Liina Vahtras

Minister of

Economy and Industry

Republic of Estonia

Edvinas Grikšas

Minister of the

Economy and Innovation

Republic of Lithuania

Viktors Valainis

Minister of

Economics

Republic of Latvia

7 October 2026

No. 1/1026-243

Follow-up to Baltic Assembly recommendations on strategic investment cooperation and the

OECD research on cross-border FDI and SME linkages

Dear Ministers,

On behalf of the Baltic Assembly, we would like to express our assurances of highest consideration to the

Baltic Council of Ministers.

On 10-11 September 2026, the joint meeting of the Education, Science and Culture Committee and the

Economics, Energy and Innovation Committee of the Baltic Assembly was held in Vilnius. The discussions

between parliamentarians, government representatives and experts revolved around the creative economy

and tourism competitiveness, as well as promoting responsible and innovative artificial intelligence in

education and research.

During the meeting, we also assessed the implementation of the recommendations of the Baltic

Assembly and concluded that, in several cases, a lack of progress can be observed. We have consistently

emphasised the importance of closer cooperation between Estonia, Lithuania and Latvia in strengthening

the competitiveness, resilience and attractiveness of the Baltic region. In this context, particular attention

has been given to coordinating strategic economic priorities, attracting smart investment, strengthening the

internationalisation of Baltic companies, and facilitating industrial transformation.

The Baltic Assembly has called on the Baltic governments:

⎯ to agree on joint priorities or specialisation of the Baltic States regarding the strategic economic sectors for encouraging smart investments in the region;

⎯ to start elaborating a common strategy to motivate the Baltic companies to invest in foreign markets, considering the necessity to attract foreign human capital for Baltic companies without significantly increasing immigration to the Baltic States;

⎯ to put in place a common platform for sharing experiences between the Baltic States on how to captivate companies and attract private investments for industrial transformation.

The previously received information on the implementation of the recommendations from the

Governments suggests that cooperation in these areas remains fragmented and largely network-based,

without an established common Baltic platform or a cohesive joint strategy for attracting investment and

supporting industrial transformation.

In this regard, the OECD-European Commission project “Strengthening cross-border FDI and SME

linkages in the Baltic States” is of particular relevance. The Baltic Assembly considers that this work could

provide an important evidence base for identifying opportunities to strengthen linkages between foreign

direct investment and Baltic SMEs, defining areas with pan-Baltic growth potential, and developing more

coordinated approaches to investment attraction.

The Baltic Assembly would appreciate the assessment of the Ministries of whether the OECD findings

provide a sufficient basis for identifying common or complementary strategic sectors with pan-Baltic

growth potential, and whether Estonia, Lithuania and Latvia intend to agree on joint priorities or areas of

specialisation for attracting smart and sustainable investment to the Baltic region.

Furthermore, we would welcome information on whether, in light of the OECD findings, the Baltic States

envisage developing new joint initiatives to strengthen FDI-SME linkages, including measures that would

enable local SMEs to benefit more systematically from foreign investment, international value chains,

innovation cooperation and access to foreign markets.

The Baltic Assembly believes that the value of the OECD research should ultimately be measured by its

translation into practical cooperation. We therefore encourage the Governments to consider how its

conclusions can be transformed into concrete joint initiatives, with clearly identified priorities, responsible

institutions and, where appropriate, a timetable for implementation.

We would be grateful to receive a joint assessment of these matters, including information on any initiatives

already agreed or under consideration within the Baltic Council of Ministers or other relevant formats.

We would highly appreciate receiving clear and detailed answers to the questions and an update on the

implementation of the recommendations by 6 November 2026.

Please accept the assurances of our highest consideration.

Sincerely,

Chair of the Economics,

Energy and Innovation

Committee of the

Baltic Assembly

Vice Chair of the Economics,

Energy and Innovation

Committee of the

Baltic Assembly

Vice Chair of the Economics,

Energy and Innovation

Committee of the

Baltic Assembly

Marek Reinaas

Republic of Estonia

Tomas Martinaitis

Republic of Lithuania

Kaspars Briškens

Republic of Latvia

Contact person: Agnija Antanoviča, [email protected]

Liina Vahtras

Minister of

Economy and Industry

Republic of Estonia

Edvinas Grikšas

Minister of the

Economy and Innovation

Republic of Lithuania

Viktors Valainis

Minister of

Economics

Republic of Latvia

7 October 2026

No. 1/1026-243

Follow-up to Baltic Assembly recommendations on strategic investment cooperation and the

OECD research on cross-border FDI and SME linkages

Dear Ministers,

On behalf of the Baltic Assembly, we would like to express our assurances of highest consideration to the

Baltic Council of Ministers.

On 10-11 September 2026, the joint meeting of the Education, Science and Culture Committee and the

Economics, Energy and Innovation Committee of the Baltic Assembly was held in Vilnius. The discussions

between parliamentarians, government representatives and experts revolved around the creative economy

and tourism competitiveness, as well as promoting responsible and innovative artificial intelligence in

education and research.

During the meeting, we also assessed the implementation of the recommendations of the Baltic

Assembly and concluded that, in several cases, a lack of progress can be observed. We have consistently

emphasised the importance of closer cooperation between Estonia, Lithuania and Latvia in strengthening

the competitiveness, resilience and attractiveness of the Baltic region. In this context, particular attention

has been given to coordinating strategic economic priorities, attracting smart investment, strengthening the

internationalisation of Baltic companies, and facilitating industrial transformation.

The Baltic Assembly has called on the Baltic governments:

⎯ to agree on joint priorities or specialisation of the Baltic States regarding the strategic economic sectors for encouraging smart investments in the region;

⎯ to start elaborating a common strategy to motivate the Baltic companies to invest in foreign markets, considering the necessity to attract foreign human capital for Baltic companies without significantly increasing immigration to the Baltic States;

⎯ to put in place a common platform for sharing experiences between the Baltic States on how to captivate companies and attract private investments for industrial transformation.

The previously received information on the implementation of the recommendations from the

Governments suggests that cooperation in these areas remains fragmented and largely network-based,

without an established common Baltic platform or a cohesive joint strategy for attracting investment and

supporting industrial transformation.

In this regard, the OECD-European Commission project “Strengthening cross-border FDI and SME

linkages in the Baltic States” is of particular relevance. The Baltic Assembly considers that this work could

provide an important evidence base for identifying opportunities to strengthen linkages between foreign

direct investment and Baltic SMEs, defining areas with pan-Baltic growth potential, and developing more

coordinated approaches to investment attraction.

The Baltic Assembly would appreciate the assessment of the Ministries of whether the OECD findings

provide a sufficient basis for identifying common or complementary strategic sectors with pan-Baltic

growth potential, and whether Estonia, Lithuania and Latvia intend to agree on joint priorities or areas of

specialisation for attracting smart and sustainable investment to the Baltic region.

Furthermore, we would welcome information on whether, in light of the OECD findings, the Baltic States

envisage developing new joint initiatives to strengthen FDI-SME linkages, including measures that would

enable local SMEs to benefit more systematically from foreign investment, international value chains,

innovation cooperation and access to foreign markets.

The Baltic Assembly believes that the value of the OECD research should ultimately be measured by its

translation into practical cooperation. We therefore encourage the Governments to consider how its

conclusions can be transformed into concrete joint initiatives, with clearly identified priorities, responsible

institutions and, where appropriate, a timetable for implementation.

We would be grateful to receive a joint assessment of these matters, including information on any initiatives

already agreed or under consideration within the Baltic Council of Ministers or other relevant formats.

We would highly appreciate receiving clear and detailed answers to the questions and an update on the

implementation of the recommendations by 6 November 2026.

Please accept the assurances of our highest consideration.

Sincerely,

Chair of the Economics,

Energy and Innovation

Committee of the

Baltic Assembly

Vice Chair of the Economics,

Energy and Innovation

Committee of the

Baltic Assembly

Vice Chair of the Economics,

Energy and Innovation

Committee of the

Baltic Assembly

Marek Reinaas

Republic of Estonia

Tomas Martinaitis

Republic of Lithuania

Kaspars Briškens

Republic of Latvia

Contact person: Agnija Antanoviča, [email protected]