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POSITION PAPER OF THE REPUBLIC OF LATVIA
Chapter 26: "EXTERNAL RELATIONS"
Setting the time frame for the process of adoption and implementation of the European Union's acquis communautaire, the Latvian Government adopted 1 January 2003 as the data on which Latvia will be prepared for accession to the European Union. Taking into account that the acquis in the area of "external relations" consists mainly of Community legislation that is directly binding to the Member States and does not require transposition into national law, Latvia will implement in full acquis communautaire in this chapter upon its accession to the European Union. Where it is possible Latvia is ready to adopt and fully implement the Community legislation before 1 January 2003 or even sooner. Latvia's commercial policy is based on the same principles as the EC Common Commercial Policy. Latvia has successfully concluded its accession negotiations to the World Trade Organisation (WTO) and on 10 February 1999 became a fully-fledged Member of the WTO. The conformity of Latvia's national legislation with the WTO requirements has been insured during the accession process without recourse to any transitional periods. Latvia is fully determined to ensure further necessary adjustments, taking into account the developments in the new WTO trade negotiations. Latvia's commitments in the area of market access for goods and services are reflected in its Schedule of Specific Commitments in the WTO, and are in general harmonised with the EC obligations. However, further analysis and co-operation with the European Commission is needed to identify and resolve any inconsistencies related to trade in services and textiles. In the area of textiles, Latvia accepted the need to retain the right to use the transitional safeguard under Article 6 of the ATC and to align its integration programme under Article 2 paragraphs 6,7 and 8 of the ATC with that of the EC. In the area of commercial policy instruments all the existing and planned legislative acts are harmonised to the closest extent possible with the relevant EU rules. That relates to the legislation in the area of antidumping, safeguard and countervailing measures, licensing and control of dual use goods, export credits, technical barriers to trade and other trade related measures. The aim for introduction of such legislation is to ensure the smooth adoption and effective implementation of the Community legislation in these areas. In concluding preferential trade agreements Latvia has in general followed the EC policy and has entered into free trade arrangements with the countries that have signed Association Agreements with the EU, and with Ukraine. The Republic of Latvia is in general ready to terminate the existing international agreements with third countries containing elements of commercial policy and to take over the EC trade arrangements that are in force at the time of accession to the EU. However, two possible exceptions should be considered. In case of its earlier accession to the EU, Latvia is interested in maintaining the Baltic Free Trade Agreement on agricultural products and therefore is requesting the possible transitional arrangement until all three Baltic states become full members of the EU. Latvia is also interested to minimise the possible negative impact resulting from the alignment of its trade regime with the one of the EC. Further analysis and co-operation with the European Commission is needed to determine the scope and type of possible arrangements. As a member of the United Nations Latvia implements the sanctions imposed by the UN Security Council. Latvia is ready to implement the EC legislation in this area upon accession. Latvia is prepared to join the development and humanitarian aid policy of the EU on the date of accession. Latvia notes that it is necessary to agree on the conditions of Latvia's participation in financing of the European Development Fund. Latvia confirms that basic principles of human rights and democracy are an integral part of its national legislation. Latvia is a member of relevant international conventions and follows these principles in all agreements with third countries. The main responsible institution in the area of external relations is the Ministry of Foreign Affairs. The responsibilities in the area of foreign economic relations are shared with the Ministry of Economy. All necessary institutional infrastructures for the implementation of the EC legislation in this area is or will be in place by the date of accession of the Republic of Latvia to the EU. Taking into account the aforementioned, the Republic of Latvia will request within chapter "External Relations" the negotiations on certain provisions covering existing trade with third countries, including the Baltic Free Trade Agreement on Agricultural Goods.
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