WTO members adopt framework agreements and agree on elimination of agricultural subsidies [02 Aug 2004]

After several days of heated discussions, 147 members of the World Trade Organisation (WTO) agreed on 31 July 2004 in Geneva on a package of framework and other agreements, which call for liberalisation of trade among WTO members in sectors of industry, agriculture and services. Member governments also agreed to abolish various agricultural subsidies. 

In November 2001, WTO members began a new round of multilateral trade negotiations in Doha, capital city of Qatar; the negations, therefore, came to be known as the Doha Round. The agreements of 31 July 2004 consolidate the objectives set out at the beginning of the Doha Round, but negotiations will resume in September to work out the modalities and clarify other issues so that a comprehensive and balanced result is achieved.

The Latvian delegation, led by Under-Secretary of State of the Ministry of Foreign Affairs Einars Semanis, participated in the EU General Affairs and External Relations Council, which took place on July 30 in Geneva; there the 25 EU member states coordinated their position on points discussed during the WTO multilateral trade negotiations.  The Latvian delegation included also representatives from the Ministry of Foreign Affairs and Ministry of Economy.

The WTO agreement is of major significance for Latvia, as it will open up new opportunities for the export of Latvian goods beyond the borders of the EU. Latvia's Ministry of Foreign Affairs welcomes the WTO agreements regarding basic objectives of the multilateral trade; the agreements strengthen the position of the WTO as a forum for such negotiations. The main task of this organisation is to promote the development of a fair and equal international trade system.

The WTO, as a dynamic forum for negotiations, is significant for Latvia also in terms of trade with a number of other countries of the region, including Russia, Ukraine and Belarus. These countries are continuing talks on joining this organisation.

During the WTO negotiations, the EU achieved a significant aim: commitment by other countries, including the US, Canada, and Australia, to carry out the agricultural reform equal to the one carried out by the EU in June 2003. The WTO agreement retains the present level of support for Latvian farmers, which was set during Latvia's EU accession negotiations.

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