bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Ceturtdiena 23.11.2017 | Name days: Zigfrīda, Zigrīda, Zigrīds
LatviaLatvia

Economic Diary of Latvia. Under the sign of China and globalization

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThis week, Latvian Foreign Affairs Ministry held a discussion for experts dedicated to the Transatlantic Trade and Investment Partnership between the EU and USA.

This discussion was organized to give Latvian audience a chance to ask questions directly to European Commission experts on topics related to TATIP. And although this topic is infinitely far away from Latvia, 60% of the world’s GDP, 33% of the world trade and 42% of the world’s service trade come from USA and EU, in which Latvia is a member state. There is a number of trade disputes between the two sides, but they nonetheless remain dependent on each other’s markets. Disputes cover only 2% of the total trade volume. The free trade area will supposedly compose the largest regional free trade agreement in history, covering 46% of the world’s GDP.

USA and the EY are the largest trade partners for the majority of other countries in the world. One-third of the world’s trade flows goes through them. Considering the already low tariff barriers (3%), to make the agreement successful, it is necessary to neutralize non-tariff barriers.

This was mentioned by the spokesperson of the European Commission’s Directorate General for Health & Food Safety Brian Kilgallen during the conference. He reminded that the food industry already has high customs tariffs. Reduction of those tariffs will give a positive effect for exports of confectionery, meat products and cheese products – things Latvia is strong in. He added that there are many non-tariff barriers in the field of sanitary and phytosanitary areas. Reduction or cancellation of certain requirements would lead to an increase of exports from USA.

Director of Department for Foreign Trade and Development of External Economic Ties of Latvia’s Foreign Affairs Ministry Martins Kreitus told about the importance of TATIP for Latvia, noting that economic and geopolitical interpretations are equally important.

The Transatlantic Trade and Investment Partnership is a planned agreement between the European Union and USA. Its supporters believe it will lead to multisided economic growth. Those who oppose this agreement believe it will lead to an increase of power for corporations and make it more difficult for governments to regulate markets in the interest of society. It was originally expected to complete the agreement by the end of 2014. In the end, however, it was moved to 2015. The last phase of talks took place in April 2016.

Under China’s sign

Globalization processes affect Latvia as well, which is demonstrated by the announcement of Foreign Affairs Ministry’s Andrejs Pildegovics about this year going under the sign of China this year. This outlook was provided by him at the meeting of the Long-Term Development Committee. He reminded members of the committee of the upcoming 16+1 format meeting this autumn and the meetings between Latvian and Chinese officials, calling it the highest point of Latvia – China relations.

Trade volumes between the two countries continue growing. The potential for economic cooperation is noted primarily in the field of transport and logistics. There is also potential for development in food production, cosmetics, trade and tourism, said Pildegovics.

Head of Transport Ministry’s Transit Policy Department Andris Maldups mentioned that Latvia can offer potential Chinese partners two types of projects: important state investment projects and private projects.

He mentioned the procurement of new aircraft for airBaltic and establishment of direct flight connectivity with China and the development of an inter-modal logistics centre in Salaspils as such projects.

To support the predictions of the ministry’s representative, Food Union Vice-President Normunds Stanevics has announced that the company currently builds two production plants in China. The company plans to begin producing dairy products there in 2018.

Rivers of milk

Because the situation with Europe’s dairy industry could potentially become critical this summer, the decision to move production to China may seem very timely.

Agriculture Minister Janis Duklavs was open in his comments this week. He said that summer for the dairy industry is the time of increased volumes of milk. Unfortunately, there no increase of prices is in sight. It is also impossible to predict when the situation could improve. There are also no signs to suggest Russia may lift its embargo anytime soon.

One of the possible solutions is to seek new export markets to sell dairy products. Agriculture Ministry and dairy farmers have begun their search.

Also, the government supported the allocation of nearly EUR 6.2 million as compensation to farmers for the financial damage and risk of bankruptcy. Statistics show there are approximately 21.8 thousand dairy farms in Latvia and 162 thousand dairy cows.

Ref: 017.109.109.9523


Leave a reply

Finnish medication prescriptions to be valid in Estonia

In Estonia, Finland's digital prescriptions of medications will be valid from summer 2018 and vice versa – from around mid-2019.

Talks commence on restoring ferry traffic between Ventspils and Saaremaa

On Wednesday, 22 November, a delegation from Saaremaa municipality arrived at Vetnspils Freeport to discuss with representatives of Ventspils municipality and freeport the proposal to restore ferry traffic between Saaremaa and Ventspils.

Family of killed Maltese journalist take police to court

The family of the killed Maltese journalist Daphne Caruana Galizia has sued police believing that it does not perform an impartial investigation.

Saeima reduces VAT for vegetables, berries and fruits typical for Latvia

Starting 2018, a reduced VAT rate will be applied for fresh fruits, berries and vegetables in Latvia. This is provided by amendments approved by the Saeima on 22 November for Law on Value Added Tax.

Georgian anti-terrorist raid ends tragically

In the Georgian capital Tbilisi, security officers have conducted an anti-terrorist raid in an apartment, where a shoot-out has started and three suspected militants and a special forces' soldier have been killed.

Jerošenko: Ušakovs offers unhealthy policy, Harmony is used as Lembergs’ «satellite party»

«Cooperation between Harmony and Aivars Lembergs’ Union of Greens and Farmers has always existed. It existed even before Harmony first appeared in Riga City Council. The situation is the same in the Saeima, even though Concord is in the opposition. Still, in situations when one or the other matter important to Lembergs appears, one does not have to be a great politologist to notice the ties between those parties...

Bosnian Serb commander punished with life imprisonment for Srebrenica

The UN the International Criminal Tribunal for the former Yugoslavia handed a life imprisonment sentence to Ratko Mladić after it found the former commander of Bosnian Serb forces guilty of genocide and crimes against humanity committed in the 1990s during the Bosnian War.

EC positive about Latvia’s 2018 budget project

Based on the conclusion from the European Commission, Latvia’s budget project for 2018 fully fits conditions listed in the Stability and Growth Pact. In accordance with EC’s estimates, the structural balance of Latvia’s general budget is viewed at -1.8% of GDP. Government budget expenditures, on the other hand, are expected to grow by 7.1 percentage points.

Producer price level in Latvia declined 0.2% in October

Compared to September, the level of producer prices in Latvian industry dropped by 0.2 % in October 2017. Prices of products sold on the domestic market decreased by 0.5 %, while prices of exported products went up by 0.1 %.

Vaškevičs feels «harsh but fair» attitude from court justice system in Austria

Former deputy director of Latvia’s State Revenue Service Vladimirs Vaškevičs, who is accused of bribery and whose extradition from Austria has been a priority for Latvian authorities for some time now, says he feels «harsh but, thank God, fair» attitude from the Austrian court justice system.

Antāne: lost Russian cargoes have cost Latvia nearly 50 million in nine months

Latvia’s economy has lost nearly EUR 50 million in nine months because of missed Russian transit cargoes. While Russian Railway had approved 90% of oil and coal cargoes for transit through Ventspils port at the beginning of the year, this amount had declined to a mere 5% by September, says Baltic Association – Transport and Logistics President Inga Antāne.

In pictures: Museum of painter, Holocaust survivor Bak opened in Vilnius

In Vilnius, a museum to Jewish-Polish painter Samuel Bak has been opened. During the occupation of Lithuania by the Nazi Germany, the artist survived the Holocaust in the country.

Ratio of old people and invalids on a rise among unemployed people

The total number of unemployed people has been decreasing in recent years. However, the ratio of old people and invalids continues increasing in the ranks of unemployed people. On top of that, the number of lasting unemployed people remains high and largely unchanged in the country.

Saaremaa looking into possible ferry traffic to Latvia

The local government of the largest Estonian island is looking into possible interest of five shipping companies in opening ferry traffic between Saaremaa and Latvia.

Balta: exhaustion and overload are the most common causes for accidents at work

More than EUR 20,000 has been paid in compensations for injuries acquired at work this year so far, according to information from insurance association Balta. Compared with the same period of last year, the number of accidents has grown 40%.

Estonian town tempts population to reregister with spa in Latvia and 100 euro payment

The town of Keila, located 25 kilometres away from Tallinn, has started a one-and-a-half month campaign to motivate its residents to register back in the town as many of them have registered in the Estonian capital, which grants free public transport to its population.

EU to impose fine to Poland if logging in Białowieża forest not stopped

The European Court of Justice has issued to Poland a 15-day deadline to provide proof that the country has fulfilled the court's ruling to quit logging in the ancient Białowieża forest threatening with a daily fine of 100 000 euros if it fails to prove this.

Rīgas namu pārvaldnieks: building restoration will be next year’s priority

Rīgas namu pārvaldnieks plans to focus on improving technical state of its managed buildings. The company plans to restore several dozen buildings next year and up to 100 buildings a year in the next five years, says RNP chairman Aivars Gontarevs.

LCB: even deputies should fulfil their promises

Latvijas ceļu būvētājs, which is an association in Latvia with ties to multiple road and bridge construction companies, invites deputies to support the proposal for the restoration of the State Road Fund, BNN was told by the association’s chairman Andris Bērziņš.

Russia rejects claims of nuclear accident despite radioactive cloud over France

Russia has stated that a nuclear accident has not taken place in its territory although its weather service has found high amounts of traces of a radioactive isotope.

Study: taxes for business in Latvia – the most attractive among Baltic States

Latvia’s tax system is the most attractive among Baltic States and 13th most attractive among 190 countries of the world, according to the latest study performed by the World Bank and PricewaterhouseCoopers on tax systems around the world.

Turkish journalist punished with prison term for tweet

A court in Turkey has sentenced on Tuesday, November 21, a journalist from opposition newspaper Cumhuriyet to three years behind bars over accusations of spreading terrorist propaganda in relation to a post on Twitter, which had been briefly on the microblogging site this spring.

Latvia – 35th country in the world ICT development-wise

This year Latvia reached 35th place in the world in terms of development of information and communication technologies, as mentioned in the latest report by UN International Telecommunication Union.

Instant payment infrastructure comes online in Europe

On Tuesday, 21 November, instant payment infrastructure will be introduced across Europe. On top of that, European banks’ founded EBA Clearing will also introduce its RT1 instant payment system. The European-level solution has also been coordinated with the instant payment processing infrastructure prepared by the Bank of Latvia in August 2017, as reported by the bank.

Police dismantle criminal group that caused damage worth seven million euros to the state

Latvian State Revenue Service’s Finance Police dismantled a criminal group in November 2017. A total of 34 searches were performed and two people were found suspect. The criminal group performed tax avoidance and money laundering operations, causing damages worth nearly seven million euros to the state, BNN was informed by SRS.

Newest comments