On 30 October 2020, the Parliamentary Secretary of the Ministry of Foreign Affairs, Zanda Kalniņa-Lukaševica, took part in an online discussion organised by the European Commission Representation in Latvia on the European Union’s Trade Policy Review and related issues. The Parliamentary Secretary expressed strong support for the EU Trade Policy Review which has been launched.
Zanda Kalniņa Lukaševica underlined that it is important for Latvia that the European Union protects its economic interests, reduces its vulnerabilities and increases resilience. Nevertheless, in doing so, the EU must not lose sight of its principles, values and standards. Latvia considers open, fair and rules-based international trade to be essential and it supports trade that brings benefits to businesses, consumers and employees alike.
The COVID-19 crisis has hindered the growth in trade volumes and economic growth as well. Latvia is concerned about the emergence of artificial trade barriers. Zanda Kalniņa-Lukaševica pointed out that balance between trade protection and openness must not be lost.
In her remarks to the audience and participants, Zanda Kalniņa-Lukaševica underlined three main priorities of the EU trade policy, and named the first one – the need for change in the international environment in favour of the smaller players in the market. Seeing that small and medium-sized companies as the cornerstone of European economies should be in the focus of our trade policy, the Parliamentary Secretary said.
Zanda Kalniņa-Lukaševica highlighted diversification of trade as the second priority. Giving thought to Europe’s economic growth in the wake of the COVID-19 crisis, opportunities for export must now be sought, the existing free trade agreements should be implemented effectively and the way partners fulfil their commitments should be monitored more closely.
“We must make the effort to eradicate unfair competition, which is most strongly felt in the asymmetrical trade relations between the EU and China. We cannot be naïve in our trade relations with China. We must be able to respond if our interests are violated,” Zanda Kalniņa-Lukaševica said.
There is also the need for a resolute reform of the World Trade Organisation so that the WTO is better adapted to the present-day needs and challenges, the Parliamentary Secretary said, naming the third priority.
The discussion focused on the review of EU trade policy launched this past June, which has come to the fore in light of challenges posed by the COVID-19 pandemic and the need to revitalise EU economy. Latvia broadly supports the general direction being taken by the European Commission, which is based on the model of Open Strategic Autonomy and envisages diversification of supply thereby reducing the risk of dependence on a limited number of market actors.
Taking part in the discussion were also the Executive Vice-President of the European Commission for An Economy that Works for People, Commissioner for Trade, Valdis Dombrovskis; Chairperson of the Saeima (Latvian Parliament) Foreign Affairs Committee, Rihards Kols; and Chairperson of the Board of SAF Tehnika, member of the Latvian Chamber of Commerce and Industry, Normunds Bergs.