While Latvia has relevant policies and measures in place, there is some potential for improvement. Attention should be given to the management and settlement of investor-State disputes and to further enhancing transparency.
Among the three EIRA risk areas, discrimination between foreign and domestic investors and unpredictable policy and regulatory change are lower compared to breach of State obligations.
Latvia’s performance against EIRA’s four indicators is good. It has received a score of 88 on regulatory environment and investment conditions and 87 on foresight of policy and regulatory change. On rule of law it has received 74 points, while management of decision-making processes is at 73.
On a more detailed level, Latvia’s overall sub-indicator performance is also good. The highest scoring sub-indicator is regulatory effectiveness with 100 points. The performance on the sub-indicators robustness of policy goals and commitments and communication of vision and policies is also very good with scores of 88 and 87, respectively. Respect for property rights is at 83 and institutional governance is at 81. A good score of 75 has been obtained on the sub-indicator restrictions on FDI. It has scored 65 on the management and settlement of investor-State disputes and 64 on transparency.