Position of Latvia for the further progress of the WTO multilateral trade negotiations (Doha Development Agenda) round after the WTO 5th Ministerial Conference (Cancun, 2003) – specification
Latvia regards the WTO to be the most important mechanism for the facilitation of the multilateral trade and the adoption of general trade rules, which are based on the principles of transparency and non-discrimination.
Latvia fully supports the further progress of the multilateral trade negotiations and the Doha agenda as a priority. Latvia recognizes the full effect of the Doha Declaration and supports the revival of the DDA negotiations round, considering the previously established aims and seeking for the most efficient solutions that will reach these aims. In order to attain the results an active participation and readiness for a compromise is necessary commitment from the all Members.
With respect to the specific issues Latvia joins the position of the EU and emphasizes the following:
Trade in agricultural goods
A further, gradual and considerable liberalization of the agricultural market in accordance with the Doha Declaration is to be fully supported. Further liberalization of the agricultural market is in the interests of both the developed and developing countries, thus all WTO Members equally must constructively cooperate in solving the agricultural issues.
Negotiations must focus on the reduction of all forms of trade distorting support, particularly as concerns the state domestic aid in agriculture and export subsidies. Similarly, forms of the domestic aid, which bear no trade distorting effect or it is minimal (so called " green box" support) should not be limited. Support is to be granted towards giving constructive preferences to developing countries (for example, exempting the least developed countries from customs duties and quotas with respect to the market access for cotton). More affluent developing countries should similarly be involved in granting the above mentioned preferences. An adequate emphasis must be given to the non – trade concerns in the framework of the negotiations on agriculture.
Having regard to the position, prepared by the Ministry of Agriculture and on 18/06/2004 adopted by Saeima "On Doha Development round and Mercosur negotiations" for the 21-22/06/2004 EU Council of Agriculture and Fishery, Latvia in general supports the position of EC, which is now communicated on July, 2004 without mentioning of any specific figures.
(1) market access:
- support for a blended formula in tariff reduction;
- support for a gradual increase of tariff quotas;
- special safeguard measures should be allowed as much as possible;
- support for the inclusion of non-trade concerns, particularly the issues of rural development, in all three pillars of negotiations – market access, export competition, direct support;
(2) export competition:
- export subsidies – do not support an immediate elimination of export subsidies, instead support a gradual reduction of export subsidies within a definite time period on a condition that other Members will proportionally reduce other forms of export support (export credits, subsidizing state trading enterprises, guarantee programs, food aid commercializing). Latvia is particularly interested in maintaining export subsidies for sensitive agricultural products in order to promote competitiveness of domestic producers on the markets of third countries – mostly with respect to dairy and meat products. Also in this pillar of negotiations non-trade concerns are to be emphasized;
(3) domestic support:
- "blue box" subsidies (support connected to production) – support for the reduction of such support payments;
- "amber box" subsidies (trade distorting support) – support for a considerable reduction of such trade distorting support;
- "green box" subsidies (least trade distorting) – support for the maintenance of such form of support without specific limitations;
- Latvia supports granting developing countries specific preferential conditions with respect to all three pillars.
Trade in non-agricultural goods
As one of the key priorities in the activation of the DDA negotiations Latvia defines negotiations on the market access of non-agricultural goods.
Latvia supports advanced negotiations on the increase of the market access for non – agricultural goods, the elimination of non-tariff barriers and the harmonization of tariff levels, including the introduction of tariff formula, as this field is an important priority within the negotiations. Developing countries must gradually undertake commitments thus ensuring an earlier implementation of the positive outcome originating from the multilateral trade system.
Trade in services
As the second key priority (parallel to the negotiations on the market access for non-agricultural goods) in the activation of the DDA negotiations Latvia defines the negotiations on the market access for services.
Trade in services is to be maintained as one of the top priority issues in the new round of negotiations. Further liberalization of services market must be fully supported, and new binding rules regulating the trade in services must be adopted. Likewise, active negotiations on the reduction of the trade barriers for the environmental services must be envisaged.
In order to ensure the implementation of the DDA aims the full participation of the developing countries is a must precondition.
Taking into account the ultimate necessity for a constructive cooperation in the WTO, the Members, including the developing countries, that so far have not been active, should submit their offers for the market access for trade in services.
Singapore Issues
Latvia supports the position of the European Union with respect to the further evolution of Singapore Issues (trade facilitation, government procurement, investment and competition) thus maintaining a long term preference for creating detailed rules in these areas. Singapore issues are of major significance to the global economy, and their further advancement is in the interests of all WTO Members.
The resumption of multilateral negotiations on Singapore issues should be pursued. Similarly, considering the diverse interests of the Members and the complexity of the current situation, we must be ready for a compromise with respect to the further progress, which means a possible exclusion of a separate item from the multilateral negotiations package ("Single undertaking") and eventually concluding corresponding agreements among the interested parties.
Latvia is not comfortable with the current situation concerning the Singapore issues – the motion in the negotiations so far have been towards the complete exclusion of Singapore issues from the Single Undertaking. Considering the importance of the issue in the multilateral trade, Latvia emphasizes the need to preserve Trade facilitation within the framework of DDA negotiations.
Trade and environment
Latvia emphasizes the close interconnection between the trade liberalization and environment protection aspects, and thus supports a corresponding assessment of environment issues in the DDA framework in order to ensure the predictability of mutual development of trade and environment aspects.
Geographical indications
Taking into account the importance of this issue in the context of intellectual property rights as well as agricultural issues, Latvia supports flexibility in the negotiations and particularly emphasizes the establishment of a multilateral registration system for wines and spirits.
WTO rules, regional trade agreements
Latvia emphasizes the importance of negotiations in the area of WTO rules with respect to anti-dumping, subsidies and regional trade agreements. We support the creation of more stringent rules concerning anti-dumping and anti-subsidy measures with a view to reduce the prospects of trade distorting actions.
Latvia supports the clarification of the current WTO rules with respect to regional trade agreements. In order not to create obstacles for trade and economical interests of Members, regional trade agreements should be developed as far as they are compatible with the WTO provisions. Considering the complementary character of regional trade agreements, they can give a considerable input for a more efficient functioning of the multilateral trade system.
Trade and development
Latvia recognizes that the integration of developing countries into the world economy is a precondition for a global development. Developing countries are to be encouraged to participate in trade liberalization also in their reciprocal trade. Therefore the emphasis should be put on the wholesome engagement of the developing countries in the negotiations, encouraging these countries to gradually undertake commitments, thus ensuring a faster implementation of the advantages resulting from the multilateral trade system. The least developed countries should be provided with technical assistance in order to efficiently identify their problem areas as well as technical assistance in the negotiation process.
Improving the WTO organizational system
Latvia supports the necessity for an organizational reform of the WTO in order to ensure optimal functioning of the organization and prevent future breakdowns like the recent one in the Cancun Ministerial conference. To ensure an efficient process of negotiations and decision taking in the organization, Latvia supports EC proposals with regard to organization and management of the ministerial conferences, including the necessity to specify the role of the conference chairperson, as well as to appoint the "responsible persons" on ministerial level already in the conference preparatory phase. The efficient participation of small delegations (including those that are not represented permanently to the WTO in Geneva) both at the negotiations in Geneva and Ministerial conferences are to be facilitated by providing them with technical assistance.
/Adopted by the Cabinet of Ministers on 06/07/2004/
