EU - Latvia Relations

 

 

Since Latvia regained its independence in August 1991, relations with the EU developed dynamically including a rapid succession of agreements, which each time were more ambitious.

Important dates and events include :

September 1991:

granting of unilateral EU trade concessions and continuation on a bilateral basis with Latvia of the Trade and Economic co-operation agreement which had been concluded with the Soviet Union; part of the TACIS (Technical assistance to Community of Independent States) was reserved for Latvia; as of 1992, Latvia benefits from PHARE.

March 1993:

entering into force of the Trade and commercial and economic co-operation agreement bilaterally negotiated with Latvia. With reference to commitments taken in the Conference for Co-operation and Security in Europe (i.a. Helsinki Final Act; Charter of Paris for a New Europe) the agreement includes a clause on the respect of democracy and of human rights. Continuation of unilateral EU trade concessions.

June 1993:

declaration by the European Council at Copenhagen that the associated countries from Central Europe may become members of the Union when they are able to assume the obligations of membership and when the Union will be ready to absorb new members.

December 1994:

adoption of a “strategy to assist the associated Central European countries in their preparation for accession” by the European Council at Essen.

January 1995:

entering into force of the Free Trade Agreement. This included the reciprocal abolition of both tariffs and quantitative trade restrictions for all goods, except for most agricultural products which are subject to a preferential treatment. The abolition of barriers was “asymmetric” meaning that the EU introduced its concessions earlier than Latvia. As of January 1995, almost all EU trade restrictions were abolished; Latvia had four years to achieve this. The agreement also includes the introduction by Latvia of competition rules, including state aid legislation, similar to those applying in the EU, as well as the enforcement structures. The economic co-operation and other aspects of the former agreement remained in force; also the participation in Phare continued.


text of Europe Agreement:

http://europa.eu.int/comm/enlargement/pas

May 1995:

adoption by the Commission of the “White Paper” on integration of candidate countries into the Internal Market” as a guide for preparing candidate countries.

October 1995:

introduction of Latvian application for EU membership.

July 1997:

Commission opinion on Latvia’s application for EU membership. It concluded that accession negotiations should be opened as soon as Latvia had made sufficient progress in satisfying the conditions of membership. The conclusion was endorsed at the European Council in December 1997.

Commission opinion:

http://europa.eu.int/comm/enlargement/dwn/opinions
/latvia

February 1998:

entering into force of the Europe Agreement which had been signed in June 1995. In addition to the trade and trade-related dispositions of the Free Trade Agreement, this association agreement provides i.a. for reciprocal liberalisation of trade in most services, for opening of public procurement markets, for “national treatment” of enterprises for their establishment and operations in the territory of the other party to the Agreement, and for economic, financial and cultural co-operation. An Association Council (ministers), an Association Committee (high officials) and its sub-committees, and a Parliamentary Association committee are established to manage the implementation of the Agreement. Additional protocols to the Europe Agreement were concluded, i.a. to further liberalise trade in agriculture and fisheries products, to allow for the lifting of technical barriers to trade in certain manufactured goods (mutual recognition of conformity assessment - PECA), and to provide for Latvia’s participation in European Community Programmes and Agencies.

November 1998:

adoption by the Commission of the first Report on Latvia’s progress in its preparation for EU accession (Regular Report). Further progress reports were adopted in autumn of each following year, with the last one in October 2002.

Progress reports: http://europa.eu.int/comm/enlargement/latvia

March 1999:

Start of the “bilateral screening of the acquis. This is the technical examination of Latvia’s position vis-à-vis the body of the EU legislation rules and practices.

October 1999:

The Commission adopts the “Accession Partnership” which sets out the priorities for Latvia’s EU accession preparation and brings together all the different forms of EU support within a single framework. It was revised in February 2000, and a new “Accession Partnership” was adopted in November 2001.

Accession Partnerships:

http://europa.eu.int/comm/enlargement/report2001

February 2000:

opening of formal EU accession negotiations.

October 2001:

Latvia participates in the European Convention, which will formulate proposals for the revision of the EU treaties.

December 2002:

conclusion of EU accession negotiations at the European Council in Copenhagen.

Council conclusion:

http://www.eu2002.dk/news/
upload/conclusions_uk20021216111046.pdf

April 2003:

signing of Accession Treaty at Athens. As of the day of signing the Treaty and prior to accession, the candidate countries will take part in the meetings of the European Parliament, the Council and in the various committee meetings organised by the Commission; however, without voting rights.

http://www.europarl.eu.int/
enlargement/access_draft_en.htm

September 2003:

Latvian referendum on EU accession (69 % in favour).

November 2003:

adoption by the Commission of the “Comprehensive monitoring report” on the implementation by Latvia of necessary reforms and on all commitments in the field of Community acquis.

According to a Latvian opinion poll in February 2004, EU support has decreased to 55%.

Development of EU - Latvia trade

In 2002, the EU bought 61% of Latvia’s exports and provided 53% of its imports.
From 1992 to 1995, trade of EU-12 Member States (Finland, Sweden and Austria joined the EU in 1995) with Latvia more than doubled to reach 1.5 billion Euro (0.6 EU exports and 0.9 billion € EU imports). From 1995 to 2002 trade of the EU enlarged to 15 Member States with Latvia again more than doubled, and the balance had turned in the favour of EU. Investment goods (machinery and electrical equipment, transport equipment, chemical products) are among the most important goods exported from EU to Latvia and together represent about half of the EU total. Agricultural goods, including those processed and textiles, some of which meant for outward processing, are also among the main categories of goods exported to Latvia. Wood and textiles represent about 60% of the EU’s imports from Latvia.

EU financial support for accession preparation :

As of the year 2000, total financial pre-accession assistance allocated to Latvia amounts to over €100 million per year, consisting of 35 to €47 million from Phare, €22 million from SAPARD, and €36.4 to €57.2million from ISPA.

PHARE

From 1992 to 2003 a total of €404 million was allocated to Latvia. In the early years, Phare supported the transition to democracy and to market economy; as of 1998 it was exclusively reserved for EU accession preparation. As of 2000, most of the funds were in support of continuing “Institution Building” by which public administrations and institutions were strengthened, so as to be in a position to apply and enforce the “acquis”. A smaller part of the funds could also be used for strengthening “Economic and Social Cohesion” in the country.
The allocation for the 2003 Phare Programmes amounted to around €49million of which nearly €45.65 million for the National Programme, €3million for Cross Border Co-operation in the Baltic Sea Region and €0.42 million for the Nuclear Safety Programme. The National Programme continues to address the Political criteria, such as the integration of society, civil society and anti-corruption measures, it provides support for the strengthening of the administration with a view to EU accession. Priorities include subjects of Justice and Home Affairs including border management, Free movement of goods and company law, Agriculture, Social Affairs, Employment and Public Health, Energy, Customs Union and Public Finance Management as well as Regional policy matters including actions of the European Regional Development and of the Social Development Fund types regarding economic and social cohesion. The 2003 budget has been the last of Phare support for Latvia. In order to ensure continuation of Institution Building support on issues not covered by the Structural Funds a “Transition Facility” has been set up, which will co-finance actions until budget year 2006.

Information on Phare : http://europa.eu.int/comm/enlargement/contacts/info_centre.htm