RESTRICTED
WORLD TRADE WT/ACC/SPEC/LVA/31
2May1997
ORGANIZATION(97-1924)
Original: English
DRAFT REPORT OFTHE WORKING PARTY ON
THE ACCESSION OFLATVIA
TOTHE WORLD TRADE ORGANIZATION
Introduction
1. TheGovernment ofLatvia 'srequest foraccession totheGeneral Agreement onTariffs and
Trade (GATT 1947) wascirculated tocontracting parties inNovember 1993. Atitsmeeting on
17December 1993, theGATT 1947Council ofRepresentatives established aWorking Party toexamine
theapplication oftheGovernment ofLatvia toaccede totheGeneral Agreement under Article XXXIII,
andtosubmit totheCouncil recommendations which mayinclude adraft Protocol ofAccession.
Membership oftheWorking Party wasopentoallcontracting parties indicating thewishtoserve on
it.Inpursuance oftheMinisterial Decision of14April 1994 onAcceptance ofandAccession tothe
Marrakesh Agreement Establishing theWorld Trade Organization (WTO) andtothedecision of
31May1994ofthePreparatory Committee fortheWTO, theWorking Party examined theapplication
ofLatvia formembership intheWTO andagreed topursue themarket access negotiations forgoods,
including anagricultural country schedule, andforservices. Inpursuance ofthedecision adopted
bytheWTO General Council on31January 1995, theexisting GATT 1947Accession Working Party
wastransformed intoaWTO Accession Working Party. Theterms ofreference andthemembership
oftheWorking Party arereproduced indocument WT/ACC/LVA/6/Rev.2.1.
2. The Working Party meton28-29 March and13November 1995; 22March and
16September 1996; 27February and........... 1997 under theChairmanship ofMr.F.Theilgaard
(Denmark).
Documentation
3. TheWorking Party hadbefore it,toserve asabasis foritsdiscussions, aMemorandum on
theForeign Trade Régime ofLatvia (L/7526 withAddenda 1,2and3)andthequestions submitted
byMembers ontheforeign trade régime ofLatvia, together withthereplies thereto (WT/L/49 and
1Inorder tofacilitate theidentification ofchanges totheearlier version oftheReport additions
tothetextareshaded anddeletions arestruck out.WT/ACC/SPEC/LVA/3
Page2
Corrigendum 1andAddendum 1;WT/ACC/LVA/3, WT/ACC/LVA/4, WT/ACC/LVA/8 and
Corrigendum1;WT/ACC/LVA/12,WT/ACC/LVA/16)andotherinformationprovidedbytheLatvian
authorities (WT/ACC/LVA/5, WT/ACC/LVA/20, WT/Spec(95)6; WT/SPEC/26). TheGovernment
ofLatvia made available totheWorking Party thefollowing documentation:
- TheLawonCustoms Duty withAnnexes I(Import dutytariffs) andII(Export dutytariffs);
- Latvia 'sNational Tariff Schedule;
- LawontheBank ofLatvia;
- LawonCredit Institutions;
- LawonCompetition andRestriction ofMonopoly;
- LawonTrademarks;
- LawonIndustrial Design Protection;
- Patent Law;
- Resolution andLawonBookkeeping;
- Decree andLawonJoint Stock Companies;
- Resolution andLawonIncome Tax;
- Resolution andLawonLimited Liability Companies;
- Resolution andLawonForeign Investment intheRepublic ofLatvia;
- Resolution andLawonExcise Tax;
- Resolution andLawonTurnover Tax;
- Resolution andLawoftheRepublic ofLatvia onEntrepreneurial Activity;
- RegulationoftheGovernmentofLatviaNo.434of19November1996OnLicensingofSeparate
Forms ofEntrepreneurial Activity;
- Regulation onFood;
- Regulations oftheCabinet ofMinisters No.208of1November 1994 ontheOrder of
Establishment andAdministration ofImport andExport Tariff Quotas;
- Regulations oftheCabinet ofMinisters No.24of17January 1995 OnOrder bywhich the
Special Authorizations (Licences) shallbeIssued inAccordance withtheQuotas ofCustoms
Tariffs;
- Regulations oftheCabinet ofMinisters No.20of17January 1995Regulations toProtect the
Domestic Market forFood Stuff Produced inLatvia;
- RegulationsoftheCabinetofMinistersNo.27of31January1995OnDeterminingtheCustoms
Value ofImport andExport Goods orOther Items;
- RegulationsoftheCabinetofMinistersNo.87of12April1994OntheMandatoryCertification
ofFoodstuff, Perfumery andToys;
- Programme ofReforms fortheNational Economy ofLatvia "Latvia 2000";
- Regulations oftheCabinet ofMinisters No.37of25January 1994 OnState Monopoly of
Alcohol andAlcoholic Beverages;
- Regulation bytheBank ofLatvia OnGranting Licences (Permissions) toPerform Activities
ofCredit Institutions;
- Regulation bytheBank ofLatvia OnRegulation onAmending theCharter, Changing
Shareholders, theInitial Capital, theManagement, theChief Accountant, theLegal Address,
theName ofaCredit Institution, andUndertaking Merger orSplit-up ofCredit Institutions;
- Regulations oftheCabinet ofMinisters No.185 of23August 1994 OnFormation ofPrices
andTariffs ofGoods andServices;
- LawonForeign Investment intheRepublic ofLatvia;
- TheOfficial ListofQuarantinable Pests;
- Founding LawoftheLatvian Food Centre;
- Statutes ofInformation, Consultation andTraining Centre ofGoods andServices;
- Draft Customs Code;WT/ACC/SPEC/LVA/3
Page3
- Draft LawonSafety onProducts, Services andLiability ofProducer, Supplier;
- Draft LawonUniformity ofMeasurements;
- Draft LawonConformity Assessment;
- Law oftheRepublic ofLatvia OnGovernment andMunicipal Procurement, effective
1January 1997;
- LawonPharmaceutical Operations of27April 1993;
- LawonVeterinary Medicine of6March 1995;
- LawonFoodstuff Circulation Procedures andSupervision of29June1995;
- Regulation No.463of24December 1996 OntheAuthorization ofTesting andCalibration
Laboratories, Certification andInspection Bodies intheMandatory Area;
- LawontheProtection ofConsumer Rights of28October 1992;
- LawonPlant Protection of20October 1994;
- Latvia 'sImport Totals under eachHarmonized System 8-digit category (f.o.b. values); and
- Latvia 'sImport Datafor1994.
Introductory Statements
4. Therepresentative ofLatvia stated thatLatvia hadachieved considerable results intransforming
acentrally-planned economy toamarket-based economy since restoration ofindependence in1991.
Latvia haddrafted several newtrade lawsandregulations modelled onWTO principles toestablish
auniform andpredictable trading environment forimporters, exporters andinvestors. Thefifteen
countries oftheEuropean Union had,counted asoneentity, become Latvia 'sprincipal trading partner.
Although theRussian Federation remained Latvia 'sprincipal trading partner, tradewithothercountries
wasgrowing rapidly andhehoped thatthistrend would continue. External trade relations were
emphasized byLatvia 'sgeographical position between EastandWest; several bilateral tradeagreements
based onthemost-favoured-nation principle hadbeenconcluded andmore wereinprogress. Latvia
hadalsoconcluded freetrade agreements withtheEuropean Communities andother many countries
inEurope. However, bilateral andregional arrangements alone could notprovide thenecessary stability
forexternal trade relations. Latvia hadtherefore made astrong commitment tobecome member of
theWTO. TheWTO principles ofnational andm.f.n. treatment hadbeenincorporated innational
legislation withparticular attention totransparency inthepublication ofalllawsandregulations and
atariff-based traderégime. Minimal tariffs wereimposed onimported rawmaterials, spare partsand
capital goods, thebasic average m.f.n. import tariff was15percent,andexport tariffs wereimposed
onlyonsome rawmaterials. Non-discrimination between imported anddomestically produced items
applied intheimposition ofexcise taxes andtheturnover tax,thelatter hadbeenreplaced byavalue-
added tax.Anyperson orenterprise registered inLatvia could perform anylegalimport operation.
Imports ofalcohol, spirits, tobacco, pyrotechnic materials, sugar andgrain required alicence, butno
quantitative limitations wereassociated withthelicences. Exports ofspirits, ferrous andnon-ferrous
metals werealsosubject tolicensing withnounderlying quotas. Finally, hepointed outthatLatvia 'sWT/ACC/SPEC/LVA/3
Page4
effort tobecome member oftheWTO wassupported byallthemajor political institutions andthat
abroad national consensus existed regarding theimportance ofWTO membership andthepursuit of
liberal trade policies.
5. Many members oftheWorking Party welcomed Latvia 'srequest foraccession totheWTO
andexpressed theirreadiness towork withLatvia inelaborating terms ofaccession thatwould support
theprogramme oftransition toamarket-based economy andLatvia 'sintegration intothemultilateral
trading system. Some members welcomed thedocumentation provided andthestatement made by
therepresentativeofLatvia.TheyalsosaidthattheylookedforwardtoadetailedexaminationofLatvia's
policies andofthereasons fortheadoption ofcertain measures, e.g.licensing requirements. Some
members oftheWorking Party noted thatLatvia hadraised tariffs andintroduced newtraderestrictions
aftertherequest foraccession hadbeensubmitted andthatfurther restrictions appeared tobeunder
consideration. Thiswasadisturbing trend. Latvia wasaccordingly requested tonotify theWorking
Party ofproposed newrestrictions andtosupply allnewrelevant lawsandregulations toitsmembers.
6. TheWorking Party thenproceeded toreview theeconomic policies andforeign trade régime
ofLatvia andthepossible terms ofadraftProtocol ofAccession totheWTO. Theviews expressed
bymembers oftheWorking Party aresummarized below inparagraphs 7to125.
ECONOMIC POLICIES
Foreign Exchange andPayments
7. Therepresentative ofLatvia saidthathiscountry hadestablished oneofthemostliberal foreign
exchange régimes intheworld. Latvia hadbeenamember oftheIMFsince 1992. Thenational
currency -thelats-wasfreely convertible, backed bythecurrency reserves oftheBank ofLatvia.
Foreign exchange andlocalcurrency could bebrought intoortaken outofLatvia inunlimited amounts.
Foreign entrepreneurs werefreetorepatriate profits inanycurrency having paidtheapplicable taxes.
Corporate income taxamounted to25percent, incomes ofphysical persons were taxed at
25or35percent,anda10percentwithholding taxwaslevied ondividend payments tonon-residents.
Some members welcomed thefactthatthelatwasfreely convertible andstressed theimportance of
continuing current policies.
8. Therepresentative ofLatvia stated thatLatvia hadnotified theInternational Monetary Fund
thatithadaccepted theobligations ofArticle VIII,Sections 2,3and4oftheIMFArticles ofAgreement
witheffect from 10June1994. Byaccepting theobligations ofArticle VIII, Latvia gaveconfidenceWT/ACC/SPEC/LVA/3
Page5
totheinternational community thatitwould pursue sound economic policies thatwould obviate the
needtorestrict payments andtransfers forcurrent international transactions, andthereby contribute
toamultilateral payments system freeofrestrictions.
Investment Régime
9. Some members oftheWorking Party asked Latvia todescribe thebasicprovisions oflegislation
regulating investment andinparticular identify anyrestrictions orregistration measures affecting foreign
investment.
10. Therepresentative ofLatvia referred tothelaw"OnEntrepreneurial Activity" which provided
forlicensing ofseveral types ofbusiness activities (see"Quantitative Import Restrictions, including
Prohibitions, Quotas andLicensing Systems", paragraph 47).Suchlicences wereissued forenterprises
registered inLatvia onanon-discriminatory basis, irrespective ofnationality, toanyapplicant meeting
thespecificrequirements.Allissuespertinenttoforeigninvestment-registration,investmentprotection,
taxation, repatriation, dispute settlement, restrictions oninvestment, safeguards andtheapplicability
ofinternational treaties -wereregulated through theLaw"OnForeign Investment intheRepublic of
Latvia".
11. Therepresentative ofLatvia added thattheLawonForeign Investment intheRepublic ofLatvia
stated thatforeign investors weregranted therights andduties provided forbythenational laws. The
LawonForeign Investment contained norestrictions onforeign investment inanysector ofthenational
economy. TheGovernment hadamended theLawonForeign Investment inApril 1996, deleting its
Articles 3,5and6andthusterminating allrestrictions onforeign investment. Theamendment had
beenapproved byParliament on4September 1996. TheLawonForestry limited foreign ownership
inwood cutting (logging) companies to49percent.TheLawonRadio andTelevision limited foreign
ownership inradioandtelevision companies to20percent. TheLawonLotteries andGambling limited
foreign ownership ingambling business to49percent.On4September 1996, Parliament hadapproved
thisamendment andrequested theGovernment toprepare adjustments tocertain other lawstobring
theminlinewiththenewLawonForeign Investment. Asaresult ofthisreview, thelimitonforeign
ownership inradio andtelevision companies intheLawonRadio andTelevision hadbeenraised from
20percentto49percent.Foreignownershipwoodcutting(logging)companiesandgamblingbusiness
wasalsolimited to49percentinaccordance withtheLawonForestry andtheLawonLotteries and
Gambling, respectively. Laws onlandownership allowed wholly-owned foreign companies toown
landiftheowners ofthecompany were from countries withwhich Latvia hadsigned investmentWT/ACC/SPEC/LVA/3
Page6
promotion andprotection agreements (2517countries atpresent). theSaeima (Parliament) decided
thattheGovernment should submit proposals toadjust thementioned lawstotheLawonForeign
Investment within twomonths. Legal orprivate persons from other countries could ownlandifat
least51percentoftheshares inthecompany registered inLatvia belonged toLatvian citizens orto
foreigners from countries withwhich investment protection agreements hadbeen signed. On5
December 1996, theSaeima hadpassed amendments tothelawonLand Privatization inRural Regions
andon13January1997theCouncilofMinistershadadoptedRegulationNo.26"OnLandPrivatization
andAlienation inCities oftheRepublic ofLatvia" which liberalized thelandmarket inLatvia toa
considerableextent.Accordingtothenewrules,statutorycompaniesregisteredintheEnterpriseRegister
could obtain landinruralareasandlandunder Stateormunicipal ownership incities without restriction
evenwhen more thanhalftheirshare capital wasowned byforeign persons. Legal entities could obtain
landownership withonlyfewrestrictions.
State Ownership andPrivatization
12. Some members oftheWorking Party requested details concerning thepaceofprivatization
inLatvia, noting aninitial statement thatprivatization ofagriculture hadbeencompleted by1995and
that75percentofState-owned enterprises would beprivatized by1996. Latvia wasalsoasked to
enumerate sectors orenterprises where State ownership would beretained foralongperiod or
permanently. Questions were alsoraised concerning theparticipation offoreign investors. Some
members requested areport fromLatvia onprogress achieved todateinitsprivatization programme.
Inaddition, Latvia should beprepared toprovide information onaperiodic basis onitsprivatization
efforts,economicreforms,andimplementationofanytransitionalarrangementsnegotiatedintheprotocol
ofaccession.
13. Therepresentative ofLatvia saidthatnoparticular sector would beexcluded fromprivatization.
Themain considerations weretoimprove company performance andtoavoid thecreation ofprivate
monopolies. A"List ofCurrently Non-Privatizable State Specialized Agricultural Enterprises" was
linked torestitution ofproperty toformer owners. Enterprises operating inindustry, agriculture, trade
andconstruction services would beprivatized first,while sectors suchasmedical care,social welfare
services, medicine wholesale andcertain agricultural sub-sectors would beprivatized overalonger
timeperiod. TheGovernment hadalsodecided thatasell-off ofinfrastructure (roads, railway, public
transport, postal services, etc.)would notbereasonable during thefirstyears ofprivatization. Latvia
provided adocument (WT/L/49/Add.1) onprivatization ofagriculture. InJuly1996, from atotal
of613agricultural statutory associations created atthefirststage ofprivatization offormer collectiveWT/ACC/SPEC/LVA/3
Page7
andState farms byallocating shares according toinitial contributions ofcapital andlabour, 207had
beenfullyprivatized andexcluded from theEnterprise Register, 275hadchosen voluntary decision
forselfliquidation and131werestilloperating. Privatization offarms usedfortraining andresearch
would beconsidered onanindividual basis. Foreign firms could participate inprivatization; Latvia
hadheldfour twointernational tenders. Foreign natural andlegalpersons could buyprivatization
certificates onlyafterhaving wonthetender foracompany undergoing privatization. Thisrestriction
didnotapply tojointventures orbranches offoreign companies registered inLatvia.
14. Regarding privatization ofindustry, therepresentative ofLatvia saidthatasat1January 1997
1September 1996, 824805Stateenterprises (asset units) hadbeenassigned forprivatisation, 68State
enterprises assigned forliquidation, State-owned equity holdings of144136enterprises assigned for
privatisation, and37realestates and9plots ofland25realestates assigned forsalebytheCabinet
ofMinisters. ThePrivatisation Agency wasinvolved invaluation of224restitution cases ofproperty
187cases ofrestitution ofproperty. Privatization regulations hadbeenapproved for720621State
enterprises (asset units) ortheirparts, 4942State-owned equity holdings, and2320realestates.
Sales agreements hadbeenconcluded for511435State enterprises (asset units) ortheirparts, 31
29State-owned equity holdings, 2317enterprises tobeliquidated, andfor1514realestates.
Theprivatization process would generally becompleted bytheendof1997, excluding largeState-owned
monopolies, where privatization would becompleted bymid-1998. Completion ofprivatization implied
mass privatization, i.e.involving allinhabitants ofLatvia, ofState-owned enterprises andcovered
95percentofallState-owned land,apartments andState-owned minority holdings ofshares inprivate
companies.
15. Therepresentative ofLatvia confirmed thatnational treatment applied fortheparticipation
offoreigners inprivatization programmes. According toArticle 4oftheLawonthePrivatization of
StateandMunicipal Property, anyperson orlegalentity eligible topurchase liquid and/or fixed assets
inLatvia could beaprivatization subject. Theterm"privatization subject" wasdefined according
totheLawonPrivatization ofState andMunicipal Asset Units asanyspecific person orlegalentity
eligible toobtain Stateormunicipal property during theprivatization process. TheLatvian State or
amunicipality, aStateormunicipal enterprise, aStateormunicipal company, oracompany inwhich
private funds didnotexceed 25percentoftheequity capital, could notbeprivatization subjects. The
representative ofLatvia confirmed thatnational treatment applied fortheparticipation offoreigners
inprivatization programmes. There were norestrictions ontheacquisition ofprivatized State and
municipal property.WT/ACC/SPEC/LVA/3
Page8
16. Asof1January 1997, 1,126 Asof11November 1996, 1,124 State enterprises hadbeen
assigned forprivatization (93.8 93.7 percentofallStateenterprises), among them302in1992-1994,
238in1994, 215in1995 and376369in1996.
21.04.1994.-
31.12.1995.01.01.1996.-
30.04.1996.01.05.1996.-
10.11.1996.
Units under control ofPrivatization Agency 678 989 1,134
Approved privatization principles 409 78 179
Approved privatization regulations 440 133 161
Signed purchase agreements 259 90 136
Intotal, 1,147 units hadbeensoldand53units placed forliquidation. Inorder toattract foreign
investments,thePrivatizationAgencyhadorganizedfourinternationaltenders,offering153125medium
andlargeenterprises. Aspecial Public Offering Programme hadbeencreated toencourage participation
ofLatvia 'spopulation. During fivefour rounds ofthePublic Offering Programme 3629large
enterprises hadbeenoffered tothepublic.
17. Therepresentative ofLatvia confirmed thereadiness ofLatvia toensure thetransparency of
itsongoing privatization programme under theregular tradepolicy reviews oftheWTO andtoprovide
further information onrequest inaccordance withthenotification andconsultation provisions ofWTO
thatLatvia would provide information onaperiodic basisonitsprivatization efforts, economic reforms
andimplementation ofanytransition negotiated intheProtocol. TheWorking Party tooknoteofthis
assurance.
Pricing Policies
18. Noting thatLatvia hadrelaxed price controls onmany goods andservices some members of
theWorking Party requested Latvia toprovide details onremaining restrictions, including minimum
andmaximum prices, particularly forsectors notconsidered natural monopolies. Latvia wasasked
tolisttheimported products subject topricecontrols byHarmonized System (HS)tariffline.Amember
noted thatLatvia exercised price controls inanumber ofsectors, including some which were not
traditionally considered natural monopolies, butintended toreduce itsprice controls totheextent
possible. Thismember stated thatpricecontrols should belisted inanAnnex. Moreover, Latvia should
exercise itsauthority inthisareainamanner thatdidnotdamage imports orotherwise acttoinhibitWT/ACC/SPEC/LVA/3
Page9
trade. Thismember alsosought acommitment from Latvia thatcurrent andfuture price controls be
applied inaWTO-consistent fashion andwould bepublished intheofficial journal andthatLatvia
would takeaccount oftheinterests ofexporting WTO members asprovided forinArticle III.9ofthe
GATT 1994.
19. Therepresentative ofLatvia replied thatpricecontrol andregulation wascarried outaccording
toseparate lawsandaffected products related toenergy; agriculture (recommended prices forpurchases
fortheState grain reserve); theforestry sector (theprice ofstumpage); publishing ofschool books
financed from theState budget; pharmaceuticals; postal services; portservices; airport services;
archives; andhousing rents, power-supply andresidential services. Minimum andmaximum prices
werestipulated forthefollowing domestic andimported services: transit services foroilandoilproducts
bypipeline; reloading ofoilandoilproducts inports; transit shipment ofoilandoilproducts by
railway transport; long-distance transportation ofpassengers andluggage bymotor transport;
transportation ofpassengers andluggage bymotor transport ininternational lines; international
transportation ofcargo andpassengers byrailway transport according tointernational agreements;
transportation ofcargo andpassengers bydomestic railway; shipservices inports; andrents(maximum
level). TheStatedidnotcontrol theprices ofimported goods. However, theprofit margin wasregulated
withrespect topharmaceutical products; thefinalprice could notexceed theimport orproduction
price bymore than20percent. Thegoods andservices subject toState price controls inLatvia are
listed inTable 1.
20.The representative ofLatvia stated thatprice control andregulation wascarried outaccording to
particular laws, allofwhich werepublished intheofficial journal oftheRepublic ofLatvia "Latvijas
Vèstnesis".
Table 1.Goods andservices subject toState price controls
Natural gas(tothepopulation);
Electrical power;
Heating energy;
Theforestry sector (stumpage fees);
Publishing ofschool books financed from theState budget;
Pharmaceuticals;
Postal services;
Portservices;WT/ACC/SPEC/LVA/3
Page10
Table 1.Goods andservices subject toState price controls
Airport services;
Archives;
Housing rents andresidential services;
Minimum andmaximum prices arestipulated forthefollowing domestic andimported
services:
Transit services foroilandoilproducts bypipeline;
Reloading ofoilandoilproducts inports;
Transit shipment ofoilandoilproducts byrailway transport;
Long-distance transportation ofpassengers andluggage bymotor transport;
Transportation ofpassengers andluggage bymotor transport ininternational lines;
International transportation ofcargo andpassengers byrailway transport according to
international agreements;
Transportation ofcargo andpassengers bydomestic railway;
Shipservices inports andrents (maximum level);
20. Therepresentative ofLatvia stated thattheprices ofgoods andservices inevery sector ofLatvia
weredetermined freely bymarket forces withtheexception ofthose noted inTable 1.Intheapplication
ofpricecontrols noworinthefuture, Latvia would apply suchmeasures inaWTO-consistent fashion,
andwould takeaccount oftheinterests ofexporting WTO members asprovided forinArticle III.9
oftheGATT 1994. Heconfirmed thatLatvia wasready toeliminate price control forgrain products
within atwo-year period andwasready toinclude thiscommitment intheProtocol. Latvia would
publish thelistofgoods andservices subject toState controls initsOfficial Journal. TheWorking
Party tooknoteofthese commitments.
Competition Policy
21. Some members oftheWorking Party noted thatLatvia intended toharmonize itslegislation
oncompetition withthatoftheEUoverafour-year period. Latvia wasasked toprovide information
onthepresent status ofdraftlegislation, outline existing provisions regarding mergers andtoprovide
alistofsectors considered "natural monopolies".WT/ACC/SPEC/LVA/3
Page11
22. TherepresentativeofLatviarepliedthattheLaw"OnCompetitionandRestrictionofMonopoly"
of1991would berevised. Anenterprise gaining control ofmore than25percentoftheLatvian market
forgroups ofgoods orservices asaresult ofamerger ortheformation ofapartnership would need
tonotify theInstitution fortheControl ofMonopoly Action andDevelopment ofCompetition. No
system hadbeenestablished tomonitor take-overs andmergers, buttheAnti-Monopoly Committee
cooperated closely withtheCompany Register oftheRepublic ofLatvia andcould intercept registrations
resulting frommergers ortake-overs. Natural monopolies existed inenergy, communication services,
transport,watersupplyandsewerage.MonopolyenterprisesincludedtheStatestockcompanies"Latvijas
gâze" (Latvian Gas), "Latvenergo" and"Latvijas dzelzceî ø"(Latvian Railways); "Lattelekom" -a
limited liability company; suppliers ofheating; andself-government enterprises inwater-supply and
sewerage. However, competition (including foreign participation )waspresent inthesupply ofnatural
gasandinenergy andtelecommunication sub-sectors.
FRAMEWORK FOR MAKING AND ENFORCING POLICIES
23. Amember asked thatLatvia indicate which bodies wereresponsible fortheadministration of
trade policies andindicate thatsub-central governments didnotmake policies affecting international
trade.
24. Therepresentative ofLatvia replied thatthelegislative body oftheRepublic ofLatvia was
theSaeima (Parliament), theconstitutional basisofwhich wasprovided inSection 2oftheSatversme
(Constitution). Theregulation ofinternal proceedings oftheSaeima wascontained intheRules of
Procedure. TheSatversme stated thattheSaeima wasthehighest legislative bodyanditpossessed the
discretionary power. TheSaeima wasthehighest body ofState power, and,according toSection 5
oftheSatversme, itpossessed therighttoadopt lawsandstatements withthehighest legalforce after
theSatversme. Thisprerogative included adoption oflawsrelated totradeandmonopolies andguidelines
forthetrade policy oftheRepublic ofLatvia. Inthisfield, thepowers oftheSaeima werenotlimited
totheextent thattheywere compatible withtheSatversme.
25. Executive power inLatvia wasgiven totheCabinet ofMinisters. Thegeneral principles of
thefunctioning oftheCabinet werecontained inSection 4oftheSatversme. TheCabinet would discuss
alldraftlawsdrawn upbyMinistries andallquestions concerning thecompetence ofvarious Ministries,
thenumber andthefunctions ofwhich werestated according tospecial rules. Thefunctioning ofthe
Cabinet ofMinisters wasregulated bytheLaw"OntheComposition oftheCabinet ofMinisters" ofWT/ACC/SPEC/LVA/3
Page12
15July1993 (asamended on23May1996), Regulation No.5oftheCabinet ofMinisters, andby
special by-laws orgoverning regulations ofeachMinistry, always approved byarelevant Regulation
oftheCabinet ofMinisters. TheCabinet ofMinisters wasformed byaperson entrusted tothattask
bythePresident ofState. Inorder tofulfil theirduties, thePrime Minister andtheMinisters hadto
receive avoteofconfidence bytheSaeima. TheSaeima expressed avoteofconfidence bymeans of
special resolution afterthereport ofthePrime Minister onthecomposition andtheplanned activities
oftheCabinet incaseofapproval. Theimportant point wasthat,according toRegulation No.160
"OntheInternal Order andtheFunctioning oftheCabinet ofMinisters" of1June1996, every draft
regulation orstatement submitted totheState Chancellery forapproval bytheCabinet ofMinisters
would receive legal opinions from interested Ministries andother institutions toensure thatdraft
legislation would becompatible withthelawsinforceandInternational treaties andconventions signed
andratified bytheRepublic ofLatvia. ThetaskoftheStateChancellery wastoverify whether adraft
wascompatible withtheDeclaration oftherelevant Cabinet ofMinisters where theprincipal guidelines
ofitsactivities were mentioned. TheDeclaration wasbinding ontheCabinet.
26. Cabinet decisions were presented intheform ofregulations, instructions, orders or
recommendations. TheCabinet could issueregulations when (i)alawspecifically authorized theCabinet
toissue regulations. Such authorization would needtoprovide details ofthemain rules andoutline
thecontent oftheregulations; (ii)arelevant issuewasnotregulated byalaw;and(iii)inaccordance
withtheArticle 81oftheSatversme, ifthere wasanurgent necessity between sessions oftheSaeima,
theCabinet wasentitled toissue regulations having theforce oflaw.However, Article 81stated that
suchregulations could notmodify lawsconcerning theprocedure andthejudicial issues andthe
Constitution, thebudget, lawsalready passed bytheSaeima inpower, taxes, customs, issuance of
Treasury notes etc.
27. Therights ofthejudiciary power werestated bytheLaw"OntheJudicial Power", bytheCodes
ofCivilandCriminal Procedure, bytheCivilCode andbyspecial lawsonvarious judicial institutions
"OntheBar", "OnthePublic Prosecutor Service", etc.International tradeandmonopoly issues were
qualified bythejudicial institutions asother similar cases. Thejudiciary institutions hadtherightto
settle disputes arising fromquestions ofinternational trade andmonopoly inaccordance withthelaws
andregulations inforce intheRepublic ofLatvia. Thesystem ofCourts ofJustice hadthree levels.
Thefirstinstance wastheDistrict Court orCityCourt, theinstance ofappeal wastheRegional Court,
andtheinstance forcausation wastheSupreme Court. Theveryimportant point wasthat,speciallyWT/ACC/SPEC/LVA/3
Page13
concerning questions ofinternational commercial relations, settlement ofdisputes could bereached
bymeans ofthearbiter court.
28. TheMinistry ofEconomy wasthecompetent institution fortheadministration oftradepolicies
according toArticle 4.3ofRegulation No.47oftheCabinet ofMinisters "The Governing Regulations
oftheMinistryofEconomy"(of7March1995).TheMinistryofEconomyformulatedandimplemented
thegeneral principles ofthedomestic andforeign trade policy oftheState.
29. Therepresentative ofLatvia stated thatsub-central governments werenotentitled toestablish
policies affecting international trade under thelegal rules regulating theirfunctions. TheWorking
Party tooknoteofthisassurance.
POLICIES AFFECTING TRADE INGOODS
Trading Rights
30. Amember asked Latvia toconfirm theabolition oftheState trading monopoly andthatno
restrictions existed ontherightofforeign anddomestic individuals andenterprises toimport andexport
goods andservices within Latvia 'scustoms territory, except asprovided forinWTO Agreements.
Latvia should alsoconfirm thatindividuals andfirms werenotrestricted intheirability toimport or
export based ontheirregistered scope ofbusiness, andthatthecriteria fortheregistration ofcompanies
inLatvia were generally applicable andpublished intheofficial journal.
31. Therepresentative ofLatvia replied thatinaccordance withtheLaw"OnEntrepreneurship",
enterprises andentrepreneurships should beregistered intheEnterprise Register oftheRepublic of
Latvia Register ofEnterprises. Therequirement toregister concerned entrepreneurial associations
andenterprises, including branches andrepresentation offices performing entrepreneurial activity on
theterritory oftheRepublic ofLatvia. Allregistered entrepreneurs, i.e.enterprises andentrepreneurial
associations, carried outtheiractivities under equal rights. Anyactivity ofunregistered entrepreneurial
associations andenterprises wasprohibited. Theregistration procedure andtheinformation tobe
submitted wasregulated bytheLaw"OnEnterprise Register". Foreigners could alsocarry out
entrepreneurship inaccordance withtheLaw"OnForeign Investment inRepublic ofLatvia". In
accordancewiththeLaw"OnEntrepreneurship"andtheRulesoftheCabinetofMinisters"Onrestriction
ofentrepreneurship", onlyStateenterprises hadtherighttoproduce andpress securities, banknotes,
coins, stamps, andcards ofgambling games. Forother kinds ofentrepreneurship restrictions wereWT/ACC/SPEC/LVA/3
Page14
prescribed bytheissuing oflicence orcertificate. Thekinds ofentrepreneurship requiring certificate
orlicence werelisted intheabove-mentioned Rules oftheCabinet ofMinisters. Theactivity licensing
system isdiscussed infurther detail inparagraphs 50to56.
32. Therepresentative ofLatvia confirmed thattheformer State monopoly inforeign trade had
beenabolished andthatnorestrictions existed ontherightofforeign anddomestic individuals and
enterprises toimport andexport goods andservices within Latvia 'scustoms territory, except asprovided
inWTO Agreements. Heconfirmed thatindividuals andfirms werenotrestricted intheirability to
import orexport based ontheirregistered scope ofbusiness, andthecriteria forenrolment intheRegister
ofEnterprises inLatvia weregenerally applicable andpublished intheofficial journal oftheRepublic
ofLatvia "Latvijas Vèstnesis". TheWorking Party tooknoteofthese commitments.
Market Access Negotiations
33. Therepresentative ofLatvia announced hisGovernment 'sreadiness toenter intobilateral
negotiations onmarket access forgoods andservices inMarch 1995(document WT/L/57) andpresented
aninitial offerongoods (WT/L/57/Add.1) together withsupporting dataonimports (WT/L/57/Add.2).
Anumber ofmembers entered intomarket access negotiations withLatvia. Theconcessions and
commitments onimported andexported goods agreed between Latvia andmembers oftheWorking
Party areannexed totheProtocol ofAccession ofLatvia which isreproduced intheAppendix tothis
Report. Asindicated intheconclusions ofthisReport, theWorking Party tooknoteofthemarket
access commitments ofLatvia.
1. Import Regulation
Customs Tariff
34. Amember oftheWorking Party noted thatthecollection ofcustoms duties appeared tohave
beeninefficient inLatvia andwondered whatplans Latvia might haveforimproving itscustoms system
aspartoftheaccession totheWTO. Therepresentative ofLatvia replied thatorganizational
improvements hadbeendiscussed withtheWorld Customs Organization andincluded therevision of
legislation, thereview ofthestructure andfunctions ofthecustoms administration, further trainingWT/ACC/SPEC/LVA/3
Page15
ofcustoms staffandadditional technical equipment. Theorganizational improvements ofthecustoms
system would befinalized by1July1997 withtheentry intoforce ofthenewCustoms Law.
Customs Duties
35. Some members oftheWorking Party requested Latvia todescribe thelegal basis forthe
imposition ofcustoms duties, submit acopyofitsCustoms Tariff, identify products attracting duties
ofmore than20percent, listproducts subject tospecific duties (andtheestimated advalorem
equivalent), outline plans toconvert specific duties intoadvalorem rates, andprovide estimates of
trade-weighted average duties onagricultural andindustrial products.
36. Therepresentative ofLatvia saidthattheLaw"OnCustoms Duties (Tariffs)" hadbeeninforce
since 1December 1994. Duties were generally setat15to20percent. Minimal duties (0.5or
1percent)werelevied ongoods withnodomestic production andhigher duties applied forsensitive
agricultural commodities. Latvia listed products withm.f.n. duties exceeding 20percent(WT/L/49,
pp.27-28) andproducts subject tospecific duties andtheadvalorem equivalents (WT/ACC/LVA/12).
Latvia hadnospecific timetable fortheconversion ofspecific duties toadvalorem rates. Thesimple
average duties amounted to5.69percent; 13percentforagricultural products and3.74percentfor
industrial goods.
Other Duties andCharges
37. Amember oftheWorking Party asked Latvia toclarify thesituation concerning anyother
duties andcharges related toimportation.
38. Therepresentative ofLatvia confirmed thatLatvia levied noduties andcharges onimports
other thanordinary customs duties. Latvia would ensure thatanyfeesandcharges forservices rendered
introducedinthefuturewouldonlybeappliedinconformitywiththerelevantobligationsofGATT1994.
TheWorking Party tooknoteofthiscommitment.
Tariff Rate Quotas, Tariff Exemptions
39. Some members oftheWorking Party noted thatLatvian legislation authorized theopening
oftariff quotas tofacilitate importation ofgoods intemporary short supply orintheimplementationWT/ACC/SPEC/LVA/3
Page16
ofpreferential trade agreements andrequested further details. Amember urged Latvia tobring this
system intoconformity withWTO provisions, andtoconsider using tariff protection onlyandallow
market forces todetermine trade.
40. Therepresentative ofLatvia saidthatthelegalbasis fortheopening oftariff quotas onany
item wastheLaw "OnCustoms Duties (Tariffs)" andregulations No.208"Establishment and
Administration ofImport andExport Tariff Quotas" andNo.24"Authorizations forLicences".
Exceptionally, theCabinet ofMinisters hadapproved atariff quota forimports ofhigh-quality seeds
inApril 1995 and1996 duetoashortage ofdomestic supply. TheState Cereals Bureau could open
tariff quotas withanin-quota tariff of0.5percentwhen itsannual forecasts indicated ashortfall in
Latvian production ofcertain types ofgrain. TheCabinet ofMinisters hadissued Regulation No.85
"OnCustoms Tariff Quotas forGrains" stipulating that20,000 tonnes ofryeand50,000 tonnes of
feedgrain could beimported at0.5percenttariff until1June1997. Thetariff quotas hadbeen
distributed bypublic tender organized bytheStateCereals Bureau withimport licenses issued bythe
Ministry ofAgriculture. Such tariff quotas would besubject topublic tender. Tariff quotas inthe
context ofpreferential tradewereonlyapplied under theLatvia-EU FreeTrade Agreement. Annex XI
oftheAgreement enumerated theproducts concerned andtherespective quotas, while thetariff rates
werelisted inAnnex X.Forprocessed agricultural products therelevant partsoftheAgreement were
Annexes 3and4ofProtocol 2.
41. Therepresentative ofLatvia agreed thatthetariff quota régime forgrain imports wasnot
consistent withWTO requirements andLatvia wasrevising itslegislation toensure conformity with
theAgreement onImport Licensing Procedures. Regulations Nos.208and24hadbeenrevoked and
replaced byregulation No.106 "OnCustoms Tariff Quotas", issued inaccordance withtheLaw"On
International Agreements oftheRepublic ofLatvia", effective 30March 1997. TheLaw"OnCustoms
Duties (Tariffs)" would beamended toabolish thetariff-rate quota system. Theamendments, which
would remove quantitative restrictions associated withlicensing procedures andallow forautomatic
licensing inaccordance withtheAgreement onImport Licensing Procedures, hadbeenpresented to
theSaeima, which wasexpected toapprove thechanges intimefornewprocedures tocome intoeffect
on1July1997.
(Information onbilateral tariff quotas opened fortheEUhasbeenmoved to"Trade Agreements".)WT/ACC/SPEC/LVA/3
Page17
FeesandCharges forServices Rendered
42. Amember oftheWorking Party asked Latvia toclarify whatfeesandcharges, ifany,were
applied forservices rendered related toimportation.
43. TherepresentativeofLatviaconfirmedthatLatvialeviednofeesorchargesforservicesrendered
related toimportation andconfirmed thatanyfeesorcharges levied inthefuture would beimposed
inconformity withArticle VIIIoftheGATT 1994. TheWorking Party tooknoteofthiscommitment.
Application ofInternal Taxes
Excise taxes
44. Some members oftheWorking Party asked fordetails ontheexcise taxsystem inLatvia and
itsapplication onimports anddomestic goods. Latvia wasrequested toindicate, byHStariff line,
thelevels andpoints ofsaleatwhich taxes were applied toimports anddescribe thecomponents of
thetaxable base.
45. Inreply, therepresentative ofLatvia saidthatexcise taxes werelevied onalcohol, tobacco,
motorvehicles,petroleumproductsandjewellery.Taxrateswereidenticalforimportedanddomestically
produced items. ThetaxbaseforLatvian products wasthesales price indomestic currency, taxes
onimports were levied onatariff-inclusive basis. Theratesofexcise taxwere thefollowing:
Rectified ethyl alcohol of200-proof alcohol Ls3.50perlitre
Champagne andallother types ofwine Ls0.25 "
Other alcoholic beverages, perlitrepurealcohol Ls3.50 "
Cigarettes, withfilter Ls0.0035 perpiece
Cigarettes, without filter Ls0.05 "
Cigars andcigarillos Ls0.01 "
Other tobacco products forretail sale 100percent
Unleaded petrol, from 1June1996 Ls0.10perlitre
" " 1January 1997 Ls0.12 "
" " 1January 1998 Ls0.14 "
" " 1January 1999 Ls0.16 "
" " 1January 2000 Ls0.18 "WT/ACC/SPEC/LVA/3
Page18
" " 1January 2001 Ls0.20 "
Leaded petrol, from 1June1996 Ls0.10 "
" " 1January 1997 Ls0.13 "
" " 1January 1998 Ls0.16 "
" " 1January 1999 Ls0.19 "
" " 1January 2000 Ls0.21 "
" " 1January 2001 Ls0.23 "
Gasoline,Gasoil, from 1January 1997 Ls0.02 "
" " 1January 1998 Ls0.04 "
" " 1January 1999 Ls0.10 "
" " 1January 2000 Ls0.16 "
" " 1January 2001 Ls0.17 "
Beer, perlitreof200-proof alcohol, from 1January 1997 Ls3.50 "
Motor cars 10percent
Goods made from goldandother precious metals, jewellery
including diamonds, precious orsemi-precious stones 30percent
Only tobacco products carrying taxlabels could besoldinLatvia. Enterprises licensed toimport or
manufacture tobacco products forsaleordered labels fromtheStateRevenue Service. Therequested
quantity oflabels would besupplied within 14daysagainst payment ofexcise taxandVAT. Thelabels
themselves were notsubject toanyseparate charge asthecostofissuing taxlabels wasincluded in
therateofexcise tax. Exports, re-exports andgoods intransit were exempt from excise taxin
accordance withArticle 4oftheLaw"OnExcise Tax". Exemptions fromexcise taxes hadalsobeen
established foranumber ofproducts, enumerated inTable 12.
Table 12:Exemptions from Excise Tax
Excise taxshallnotbelevied onthefollowing:
Precious metals, precious stones andproducts from saidmetals andstones imported and
purchased fortheneeds ofthePrecious Metal Fund oftheRepublic ofLatvia;
Goods usedforproduction (technological needs) ofgoods listed inArticle 3;
Rectified alcohol:
(i) forthepurposes ofmedicine andveterinary medicine;
(ii) fortheneeds ofresearch anddevelopment;
(iii) forpharmaceutical industry.WT/ACC/SPEC/LVA/3
Page19
Table 12:Exemptions from Excise Tax
Excise taxshallnotbelevied onthefollowing:
Tobacco dustandtobacco products usedforproduction ofinsecticides;
Precious metals formaking dentures;
Goods forexport;
Carswithspark-ignition internal combustion reciprocating engine, working volume ofengine
cylinders ofwhich doesnotexceed 1,600 cm3;
Carswithcompression ignition internal combustion reciprocating engine (diesels orsemi-
diesels), working volume ofengine cylinders ofwhich doesnotexceed 1900 cm3;
Carsolder than7years from thedateofindustrial production;
Carswithelectrical engine (electrocars).
TheCabinet maydetermine themaximum amount ofgoods thatareexcise tax-exempt when
imported forconsumption intothecustoms territory oftheRepublic ofLatvia.
Excise taxshallnotbelevied ontransit cargo shipping andreexport.
Excise taxshallnotbelevied onnatural persons importing alcoholic drinks uptoonelitreor
oneunitinoriginal packaging thatdoesnotexceed 3litres intotalamount, aswellascigarettes
-upto200cigarettes perperson.
Excise taxshallnotbelevied onnatural andlegalpersons selling carsifexcise taxforthe
respective carhasalready beenpaidonce.
Ifanenterprise (entrepreneurial company) exports self-produced orunused goods forwhich
excise taxhasbeenpaid, theexcise taxtransferred intothebudget shallbereimbursed from the
State budget.
Theexcise taxpaidforcarsexported from theRepublic ofLatvia within three months after
theirimport shallbereimbursed from theState budget.
Value Added Tax
46. Noting thataValue Added Tax(VAT) would replace theturnover taxinLatvia, some members
oftheWorking Party requested information ontheapplication oftheVAT, including product- oruser-
specific exemptions. Therepresentative ofLatvia replied thatVAT hadreplaced theturnover taxon
1May1995. VAT waslevied attherateof18percent. VAT waslevied onatariff-inclusive basis
andexcise taxes were added tothetaxbaseofimported anddomestic products. Exemptions from
VAT were determined inaccordance withArticles 6and7oftheLaw"OntheValue Added Tax".
Inall,26types ofgoods andservices wereexempt fromVAT while nineservices related toexporting
andinternational transport were zero-rated (Table 32).
47. Inresponse tospecific questions bysome members oftheWorking Party inpursuance of
Article IIIoftheGATT 1994regarding VAT exemptions forbooks andmass-media items published
or(inthecaseofmass media) registered inLatvia, onVAT exemption formass-media andcertain
publications produced inLatvia, heassured theWorking Party thattheexemption wasalsoapplicableWT/ACC/SPEC/LVA/3
Page20
toimported films. Headded thattheMinistry ofFinance wasdrafting amendments totheLaw"On
theValue Added Tax"thatwould provide equal regulations andthusequal treatment fordomestic and
imported mass media.
Table 32:Goods andServices Exempt from VAT orZero-rated
Exemptions (Article 6)
1. Thetaxshallnotbelevied onthefollowing:
(i) services ofnursing homes;
(ii) services ofday-care centres andkindergartens;
(iii) catering inpenitentiaries;
(iv) services ofeducational establishments directly connected withtheprocess ofeducation,
including tuition atState andlocalgovernment artandmusic schools;
(v) services oftraining farms incatering forstudents atagricultural educational
establishments;
(vi) services ofpublic libraries;
(vii) tuition atprivate educational establishments accredited bytheState;
(viii) visits totheatres, movies (except video), circus shows, concert activities, events in
cultural establishments, visits tomuseums, exhibitions, zoological andbotanical
gardens, events forchildren andcharity events, events ofamateur artandsports;
(ix) medical services, supplies ofmedicine andmedical goods inaccordance withthelist
adopted bytheMinistry ofWelfare andapproved bytheMinistry ofFinance.
(x) supplies ofgold, coins andbanknotes totheBank ofLatvia;
(xi) betting, lotteries andother types ofgambling;
(xii) burial services, andreligious, ritual andother services provided byreligious
organisations registered intheRepublic ofLatvia provided theyhavenopurpose of
systematic gaining ofprofit;
(xiii) insurance services supplied byinsurance companies inaccordance withtheLawOn
Insurance;
(xiv) payments ofindividuals onapartment rentcontracts signed, except payments forrentof
hotels, motels andsimilar establishments;
(xv) specialised baby-food inaccordance withthelistadopted bytheMinistry ofWelfare
andapproved bytheMinistry ofFinance;
(xvi) scientific research financed bypublic foundations, orbyfunding from theState and
localgovernment budget, orinternational institutions;
(xvii) thefollowing goods andfinancial services:
(a) extension ofloans andtheirmonitoring, aswellasservices connected withloan
guarantees orother financial guarantees andtheirmonitoring, except debtcollection;
(b) services ofloaninstitutions connected withdeposit andcurrent account operations,
payments, transfers, debts, checks andother negotiable instruments;WT/ACC/SPEC/LVA/3
Page21
Table 32:Goods andServices Exempt from VAT orZero-rated
(c) negotiable instruments andservices connected withpurchase orsaleofnegotiable
instruments incirculation, except items (money, coins) supplied forcollection, orthat
contain precious metal;
(d) securities andcapital investments, aswellasservices supplied atpurchase andsaleof
securities andcapital investments;
(xviii) humanitarian aidandgiftsinaccordance withtheCabinet regulations, butifsaidgoods
aresold, thetaxshallbepaidinaccordance withlaw;
(xix) consular services;
(xx) school books andscientific literature, firstpublications ofworks oforiginal literature in
Latvian andpublications forchildren published andprinted inLatvia inaccordance with
listsadopted bytheMinistry ofEducation andScience;
(xxi) mass media registered intheRepublic ofLatvia;
(xxii) services provided bycompanies forjointprocessing andsaleofagricultural andfishery
products, aswellascompanies forjointusage andmaintenance ofagricultural
equipment, machinery andother tools (hereinafter -agricultural cooperatives) to
farmers holdings thatarenottaxable persons;
(xxiii) saleofrealestate, except saleortransfer ofanunused realestate toitsowner after
completion ofconstruction;
(xxiv) supplies ofimported goods notsubject tocustoms duties inaccordance withChapters 6
and7oftheLawOnCustoms Duty (Tariffs) under aprocedure setbytheCabinet,
except supplies ofgoods towhich the0%rateofcustoms dutyisapplied;
(xxv) fire-fighting services provided bytheFirefighting andRescue Service department of
theMinistry ofInterior, firefighting services ofinstitutions, enterprises (entrepreneurial
companies) andorganizations, voluntary firefighters 'unions andformations offire
fighting volunteers;
(xxvi) postal services provided bytheState enterprise "Latvian Post".
2. Aperson supplying saidservices (goods) maysubject them tothetaxbyregistering at
theState Revenue Service.
3. Fixed assets imported intheRepublic ofLatvia byataxable person, shallnotbesubject
tothetaxontheborder. Incaseimported fixed assets donotcreate distortions ofcompetition
inthecountry, forexample, duetoproduction ofanalogous fixed assets inLatvia, thetaxshall
bewritten off.Otherwise thecancelled taxshallbecollected from aperson whohasimported
thefixed assets. Theprocedure fortaxwrite-off andcollection shallbedetermined bythe
Cabinet regulations. Ifataxable person supplies goods andservices notsubject tothetaxin
accordance withPart1ofthisArticle, thetaxmaybewritten offonlyfortheportion ofthetax
thatcorresponds totheratioestablished byPart5ofArticle 10.
Application ofZero RatetoExports andInternational Transport (Article 7)
1. 0%taxrateshallbeapplied to:
(i) supplies ofgoods outside theRepublic ofLatvia;
(ii) services related tosupplies ofgoods referred toinParagraph 1ofthisPart;
(iii) supplies ofservices outside thedomestic territory;
(iv) supplies ofgoods andservices related tosupply andmaintenance ofvessels that:
(a) operate oninternational shipping lines;
(b) perform emergency andrescue missions, orprovide assistance onsea;WT/ACC/SPEC/LVA/3
Page22
Table 32:Goods andServices Exempt from VAT orZero-rated
(v) delivery, reconstruction, repairs, maintenance, chartering andlease ofvessels referred
toinParagraph 4ofthisPart, andsupplies andservices inthisregard;
(vi) delivery, reconstruction, repairs, maintenance, chartering andlease ofaircraft operating
oninternational routes, andsupplies andservices inthisregard;
(vii) agent services andservices forcargo handling oftransportation vehicles listed in
Paragraphs 1-6ofthisPart;
(viii) onthebasis ofparity, goods andservices supplied todiplomatic andconsular
establishments intheRepublic ofLatvia, theirdiplomatic andconsular agents andtheir
underage family members residing withthem, inaccordance withtheprocedure setby
theCabinet.
2. Ifanagent representing anatural orlegalperson ofLatvia provides supplies ofgoods
outside theborders oftheRepublic ofLatvia, 0%rateshallapply fortheagent onsupplies of
goods inaccordance withtheprocedure setbytheCabinet.
3. Toreceive input taxrefund, aVAT taxable person registered attheState Revenue
Service shallsubmit documentary evidence substantiating thatthesupply ofgoods orservices
referred toinPart1ofthisArticle hasoccurred.
4. TheVAT amount paidbynatural persons forgoods (iftheirvalue exceeds Ls100)
exported from thedomestic territory shallberefunded inaccordance withtheCabinet
regulations.
5. Ifataxable person thathassupplied goods orservices inaccordance withPart1ofthis
Article cannot produce documents certifying toexport, itshallbesubject tothetaxforgoods
andservices supplied inaccordance attheratesetbyPart1,Article 5.
48. Some members oftheWorking Party requested thatinpursuance ofArticle IIIofthe
GATT 1994, theexemptions from VAT forbooks andmass media items published or(inthecase
ofmass media) registered inLatvia beextended toallitems covered bythese twopoints.
48. TherepresentativeofLatviastatedthat,fromthedateofaccession,Latviawillapplyitsdomestic
taxes, including those onproducts listed inparagraphs 45to47andTables 2and3instrictcompliance
withArticle IIIoftheGATT 1994, inanon-discriminatory manner toimports regardless ofcountry
oforigin andtodomestically-produced goods confirmed thatVAT andexcise taxwereapplied equally
todomestic andimported goods .TheWorking Party tooknoteofthiscommitment.
Quantitative Import Restrictions, including Prohibitions, Quotas andLicensing Systems
49. Some members oftheWorking Party asked Latvia tospecify thebusiness activities subject
tolicensing. Latvia wasrequested tosupply information inaccordance withthequestionnaire onimport
licensing andspecifically asked toprovide acomprehensive list,byHStariffline,ofproducts subject
tonon-tariff measures, citing themeasure applied (prior import approval requirements, mandatory
import licences, import quotas, prohibitions, etc.), itslegal basis, anditsjustification under WTOWT/ACC/SPEC/LVA/3
Page23
provisions. Further questions addressed specific issues suchasquantitative restrictions onimports
ofsugar andimport arrangements affecting grain, ethyl alcohol andspirits, andtobacco. Concerned
about potential barriers totrade, some members asked Latvia toelaborate onhowitslicensing system
-which restricted certain aspects ofbusiness -worked, andsought aclear commitment from Latvia
thatallmeasures applied toenforce quantitative restrictions would beeliminated asofthedateof
accession.
50. Therepresentative ofLatvia saidthatcertain forms ofentrepreneurial activity required aspecial
permit (licence). Limitations onentrepreneurial activity applied when suchlimitations weresetforth
ininternational treaties, conventions oranyother norms ofinternational lawwhich werebinding to
Latvia, orwhen deemed necessary byLatvia fortheprotection oftheinterests ofsociety, public security
orhealth. Thefollowing restrictions onentrepreneurial activity hadbeendetermined inaccordance
withArticle 32oftheLaw"OnEntrepreneurial Activity":
(i) restrictions laiddown bytheStateGovernment orLocal Government laworregulations issued
bytheCabinet ofMinisters aiming atsecuring ofState interests;
(ii) restrictions effected within thecompetence determined bylocalGovernment law;
(iii) restrictions onindividuals carrying outanyformofentrepreneurial activity orintellectual work
requiring special qualifications concerning special knowledge andtesting ofit,asdetermined
byspecial lawsorregulations issued bytheCabinet ofMinisters; and
(iv) restrictions determined bytheBank ofLatvia concerning financial andcredit operations and
banking activity.
Therestrictions onentrepreneurial activity wereenforced through special permits permissions (licences)
orcertificates ofprofessional qualification issued bytheCabinet ofMinisters, Ministries, orState
institutionssubordinatetoandsupervisedbyMinistriesinaccordancewithstatutoryActs;theauthorized
representative oftheStrategic Importance Export andImport Control Board; local governments
(municipal authorities ofcities, towns, pagasts andcitydistricts); professional associations; or
institutions authorised byit,localgovernments, professional associations ortheBank ofLatvia. The
maximum validity ofaspecial permit (licence) wasfiveyear, theminimum validity oneyear. The
special permit (licence) could alsobeissued foranindividual transaction. Licence feespayable toWT/ACC/SPEC/LVA/3
Page24
theState weredetermined bythelaworregulations issued bytheCabinet ofMinisters. Permission
(licence) orcertificate feeswould beestablished bytheissuing authority inaccordance withruleslaid
down bytheCabinet ofMinisters. TheStatereserved therighttomake certain types ofentrepreneurial
activity connected withsecurity oftheStateanditscitizens subject toStatemonopoly. Anydisputes
arising from theapplication ofrestrictions onentrepreneurial activity would besettled byahigher
institution oraCourt ofJustice.
51. Therepresentative ofLatvia saidthatanydisputes arising fromtheapplication ofrestrictions
onentrepreneurial activity, suchasrefusals toissueaspecial permit (licence) orcancellations, would
besettled byahigher institution oraCourt ofJustice. Adecision toreject anapplication toperform
anentrepreneurial activity would needtobeissued within 30daysupon receipt bytheresponsible
authority; thistimelimitwould bereduced to10daysasfromSeptember 1997. Anissuing authority
wasentitled tocancel aspecial permit (licence) issued onthebasisoffalseinformation, oriftherecipient
violated anynormative actsorconditions specified inthespecial permit (licence). Therecipient of
aspecial permit (licence) wasresponsible foritsproper useandwasnotentitled toassign ittoany
other person.
52. Therepresentative ofLatvia saidthatthescope ofthelicensing system hadbeenreduced
gradually; in1996ithadcovered 47business activities. TheGovernment wasreviewing thelicensing
system andintended toelaborate special regulations onimport licensing inaccordance withtheWTO
AgreementonImportLicensingProcedures.ThenewregulationswouldbeadoptedbySeptember1997.
53. InTable 34,therepresentative ofLatvia provided theinformation onnon-tariff measures
affecting imports andthelegal basis forthese measures, which issummarized. Heconfirmed that
animport banonwhite sugar hadbeeninforce since May1993, buttheprohibition didnotapply
torawsugar. Import licences wereissued onanon-discriminatory basisregarding thecountry oforigin;
sugarhadbeenimportedfromDenmark,Estonia,Germany,Lithuania,UkraineandtheUnitedKingdom.
Hestated thatimport restrictions onsugar hadbeenmaintained toprotect localmanufacturers while
theindustry wasrestructured. Heagreed thattheexisting régime didnotcorrespond totheWTO
Agricultural Agreement andLatvia wasready toprepare adoption ofthenecessary legalamendments
tobring thesugar régime inlinewithWTO requirements. Latvia wasready toeliminate theimport
banonwhite sugar andtherestrictive import licensing onother sugar products bythetimeofits
accession totheWTO.WT/ACC/SPEC/LVA/3
Page25
Table 43:Products subject tonon-tariff measures (import licensing)
HStariff line Description Legal basis WTO justification
Chapter 10 Cereals Law"OntheLatvian
grain market andState
grain reserves"
(Article 4)WTO Import
Licensing Agreement
Chapter 11 Products ofthemilling
industryLaw"OntheLatvian
grain market andState
grain reserves"
(Article 4)WTO Import
Licensing Agreement
Chapter 12 Oilbased plane seeds
andoleaginous fruit,
various grain, seeds
andfruit, straw and
fodder.Law"OntheLatvian
grain market andState
grain reserves"
(Article 4)WTO Import
Licensing Agreement
Chapter 1701 Cane orbeetsugar and
chemically pure
sucroseLaw"On
Entrepreneurial
Activity" (Article 32),
Law"OnSugar", and
Regulation No.61WTO Import
Licensing Agreement
Chapter 22 Alcoholic beverages,
spirits andvinegarLaw"On
Entrepreneurial
Activity" and
Regulation No.37of
25January 1994WTO Import
Licensing Agreement
Chapter 23
except 2301, 2303 and
2307.Residues andwaste
from thefood
industries; prepared
animal foddersLaw"OntheLatvian
Grain Market and
State Grain Reserves"
(Article 4)WTO Import
Licensing Agreement
Chapter 24 Tobacco products Law"On
Entrepreneurial
Activity" (Article 32)
andRegulation No.86
of14April 1994WTO Import
Licensing Agreement
54. Therepresentative ofLatvia saidthatquantitative restrictions concerned onlyHSproduct groups
1001to1004and1701. Licensing ofother products wasmaintained forstatistical purposes onlyand
wasautomatic. TheState Cereal Bureau prepared anannual balance sheet ofgrain production and
consumption fortheGovernment. Tendering procedures forimport licences wererequired onlyfor
wheat. Public tenders would beorganized when theproposed imported quantity exceeded 1,000 tons.
Actual import volumes occasionally fellshort ofapproved quantities asimporters wereunable touse
theirentitlements duetounforeseen problems.
55. Therepresentative ofLatvia noted thattheAlcohol Monopoly Department oftheMinistry of
Finance keptalistofofficially approved importers ofalcoholic beverages andintended tobegin regularWT/ACC/SPEC/LVA/3
Page26
publication ofthelist.Thenumber oflicensed importers andtraders wasnotcontrolled orlimited
byanyother administrative means. Thelicensing system wasmaintained forreasons ofhealth and
social policy (toreduce illegal production andimportation) andforthecollection ofexcise taxes; these
objectives could notbeattained byother measures. Imported anddomestic products weresubject to
thesame requirements.
56. Amember understood thatLatvia hadmade tobacco products subject toactivity licensing to
control theinternal market andimport licensing toenforce thecollection ofexcise taxes. Thismember
wasconcerned thatcontrols ontheinternal market operated asabarrier totrade, andtheuseoflicensing
toassure collection ofexcise taxeswasanunnecessary border aberration. Therepresentative ofLatvia
replied thattheimport licensing served statistical purposes only; thecollection ofexcise taxesontobacco
products andother items wasregulated bytheLaw"OntheExcise Tax". Entrepreneurial activity
related totobacco goods waslicensed toprotect thelegaldomestic market against illegal production
andprotect consumers 'interests against low-quality ordangerous products. Headded thatlicensing
ofentrepreneurial activities wasnotamechanism fordirect market control, butthatthelegaldomestic
market required regulation toensure thatuniform conditions applied inproduction, importation,
exportation, sale,storage andtransportation, andfortheStatetoobtain thenecessary statistical basis
tomaintain proper order. Hestressed thatthedistribution ofimported tobacco products wasnot
restricted.
57. Withreference tothelicensing system fortobacco products, therepresentative ofLatvia said
thatthelicensing served statistical purposes andthecollection ofexcise taxes. Thedistribution of
imported tobacco products wasnotrestricted.
AsperDecember1995,76enterpriseshadbeenlicensedforwholesaletrade,11enterprisesforimporting
and2enterprises fortheproduction oftobacco products.
57. Therepresentative ofLatvia saidthatprocedures governing production, manufacture and
distribution ofpharmaceutical products contained intheDrugs Register orVeterinary Drugs Register
oftheRepublic ofLatvia, including licensing provisions forspecific pharmaceutical activities, were
outlined intheLaw"OnPharmaceutical Activities".
58. Some members oftheWorking Party requested thatLatvia undertake toeliminate allmeasures
applied toenforce quantitative restrictions, including thenon-automatic import licensing forgrains
andthebanonsugar imports, asofthedateofaccession andcommit nottointroduce, re-introduce
orapply quantitative restrictions onimports ornon-tariff measures suchaslicensing, quotas, bansand
other restrictions having equivalent effect thatcannotbejustified under theprovisions oftheWTOWT/ACC/SPEC/LVA/3
Page27
Agreements onTechnical Barriers toTrade, Sanitary andPhytosanitary Measures, Import Licensing
Procedures andAgriculture. Additionally, Latvia wasasked toconfirm thatimport licensing onother
commodities, especially wheat flour, cereal flour, cereal groats, cereal grains otherwise worked, sugar
andanimal feed, alcoholic beverages andtobacco products, wereissued forstatistical purposes only
andadministered inconformity withArticle XIoftheGATT 1994 andtheAgreement onImport
Licensing Procedures.
59. Therepresentative ofLatvia confirmed thatLatvia maintained noquantitative import restrictions
onanyproducts other thanthose mentioned inparagraphs 50to58.
60. Therepresentative ofLatvia confirmed thatLatvia would implement theAgreement onImport
Licensing Procedures onthedateofaccession totheWTO. Hefurther confirmed thatallquantitative
restrictions, including non-automatic import licensing forproducts falling under HSChapter 10for
grains andthebanonsugar imports, would beeliminated upon accession, asrequired byArticle XI
oftheGATT 1994 andtheAgreement onAgriculture. Heconfirmed thatimport licensing onother
commodities, especially wheat flour, cereal flour, cereal groats, cereal grains otherwise worked, sugar
andanimalfeedwereadministeredinconformitywithArticleXIandtheAgreementonImportLicensing
Procedures. Latvia would alsoensure thatlicensing andspecial permit requirements ontheimportation
ofalcoholic beverages andtobacco products would not,infact,restrict therighttoimport theseproducts
intoLatvia orinanywaydiscriminate against imported products. TheWorking Party tooknoteof
these commitments.
Customs Valuation
61. Some members oftheWorking Party asked Latvia toprovide additional information onits
customs valuation methods, noting inparticular thatterminology suchas"approximate valuation" and
valuation "according tothegoods ofthesame type" hadnocounterpart intheWTO Agreement on
Implementation ofArticle VIIoftheGATT 1994(theCustoms Valuation Agreement). Suchvaluation
practices were specifically prohibited inArticle 7.2oftheCustoms Valuation Agreement andthe
Agreement authorized nodelay intheimplementation ofthisprovision. Amember sought Latvia 's
commitmenttoapplyfullytheWTOprovisionsconcerningcustomsvaluationfromthedateofaccession,
including, inaddition totheAgreement ontheImplementation ofArticle VIIoftheGATT 1994, the
provisions fortheValuation ofCarrier Media Bearing Software forDataProcessing Equipment and
theprovisions ontheTreatment ofInterest Charges inCustoms Value ofImported Goods.WT/ACC/SPEC/LVA/3
Page28
62. Therepresentative ofLatvia saidthatcurrent valuation practices werebased ontheLaw"On
Customs Duty(Tariffs)" theLawonCustoms DutyandRegulation No.27"OnEstimations ofCustoms
Valuation Relating toImported andExported Goods andOther Subjects" which interaliaallowed the
useofreference prices. Latvia acknowledged thedisparity between itslegislation andtheWTO
Agreement onImplementation ofArticle VII. Amendments toexisting rules hadaccordingly been
drafted andsubmitted forwere awaiting approval oftheCabinet ofMinisters andratification by
Parliament. ThenewCustoms Lawwasexpected toenter intoforce on1July1997. Thevaluation
methods inthenewLawCode were based ontransaction value; thevalue ofidentical goods; the
value ofsimilar goods; theunitprice method andthecomputed value method. Acopyofthedraft
lawwasprovided totheWorking Party.
63. Therepresentative ofLatvia saidthatLatvia would undertake tointroduce, implement and
enforce customs valuation legislation inaccordance with therequirements ofArticle VIIofthe
GATT1994andtheAgreementontheImplementationofArticleVIIoftheGATT1994by1July1997.
Heconfirmed thatLatvia would fullyapply theWTO provisions concerning customs valuation from
thedateofaccession without recourse toatransition period, including theAgreement onthe
Implementation ofArticle VIIoftheGATT 1994including itsprovisions onmethods ofappraisement
andAnnex I(Interpretative Notes) andArticle 13oftheAgreement, aswellastheprovisions forthe
Valuation ofCarrier Media Bearing Software forDataProcessing Equipment (Decision 4.1). The
Working Party tooknoteofthese commitments.
Other Customs Formalities
64. Therepresentative ofLatvia saidthatLatvia wasamember oftheWorld Customs Organization.
Adraftlawonaccession totheKyoto Convention hadbeensubmitted totheGovernment. Norms
laiddown intheKyoto Convention hadbeentaken intoaccount inthedevelopment ofthenewCustoms
Law.
Anti-Dumping, Countervailing Duties andSafeguard Régimes
65. Some members oftheWorking Party referred totheprovisions regarding anti-dumping and
countervailing duties inChapter IIoftheLaw"OnCustoms Duties (Tariffs)" andrequested information
onLatvia 'sintentions concerning theestablishment ofnew, broader legislation inthisarea. The
representative ofLatvia saidthatatpresent nodraftlegislation existed related tothisissue. Latvia
wasatthestageofexamining possibilities fortheintroduction ofanti-dumping andcountervailing dutiesWT/ACC/SPEC/LVA/3
Page29
legislation, taking intoaccount itsspecific situation asasmall country andtheresources available in
theStatebudget forthepurpose ofeventual investigations. According totheexisting timetable, draft
legislation oncountervailing duties would bepresented totheCabinet ofMinisters by1998, anda
study ontheintroduction ofanti-dumping legislation would becompleted inthebeginning of1998.
66. Some members oftheWorking Party asked Latvia todescribe itssafeguards régime and
questioned whether existing legislation would beconsistent with GATT Article XIX andthe
WTO Agreement onSafeguards. Therepresentative ofLatvia replied thatthecurrent safeguards régime
wasbased onRegulation No.20"Regulations toProtect theDomestic Market forFoods StuffProduced
inLatvia". Theregulation addressed onlyagricultural products -inparticular liveanimals, grain,
milk, meat, fish,potatoes andproducts made thereof -andhadbeenintroduced astherecent economic
transition haddisrupted sectors which normally would supply competitive products. However, the
regulations hadyettobeapplied. Theexisting régime wastemporary andwould bereplaced bynew
legislation. Currently, Latvia hadnotimetable fordrafting andintroducing newsafeguard legislation.
67. Therepresentative ofLatvia saidthatLatvia would notapply anyanti-dumping, countervailing
orsafeguard measure untilithadimplemented appropriate laws. Intheelaboration ofanylegislation
concerning anti-dumping duties, countervailing duties andsafeguards, Latvia would ensure theirfull
conformity withtherelevant WTO provisions, including Article VIandXIXoftheGATT 1994 and
theAgreements ontheImplementation ofArticle VI,theAgreement onSubsidies andCountervailing
Measures andtheAgreement onSafeguards. Latvia would alsoapply anyanti-dumping duties,
countervailing duties andsafeguard measures infullconformity withtherelevant WTO provisions.
TheWorking Party tooknoteofthese commitments.
2. Export Regulation
Customs Tariffs, FeesandCharges forServices Rendered, Application ofInternal Taxes toExports
68. Some members oftheWorking Party requested details onexport taxratesandplans tophase
outsuchtaxes.
69. Inresponse, therepresentative ofLatvia saidthatallgoods werezero-rated withtheexception
ofcertain wood products, metal waste andscrap, andantiquities. Thelistofconcerned products, by
HStariffline,andtherespective tariffratesisreproduced inTable 5.Export duties oncertain mineral
products falling within HSChapter 25wereeliminated witheffect from17July1996. Latvia would
abolish export duties byyear2000, withtheexception ofduties onspecific antiques.WT/ACC/SPEC/LVA/3
Page30
Table 5:Export Duties
LCCN code
Description Basic rateofdutyRateofdutyfor
"themost
favourable regime"Rateofdutyfor
"The freetrade
regime"
% Ls % Ls % Ls
1 2 3 4 5 6 7 8
Wood intherough, whether ornotstripped of
barkorsapwood, orroughly squared
4403 20001 --Round timber withlength above 2mand
diameter from 14cm to24cm, dense M3* 6.0 6.0 6.0
4403 20002 --Round timber withlength above 2mand
diameter 26cm andmore, dense M3*8.0 8.0 6.0
4403 91001 --Oak-tree round timber withlength above 1m
anddiameter above 14cm, dense M3* 50.0 50.0 50.0
4403 92001 --Beech round timber withlength above 1m
anddiameter above 14cm,dense M3* 60.0 60.0 60.0
4403 99901 ----Round timber withlength above 1.6m and
diameter from 16to24cm (veneer blocks,
match blocks andsaw-timber of
sortA),dense M3* 16.0 16.0 16.0
4403 99902 ----Round timber withlength above 1.6m and
diameter 26cm andmore (veneer blocks, match
blocks andsaw-timber ofsortA),dense M3*
20.0 20.0 20.0
4403 99903 ----Round timber withlength above 1.6m and
diameter from 16to24cm (except veneer
blocks, match blocks andsaw-timber of
sortA),dense M3* 4.0 4.0 2.0
4403 99904 ----Round timber withlength above 1.6m and
diameter 26mandmore (except veneer blocks,
match blocks andsaw-timber of
sortA),dense M36.0 6.0 2.0
4403 99909 ----Ash-tree, elm,elm-tree, hornbeam, maple
andother Latvian hardleaf-bearing round
timber withlength above 1manddiameter
above 14cm, dense M3* 50.0 50.0 50.0
Printed books, brochures, leaflets andsimilar
printed matter, whether ornotinsingle sheets
4901 10002 --Published before 50-100 years* 50 50 0
4901 10003 --Older than100years* 100 100 0
-Other:
--Dictionaries andencyclopedias, andserial
instalments thereof
4901 91002 --Published before 50-100 years* 50 50 0
4901 91003 --Older than100years* 100 100 0
-Other:
4901 99002 --Published before 50-100 years* 50 50 0
4901 99003 --Older than100years* 100 100 0
7204 Ferrous waste andscrap; remelting scrap
ingots ofironorsteel 100 100 100
7404 00 Copper waster andscrap 20 20 20
7503 00 Nickel waste andscrap: 20 20 20
7602 00 Aluminium waste andscrap: 20 20 20
Works ofart,collectors 'pieces andantiques
-Paintings, drawings andpastels
9701 10002 --From 50to100years* 50 50 0WT/ACC/SPEC/LVA/3
Page31
Table 5:Export Duties
LCCN code
Description Basic rateofdutyRateofdutyfor
"themost
favourable regime"Rateofdutyfor
"The freetrade
regime"
% Ls % Ls % Ls
1 2 3 4 5 6 7 8
9701 10003 --Older than100years* 100 100 0
9701 90002 --From 50to100years* 50 50 0
9701 90003 --Older than100years* 100 100 0
Original engravings, prints andlithographs
9702 00002 --From 50to100years* 50 50 0
9702 00003 --Older than100years* 100 100 0
Original sculptures andstatuary, inany
material
9703 00002 --From 50to100years* 50 50 0
9703 00003 --Older than100years* 100 100 0
9706 00000 Antiques ofanageexceeding 100years 100 100 0
70. Therepresentative ofLatvia confirmed thatLatvia would abolish allexport duties by
1January 2000 withtheexception ofthedutyonantiques. Present export tariff ratesrelated only
tothegoods listed inTable 5Export Duties. Allcustoms tariffchanges werepublished intheofficial
journal oftheRepublic ofLatvia -thenewspaper "Latvijas Vèstnesis".
Export Restrictions
71. Some members oftheWorking Party requested details onthelicensing régime onexports,
notably withregard totradeinmetals andpyrotechnical materials. Therepresentative ofLatvia replied
thatbusiness licences wereissued toregistered enterprises fordomestic purchasing andexports ofmetal
scrap inaccordance withtheLaw"OnEntrepreneurial Activity". Licensing oftradeinstrategic goods,
products, services andtechnologies hadbeenestablished forreasons ofinternal security andtofulfil
internationalobligationsonnon-proliferation.LatviahadestablishedanExportControlSystemcovering
munitions andexports ofdualusegoods based oninternational guidelines, incorporating theformer
COCOM Munitions ListandCouncil Regulation (EC) No3381/94.
Export Subsidies
72. Amember oftheWorking Party asked Latvia todescribe itsdutydrawback system. The
representative ofLatvia replied thatdutydrawback wasavailable fortemporary importation ofgoods
forprocessing, improvement, repair orreplacement duetospoilage, andre-exports inaccordance with
Chapter VIIoftheLaw"OnCustoms Duties (Tariffs)" withRegulation No.87"Import ofCommoditiesWT/ACC/SPEC/LVA/3
Page32
andOther Items forProcessing" providing more specific procedures. Additional documentation was
required tocertify thatgoods would notbesoldinthedomestic market andtoindicate theforegone
amount ofimport taxes andVAT. Heconfirmed thatLatvia maintained noquantitative restrictions
related tothedutydrawback scheme.
73. Therepresentative ofLatvia saidthathisGovernment intended tosupport anexpansion ofthe
activities ofthe"Latvian Export Credit", aState Joint Stock Company. Thiscompany hadbeen
established on20January 1995according toOrder No.519-r oftheCabinet ofMinisters oftheRepublic
ofLatvia "OntheStateJointStock "Latvian Export Credit"". Themain aimofthecompany wasto
promote exports ofmanufactured goods, services andtechnology offered byLatvian entrepreneurs
toother countries andtoenable Latvian entrepreneurs tomanage export andimport transactions,
providingthemwiththecorrespondinginsuranceandguaranteesystem."LatvianExportCredit"offered
export guarantees -export payment guarantees, export finance guarantees, buyer credit guarantees
andletter ofcredit guarantees -andimport guarantees, i.e.import payment guarantees andimport
finance guarantees.
74. Therepresentative ofLatvia stated thatLatvia didnotmaintain anyexport subsidies which
metthedefinition ofaprohibited subsidy within themeaning ofArticle 3oftheAgreement onSubsidies
andCountervailing Measures, andwould notintroduce suchsubsidies inthefuture. TheWorking
Party tooknoteofthiscommitment.
Internal Policies Affecting Foreign Trade inGoods
Industrial Policy, including Subsidies
75. Amember oftheWorking Party noted thattheLatvian Government hadsignalled plans for
extensive investments ininfrastructure andwondered what thelikely effect would beonLatvia 's
exporting sectors. Herequested thatindustrial support programmes benotified inaccordance with
theAgreement onSubsidies andCountervailing Measures.
76.Therepresentative ofLatvia replied thattheGovernment aimed atimproving infrastructure generally
andwould nottarget anyparticular industry orenterprise. Heconfirmed thatLatvia didnotmaintain
subsidies which metthedefinition ofaprohibited subsidy, within themeaning ofArticle 3ofthe
Agreement onSubsidies andCountervailing Measures.
76. Therepresentative ofLatvia added thatthestructural policy ofhisGovernment aimed at
successful transition toacompetitive market economy operated byviable industrial enterprises. TheWT/ACC/SPEC/LVA/3
Page33
Ministry ofEconomy haddrafted a"Concept ofGovernment Strategy inIndustry andNational
Programme ofSmall andMedium Enterprise Development" which discussed issues suchasinvestment
promotion, industrial cooperation, industry restructuring andjobcreation. Thedevelopment ofsmall
andmedium sized enterprises wasconsidered particularly important andtheGovernment encouraged
andsupported entrepreneurship through training andnetwork programmes. Business Advisory Service
Centres, enterprise foraandeducational "workbooks" hadbeenestablished tofacilitate management
training andbusiness networks. Higher education institutions alsooffered special training courses for
entrepreneurs. TheGovernment hadalsoelaborated aregional development policy under which grants
andloans would beprovided fortheestablishment andexpansion ofsmall andmedium sizedenterprises
andthedevelopment ofenergy-saving technology. Riskfinancing would beprovided through anew
institution, theRegional Development Fund. Another important element ofLatvia 'sindustry policies
wastherestructuring andprivatization ofStateenterprises withemphasis ontheparticipation offoreign
investors.
77. Therepresentative ofLatvia confirmed thatLatvia didnotmaintain subsidies which metthe
definition ofaprohibited subsidy, within themeaning ofArticle 3oftheAgreement onSubsidies and
Countervailing Measures andthatitdidnotintend tointroduce suchprohibited subsidies inthefuture.
Therepresentative ofLatvia confirmed thatanysubsidy programmes would beadministered inline
withtheAgreement onSubsidies andCountervailing Measures andthatallnecessary information on
programmes tobenotified, ifsuchexist, would beprovided totheCommittee onSubsidies and
Countervailing Measures inaccordance withArticle 25oftheAgreement upon entry intoforce of
Latvia 'sProtocol ofAccession. TheWorking Party tooknoteofthiscommitment.
Technical Barriers toTrade, Sanitary andPhytosanitary Measures
78. Regarding technical barriers totrade, some members oftheWorking Party asked about the
system ofstandards andproduct certification inLatvia, including participation ininternational standards
organizations,planstoadoptandimplementtheCodeofGoodPractice(Annex3oftheWTOAgreement
onTechnical Barriers toTrade), theacceptance ofcertificates issued byforeign bodies andaccreditation
ofprivate certification bodies.
79. Therepresentative ofLatvia provided information ontechnical barriers totrade indocument
WT/ACC/LVA/4 Annex 5.Headded thatinorder tofulfiltheobligations laiddown bytheAgreement
onTechnical Barriers toTrade (theTBTAgreement), notably itsArticle 2"Technical Regulations
andStandards", Latvia haddeveloped aNational Standardization System approved bytheCabinet ofWT/ACC/SPEC/LVA/3
Page34
Ministers on8August 1995. TheLatvian National Centre ofStandardization andMetrology hadbeen
established toperform allactivities related totheadoption ofstandards. stated thattheLatvian National
Standardization andMetrology Centre prepared national standards, allofwhich werevoluntary except
those related tohuman health, safety andtheenvironment. Standards were formulated intechnical
committees comprising representatives ofrelevant Ministries, producers andotherexperts. TheCentre
wasanaffiliatedmemberoftheEuropeanStandardizationCommittee(CEN)andacorrespondingmember
oftheISO,and. TheCentre applied ISOGuide 21which outlined theprinciples regarding adoption
ofinternational standards. Inall,21technical committees hadbeenestablished under theauspices
oftheCentre, andtheirmaintasksweretoimplement andharmonize theLatvian standardization system
withinternational standards. Membership inthetechnical committees reflected allinterested parties
concerned, i.e.representatives ofrelevant Ministries, producers andotherexperts.Latvia waspreparing
massimplementation ofinternational standards using the"cover sheet" method, allowing theadoption
ofapproximately 500standards peryear. Specific Latvian standards wereimplemented onlyinvery
narrow areas ofpurely national interest. Inview ofArticle 4oftheTBTAgreement, Latvia was
preparing toadopt andimplement theCode ofGood Practice forthePreparation, Adoption and
Application ofStandards. TheLatvian National Centre ofStandardization andMetrology would be
theresponsible body forimplementing theCode ofGood Practice.
80. Concerning Article 5oftheTBTAgreement, Parliament hadadopted laws"OnConformity
Assessments", "OntheSafety ofProducts, Services andLiability ofProducer, Services Supplier" during
1996andaLaw"OnUniformity ofMeasurements" in1997. Latvia hadadopted asnational standards
EN45000, ISO9000andISOGuides 21,22,25and58toensure harmonized conformity assessment
procedures (forproducts) andquality systems (formanufacturers). Conformity assessment inthe
mandatory area,i.e.related totheprotection ofhuman health, safety andtheenvironment, wascarried
outbycompetent testing andcalibration laboratories andcertification andinspection bodies authorized
bytheCabinet ofMinisters. Thecompetence oftesting andcalibration laboratories andcertification
andinspection bodies wasassured bymeans ofaccreditation orequivalent procedures inaccordance
withISO/IEC Guides 25and58.Latvia operated aunified accreditation system inaccordance with
internationalprinciplesandrelevantISOprovisions.AccreditationwasaccordedbytheLatvianNational
Accreditation Office (LATAK), anindependent bodyunder thesupervision oftheMinistry ofEconomy.
LATAK assured thedetermination ofcompetence oftheconformity assessment bodies.
81. TherepresentativeofLatviasaidthatconformityassessmentcertificationofgoodswasprescribed
intheLaw"OntheProtection ofConsumer Rights", "OntheSafety ofProducts, Services andLiability
ofProducer, Service Supplier", "OnConformity Assessment" andtheLaw"OnUniformity ofWT/ACC/SPEC/LVA/3
Page35
Measurements". Three third-party certification centres hadsofarbeennominated bytheCabinet of
Ministers:theLatvianNationalCertificationCentreforFood,CosmeticsandToys;theLatvianNational
Standardisation Centre forHousehold Electric Equipment; andtheBaltic Machinery Experimental
Station forAgricultural andWood Equipment. These Centres wereunder accreditation procedures.
Conformity assessment inthemandatory area, i.e.related totheprotection ofhuman health, safety
andtheenvironment, wascarried outbycompetent testing andcalibration laboratories andcertification
andinspectionbodiesauthorizedbytheCabinetofMinisters.TheNationalAccreditationOfficeintended
tojoinISOCASCO. Certificates issued byforeign institutions wererecognized inaccordance with
bilateral agreements andcorresponding regulations onunilateral recognition. Safety standards and
requirements were identical forimported anddomestic products. However, Draft standards were
disseminated among allinterested parties andwere available foranydiscussion andcomments.
82. Referring toArticle 10oftheTBTAgreement, therepresentative ofLatvia saidthatLatvia
would ensure theexistence ofanenquiry point tohandle allreasonable enquiries fromortoother WTO
memberStatesandinterestedparties.Theenquirypointwouldalsoberesponsibleforprovidingrelevant
documents regarding technical regulations, standards andconformity assessment procedures inLatvia.
83. Some members oftheWorking Party asked Latvia todescribe itsrégime ofsanitary and
phytosanitary measures inthelightofWTO requirements andoutline howtheprovisions oftheWTO
Agreement ontheApplication ofSanitary andPhytosanitary Measures (SPS Agreement) would be
implemented afteraccession. Latvia provided information ontechnical barriers totrade indocument
WT/ACC/LVA/4, Amember wasparticularly concerned about transparency, asitappeared thatnew
regulations were notalways published prior toimplementation.
84. Therepresentative ofLatvia saidLatvia participated intheactivities oftheCodex Alimentarius
Commission, theIOE(Office International desEpizooties) theInternational Office ofEpizootics (IOE)
andtheEuropean andMediterranean Plant Protection Convention andhoped tojointheInternational
Plant Protection Organization in1996or1997. Latvia based itssanitary andphytosanitary measures
onrecommendations oftheseorganizations andonregulations inforce intheNordic countries. Latvia
reported monthly tointernational organizations (FAO, WHO andIOE) onprogress inimplementing
international norms. Acompleted questionnaire onsanitary andphytosanitary measures wasprovided
totheWorking Party (WT/ACC/LVA/12, Annex 2).
85. Therepresentative ofLatvia added thattheLaw"OnPlantProtection" provided theframework
foradministering phytosanitary measures. Sanitary measures werecovered intheLaw"OnVeterinaryWT/ACC/SPEC/LVA/3
Page36
Medicine", the"Pharmaceutical Law" andthe1995 "Food Law". Latvia wasintheprocess of
establishing adequate approval, control andinspection procedures asrequired bytheWTO Agreement.
VeterinarycontrolswereeffectedbytheVeterinaryDepartmentoftheMinistryofAgriculture.Imported
products wereaccompanied bycertificates issued bytheveterinary authorities oftheexporting country
inaccordance withLatvian quality requirements. Theproducts covered byveterinary regulations fell
under HSChapter headings 0100, 0200, 0300, 0400, 0407, 0409, 0410, 0500, 0714, 1000, 1200,
1201, 1202, 1204-1208, 1211, 1212, 12149010, 1500, 1600, 2100, 2300, 2302, 2304-2306, 2308
and2309. TheState plant protection service wasresponsible forthecontrol ofproducts groups
0601-0603, 0701, 0703, 0706, 0708, 0713, 0714, 0801-0806, 0808, 0809, 0813, 090111, 090130,
0904, 0906-0908, 0910, 1000, 1101-1103, 1107, 1200, 1201, 1202, 1203, 1204, 1205, 1206, 1207,
1208, 1209, 1210-1212, 1214910, 1400, 1802, 1802, 2302-2306, 2308and2404. TheEnvironment
Health service institutions inspected products under HSheadings 0200, 0300, 0400, 0409, 0410, 0500,
0700, 0701, 0703, 0706, 0708, 0713, 0714, 0800-0806, 0808, 0809, 0813, 0900, 090111, 0904,
0906-0908, 0910, 1000, 1100-1103, 1107, 1201, 1202, 1204-1207, 1210-1212, 1300, 1500, 1600,
1700, 1800, 1801, 1900, 2000, 2100, 2200, 2402and2403. Latvia would accept exporters 'certificates
forprocessed foodproducts conforming toLatvia 'sregulations. Theofficial listofquarantinable pests
(plant) anddiseases (animals) wasprovided totheWorking Party.
86. SummarizingLatvia'seffortsthusfartoimplementtheAgreementontheApplicationofSanitary
andPhytosanitary Measures, therepresentative ofLatvia saidthatfivelaws-theLawonProtection
ofConsumer Rights, theLawonVeterinary Medicine, theLawonPharmaceuticals, theLawonFood
andtheLawonPlant Protection -hadbeenadopted since 1992. These lawsandtheiramendments
constitutedthebasisforLatvia'scompliancewiththeSPSAgreement.Latviawaspreparingamendments
totheLawonFoodtomeettherequirementsoftheSPSAgreementtakingintoaccountrecommendations
made byagroup ofexperts inrelation toanFAO project onfoodquality improvement inLatvia and
aproject onLatvia 'sfoodlegislation sponsored byDenmark. Laws would berevised toclarify
authorities 'areas ofcompetence andresponsibility intheelaboration andharmonization ofregulations
andrequirements aswellasinmarket surveillance toavoid duplication andensure more effective food
control. Theveterinary andphytosanitary border control administration would bereorganized inthe
nearfuture toimprove coordination andmeetinternational standards. Asaresult oftheprocess to
harmonized foodlegislation Latvia hadrecently adopted anewregulation onmaximum residue level
ofveterinary drugs infood, andaregulation ona"Positive listoffoodadditives" wasinpreparation.
Bothregulations were infullcompliance withinternational rules. Latvia observed theprinciple of
transparency asitrequired alladopted regulations related tosanitary andphytosanitary measures to
bepublished intheofficial newspaper oftheRepublic ofLatvia "Latvijas Vèstnesis". Prior totheirWT/ACC/SPEC/LVA/3
Page37
adoption alldraftregulations were discussed intheAdvisory Board oftheState Veterinary Service
andpublished inthemedia oftheveterinary profession toencourage widediscussion. TheFoodCouncil
hadrecently begun activities asLatvia 'senquiry point andserved asanexpert panel fordrafting
legislative actsandamendments. Themembers oftheCouncil were responsible officials and
representatives ofproducers, traders, consumers andother involved institutions. Latvia hadalso
developed atraining system forveterinary inspectors inorder toimprove thestandards ofcontrol,
inspection andapproval procedures according totheSPSAgreement.
87. Therepresentative ofLatvia confirmed thatLatvia would apply allobligations under theWTO
Agreements onSanitary andPhytosanitary Measures andTechnical Barriers toTrade from thedate
ofaccession without recourse toanytransition period. agreed thatsanitary andphytosanitary measures
should bepublished inadvance ofimplementation toallow comments. ANational Food Centre would
beestablishedforthedisseminationofinformationpriortoLatvia'saccessiontotheWTO.TheWorking
Party tooknoteofthiscommitment.
Trade-Related Investment Measures (TRIMs)
88. Some members oftheWorking Party enquired about Latvia 'sintentions regarding notification
andelimination ofmeasures notinconformity withtheprovisions oftheWTO Agreement onTrade-
Related Investment Measures (TRIMs).
89. Therepresentative ofLatvia saidthatLatvia didnotmaintain anymeasures inconsistent with
theTRIMs Agreement anddidnotintend tointroduce suchmeasures inthefuture. andwould not
invoke provisions intheAgreement thatprovide fortheprogressive elimination ofsuchmeasures within
afixed period oftime. TheWorking Party tooknoteofthiscommitment.
State Trading Entities
90. Noting thatmore than500State-owned enterprises were involved inforeign trade in1994,
some members oftheWorking Party asked Latvia toprovide alistofallfirms wholly orpartly owned
ormanaged bytheState, specifying anyexclusive orspecial rights accorded totheseenterprises. Latvia
wasrequested tocomplete thequestionnaire onState trading. Amember feltthattheState Cereal
Bureau State Grain Board could meetthecriteria ofaState trading enterprise under Article XVII of
theGATT 1994 andthatthedefinition might alsocover other enterprises engaged inagricultural
production anddistribution, including trade insugar; metals; alcoholic beverages; andthenaturalWT/ACC/SPEC/LVA/3
Page38
monopolies managed bytheState. Latvia wasalsoasked toprovide details onthetrading firms
Interlatvija andLatvijas Labiba.
91. Therepresentative ofLatvia provided anotification onStatetrading totheWorking Party in
document WT/ACC/LVA/12 (Annex 3)describing thefunctioning oftheState Cereal Bureau. The
StateCereal Bureau wasaninstitution notengaged inregular grain trade; onoccasion grain hadbeen
boughttoreplenishreservesheldforfoodsecurityreasons.Domesticgrainwasfavouredinprocurement
fortheStatereserve.InstitutionssuchastheStateAlcoholMonopolyBoardandtheTobaccoDepartment
didnotengage intrade, butissued business licences toother operators intheirrespective areas. Other
State-owned enterprises onlyheldthesamerights totradeastheprivate sector. Other Stateenterprises
onlyheldthesamerights totradeastheprivate sector. Thetrading companies Interlatvija andLatvijas
Labiba were fully privatized in1991 andtheGovernment hadnorôleintheir activities. The
representative ofLatvia stated thatnoenterprises, other thantheStateCereal Bureau, operated under
special orexclusive rights inLatvia.
92. TherepresentativeofLatviaconfirmedthathisGovernmentwouldapplyitslawsandregulations
governing thetrading activities ofState-owned enterprises andotherenterprises withspecial orexclusive
privileges andwould otherwise actinfullconformity withtheprovisions oftheWTO Agreement,
inparticular Article XVII oftheGATT 1994 andtheUnderstanding onthatArticle andArticle VIII
oftheGATS. Hefurther confirmed thatLatvia would notify anyenterprise falling within thescope
ofArticle XVII. TheWorking Party tooknoteofthese commitments.
FreeZones, Special Economic Areas
93. Therepresentative ofLatvia saidthataFreePortrégime existed inonepartoftheRigaTrading
Port, established bytheLaw"OnRigaFreePort", passed byParliament inNovember 1996. Projects
were under waytoestablish aFreePortrégime intheVentspils portandaSpecial Economic Zone
intheLiepaja region. TheLiepaja project wasdesigned topromote regional economic development
inadepressed region, andtohelprestructure andrebuild thetotally destroyed environment intheformer
Soviet Navy basearea. Theexisting andplanned FreePortrégimes andSpecial Economic Zoneprojects
were inalldetails corresponding tothenewLatvian Customs Code. Twolawsinpreparation "On
promotion ofdepressed regions" and"OnSpecial Economic Zones" would regulate andcoordinate
theprocess oftheestablishment ofSpecial Economic Zones inorder topromote economic development
inthedepressed areas.WT/ACC/SPEC/LVA/3
Page39
Government Procurement
94. Some members oftheWorking Party asked about thestatus andcontent ofLatvian legislation
onpublic procurement including clarification oftheexceptions concerning thecaseof"exclusive rights"
and"urgent necessity" andLatvia 'sposition regarding possible membership ofthePlurilateral Trade
Agreement onGovernment Procurement. Intheirview, Latvia should commit itselftoaspecific date
bywhich tojointheAgreement onGovernment Procurement iftheoutcome ofthenegotiations on
anentity listwassatisfactory toall.
95. Therepresentative ofLatvia saidthatLatvia hadadopted anewlawonGovernment and
Municipal Procurement wasdrafting anewlawonPublic Procurement based ontheAgreement on
Government Procurement andtheUNCITRAL Model LawonProcurement. TheLawallowed would
allow theaward ofsupply contracts without bidorcompetition incases associated withthecreation
ofStatereserves ornational security anddefence inaccordance withspecific decisions bytheCabinet
ofMinisters, orincases ofprocurement oflessthanLs5,000 (local government orStateinstitutions)
orLs3,000 (local government institutions). Single tendering could takeplace when certain suppliers
heldexclusive rights ongoods andservices; incircumstances ofurgent necessity; when pastpurchases
required thesame source foradditional supplies; andfortheconclusion ofresearch anddevelopment
contracts.
96. TheLawonPublic Procurement waspassed byParliament on24October 1996. AnEnglish
version oftheLawwould beprepared andsubmitted totheWTO Secretariat. ThenewLawonPublic
Procurement, entering intoforce on1January 1997, stated thattendering withparticipation offoreign
competitors wasmandatory iftheexpected value ofconstruction works exceeded LS4million
(SDR 5million) ortheexpected value ofotherworks orsupplies exceeded Ls104,000 (SDR 130,000).
National treatment applied inthefieldofgovernment procurement.
97. Therepresentative ofLatvia recalled thatLatvia wasgranted observer status intheCommittee
onGovernment Procurement on4June1996 (document GPA/W/16). Latvia intended tocommence
negotiations onaccession totheAgreement onGovernment Procurement inthesecond halfof1997
andhadbegun preparation oftheaccession documents. However, additional consultations would be
required withWTO experts before negotiations could start.
98. Therepresentative ofLatvia confirmed thatLatvia willinitiate negotiations formembership
intheAgreement onGovernment Procurement during thesecond halfof1997 bytabling anentityWT/ACC/SPEC/LVA/3
Page40
offer nolaterthan31December 1997. Healsoconfirmed that,iftheresults ofthenegotiations are
satisfactory toLatvia andtheother members oftheAgreement, Latvia willcomplete negotiations for
membership intheAgreement by30June1998. TheWorking Party tooknoteofthiscommitment.
Transit
99. Some members oftheWorking Party asked Latvia todescribe therégime relating togoods
intransit. Therepresentative ofLatvia saidthatgoods carried intransit werechecked attheborder.
Customs offices keptacopyofthecargo dispatch notesandcollected information forstatistical purposes.
Thesame procedures were followed forallgoods, including metals. Latvia charged notransit fee
atpresent, however, aconvoy fee-paidbythetransporter -waslevied ondangerous goods, tobacco,
foodproducts orperfume transported through Latvia. Certain non-dangerous goods weresubject to
asecurity deposit equal totheamount oftaxesdueonimportation ofsuchgoods inLatvia. Thesecurity
deposit would berefunded within twomonths provided thetransit regulations were adhered to.
100. TherepresentativeofLatviaconfirmedthathisGovernmentwouldapplyitslawsandregulations
governingtransitoperationsandwouldactinfullconformitywiththeprovisionsoftheWTOAgreement,
inparticular Article VoftheGATT 1994. TheWorking Party tooknoteofthiscommitment.
Agricultural Policies
101. Some members oftheWorking Party asked Latvia toelaborate onitsagriculture régime,
includingtariffprotection,budgetarysupport,concessionalcredits,exportsubsidiesandtheprocurement
ofgrain. Some members noted tariffincreases onsome products andnewsupport measures ofrecent
date. Amember sought acommitment thatLatvia would eliminate export subsidies andpricecontrols
ongrain products.
102. TherepresentativeofLatviasaidthattheweightedaveragedutyinagriculturewas14.8percent,
byHStwo-digit product categories weighted average duties were asfollows:
Liveanimals 16.5percent
Meat andby-products 26.6 "
Milk anddairy products; eggs; natural honey; etc. 27.1 "
Products ofanimal origin 12.1 "
Livetreesandother fruit 16.9 "WT/ACC/SPEC/LVA/3
Page41
Vegetables, root-vegetables andtuberous plants 15.9 "
Fruit andnuts 0.8 "
Coffee, tea,mateandspices 0.5 "
Cereal crops 10.9 "
Products ofthemilling industry 18.5 "
Oilplant seeds andfruit 12.1 "
Lacquer, resin andother plant juices andextracts 13.3 "
Wadding material ofplant origin 15.0 "
Animal andvegetable fatsandoils 2.1 "
Meat products andmarine products 30.7 "
Sugar andsugar confectionery 9.2 "
Cocoa anditsderivatives 11.4 "
Cereal, flour, starch anddairy derivatives 20.7 "
Fruit, vegetable, nutderivatives, etc. 14.0 "
Miscellaneous foodstuffs 10.8 "
Non-alcoholic beverages, alcoholic drinks, vinegar 24.9 "
Food processing industry residues, ready-made animal feed 13.5 "
Tobacco anditssubstitutes 15.0percent
(Paragraph 86ofdocument WT/ACC/SPEC/LVA/1/Rev.1 andTable 5(listofsensitive products) have
beendeleted)
103. Regarding domestic support, therepresentative ofLatvia saidthatLatvia maintained amarket
pricesupport forflax.According totheclassification suggested indocument WT/ACC/4, Statesupport
forflaxwasconsidered asprovided intheformofdirect payments totheproducers andinformation
wasgiven insupporting tables DS:1 andDS:9. Support forflaxwould besubject toreduction
commitments under theWTO Agreement onAgriculture. Subsidies forcereals inspecific regions,
seedmaterials andinputs weredeminimis support. Subsidies forpotatoes, cattle andseeds werealso
deminimis support. Latvia considered financing ofagricultural research, pestanddisease control,
advisory services andinfrastructure as"green box"measures. Farmers hadaccess tocredits atmarket
interest rates through aWorld Bank facility operated through theLatvian Agricultural Finance
Corporation. TheState itself didnotprovide credits butissued loanguarantees.
104. Therepresentative ofLatvia saidthattheGovernment hadguaranteed theprice offoodgrain
purchased fortheStatereserve. In1995theprice guarantee covered 32,000 tonsbutonly5,700 tonsWT/ACC/SPEC/LVA/3
Page42
wereactually purchased andtheStateGrain Reserve hadimported 14,000 tons. Domestic grain prices
hadrecently beenlower thantheworld market prices. Inresponse toaspecific question onelimination
ofthese guaranteed prices, therepresentative ofLatvia saidthatamendments totheLaw"OnLatvia
Grain Market andStateGrain Reserves", which would eliminate thesystem ofguaranteed grain prices,
hadbeensubmitted totheSaeima andwasexpected tocome intoeffect on1July1997. Latvia would
consider thepossibility ofsettling thematter within twoyears afteraccession totheWTO.
105. TherepresentativeofLatviaaddedthatimportedagriculturalinputsinexportedfinishedproducts
wereexempt fromimport duties andVAT. Suchimports accounted for2.2percentofLatvia 'simports
ofagricultural products in1995. Before regaining independence, Latvia hadexported agricultural
products toother republics oftheUSSR atprices andquantities guaranteed bytheformer system.
Latvia hadprovided export subsidies formilkpowder, canned whole milk, cheese, butter andryein
1994 and1995. [Hestressed thatLatvia wasnotprepared toeliminate export subsidies, butwould
reduce them consistently withtheWTO Agreement.]
[tobecompleted]
FishandFishProducts
106. Therepresentative ofLatvia saidthattheweighted average tariffonfishandcrustaceans falling
withinHSChapter3amountedto8.9percent.Preparedfishproducts(HSChapter16.04)andprepared
marine products (HSChapter 16.05) wereclassified assensitive products andthussubject tohighimport
duties intheLatvian Customs Tariff.
Trade inCivil Aircraft
106. Therepresentative ofLatvia saidthatLatvia would implement theAgreement onTrade inCivil
Aircraft without exceptions ortransitional period atthetimeofaccession. Therepresentative ofLatvia
confirmed thatLatvia would become asignatory totheAgreement onTrade inCivil Aircraft upon
accession totheWTO. TheWorking Party tooknoteofthiscommitment.
Trade-Related Intellectual Property Rights (TRIPS)
107. Some members oftheWorking Party asked Latvia tocompare itsexisting régime withthe
WTO Agreement onTrade-Related Aspects ofIntellectual Property Rights (TRIPS). Specific questionsWT/ACC/SPEC/LVA/3
Page43
addressed thetimeschedule forthefullimplementation oftheTRIPS Agreement, theenforcement
ofintellectual property rights, theprotection ofcopyright andtheacceptance oftheBerne
Convention (1971) andtheRome Convention.
108. Therepresentative ofLatvia saidthatLatvia hadbeenworking toinstall anewlegalsystem
intheareaofintellectual property protection since1991. Thenumber ofnational experts onthesubject
waslimited andLatvia alsolacked experience withcertain aspects ofintellectual property suchas
geographical indications, undisclosed information, andprovisional andborder measures. Henoted
that,asstated indocument WT/ACC/LVA/8 (pp.39-40), existing legislation wasinconformity with
theWTO Agreement onTRIPS withtheexception oftheprotection ofgeographical indications and
layout-designs (topographies) ofintegrated circuits -which Latvia hadbeencommitted toimplement
bytheendof1995under abilateral agreement -andPartIII,sections 3and4oftheTRIPS Agreement
(provisional andborder measures) which would beimplemented by1999. Each lawpertaining to
intellectual property included ageneral clause stating thattheprovisions ofaninternational agreement
prevailed overnational legislation incases ofcontradiction. Thecourt system wascurrently under
reform tostrengthen itscapability toenforce intellectual property rights. Anoverview ofLatvia 's
intellectual property legislation andanongoing revision programme wasprovided totheWorking Party,
andisreproduced inTable 6.
Table 6.Status oflegislation onintellectual property inLatvia (April 1997)
TRIPS Agreement Laws andother legal provisions
addressing andcovering thesubject
mattersDraft legislation relating
torequirements ofthe
TRIPS Agreement not
fully metbyexisting
legislation.
PartII,Section 1 -Copyright Lawof11May1993
-LawonAmendments oftheLatvian
Criminal Code of6October 1955
-Cabinet ofMinisters Regulation on
Distribution (Reproduction) andPublic
Performance ofCinematographic
Works (1996)
PartII,Section 2 -Trademark Lawof9March 1993
PartII,Section 3 -LawonCompetition andMonopoly
Restriction of3December 1991
including provisions onunfair
competition-Draft LawonUnfair
Competition ornew
(amended) Trademark
Lawincluding
provisions onProtection
ofGeographical
Indications.WT/ACC/SPEC/LVA/3
Page44
Table 6.Status oflegislation onintellectual property inLatvia (April 1997)
PartII,Section 4 -LawonIndustrial Design Protection of
4May1993
PartII,Section 5 -Patent Lawof2March 1993 as
amended on30March 1995
PartII,Section 6 -Draft Lawon
Protection of
Topographies of
Integrated Circuits
PartII,Section 7 -LawonCompetition andMonopoly
Restriction of3December 1991
including provisions onprotection of
undisclosed information-Draft LawonUnfair
Competition including
provisions onprotection
ofunclosed information
PartII,Section 8 -Provisions ofthePatent Law,
Trademark Law, LawonIndustrial
Design Protection anddraftLawon
Unfair Competition
PartIII,Section 3
(provisional
measures)-Draft LawonUnfair
Competition
PartIII,Section 4
(special
requirements
related toborder
measures)-Draft LawonUnfair
Competition
PartIII,Section 5
(criminal
procedures)-LawonAmendment of
theLatvian Criminal
Code withregard to
protection of
topographies
109. Therepresentative ofLatvia saidRegarding thestatus ofintellectual property legislation in
specific areas therepresentative ofLatvia added that,oncopyright andrelated rights, Latvia adopted
aCopyright LawinMay1993 which included provisions oncomputer programmes andprotection
ofdatabases. However, thebasic principles regarding rental rights forcomputer programmes would
berefined toensure better implementation. TheCriminal Code wasamended inOctober 1995inregard
toviolation ofcopyright andneighbouring rights. Latvia hadacceded totheBerne Convention in
August 1995andtheGovernment ofLatvia hadstarted thenecessary procedures forLatvia 'saccession
totheRome Convention. Legislation ontheprotection ofgeographical indications (Part II,section
3oftheTRIPS Agreement) hadbeendelayed because thecompetent Latvian authorities haddecided,
afterpreliminary consideration ofdraftlegislation, nottointroduce aLawonProtection ofGeographical
Indications, buttoinclude therelevant provisions inanewLawonUnfair Competition ortoamend
theTrademark Lawaccordingly. Alternative draftlegislation would becompleted toallow afinalWT/ACC/SPEC/LVA/3
Page45
decision onthepreferred option totakeplace bytheendofMay1997. Concerning theprotection
oflayout-designs ofintegrated circuits (Part II,section 6oftheTRIPS Agreement), hesaidthatLatvia
wasdrafting aLawonProtection ofIntegrated Circuits based onCouncil Directive (87/54/EEC) of
theEuropean Communities onthelegal protection oftopographies ofsemiconductor products of
16December 1986. Thelawhadbeensubmitted totheSaeima andwasexpected tobeadopted by
1July1997. Protection ofundisclosed information inaccordance withtherequirements ofPartII,
section 7oftheTRIPS Agreement would becovered inthenewLawonUnfair Competition, which
Latvia expected tosubmit forapproval byParliament byOctober 1997. Provisions already existed
intheLawonCompetition andMonopoly Restriction of3December 1991, butthenewLawwould
refine theprovisions related totheprotection ofundisclosed information.
110. Referring toPartIIIoftheTRIPS Agreement -Enforcement ofIntellectual Property Rights -
therepresentative ofLatvia saidthatthenewLawonUnfair Competition would alsoinclude provisions
onprovisionalmeasures(PartIII,section3)andspecialrequirementsrelatedtobordermeasures(PartIII,
section 4),which would refine theprovisions onprovisional measures contained intheamended Latvian
Civil Procedural Code. Latvia would alsoamend itsCriminal Code withregard totheprotection of
topographies ofintegrated circuits tobeinconformity withPartIII,section 5oftheTRIPS Agreement
oncriminal procedures. ThenewLawonUnfair Competition wasmodelled onlegislation oftheEU,
notably Council Regulation (EC)No.3295/94 of22December 1994laying down measures toprohibit
forrelease forfreecirculation, export, re-export orentry forasuspensive procedure ofcounterfeit
andpirated goods, andCouncil Regulation No.1367/95 of16June1995. Provisions inexisting
legislation relating toenforcement ofintellectual property rights included:
- Part4,Articles 54to57oftheCopyright Law which specified thenotion ofinfringement
ofcopyright andrelated rights aswellascivilprocedures provided forunder thislawand
relating toenforcement ofthesaidrights, and(Article 57)administrative andcivilliability
andcriminal responsibility incaseofinfringement ofcopyright orrelated rights;
- Chapter 9(Articles 40and41)ofthePatent Lawonpatent infringement andresponsibility
thereof, Chapter 10(Articles 42to45)onprotection ofrights derived fromapatent, andChapter
11(Articles 46to49)onreview ofdisputes incourt;
- Chapter 3(Articles 9and10)oftheLawonCompetition andRestriction ofMonopolies on
protection ofcompetition andChapter 4(Articles 11to13)onresponsibility forviolation of
restrictions onmonopolies andillegal competition;
- similar provisions provided forbytheTrademark LawandtheLawonDesign Protection;
andWT/ACC/SPEC/LVA/3
Page46
- provisions inthesaidLaws referring toprocedures andmeasures provided forbycivilor
criminal law.
Inaddition toamending theLatvian CivilProcedural Code in1995toprovide forprovisional measures,
Latvia hadalsoamended theCriminal Code of6October 1955 toprovide formore severe measures
incaseofinfringement ofintellectual property rights and,inparticular, copyright andneighbouring
rights. Latvia hadbegun areform ofthecourt system tostrengthen itscapability toenforce intellectual
property rights. Theformer judiciary law,education andpractice hadgiven Latvia noexperience in
reviewing intellectual property disputes, andLatvia considered asoneofitsmostimportant tasks to
educate anewgeneration ofexperts intheareaofintellectual property protection andenforcement
andtotrainitspractitioners (judges, advocates, patent attorneys andtrademark agents).
111. Asageneral point, therepresentative ofLatvia noted thateachlawpertaining tointellectual
property included ageneral clause stating thattheprovisions ofaninternational agreement prevailed
overnational legislation incases ofcontradiction. Theprovisions oftheTRIPS Agreement would
thusprevail overdomestic lawonLatvia 'saccession totheWTO.
112. Therepresentative ofLatvia confirmed thathisGovernment would fullyapply theprovisions
oftheAgreement onTrade-Related Aspects ofIntellectual Property Rights (TRIPS) bythedateof
itsaccession totheWTO without recourse toatransitional period. TheWorking Party tooknoteof
thiscommitment.
Policies Affecting Trade inServices
113. Therepresentative ofLatvia provided adescription ofLatvia 'sservices régime indocument
WT/L/63 (L/7526/Add.3). Specific questions bymembers oftheWorking Party focused onregulations
inthefinancialsectorandclarificationoflawswithimportantprovisionsregardinginvestmentinservices
sectors.
114. Withregard tothefinancial sector, therepresentative ofLatvia stated thatlicensing requirements
werethesamefordomestic andforeign entities. However, procedurally, anapplication fromaforeign
banktoestablish abranch orrepresentative office wasconsidered bytheBoard ofGovernors ofthe
Bank ofLatvia while other applications wereconsidered bytheExecutive Board oftheBank ofLatvia.
Applications could bedismissed ifthedocuments submitted forregistration didnotmeet thelegal
requirements orifthefoundation ofabankwasconsidered nottobeintheinterest ofLatvia.WT/ACC/SPEC/LVA/3
Page47
115. TherepresentativeofLatviasaidthatParliamenthadadoptedanewLaw"OnCreditInstitutions"
inOctober 1995. Under theLaw"Oninsurance" foreign investors could perform insurance activities
inLatviathroughtheestablishmentofcompaniesorpartnershipswithLatvians,i.e.joint-stockcompanies
inwhich theparticipation offoreign investors wasnotrestricted. Heconfirmed thatlicences were
issued exclusively foronetypeofinsurance activity; insurers involved inlifeinsurance wereprohibited
fromoffering non-life insurance andviceversa. Aninsurer could notconduct lifeandnon-life insurance
operations simultaneously without establishing anewcompany. However, thisrestriction didnotrefer
toaccident andhealth insurance operations concluded byaninsurer withalicence toperform life
insurance. Adirect lifeinsurer wasallowed toreinsure life,accident andhealth insurance operations.
Adirect non-life insurer wasprohibited from reinsuring lifeinsurance operations. However, the
restriction didnotextend toreinsurance operations. Hestated thatthecriteria forregistration ofcredit
institutions orenrolment ofbroker companies werenotinconsistent withArticle XVIoftheGeneral
Agreement onTrade inServices.
116. TherepresentativeofLatviasaidthatmanyserviceactivitiesweresubjecttolicensing.according
toRegulationNo.321of31October1995"OnlimitationofEntrepreneurialActivity"hadbeenannulled
andreplaced byRegulation oftheCabinet ofMinisters "OnLicensing ofSeparate Forms of
Entrepreneurial Activity" inNovember 1996. Certification Licensing hadbeenintroduced toensure
aprofessional level ofservices andtheprotection ofconsumers. Foreigners were granted national
treatment intheissuance ofcertificates licences tosupply individual professional services. However,
theLaw"OnEntrepreneurial Activity" allowed licences forsworn auditors, sworn landsurveyors,
sworn estimate practice, inspector activities, legal adviser practice, notary practice, coach, sports
instructor andspecialist practice, pharmaceutical practice, insurance mediation services andother
entrepreneurship mentioned inpart4ofitsArticle 32tobeissued onlytophysical persons. He
confirmed thatLatvia hadnolegislation onsafeguard measures related totrade inservices andthat
norestrictions wereapplied ondomestic orinternational transfers andcurrent payments forservices.
117. Therepresentative ofLatvia saidthattheStateenterprise "Latvijas Pasts" (Latvian Post) held
monopolyrightsonpostalservices."Lattelekom",ajointventurebetweenTiltsCommunications(British
andFinnish ownership) andtheLatvian Government, hadbeengranted anexclusive rightfor20years
toprovide telecommunication services.
[tobecompleted]WT/ACC/SPEC/LVA/3
Page48
Transparency
Publication ofInformation onTrade
Onemember suggested:
[118. Therepresentative ofLatvia stated thatatthelatest from thedateofaccession, alllaws, and
other normative actsrelated totrade would bepublished intheOfficial Journal promptly. Hefurther
stated thatnolaw,ruleetc.related tointernational trade would become effective prior tosuch
publication. TheWorking Party tooknoteofthiscommitment.
Notification
119. Therepresentative ofLatvia saidthatatthelatest upon entry intoforce oftheProtocol of
Accession, Latvia would submit allnotifications (other thanthose required tobemade onanadhoc
basis) required byanyAgreement constituting partoftheWTO Agreement. Anyregulations
subsequently enacted byLatvia which gaveeffect tothelawsenacted toimplement anyAgreement
constituting partoftheWTO Agreement would alsoconform totherequirements ofthatAgreement.
TheWorking Party tooknoteofthiscommitment.]
Trade Agreements
120. Some members oftheWorking Party inquired about Latvia 'spreferential trade agreements.
Some members wereconcerned about theconsistency withArticle XXIV oftheGATT 1994ofthese
freetradeagreements,notingthatthematterwasbeingexaminedintheappropriatebodywhichexcluded
trade inagricultural products.
121. Therepresentative ofLatvia saidthatagreements fortheavoidance ofdouble taxation and
prevention offiscal evasion hadentered intoforcewithCanada, theCzech Republic, Denmark, Estonia,
Finland, Iceland, Lithuania, theNetherlands, Norway, Poland andSweden. Latvia hadentered into
intergovernmental agreements ontrade andeconomic cooperation, providing form.f.n. status, with
Armenia,Australia,Azerbaijan,CzechRepublic,Hungary,India,Moldova,Poland,RussianFederation,
Tadjikistan, Turkmenistan, Ukraine, United States andUzbekistan. Freetrade agreements hadbeen
concluded withtheEuropean Union, EFTA, theCzech Republic, theSlovak Republic, Slovenia, and
atrilateral freetradeagreement withEstonia andLithuania. These trading partners accounted fornearly
60percentofLatvia 'sforeign trade in1996.WT/ACC/SPEC/LVA/3
Page49
122. AEurope Agreement between theEuropean Union andLatvia wassigned on12June1995.
TheFreeTrade Agreements withNorway andSwitzerland werereplaced byaFreeTrade Agreement
between Latvia andEFTA which entered intoforce on1June1996. These Thisagreements were
wasconcluded under theprocedures ofinaccordance withtheArticle XXIV oftheGATT 1994 and
hadbeennotified totheWTO. Atrilateral Agreement Thetrilateral Protocol onTrade inAgricultural
Products between Latvia, Estonia andLithuania wassigned on16June1996 andentered intoforce
on1January 1997.
123. Therepresentative ofLatvia saidthatthefreetrade agreement withtheEuropean Union had
been notified totheWTO (document WT/REG7/N/1) andcirculated inJuly1995 indocument
WT/REG7/1 inJuly1995 indocument WT/REG/7/1. Latvia wascommitted toreduce tariffs on
agricultural imports fromtheEuropean Union inequal annual stepsbetween 1995and2000. Reductions
weregranted through tariffquotas on;Annex XIoftheAgreement enumerated theproducts concerned
andtherespective quotas, while thetariff rateswere listed inAnnex X.Forprocessed agricultural
products therelevant partsoftheAgreement wereAnnexes 3and4ofProtocol 2.Latvia hadestablished
tariffquotas formeatandmeatproducts, yoghurt, flowers, cabbage, cauliflower andmargarine while
thetariff reductions applied forunlimited quantities ofvarious fruitandfruitjuices, petfood, hair
andsome processed products. ThemainLatvian products subject toconcessions intheEUweremeat
andmeatproducts, dairy products, chocolate andsweets.
124. Therepresentative ofLatvia noted thatLatvia 'sfreetrade agreements hadtraditionally not
covered tradeinservices. However, Latvia 'shadnegotiated anAssociation (Europe) Agreement with
theEuropean Union ,signed on12June1995, which would include included trade inservices and
establishment issues. Latvia hadsigned agreements onemployment offoreign labour withGermany
andSweden. Heconfirmed thatLatvia wasnotapartytoanyagreement concerning mutual recognition
ofprofessional qualifications.
125. Therepresentative ofLatvia stated thathisGovernment would observe theprovisions ofthe
WTO including Article XXIV oftheGATT 1994andArticle VoftheGATS initstrade agreements,
andwould ensure thattheprovisions oftheseWTO Agreements fornotification, consultation andother
requirements concerning preferential trading systems, freetrade areas andcustoms unions ofwhich
Latvia wasamember weremetfromthedateofaccession, insofarastheseprovisions hadnotalready
beenmetbyoneoftheother Parties tosuchanagreement. TheWorking Party tooknoteofthese
commitments.WT/ACC/SPEC/LVA/3
Page50
Conclusions
126. TheWorking Party tooknoteoftheexplanations andstatements ofLatvia concerning itsforeign
trade régime, asreflected inthissummary. TheWorking Party tooknoteoftheassurances given by
Latvia inrelation tocertain specific matters which arereproduced inparagraphs 17and29ofthisreport
summary. TheWorking Party tooknoteofthecommitments given byLatvia inrelation tocertain
specific matters which arereproduced inparagraphs 20,32,38,43,48,60,63,67,74,77,87,89,
92,98,100,106,112,118,119and125ofthisreport summary. TheWorking Party tooknotethat
these commitments hadbeenincorporated inparagraph 2oftheProtocol ofAccession ofLatvia to
theWTO.
127. Having carried outtheexamination oftheforeign trade régime ofLatvia andinthelightof
theexplanations, commitments andconcessions made bytherepresentative ofLatvia, theWorking
Party reached theconclusion thatLatvia beinvited toaccede totheMarrakesh Agreement Establishing
theWTO under theprovisions ofArticle XII.Forthispurpose, theWorking Party hasprepared the
draftDecision andProtocol ofAccession reproduced intheAppendix tothisreport, andtakes note
ofLatvia 'sSchedule ofSpecific Commitments onServices (document .......) anditsSchedule of
Concessions andCommitments onGoods (document .......) thatareannexed totheProtocol. Itis
proposed thatthese textsbeadopted bytheGeneral Council when itadopts thereport. When the
Decision isadopted, theProtocol ofAccession would beopenforacceptance byLatvia which would
become aMember thirty daysafteritaccepts thesaidProtocol. TheWorking Party agreed, therefore,
thatithadcompleted itswork concerning thenegotiations fortheaccession ofLatvia totheMarrakesh
Agreement Establishing theWTO.
[Tobecompleted ]WT/ACC/SPEC/LVA/3
Page51
APPENDIX
ACCESSION OFLATVIA
Draft Decision
TheGeneral Council,
Having regard totheresults ofthenegotiations directed towards theestablishment oftheterms
ofaccession oftheRepublic ofLatvia totheMarrakesh Agreement Establishing theWorld Trade
Organization andhaving prepared aProtocol fortheAccession ofLatvia,
Decides, inaccordance withArticle XIIoftheMarrakesh Agreement Establishing theWorld
Trade Organization, thattheRepublic ofLatvia mayaccede totheMarrakesh Agreement Establishing
theWorld Trade Organization ontheterms setoutinthesaidProtocol.WT/ACC/SPEC/LVA/3
Page52
PROTOCOL OFACCESSION OFLATVIA
TOTHE MARRAKESH AGREEMENT ESTABLISHING
THE WORLD TRADE ORGANIZATION
DRAFT
TheWorld Trade Organization (hereinafter referred toasthe"WTO"), pursuant totheapproval
oftheGeneralCounciloftheWTOaccordedunderArticleXIIoftheMarrakeshAgreementEstablishing
theWorld Trade Organization (hereinafter referred toas"WTO Agreement"), andtheRepublic of
Latvia (hereinafter referred toas"Latvia"),
Taking noteoftheReport oftheWorking Party ontheAccession ofLatvia totheWTO in
document WT/ACC/LVA/.... (hereinafter referred toasthe"Working Party Report"),
Having regard totheresults ofthenegotiations ontheaccession ofLatvia totheWTO,
Agree asfollows:
PartI-General
1. Upon entry intoforce ofthisProtocol, Latvia accedes totheWTO Agreement pursuant to
Article XIIofthatAgreement andthereby becomes aMember oftheWTO.
2. TheWTOAgreementtowhichLatviaaccedesshallbetheWTOAgreementasrectified,amended
orotherwise modified bysuchlegalinstruments asmayhaveentered intoforce before thedateofentry
intoforce ofthisProtocol. ThisProtocol, which shall comprise thecommitments referred toin
paragraph 126oftheWorking Party Report, shallbeanintegral partoftheWTO Agreement.
3. Except asotherwise provided forintheparagraphs referred toinparagraph 12686ofthe
Working Party Report, those obligations intheMultilateral Trade Agreements annexed totheWTO
Agreement thataretobeimplemented overaperiod oftimestarting withtheentry intoforce ofthat
Agreement shallbeimplemented byLatvia asifithadaccepted thatAgreement onthedateofitsentry
intoforce.WT/ACC/SPEC/LVA/3
Page53
4. Latviamaymaintainameasureinconsistentwithparagraph1ofArticleIIoftheGATSprovided
thatsuchameasure isrecorded inthelistofArticle IIExemptions annexed tothisProtocol andmeets
theconditions oftheAnnex totheGATS onArticle IIExemptions.
PartII-Schedules
5. TheSchedules annexed tothisProtocol shall become theschedule ofConcessions and
Commitments annexed totheGeneral Agreement onTariffs andTrade 1994 (hereinafter referred to
asthe"GATT 1994") andtheSchedule ofSpecific Commitments annexed totheGeneral Agreement
onTrade inServices (hereinafter referred toas"GATS") relating toLatvia. Thestaging ofconcessions
andcommitments listed intheSchedules shallbeimplemented asspecified intherelevant partsofthe
respective Schedules.
6. Forthepurpose ofthereference inparagraph 6(a)ofArticle IIoftheGATT 1994tothedate
ofthatAgreement, theapplicable dateinrespect oftheSchedules ofConcessions andCommitments
annexed tothisProtocol shallbethedateofentry intoforce ofthisProtocol.
PartIII-Final Provisions
7. ThisProtocol shallbeopenforacceptance, bysignature orotherwise, byLatvia until.........
8. ThisProtocol shallenter intoforce onthethirtieth dayfollowing thedayofitsacceptance.
9. ThisProtocol shallbedeposited withtheDirector-General oftheWTO. TheDirector-General
oftheWTO shallpromptly furnish acertified copyofthisProtocol andanotification ofacceptance
thereto pursuant toparagraph 7toeachmember oftheWTO andLatvia.
10. ThisProtocol shallberegistered inaccordance withtheprovisions ofArticle 102oftheCharter
oftheUnited Nations.
11. Done atGeneva this...dayof....onethousand ninehundred andninety seven, inasingle
copyintheEnglish, French andSpanish languages eachtextbeing authentic, except thataSchedule
annexed hereto mayspecify thatitisauthentic inonlyoneormore ofthese languages.WT/ACC/SPEC/LVA/3
Page54
ANNEX
SCHEDULE -REPUBLIC OFLATVIA
PartI-Goods
[Tobecirculated ]
PartII-Services
[Tobecirculated ]
[Tobecompleted]