Estonia–Latvia relations members of the Baltic Free Trade Area from 1994 until 2004 after which they joined the European Union. In 2006, Latvia accounted for 3% of Estonian exports. Latvia accounted for 5% of Estonian imports. There are 15 bilateral agreements between the 2 countries many of them signed trilaterally with Lithuania. The three Baltic countries signed a trilateral defence agreement on 12 February 1995. Estonia–Latvia relations Estonia and Latvia, the two northernmost Baltic states, share 343 km of common borders. Both states share a long common history, having since the 13th century been ruled by the Livonian Order, Poland-Lithuania, Sweden and
Economy of Estonia for Latvia. Estonia today is mainly influenced by developments in Finland, Russia, Sweden and Germany – the four main trade partners. The government recently greatly increased its spending on innovation. The prime minister from the Estonian Reform Party has stated its goal of bringing Estonian GDP per capita into the top 5 of the EU by 2022. However, the GDP of Estonia decreased by 1.4% in the 2nd quarter of 2008, over 3% in the 3rd quarter of 2008, and over 9% in the 4th quarter of 2008. The Estonian economy further contracted by 15.1% in the first quarter of