EU accession negotiations' meeting in Luxembourg at the level of Ministers of Foreign Affairs concluded [11 Jun 2002]

On 11 June 2002 the regular round of Latvia's accession negotiations with the EU at the level of Ministers of Foreign Affairs took place in Luxembourg. The Minister of Foreign Affairs Mr Indulis Berzins participated in the meeting. The results of the meeting have cleared the way for successful conclusion of LatviaâÀ™s EU accession negotiations in the second half of the year. 27 negotiation chapters out of 30 have been closed. Almost all issues, which are not related to the EU enlargement financial framework and the Common Agricultural policy, have been clarified.

The most significant agreements have been reached in the chapter "Taxation", in which only Latvia and Lithuania were granted the longest transition period until the end of the year 2009 for gradual equalization of the excise tax on cigarettes to reach the excise tax level laid down in the EU member states. The agreed transition period will reduce possible social and economic effects of the tax increase. Latvia also achieved derogations for the value added tax collection procedure for royalties, transactions with round timber and international passenger traffic, as well as a threshold for the compulsory VAT payersâÀ™ registration, which is four times that of the EU level. Latvia also achieved the possibility to retain a special tax regime in free ports and in special economic zones.

An agreement on the principles of the EU financial aid allocations and on proportions of the different EU support instrumentsâÀ™ financing was reached in the chapter "Regional Policy and Co-ordination of Structural Instruments". Negotiations on concrete amounts of financing will take place during the concluding stage of the negotiations at the end of the year. In the course of the meeting the EU side particularly underscored the necessity to complete the establishment of an appropriate institutional framework in Latvia already in the nearest future, so that Latvia is able to use the resources of the Cohesion and Structural Funds from the very moment of its accession to the EU.

Latvia has successfully closed negotiations in the chapter "Cooperation in Justice and Home Affairs". This was ensured by the intensive work performed by the law enforcement bodies in creation of the necessary legal and institutional basis in order for Latvia to be able to effectively join the international crime combating. LatviaâÀ™s good preparedness will also ensure its rapid integration in the free movement of persons area or the so-called Schengen area. The EU representatives emphasised the necessity to continue consolidation of an independent court system in Latvia and to increase the administrative capacity of the law enforcement bodies.

The ministers also approved the already reached agreements in the chapters "Transport policy" and "Telecommunications and Information Technologies".

In the course of the meeting the parties also discussed the course of future negotiations in the chapters "Agriculture", "Financial and Budgetary Provisions" and "Institutions". Important and fundamental agreements on transition periods in the fields of veterinary and food safety were reached in the chapter "Agriculture". The EU representatives expressed readiness to accept the transition periods requested by the Latvian side for milk, meet and fish processing establishments and for milk quality requirements. The issue, which has remained unsolved, is the transition period for animal welfare requirementsâÀ™ implementation (regarding tethering calves). Likewise, upon clarification of several technical questions, it will be possible to close the negotiations chapter "Institutions". Agreement on financing and budgetary provisions and on financial aspects of agriculture is scheduled to be reached in the conclusion of the negotiations.

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