1. The EU-Latvia Association Council held its third meeting on Tuesday, February 15, 2000, chaired by Mr Jaime GAMA, Minister for Foreign Affairs of Portugal and President-in-Office of the Council of the European Union. Mr Induli BERZINS, Minister for Foreign Affairs of Latvia, headed the Latvian Delegation. Mr Günther VERHEUGEN, Commissioner responsible for Enlargement, represented the European Commission.

This meeting of the Association Council took place at a crucial moment, shortly after the Helsinki European Council, which confirmed the importance of the enlargement process for the stability and prosperity of the entire European continent and took a number of important decisions in this respect. As a consequence, the negotiations for accession of Latvia to the European Union were formally opened today.

2. The Association Council reviewed the state of Latvia's preparation for accession in the light of the second Regular Report, issued by the European Commission in October 1999, of the Accession Partnership, updated in December 1999, and of the Latvian National Programme for the Adoption of the Acquis.

The Association Council recognised and appreciated the efforts Latvia is making in pursuing its goal of European integration. Important steps have been achieved in addressing most of the Accession Partnership priorities.

The Association Council noted that Latvia fulfils the Copenhagen political criteria, can be regarded as a functioning market economy and should be able to cope with competitive pressure and market forces within the Union in the medium term, provided it maintains macro-economic stability and completes structural reforms.

The Association Council welcomed the significant progress achieved in the integration of non-citizens into the Latvian society and noted with satisfaction that the final text of the Language Law is now essentially in conformity with Latvia's international obligations and commitments.

The Association Council noted with satisfaction that macro-economic and financial stability has been maintained in Latvia as a result of an appropriate policy response to a difficult external environment. Stability should be maintained, in particular through the effective control of public finances and a further reduction in the current account deficit.

The Association Council noted Latvia's continued progress in aligning its legislation to the EU acquis. Further efforts are however needed, in particular in areas such as data protection and company law, telecommunications, agriculture and fisheries.

The Association Council took note of positive developments in the field of justice and home affairs and encouraged Latvia to pursue its efforts, particularly as regards the strengthening of the police capacity and co-ordination in the fight against organised crime, including drug trafficking.

The Association Council noted some progress in creating and upgrading the necessary administrative structures and encouraged Latvia to establish needed bodies in the areas of telecommunications, data protection, public procurement and others.

The Association Council encouraged Latvia to speed up alignment in all areas, so as to be able to apply EU rules and standards effectively from the date of its entry into the Union. It noted that, to make the best possible use of pre-accession funds provided by the Union, Latvia's capacity to program EU financial assistance should be improved.

The Association Council welcomed the steps the Union has taken in preparing for enlargement, in particular the opening of a new inter-governmental conference to make the EU institutions fit for enlargement.

3. The Association Council also examined the evolution of bilateral relations in the framework of the Europe Agreement. It noted that open issues were examined in detail at the level of the Association Committee, as well as in day-to-day collaboration between ministerial meetings, so as to enable the Association Council to appraise the situation politically. Position papers reviewing developments to date and considering future priorities were exchanged.

The Association Council noted the further development of bilateral trade flows between the European Union and Latvia.

The Association Council noted Latvia's significant efforts to bring its legislation in conformity with the obligations stemming from the Europe Agreement at the end of the transition period at the end of 1999.

The Association Council noted that both Parties are presently negotiating mutual concessions in agricultural products and processed agricultural products, with a view to increasing bilateral trade liberalisation and improving market access in the pre-accession period.

Concerning the safeguard measures on imports of pig meat applied by Latvia as of 18 December 1999, which the European Union considers in breach of the Europe Agreement, the Association Council noted the recent developments and in particular the commitment by the Latvian Government to review the measures with a view to abolish them in the near future.

The Association Council noted Estonia's participation in several Community programmes: Youth for Europe, Socrates, Leonardo da Vinci, Raphael, as well as the 5th framework programme for RTD. It underlined the role of Latvian participation in these programmes as an important element of the pre-accession strategy enabling the Latvian administration to experience the practical work in Union bodies.

The Association Council welcomed the contribution of the PHARE programme and the European Investment Bank to the development of the Latvian economy, notably to strengthen the crucial sectors of the national economy. It noted the substantial increase of the pre-accession aid to Latvia and other applicant countries from 2000 and the establishment of two additional instruments providing aid respectively for agricultural and rural development (SAPARD) and structural policies (ISPA).

4. The Association Council reviewed some international issues of common interest. It emphasised the importance of regional co-operation as a means of fostering stability and good neighbourly relations and noted with satisfaction Latvia's contribution in regional co-operation initiatives, notably as a member of the Council of Baltic Sea States.

5. In conclusion, the Association Council expressed its confidence in the development of the relations within the Europe Agreement and emphasised the crucial role it is further called on to play in resolving bilateral problems and contributing to prepare Latvia for accession to the Union.

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