Position of Latvia in the WTO multilateral trade negotiations

The WTO multilateral trade negotiations or the Doha round (Doha Development Agenda – DDA)

In November 2001, in the fourth WTO Ministerial Conference in Doha, the capital of the state of Qatar Members launched a new round of trade negotiations with a view to agree on further trade liberalization and more efficient rules regulating international trade (the text of Doha Ministerial Declaration in English).

The fifth WTO Ministerial Conference took place in Cancun, Mexico, in 2003. Unfortunately, Members could not reach a significant agreement on the key issues marked in Doha and on a soon conclusion of the current round of negotiations (the text of Cancun Ministerial statement in English).

In the beginning of 2004 the negotiations were re-launched and in the end of July in Geneva Members agreed on Doha Work Program or the so called "July package". This agreement serves as a significant verification of the further progress of the Doha round and a strong impetus for the intensification of negotiations (the text of Doha Work Program in English).

Further advancement of the multilateral trade system and the progress in the DDA negotiations are one of priorities within the external trade policy of Latvia.

Position of Latvia to the Doha negotiations round represents a support towards the establishment of an international trade system, which with the help of its market access conditions, rules and sanction mechanism, will invest in the growth of sustainable economy, will create new working places, as well as will give an adequate response towards the challenges of globalization.

Priority issues of Latvia in the multilateral trade negotiations are further liberalization and openness of the markets of non-agricultural goods and services, as well as the trade facilitation by simplifying customs procedures and by ensuring transparency and non-discrimination in applying the corresponding law.

In the negotiations on agricultural issues, Latvia supports a further, gradual and significant liberalization of agricultural market in accordance with Doha Declaration. Negotiations should concentrate on the reduction of trade distorting aid forms, particularly on state domestic support for agriculture and export subsidies (support should be expressed towards gradual reduction of export subsidies within a certain agreed time limits, on condition that the other Members will proportionally cut other forms of export support – e.g. export credits, subsidizing state trading enterprises, guarantee programs, food aid marketing). On the contrary, forms of state domestic aid bearing no trade distorting effects or bearing them to the minimum extent (so called "green box" subsidies) are to be allowed. Further, support should be kept towards constructive preferences for developing countries (for example, exempting least developed countries (LDCs) from customs duties or quotas with respect to market access of cotton). Inclusion of advanced developing countries in granting such benefits for cotton from poorer LDCs should be encouraged. Likewise, the aspects of non-trade concerns should be properly considered.

As regards the development issues, Latvia recognizes that the integration of developing countries into global economy is a precondition for a general development. Developing countries should be encouraged to be involved more actively in the trade liberalization as well as in their mutual trade. Therefore an emphasis on a wholesome involvement of developing countries into the process of negotiations should be stressed – by encouraging these countries to gradually undertake commitments thus ensuring an earlier implementation of the benefits from multilateral trade system. The least developed countries should be provided with technical assistance both to identify their problem areas as well as to participate in negotiations.

In the same way, a constructive solution must be elaborated also in the other key issues of the negotiations:

Trade and environment, whereas, emphasizing the close interrelation between trade liberalization and aspects of the environment, Latvia gives its support to an adequate assessment of environmental concerns within the DDA, which consequently would ensure the predictability of the constantly developing interaction between the two subjects;
Geographical indications – considering the significance of this issue both in the light of intellectual property rights and agricultural context, Latvia expresses support towards flexibility in the negotiations, having particular regard to the establishment of a multilateral register for wines and spirits;
WTO rules – it is of high importance to elaborate detailed rules with respect to anti-dumping, subsidies and regional trade agreements, paying particular attention towards drafting more stringent rules on anti-dumping and anti-subsidy measures with a view to reduce prospects for protectionism and trade distorting measures;
Regional trade agreements– Latvia support elaboration of the WTO provisions with respect to regional trade agreements. Having regard to the complementary character of regional trade agreements, they can bring about a considerably positive impact to more efficient functioning of the multilateral trade system. Therefore, in order not to create impediments to trade and economic interests of Members, regional trade agreements are to be promoted as long as they do not contradict the provisions of the WTO.

Official positions of Latvia: