The basis of friendly relations between Latvia and Canada is Canadian support for Latvia's membership of NATO, successful military co-operation and Canadian assistance to Latvia through projects of the Canadian International Development Agency (CIDA). Canada never recognised the annexation of Latvia by the USSR and supported withdrawal of Russian troops from the Baltic States. Both countries are interested to expand economic co-operation, increase investment and further develop already existing areas of cooperation. Relations between Latvia and Canada are very much strengthened by the presence of an active Latvian community in Canada.

As a dominion of the United Kingdom, Canada recognised the State of Latvia on 26 January 1921. Between the two World Wars several Honorary Consuls represented Latvian interests in Canada, and the British Embassy represented Canada in Latvia. Canada never recognised the annexation of Latvia by the USSR and supported the removal of the army of the Russian Federation from the Baltic States. On 26 June 1991, Canada was the first G-7 state to resume diplomatic relations with Latvia.

In November 1994 the Embassy of the Republic of Latvia was opened in Ottawa, the first Baltic State embassy in Canada. Prior to this (from October 1991), a Consulate of the Republic of Latvia had been operating, headed by Honorary Consul-General Dr. Guntis Silins (initially in Toronto, but since 1992 in Ottawa). The Consulate discontinued its work after the opening of the Embassy. From 1995 till 1998 the Ambassador of Latvia to Canada was Mr Georgs Andrejevs, from 1998 till the fall of 2002 the Ambassador of Latvia to Canada was Mr Janis Lusis. Since February 2003 the Ambassador of Latvia to Canada is Mr. Atis Sjanīts.

Latvia has had several Honorary Consuls in Canada. Currently, Mr Cedric Steele is the Honorary Consul of Latvia in Victoria (province of British Columbia), Mr Imants Purvs is the Honorary Consul of Latvia in Toronto (province of Ontario) and Mr Roberts Klaiše is the Honorary Consul of Latvia in Montreal (province of Quebec).

On 11 October 1991 the Ambassador of Canada to Latvia Mr Michael Phillips was accredited, succeeded by Mr William Clarke on 19 September 1995. Both Ambassadors were resident in Stockholm.

Since the end of 1991 a Bureau of the Embassy of Canada has been operating in Riga, replaced by an Embassy on 3 June 1993. On 4 September 1993 the interim Chargé d'Affaires Mr Nicholas H. R. Etheridge took office, succeeded in October 1995 by Gerald Skinner.

Since 14 September 1999, when Ambassador Mr Peter L. McKellar was accredited (he held this post from 4 September 1999 till 18 July 2002), the Ambassador of Canada has resided in Riga. On 24 September 2002, Mr Robert Andrigo was accredited, and on 30 August 2005 HE Claire Poulin was accredited Ambassador Extraordinary and Plenipotentiary of Canada to Latvia. Canada notes that the President of Latvia Vaira Vike-Freiberga has lived in Canada and was previously a Canadian citizen.

About 20 000 members of the Latvian diaspora in Canada are represented by the Latvian National Federation in Canada.