Under the pressure of non-EU companiesto reduce costs for flax products there isclear need for cooperation among Balticcountries in order to increase productioncapacities and diminish costs via economiesof scale. The project objective is to increasecompetitiveness of Lithuanian and Latvianflax industry through facilitating cooperationof cross-border regions in Latgale (LV) andUtena, Vilnius, Kaunas (LT).The main project activities are the exchangeof experience between flax growersand processors in the cross-border areaduring study trips and development ofthe partnership model for cross-bordercooperation between Latvian andLithuanian flax industry. The createdcooperation network of flax growers providesa possibility to use these contacts for day-todaybusiness, to ensure the supply of largequantities thus making flax production morecompetitive in the foreign markets.