EU member state. Compliance scores reflect the regulatory advantages of EU single market membership and are not directly comparable to non-EU sourcing countries.
weighted score 1.9 · nine dimensions
Country Risk Profile
Latvia
Sourcing risk, regulatory exposure and audit intelligence for Latvia-origin supply chains.
Forced & child labour
2
EU member state with full enforcement of EU labour directives. No ILAB listings. Low forced labour risk.
Worker rights & FOA
2
ILO core conventions ratified. Independent trade unions permitted. ITUC rating approximately 2. Collective bargaining coverage lower than Western Europe.
OHS & audit transparency
2
EU Occupational Safety and Health Framework Directive fully transposed. Labour inspectorate operational. Social audit access unrestricted.
Food & product safety
2
EU food safety acquis fully implemented. RASFF participant. CE marking and EU product safety standards apply. Low RASFF alert rate.
Environmental & regulatory
2
EU Environmental Impact Assessment and REACH fully transposed. EU ETS participant. Environmental enforcement framework operational.
Governance & anti-corruption
3
TI CPI 2025: 60/100. Governance standards reasonable for a Baltic state. Anticorruption framework functional. Some concerns around public procurement and political party financing.
Tariff & preferential access
1
EU single market member. Zero intra-EU tariffs. EU FTA network applies (South Korea, Japan, Canada, Mercosur, etc.).
Non-tariff barriers
1
Full regulatory harmonisation within EU single market. No additional non-tariff barriers for EU buyers. CE marking mutual recognition.
Supply chain traceability
2
EU supply chain due diligence framework applies. Traceability infrastructure comparable to EU peers. EUDR compliance required for forestry products.
Labour & Social Risk
Labour & Social Risk
- Forced labour risk
- Low forced labour risk. Latvia is an EU member state with full enforcement of EU labour directives. No ILAB listings for goods produced with forced or child labour.
- Worker rights
- ILO core conventions ratified. ITUC Global Rights Index rating: approximately 2 (few violations). Independent trade unions operate freely. Collective bargaining coverage relatively low compared to Western Europe.
- Labour cost
- Eurostat hourly labour cost approximately €16.30. Competitive within the EU, below most Western European averages. Wage growth driven by tight labour market and emigration-related labour shortages.
- Workforce
- Population approximately 1.8 million. Skilled workforce in timber processing, food processing, transit logistics, and IT. Emigration to Western Europe has reduced working-age population.
EU Regulatory Exposure
EU Regulatory Exposure
- Single market
- Full EU single market membership since 2004. No tariff barriers for intra-EU trade. CE marking, REACH, and EU product safety regulations apply directly. No additional import duties for EU buyers.
- EUDR exposure
- Latvia has a significant forestry sector (timber is a major export). Wood and wood products require EUDR due diligence statements from 2025/2026. Standard-risk country under EUDR benchmarking.
- CBAM
- As an EU member state, Latvian exports within the EU are not subject to CBAM. EU ETS applies to covered sectors.
- EU Forced Labour Regulation
- Regulation (EU) 2024/3015 applies from December 2027. Low risk of investigation for Latvian-origin goods given EU labour standards enforcement.
Logistics & Supply Chain
Logistics & Supply Chain
- Primary export corridor
- Road and rail direct to EU markets. Key corridors via Lithuania and Poland to Germany and Western Europe. Rail Baltica high-speed rail project under construction.
- Port infrastructure
- Riga Freeport is Latvia’s largest port and a significant Baltic transit hub. Ventspils also handles substantial cargo volumes. Regular connections to major European ports.
- Transit time
- 2–4 days by road to Germany, Benelux. 3–6 days to UK, Scandinavia. Nearshoring advantage for EU-based buyers.
- Scope 3 relevance
- Short-haul road and rail freight within Europe generates significantly lower transport emissions than intercontinental maritime shipping.