOLA FARMA” Ltd., “KMM METALS” Ltd., SIA “UZT&C” и SIA “LIEPAJAS NAFTAS TRANZITS”.

The official visits of the President of the Republic of Uzbekistan Islam Karimov to the Latvian Republic in June, 1995, and April, 2004, as a result of which the agreements promoting the expansion of reciprocal cooperation in political, trade and economic, military and technical and cultural and humanitarian spheres were reached, have significantly contributed to the streaming up and dynamical development of the trade and economic relations between two countries.

The first session of the Uzbek-Latvian Intergovernmental commission on economic, industrial and scientific and technical cooperation (after signing in June 2006 of the revised Agreement on economic and industrial cooperation) was held in April of current year in Riga. During the Commission’s session Latvian side has stressed the importance for Latvia of the establishment of cooperation in such spheres as cargos transit, pharmaceutical, agricultural, cattle-breeding, meat and milk and food industries, tourism, information and communication technologies, education, production of industrial goods etc.

According to the Agreement on economic and industrial cooperation between the Republic of Uzbekistan and Latvian Republic the most-favoured nation treatment is established. According to the outcomes of the year 2007 foreign trade turnover between two countries made up USD 123,3 mln. For the period of January-July of 2008 the volume of the mutual trade made up USD 187,2 mln. (growth to the similar period of the 2007 - 312,6%).

Enterprises with Latvian capital participation and accredited representative offices
As for 1, August 2008, 19 enterprises with Latvian investors’ participation operate in the Republic of Uzbekistan, out of which 2 enterprises with 100% of Latvian capital.

The principal directions of the enterprises with Latvian capital participation activity are furniture manufacture, production of confectionary goods, and also services’ rendering, including cargo handling and shipping, wholesale trade, textile production and oil-refining industry.

At present 11 representative offices of Latvian companies are accredited in the Ministry for Foreign Economic Relations, Investments and Trade of the Republic of Uzbekistan..

From 2004 till present in the framework of the Target program for implementation of the investment projects at the expense of foreign direct investments and credits two projects on creation of rubber footwear production on the base of JV “Nam Rul” (Namangan province) and oil products processing (Republic of Karakalpakstan) were implemented with the participation of Latvian investments. Total sum of the above mentioned projects made up USD 650 thousands.

Enterprises with Uzbek capital participation in Latvia
According to the data of “Lursoft” Company in the register of the enterprises in Latvia with participation of legal and natural persons of Uzbekistan 39 enterprises were registered. The volume of direct investments to the Latvian economy from Uzbekistan as for 9 of March 2008 made up 1 555 189 lat (nearly USD 3.5 mln.). The most large scale Uzbek investments are in hotel, insurance and cargo shipping business.