Spokes in the wheels of export do not prevent the caravan from moving ahead

Unfavourable conditions still remain in place in the Latvian export environment, but, owing to the determination of businesses and state institutions, their ability to cooperate and quickly react to the obstacles in the way of external trade, the latest data indicate that Latvian exports are continuing to grow, albeit with baby steps.

According to the data of the Central Statistical Bureau (CSB), the export value of goods in June 2015 increased by 1.6% month-on-month and import value by 5.6%. Year-on-year, the export value of goods increased by 3.4% and their import value by 5.2%.

Given that the consequences associated with the Russian embargo and the drop in demand have increased competition both in the domestic market and the other two Baltic countries and in the European Union (EU), Latvian businessmen are to be commended on their ability to adapt to circumstances and to put an extra effort into conquering new export markets, thus continuing to raise exports.

In the first six months of this year, goods exports rose 2.7% year-on-year, posting an increase in the export of optical equipment and apparata, mechanisms and electrical equipment, paper and wood pulp, stone, plaster, cement, glass and ceramic products and other goods. The import value of goods increased by 0.8% year-on-year. The imports of mechanisms and electrical equipment, chemical industry products, plastics and their products, plant based products, wood and wood products and optical equipment and machinery underwent the largest increase.

As far as the rise in goods exports in June compared to May is concerned, it increased in chemical industry products and optical equipment and machinery; meanwhile, the rise in the exports of base metals and their products abated. Imports grew month-on-month in such groups of goods as transport vehicles and their equipment, mechanisms and electrical equipment, and foodstuffs and industry products. 

During this summer, the Latvian food exporters had to make much effort to overcome various obstacles to external trade. At the beginning of the Summer, the Russian Federal Service for Veterinary and Phytosanitary Surveillance (RFSVPS) "Rosselykhoznadzor" temporarily banned the exports to Russia of the finished fish production and fish to be canned because of possible breaches in the manufacturing process of the production. Yet, according to the Minister of Agriculture Jānis Dūklavs's statement at the beginning of August, RFSVPS could lift the ban. RFSVPS is currently reviewing the documents submitted by Latvia on the corrected irregularities. Even though one spoke may possibly be gotten out of the export wheels, Latvia already has to face the next one. The Russian Service for Protection of Consumer Rights has banned five Latvian fish processing enterprises from exporting canned fish to Russia. Later, a similar announcement to that effect was made by the relevant institution of Kazakhstan.

Observing these developments, one can only commend the energy with which businesses, the Ministry of Agriculture, Food and Veterinary Service as well as the Latvian Investment and Development Agency and Latvian Foreign Ministry deal with the issues relating to Russian import bans and take care of organizing participation and coordination at international food exhibitions, as well as guide the certification processes so that enterprises would receive export permits in Asian and other geographically remote markets.  Thus for instance, in the first six months of this year, exports to China have grown by 39.3% year-on-year and to the Asian region overall by 22.9%. In this period, exports have risen also to the African countries (13.3%) and the US (23.3%).

Mutual cooperation has been successful in overcoming the ills of international trade. Thus, for instance, one of the most modern fish processing plants in the Baltic, SIA "Piejūra” shipped the first cargoes of canned sprats and cold smoked salmon products to China and, in the coming months, is planning to export also frozen fish fingers and burgers. The fish processing enterprise "Līcis-93" is also actively pursuing exports to China, planning to ship its products there as early as September. Moreover, on 21 July, another 19 Latvian fish processing enterprises received a permit from the Chinese Certification and Accreditation Administration to import fish products. As a result, thirty Latvian fish processing enterprises now have a theoretical permission to export to China.  Efforts are made not only to create a market in China but also through holding negotiations with institutions in Brazil and South Korea.  In addition, on 30 July, the Procurement Monitoring Bureau published a news item on its website that the Latvian Federation of Food Companies is planning to invest 120 thousand euro, including attracting co-financing from EU funds, to promote the export of Latvian produced foodstuffs to European and Asian markets within the framework of the Foodstuff Quality Cluster Programme.

Even though it is clear that these efforts may bring a substantive effect in six months to a year, their energetic nature gives rise to hope that sooner or later they will translate into a faster rise in exports.