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AzerNews Weekly presents an exclusive interview with Ambassador of Latvia to Azerbaijan Hardijs Baumanis, another in the series of interviews with diplomats based in the country.

Q. Our countries are full-fledged members of the Council of Europe and the Organization for Security and Co-operation in Europe (OSCE). Both countries share common history as they were former republics of the Soviet Union. Azerbaijan recognized the independence of Latvia on August 30, 1991, and Latvia, in its turn, in 1992. How would you describe the development of bilateral relations of the two independent states?

A. I will start with a small introduction about our formal relations. When de jure Latvia was recognized by the United Kingdom in 1921, your delegation, led by Topchubashov, two days later sent a congratulatory letter to the Latvian delegation on the recognition of Latvia. Given this fact, Azerbaijan is among the 42 countries that we consider as the first to have recognized the independence of the Republic of Latvia in 1918. So, if we talk about the official relationship, it started a lot of earlier than in the 1990s. And if we now look at the relationship that we have developed over the past 20 years, we have formed excellent political dialogue at the highest level. Our ministers representing various sectors of the economy frequently meet. We have excellent relations at municipal level as well. Four agreements have already been signed on cooperation with regions and districts of Latvia and three more are going to be signed. So we have very developed and intense political relations and good mutual understanding on many issues.

Q. Economic co-operation is one of the most important factors in the bilateral relationship between countries. During these challenging years of economic recession how would you estimate developments in the economic area?

A. Here I must admit that I would like our economic relations to be caught up to the level of our political ones, which I just mentioned, and I see this as one of the main tasks of my job here in Azerbaijan.

The economic crisis, I would say, peculiarly affected our relationship, and what we call trade relations. If you look at the success story of how Latvia has overcome the economic crisis, it turned out to be that it is our exports that helped us, i.e. export development and finding new markets. In this respect, of course, we are working on it to boost Latvian exports to Azerbaijan, in particular, those of food products. As shown by recent data of the past two years, it is evident that we have succeeded in this area. I would say that the economic crisis has had a rather positive impact on the development of our trade relations.

Q. Are you satisfied with the trade turnover between the two countries?

A. According to statistics, we have well developed trade relations. The trade turnover of $18 million in 2010 increased to $30 million in 2011. As you can see, the figure has almost doubled. On the other hand, let`s bear in mind that we started with very low figures, and so, of course, we still have to work on it for a long time. It will take some time before we will be able to say that our countries are among the top ten trading partners. At present Azerbaijan is our 39th export partner and 56th partner in terms of imports.

Q. Could you outline the specific sectors of economy in which co-operation might be the most successful? Which opportunities could Latvian markets offer for Azerbaijani business people and vice versa: where do you see a niche for Latvian business in Azerbaijan markets?

A. As for our relations in the field of mutual investment and cooperation areas in which we could develop our relationship, I have to say that a lot more work has to be done here. At this time in Latvia we have about 50 small Azerbaijani businesses with Azerbaijani capital. The total capital invested by these companies constitutes only $2 million. According to Latvian data, we have no investments in Azerbaijan yet.

As for areas in which we could successfully co-operate, I am sure that Azerbaijani investors would be interested in the real estate sector of Latvia. Also, I especially would like to mention our seaport facilities, enterprises engaged in transport and logistics industry, as they are developed in Latvia and Azerbaijan is greatly interested in entering European markets. I think it would be very interesting to look at investment opportunities in the following sectors - transport and logistics centers, Latvian ports, and our free economic zones - we have three of them. Also, I think that if we`re talking about real estate, it may be also the development of tourist business. Particularly, it might be good hotels, perhaps with a special touch of Eastern culture, which with Azerbaijani investments would attract Western tourists. So, there are such opportunities there. Once again, especially after the very crisis, the prices are very good in Latvia compared to other European countries and Latvia really needs an influx of capital.

In the opposite direction - toward Azerbaijan, we are working here, but not in the form of investments. At the moment, at least four Latvian banks that provide financial counseling on how to do business in European markets are represented in Azerbaijan. Also, we have audit professionals who have been working here for a long time and are well-aware of the Azerbaijani market and analyze the operations of Azerbaijani companies. There can be joint ventures or it just might be exchange of experience.

Q. As a member of the EU, how could Latvia assist Azerbaijan in the process of European integration?

A. In the process of Latvia`s accession to the EU in 2004, we adopted legislation that is in place in the EU. It applies to a variety of standards, manufacturing procedures, technology, the way the product should be prepared for export in order to stay in the market. We have succeeded in this, and our exports to the European Union have grown significantly since 2004. Therefore, the experience and knowledge of our companies would be invaluable for establishing joint ventures with Azerbaijani companies to open up European markets for your non-oil and gas sector.

We`ve already had one of the forms of such co-operation - a project on veterinary and hygiene standards, which has already been completed, but the work in this area is still in progress and cooperation continues. Every half a year our experts arrive to help the Azerbaijani side on these issues of standardization, so that your product is better suited for the European market, to bring all European standards on how products are to be manufactured, sold and services are to be provided. So, I think, that it is in this area that our EU experience can best help you.

Of course, we would like to see Azerbaijan as a member of the World Trade Organization as soon as possible. We can do a lot in this area, and here I called on the Azerbaijani business community to be, so to say, more open to Latvian businessmen. Especially since we assume that this year will see a visit by the Prime Minister of Latvia to Azerbaijan. We will organize a business forum and will bring a large delegation of Latvian businessmen here.

Q. This brings us to my next question. Which high-level visits are expected to take place in the nearest future?

A. In February, Mr. Edgars Rinkevics, Minister of Foreign Affairs of Latvia, paid an official visit to Azerbaijan, which was very successful. During the visit a wide range of bilateral political issues, as well as relations with the European Union and other organizations, were discussed. As for planned visits, we are now working on organizing both the visits of the Latvian President and the Latvian Prime Minister to Baku. That is, we have three high-level visits this year (one has already been paid).

Q. What activities are being conducted in both countries for the cultural rapprochement of Azerbaijan and Latvia?

A. In the cultural sphere we have a free program on cooperation for the period 2012-2013. The program has already been agreed, it remains only to sign it. Work is underway to arrange a meeting of our culture ministers in the near future. This program outlines a very wide range of cooperation. I think that we will participate in the second puppet festival (the first one in Baku we were unable to attend). There will be musical bands joining in. Cultural workers will come and share their experiences. So, in this area, we plan an extensive program consisting of many points. There is no doubt that the program will continue to be implemented in the next two years. The nearest event to be organized is a concert of our jazzman Intars Busulis which will be held in the Mugam Center on April 13. Everybody is welcome.

Q. And finally, returning to our common, not-so-distant past, do you see significant changes in the mentality of the Azerbaijani society? Is it possible to draw some parallels between the two nations in this context?

A. To be honest, if any problem occurs in Azerbaijan, I never get the idea that this is the legacy of the Soviet past. I think that both Latvia and Azerbaijan can finally say that the Soviet past is the past indeed, and it is gone. And now we live on the basis of very different norms and concepts. I see in Azerbaijan a rapidly developing country with a more and more intelligent and educated people appearing, who are a great asset for the future of the country. And I wish to Azerbaijan to stay on this path. Thank you very much.

Biography
Hardijs Baumanis was born on December 10, 1967. He graduated from the Moscow Institute of Microelectronics and the Latvian Institute of Foreign Relations. He is also a graduate of the Hoover Institution of Stanford University and received an MA degree in International Relations from the University of London.

In 1993 Mr. Baumanis served as Foreign Policy Adviser to the President of Latvia. From 1994-1997, he acted as First Secretary at the Embassy of Latvia in the Kingdom of Denmark. Afterwards, for 4 years, he served at the Embassy of Latvia in Moscow as Head of the Consular Section and Deputy Head of Mission, Political Counselor. In 2002 Mr. Baumanis was Member of the Royal College of Defence Studies (RCDS), London. From 2003-2004 he held the position of Director of the Consular Department at the Latvian Ministry of Foreign Affairs. Thereafter he served as Consul General of the Republic of Latvia in Saint Petersburg. From 2006-2010 Mr. Baumanis acted as Latvian Ambassador to the Republic of Lithuania.

In 1996 he was awarded Commander of Dannebrog Order of Denmark.

Mr. Baumanis has served as Latvian Ambassador to Azerbaijan since 2010.