. /.  WORLD TRADE  
ORGANIZATION  WT/MIN(05)/ST/34 
15 December 2005 
 (05-6008) 
MINISTERIAL CONFERENCE 
Sixth Session Hong Kong, 13 - 18 December 2005 Original:   English 
 
  
LATVIA 
 
Statement by HE Dr Arturs Krišj ānis Karinš
 
Minister of Economics  
   Let me begin by thanking the Government of  Hong Kong for the excellent organization and 
warm hospitality rendered in hosting this huge ev ent, with most of the countries of the world 
participating. 
  I would like to express my sincere gratitude to the WTO Secretariat for the tremendous efforts in preparing this Ministerial Conference and tha nk the WTO Director-General Mr Lamy and his team
 
for their contribution by providing us with a Draft Hong Kong Ministerial Text.  My appreciation also 
goes to the Chairmen of the different negotiating groups for working tirelessly  to achieve the best 
result possible. 
  Latvia is a beautiful forest-covered country in  the north of Europe nestled against the eastern 
shores of the Baltic Sea.  We are proud to have one  of the persistently fastest growing economies in 
the world, with a 10-year average GDP growth rate of  over 6 per cent a year, a past five year average 
growth rate of over 7 per cent a year, a growth rate
 of 8.5 per cent last year, and a growth rate that 
will be about 10 per cent this year. 
 
 However, a short 15 years ago we were still an occupied country that had been annexed by 
the Soviet Union for 50 long years.  In the very short time since regaining independence in 1991, we 
have radically transformed our economy from a centralized Soviet system featuring a complete lack 
of capital, private property and personal incentive, to  one of the most dynamic, democratically based 
market economies in the world.   The key to our success has been a consistent po licy of free-trade and open borders that our 
government adopted upon regaining our independence.  Latvia is not only a beautiful country, but it is 
also a small country with a population of
 only 2.3 million people.  Fifteen years ago the idea of 
reducing trade barriers and tariffs was one that was worrisome to many people in my country.  The 
fear was that if we opened up our borders, we woul d be swallowed up by our larger, richer, and more 
competitive European neighbours.  The truth was very different:  by opening up our borders and 
dismantling barriers, we helped to set up the cond itions for the creation of wealth through increased 
economic activity, increased competitiveness, active foreign direct investment, and new jobs. 
 
 Knowing very well the direct benefits from fre e and open trade, Latvia sincerely wishes the 
Doha Development Agenda (DDA) to succeed, approaching the objectives set  out in the Agreement 
Establishing the World Trade Organization.   I will now briefly focus
 on the specific trade issues that I believe that  we need to agree on the 
most. 
 WT/MIN(05)/ST/34 
Page 2  
 
  Negotiations on market access of non-agricultura l products are one of the priority areas for 
Latvia.  Conditions for fair competition in this ar ea are achievable through the harmonization of tariff 
levels among all Members and sectors.  It is therefor e of utmost importance to come to an agreement 
on tariff level reduction.  First, we must agr ee upon a simple tariff reduction formula with a 
substantial non-linear coefficient, which would reduce the high tariffs and tariff peaks in all countries.  
Similarly, negotiations should be continued on the reduction of import impeding non-tariff barriers as 
well as on ensuring their transparency.  If we want to  help the least developed countries of the world; 
we need to reduce tariffs.   Latvia also strongly argues in favor of the liberalization of the services market, especially 
considering that the services sector is the largest economic sector throughout most of the world.  
Based upon our own experience, we know that liberalizing the services sector would greatly
 foster 
economic development.  Unfortunately, we note with regret  the lack of progress in the negotiations so 
far.  Latvia strongly urges all of us to continue  with these negotiations, and argues that we need to 
attain equal treatment for foreign service suppliers in  the agreed sectors.  Once again, if the goal of 
this WTO Round is to help poor countries to accelerate their development, a liberalized service sector 
is a prerequisite.   Latvia is looking forward to achieving tangibl e progress in the trade facilitation negotiations.  
Clarification of GATT Articles V, VIII and X would ensure transparency of trade regulations, improve transit procedures and simplify and moderniz e import and export procedures.  Particularly, in 
light of the current situation in the world energy sector, we consider the clarification of the GATT 
Article V as essential.  We see a strong need fo r ensuring non-discrimination between modes of 
transport in relation to transit procedures, taking account of the "non-classical" modes of transit, 
e.g. via pipelines or other means.  
 Agriculture, as always, seems to be the most cr itical issue.  We have long ago recognized the 
need to reform our agricultural policies and open up trade.  Unfortunately, we still cannot reach a 
consensus on how to achieve this.  I must agree with  the opinion that we have been stalemated by 
political positions instead of real negotiation.  Th e only way out of the current stalemate is through 
constructive cooperation and work.  Substantive progress in all areas needs to be achieved in order to 
conclude the DDA negotiations by the end of the next year. 
 
 Latvia expresses its support towards the multilate ral trade dialogue within the framework of 
the WTO, as we see this as the most effective way of promoting the economic development and 
growth for the whole world.  As one of the ga ins of the multilateral dialogue, let me welcome the 
newly acceded WTO Members Saudi Arabia and T onga.  We would similarly like to support the 
efforts of other countries in the accession process and expect that they will be able to ensure the 
implementation of WTO-consistent rules, provide tr ansparency and guarantee stability.  In particular, 
Latvia welcomes the efforts of Russia and Ukraine to  become Members of this Organization, as these 
accessions would facilitate economic pros perity and stability of the region. 
  There are unfortunately many voices in the world, including those of the demonstrators 
outside, which do not understand the direct economic benefits of free and open trade.  Latvia is a 
classic example of how free trade and open borders can indeed increase a country's wealth and improve the well-being of its people.  Our host Hong Kong is another testament to the visible benefits 
of free trade.  Let us not succumb to the negativists .  Let's come out of this negotiation round a giant 
step closer to a final agreement of the Doha Agenda. 
 
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