Latvian-Estonian Economic Relations 1918–1940

This paper provides an overview of Latvian-Estonian economic relations in the interwar period. In the interwar period, economic relations between Latvia and Estonia were mainly confined to foreign trade, although there were some investments in Latvia from Estonia, as well as tourism. Latvia’s foreign trade in relation to Estonia was regulated by a number of trade treaties and agreements entered into in 1923, 1927, 1928, 1931, 1932, 1935, and 1937. Latvia’s main imports from Estonia in the interwar period were horses, cement, petroleum products from oil shale (including bitumen, crude oil, etc.) – except petrol, petrol, and fabrics (cotton, linen, wool, etc), whilst Latvia’s main exports to Estonia were linoleum, machinery (agricultural and industrial), timber and timber products (including plywood), rubber goods (including galoshes), paints, inks, and paint products, sugar, as well as radios. In general, trade and thus economic relations were of marginal significance to both countries in the interwar period due mainly to similarities in their agriculturally based economic structures.