Working Towards a Stronger Latvia-U.S. Economic Partnership
On March 3, 2016 Ambassador Nancy B. Pettit spoke at the annual American Chamber of Commerce in Latvia general meeting. You can read the speech below:
Thank you for that kind introduction. I am happy to join you this evening to speak to AmCham Latvia’s wider membership. Es zinu, ka uzņēmējiem patīk efektīvs darbs, tādēļ, lai taupītu laiku, es turpināšu savu uzrunu angliski. [Because I know that businesses appreciate efficiency, for the sake of time I will deliver my remarks in English.]
Having spent many years overseas, I am no stranger to AmChams around the world. I enjoy watching your proceedings that so closely mirror American democratic practice. You are a business community brought together by common interest. You use consensus to determine priorities, and elections to select your leaders and representatives. This organizational idea is simple, peaceful, and mutually beneficial. And it recognizes there is strength in numbers: your voices resonate more clearly and forcefully in unison.
This is the power of civil society: private individuals taking the initiative to organize and act in concert.
Indeed, AmCham and U.S. companies have real influence in Latvia. Your businesses comprise a major part of the local economy. But to many Latvians, you also represent the prospect of additional U.S. investment. You model every day the American business habits — innovation, even-handedness, and grit — that much of the world aspires to. As a new Latvian government takes office, I want to encourage you to use this influence to focus attention on improving the business climate.
Of course, Latvia and the United States already have much to be proud of in our bilateral relationship. As friends, partners, and NATO allies, our two countries enjoy a strong and multi-faceted defense and security relationship. On the diplomatic track, we hold common views on so many issues of global import. Whether climate change or counterterrorism, energy security or rule of law, we are often of one mind. Both the United States and Latvia are working hard to promote a Transatlantic Trade and Investment Partnership (TTIP) agreement. TTIP will lower barriers and eliminate redundancies, especially for the small businesses that generate most new jobs. And, does it hurt to add that our people really like each other? More than one thousand Americans live and work in Latvia. And the United States is home to a thriving community of nearly 90,000 Latvians and Americans of Latvian ancestry.
Yet we all know that reforms could make Latvia a more attractive investment destination. Perceptions of corruption, a slow and inefficient judiciary, and allegations of money laundering — these dampen the enthusiasm of investors who can take their money elsewhere. Many societies face such challenges. But in our volatile times, they are also vulnerabilities. They undermine our economic health, our national security, and our claim that liberal democracy offers a better way. It does no good to defer action any longer.
With the formation of a new government, new decision-makers are set to bring fresh perspectives and energy to bear on these issues. This is a moment of opportunity for Latvia. Both AmCham — and you as individuals — are well equipped to press for change. So tonight I call on you to take action — engage local universities and tell them what skills their graduates need to have. Advocate for government investment in education and health, in ways that show tangible benefits. Encourage banks to increase lending to small businesses. Support better financial regulation to secure Latvia’s economic future. And insist on efforts to fix the insolvency administration system and strengthen the rule of law.
This is not to underrate Latvia’s very significant advantages. When I meet with foreign companies here, they routinely offer glowing reviews of their highly-skilled, motivated Latvian employees. In fact, they want many more!
And this highlights a gap between industry needs and the education system. It also suggests that, as Latvia grapples with outward migration, it is missing an opportunity to capitalize on the skills and enthusiasm of war refugees. I have met with some refugees at processing centers, and they invariably tell me they want to work.
AmCham has long sought to raise awareness about these issues. The U.S. Embassy has been proud to partner with AmCham on some of these programs. The Human Development Awards, which AmCham and the Embassy will co-sponsor for a third time in April, recognize the efforts of Latvian groups and individuals to make society a better place. I also know corporate social responsibility is an important part of your programs and sends a strong message of support to Latvian communities. I was delighted to learn that AmCham and the Latvian Chamber of Commerce and Industry will team up to support Latvian exporters by creating a database of U.S. business contacts. This is a terrific example of civil society identifying a need and taking action.
In closing, let me leave you with a final image.
Latvian cultural heritage includes beautiful designs that adorn traditional belts and clothing. Many regions have their own designs, each reflecting the history and traditions of a unique place through exquisite symbols and finely-wrought patterns. If we imagine Latvia having a single design, many elements have gone into its making. The aspirations and time-honored customs of a dynamic people form the national pattern. Ethnic diversity, democratic values, and the enterprising spirit of young Latvians lend it vibrant color. And yes, the years of war and occupation are knit tightly into Latvia’s design like dark threads. These too are part of the country’s fabric. They are emblematic of its resilience and countless individual sacrifices.
Latvian society today is truly a masterpiece. As in other countries, including the United States, it is also a work unfinished. Many Americans, for example, see U.S. history as a constant refining of the idea of America. It has taken petitions and protests, suffrage movements and even civil war. We have worked hard to extend to our country’s diverse peoples the opportunities and freedoms espoused at its founding. It is a process that continues today. And the United States has benefited greatly from immigrant newcomers and well-meaning friends and allies who helped point the way.
Only Latvia can decide what path it will take. But we can offer suggestions borne of our experience, and encouragement borne of our confidence. We must do so respectfully and in good faith. This is the responsibility friends have to one another. And it is a responsibility not just for governments, but for private citizens too. Thank you for making time tonight to help set AmCham’s course for the year. I hope you will also join me in making it a personal priority to give Latvia the support and inspiration it deserves.
