Latvia possesses a unique geographical location on the shore of the Baltic Sea and at the centre of the Baltic countries. For centuries, this has placed Latvia squarely at a crossroads of international commerce. Since the 14th century, Latvia has been a major commercial hub between west and east, and was at the centre of the Hanseatic League, the world’s first Free Trade Area.

Foreign trade in Latvia has consistently increased since the regaining of independence, particularly after Latvia acceded to the EU. According to the provisional data provided by the Central Statistical Bureau of Latvia, in 2022, Latvia exported 21.3 billion euros worth of goods, which is 29.3% more than in 2021, and imported 26.5 billion euros, an increase by 35.8% compared to the previous year. In 2022, exports to EU countries made up 69.6% of the total volume of Latvian exports and increased by 3.8 billion euros or 34.9% compared to 2021.

In 2022 wood articles, machinery and mechanical appliances, electrical equipment, and mineral products comprise the most significant commodity groups in Latvian exports and constituted 17.1%, 14.2%, and 12.9% respectively, followed by chemical products, vegetable products, and prepared foodstuffs.

The most important commodities among Latvian imports were mineral products and machinery, mechanical appliances, and electrical equipment making up 20.9% and 17.2% of the total value of imports.

In 2022, Latvia’s biggest trading partners were Lithuania (21.6% of Latvia's total trade turnover), Estonia (10.9%), Germany (8.3%), Poland (6.8%), and Russia (6.3%).