“In international trade, we must be able to ensure that both national EU funds and our taxpayers’ funds reach the countries that respect international law and the fundamental principles of the United Nations Charter, and not the aggressors. When buying goods from Russia and Belarus, the money goes to Russia’s budget and helps fund its war of aggression against Ukraine. That is unacceptable,” said the Minister of Foreign Affairs, Baiba Braže, at the EU Foreign Affairs Council in its Trade configuration on 21 November.
The Minister of Foreign Affairs voiced strong support for Sweden’s proposal to the European Commission – to continue its work on increasing tariffs for imports of Russian and Belarusian products into the EU, in order to weaken Russia’s ability to receive revenues from trade and finance its war against Ukraine. Sweden presented the proposal to the European Commission jointly with seven EU Member States – Latvia, Denmark, Estonia, Finland, Ireland, Lithuania and Poland.
Baiba Braže also thanked the Executive Vice-President of the EC, Valdis Dombrovskis, for his work during his mandate, including the strengthening of EU trade relations with the United States bilaterally and within the EU-US Trade and Technology Council (TTC). For Valdis Dombrovskis, this was the closing meeting in his current post.
During a discussion on the future of EU trade policy, Baiba Braže underlined: “Security and defence – this is the basis for economic growth and prosperity. Therefore, Latvia is investing heavily in domestic security and the work of the border and customs authorities, and 3.5% of GDP will be channelled into defence next year. In the current geopolitical situation, it is crucial to use all the available EU instruments – trade agreements, new partnerships, market protection instruments and others – to enable our businesses to succeed in new markets, thereby obtaining funds to finance our defence. It is also important to ensure that EU economic operators are not exposed to unfair competition.”
The expansion of the EU’s network of trade agreements with trusted partners globally already demonstrates the positive impact, for example, since 2010, the exports of EU services to Korea have increased by 200%. Security and defence needs should also remain a priority in the European Commission’s next cycle of operations, including through trade policy.
The Minister called for swift conclusion of new trade agreements with Latin American and Indo-Pacific countries; in particular, she highlighted negotiations with the global economic growth centres – ASEAN countries.
“An open and free trade policy enables the diversification of sales markets, driving innovation, giving access to critical raw materials, protecting and strengthening the EU’s competitiveness. Moreover, strong trade links contribute significantly to bilateral relations and cooperation with partner countries,” Baiba Braže stressed.
In a discussion on EU-U.S. trade relations, including the upcoming change in the U.S. administration, participants exchanged views on next steps to strengthen transatlantic trade links. Baiba Braže emphasised: “The U.S. is, and will remain our strategic partner and closest ally, so the EU must further strengthen transatlantic trade relations and cooperation with the U.S. At the same time, it is vital to develop partnerships with the U.S. not only in trade, but also in building cooperation on economic security, energy, security and other important issues.”
Course of the World trade Organisation (WTO) reform
In an informal exchange of views on progress with the World Trade Organisation (WTO) reform, Baiba Braže stressed the importance of steering a comprehensive reform of the organisation by joint effort. “The WTO must be able to respond to the present-day challenges and its daily agenda must include issues important to economy in view of the current geopolitical upheavals,” Baiba Braže underlined.
About the Foreign Affairs Council (Trade)
- The EU Foreign Affairs Council in its Trade configuration addresses matters of the EU’s trade relations with third countries, including trade in goods and services, the commercial side of intellectual property rights, aspects of international public procurement and foreign direct investment rules. Meetings are chaired by the minister responsible for trade of the country holding the Presidency of the Council of the EU.
- The meeting of the EU Foreign Affairs Council (Trade) on 30 May 2024 approved a Council Regulation increasing customs tariffs on cereals, oilseeds and derived products of Russian and Belarusian origin as from 1 July. State Secretary Andris Pelšs: EU must continue to reduce Russia’s revenues and its ability to finance its hostilities in Ukraine
- Latvia, together with other EU Member States, continues actively maintaining on the EU agenda the issue of further tariff increases for as wide as possible range of products originating in Russia and Belarus, thus reducing Russia’s revenues from trade and ability to finance its hostilities in Ukraine.
- The WTO Director-General’s current term comes to an end on 31 August 2025.
