Bilateral relations between both states are diverse and active. The opening of the Latvian Embassy in Hungary and the Hungarian Embassy in Latvia has remarkably strengthened the co-operation.

Both sides are engaged in a dialogue of mutual interest in culture, education, defence, internal affairs, and other fields. Trade and economic relations present considerable potential for development.

The nature of co-operation between Latvia and Hungary advances in line with the opportunities opened up by the participation in the EU and NATO.

Diplomatic relations

Hungary recognised the independence of the Republic of Latvia on 20 July 1921.

Diplomatic relations between the two states were renewed on 2 September 1991. The non-resident Latvian Ambassador Extraordinary and Plenipotentiary to Hungary between 16 May 2001 and 1 October 2005 was Elita Kuzma. 

Veronika Erte was accredited as the first Latvian Ambassador to Hungary with residence in Budapest on 29 February 2008. During an official visit by Latvian Foreign Minister Maris Riekstins on 7 July 2008, the Latvian Embassy in Hungary was officially opened. Until then Latvian Ambassadors resided in Vienna, but prior to World War Two – in Berlin, Warsaw, and Bucharest. 

The Hungarian Ambassador Extraordinary and Plenipotentiary to Latvia since 25 October 2005 is Istvan Mohacsi. On 22 November 2007, during a working visit by Hungarian Prime Minister Ferenc Gyurcsany, the Embassy of the Republic of Hungary in Latvia was formally opened in Riga. Until then, the Hungarian Ambassador was residing in Tallinn.

Visits

Economic co-operation

Since Latvia and Hungary joined the EU on 1 May 2004, economic and trade relations between the two states have been regulated by EU internal legislation and common market principles. After the accession to the EU, greater opportunities for economic co-operation have emerged for business communities in Latvia and Hungary. 

On 22 November 2007, the Hungarian Prime Minister Ferenc Gyurcsany made a working visit to Latvia, accompanied by a large delegation of businessmen. As part of the visit and in association with the Investment and Development Agency of Latvia and the ITD (the Hungarian Investment and Trade Development Agency), a Hungary-Latvia business seminar took place. Goods and services of Hungarian companies represented in the seminar were textiles, precious stones, pharmacy products, clothing, prepared foodstuffs, engineering equipment, machine building, and business consultations.

Trade

(data from the Central Statistical Bureau)

Year 2007

• Exports:

1. Lithuania – 804,302,208 EUR or 14.92 % of Latvia's total exports

2. Estonia – 739,000,313 EUR or 13.71 %

3. Russia – 549,458,209 EUR or 10.19 %

4. Germany – 468,183,740 EUR or 8.68 %

5. Sweden – 416 ,916,795 EUR or 7,73 %

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29.  Hungary – 17,730,069 EUR or 0.33 %

• Imports:

1. Germany – 1,521,440,212 EUR or 14.86 % of Latvia's total imports

2. Lithuania – 1,390,612,826 EUR or 13.58 %

3. Russia – 929,812,795 EUR or 9.08 %

4. Estonia – 807,740,837 EUR or 7.89 %

5. Poland – 689,377,950 EUR or 6.73%

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23. Hungary – 107,405,133 EUR or 1.05 %

Main Latvian export goods to Hungary are timber products (carpentry/joinery materials/parts and veneer) and metal articles (iron and steel bars). Main import goods from Hungary are motor vehicles, pharmaceutical products, and prepared foodstuffs (for example, tinned vegetables).

Main export goods to Hungary by type of goods in 2007, in EUR

Major Latvian exporters to Hungary are a/s "Latvijas Finieris" and a/s "Liepājas Metalurgs".

Main import goods from Hungary by type of goods in 2007, in EUR

Trade dynamics between Latvia and Hungary from 1999 to 2007, in EUR

Investment

As of 25 June 2008, Hungarian investment in the equity capital of Latvian companies amounts to 347,877 LVL. As of 19 June 2008, Hungary takes the 61^st place among investor states.  

19 Hungarian-Latvian joint ventures are listed with the Register of Enterprises of the Republic of Latvia (48^th place). These companies operate in the fields of general retail shops and general travel agents (data from the Register of Enterprises of the Republic as processed by "Lursoft").

Largest investors:

The largest Hungarian investor is European Distributor KFT, which has invested LVL 89,800 in the equity capital of Getz Bros. & Co Ltd., which is 100% of the company's equity capital. European Distributor KFT manufactures and distributes soap and detergents. The company supplies disposable tableware (to SIA Statoil Latvija), auto cosmetic goods (as a representative of the Turtle Wax brand), and technical chemical preparations. 44 % of sales are with SIA Statoil Latvija. 

Tourism

According to information from the Central Statistical Bureau of Latvia, in 2007 Latvian travel companies assisted in hosting 255 tourists from Hungary, whilst in the same period 4927 Latvian tourists visited Hungary.

Defence co-operation

The basis of bilateral co-operation between Latvia and Hungary in defence is the agreement signed by the ministries of defence of the two states on 8 June 1999, on bilateral contacts and co-operation on military issues.

On 5 April 2006, the Hungarian Military Attaché Colonel Laszlo Jozsa was accredited to Latvia, with residence in Budapest.

On 19 October 2006, Major Inese Kucere was accredited as the Latvian Military Attaché in Hungary, residing in Prague. Major Kucere is also the accredited Latvian Military Attaché in the Czech Republic and Slovakia.

Co-operation between Latvia and Hungary on defence matters takes place as part of NATO operations. Military policy and expert consultations take place regularly on issues of NATO integration, as well as issues of auditing, public relations, provision of medical support, legal and personnel management issues. 

Co-operation in home affairs

Active co-operation in home affairs has been developed between the Office of Citizenship and Migration Affairs of Latvia and its Hungarian counterpart, participating in working groups of the European Commission and Council, as well as expert committees, seminars, and conferences.

Based on the inter-governmental agreement on co-operation in fighting terrorism, illegal drug trafficking, and organised crime, the police of the two states co-operate under the aegis of a specially established United Commission, participating in the courses on civilian crisis management organized by the Ministry of the Interior of Hungary as well.

The Fire and Rescue Departments of Latvia and Hungary co-operate under the EU Community Civil Protection Mechanism and Action Programmes.

Co-operation in education

The co-operation between Latvia and Hungary on education is especially notable, and is regulated by the intergovernmental agreement on co-operation in culture, science, and education signed on 6 March 1997.

Since 1991, the Latvian language has been taught at the Szombathely Berzsenyi Daniel Foiskola and the Etves Lorand Univerziteta in Budapest, under the auspices of the Baltic philology programme and the so-called Amber Way study programmes. Each year, a guest lecturer is sent from Latvia for this purpose. The teaching of Latvian is also promoted by the student exchange programme, and Baltic language conferences held in Latvia and in Szombathely.

Several Hungarian young people participate in summer courses at the Vidzeme University College, but Latvian students, in their turn, take up courses at the Central European University in Budapest.

Since the 2005/2006 school year, the Hungarian Ministry of Education, through the agencies of the Hungarian Scholarship Board, offers scholarships to Latvian students, researchers, and university lecturers wishing to study and broaden their professional skills at higher education institutions in Hungary.

The University of Latvia co-operates with the Veszprem University, while the Rezekne University cooperates with the Technical University of Budapest. The Latvian Academy of Sciences has developed co-operation with the Hungarian Academy of Sciences in the exchange of scientists and information.

Co-operation in culture

An active dialogue has been developed between the two states in the area of culture. Professor Janos Pusztay of the Berzsenyi Daniel College in Szombathely has made a significant contribution to the popularising of the Latvian language. With his support the college of Szombathely has published a number of Latvian authors in the Hungarian language, and, in 2000 and in 2004, two Latvian-Hungarian dictionaries. With support from the Hungarian Book Foundation, translations of Hungarian literature (works by Magda Szabo, Sandor Marai etc) are published.

From 20 to 23 April 2006, Latvia took part for the first time in the Budapest International Book Festival and the European Festival of the First Novel. Latvia was represented by Andra Manfelde, with her novel Adata (The Needle). Excerpts from the work were translated into English and Hungarian, and readings and discussions were held with the authors.

Since 1960, a regular book exchange has taken place between the National Library of Latvia and the Hungarian National Library. In November and December 2007 an exhibition of paintings entitled Budapesta gleznas (Budapest in Paintings) was on display in the Museum of Architecture of Latvia.  

Local governments

The Riga City Council has developed co-operation with the Budapest municipality within the Union of Capitals of the European Union (UCUE). Mayors and delegations of the capitals meet regularly at meetings organized/held by UCUE. The Union of Local and Regional Governments of Latvia co-operates with the Hungarian National Association of Local Authorities within the network of International Communal Network – ICNW project, financed by the Interreg IIIC Programme. The objective of the project is to provide development opportunities for rural municipalities through experience exchange on successful solutions in infrastructure (renewable energy, water purification, waste recycling), spatial planning, and business.

The Aizkraukle City Council co-operates with the local government of Kiskunhalas. In mid-August 2006, the Aizkraukle District Council held an international debate Integration of youth in civil society, during which opportunities for young people to become more actively involved in the work of local authorities and their decision-making process were discussed. The debate was attended by young people from Latvia, Hungary, Poland, Lithuania, and Germany.

Local governments

For several years already, annual exchange seminars on topical agricultural policy issues are held for specialists from the Latvian Ministry of Agriculture and the Hungarian Ministry of Agriculture and Regional Development.

On 11-12 October 2007, a visit to Budapest was made by Latvian Minister of Agriculture Martins Roze. The official met with his Hungarian counterpart, Jozsef Graf, with the aim of reviewing the challenges in agriculture brought about by changes in the EU Common Agricultural Policy, and to discuss possible bilateral co-operation. During the visit, Minister Roze was introduced to the operation of numerous agricultural and food processing businesses. On 12 October, he visited an agricultural joint-stock company Pannonia, which deals with livestock breeding, and Tolnatej, a dairy product manufacturer. The Latvian Minister of Agriculture met with representatives of Hungarian businesses and shared Latvia's experience on the operation of similar businesses in Latvia.         

Legal framework

Internet links on Hungary

Ministry of Foreign Affairs of the Republic of Hungary http://www.mfa.gov.hu/kum/en/bal/

Government of the Republic of Hungary http://www.meh.hu/english

Chancellery of the President of the Republic of Hungary http://www.keh.hu/keh_en/home.html

National Assembly (Parliament) of the Republic of Hungary http://www.mkogy.hu/parl_en.htm

* Yearly average exchange rate for EUR against USD used in calculations