Commission Report (2002): Latvia

Subsections

• Progress since the last Regular Report
• Overall assessment
• Conclusions

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Chapter 1: Free movement of goods

Progress since the last Regular Report

Since the last Regular Report, Latvia has continued to make steady progress in aligning its legislation with the acquis in this domain and in strengthening the relevant administrative capacities.

In the area of horizontal and procedural measures, the transposition of the general legal framework for the New and Global Approach principles has been completed. In the field of standardisation, Latvia accelerated the adoption of European standards. By the beginning of July 2002, the Latvian standardisation body has adopted 8 116 standards, including 7 420 European standards. Latvia had transposed 6 617 CEN standards, representing 90.7% of the total; 614 CENELEC standards, representing 15.3% of the total; 189 ETSI standards, representing 10.3% of the total number. As regards safety checks on borders, border inspection posts on external borders have been modernised.

Progress can also be reported on the adoption of sector-specific legislation. Latvia continued the transposition of sectoral directives. In the areas covered by New Approach Directives, all but a few Directives have now been transposed. Since the last Regular Report, progress was made in the implementation of the acquis on radio and telecommunications terminal equipment, and on medical devices. There has, however, been no significant progress in the field of recreational craft.

As regards sectors covered by Old Approach Directives, progress has been made in the implementation of the acquis on fertilisers, medicines for human use, medicines for veterinary use and aerosol dispensers. In the field of fertilisers, the law on production and marketing of fertilisers was adopted in November 2001 and the secondary legislation in June 2002. With the enactment of this law the State Plant Protection Service will carry out surveillance and control functions in respect of production and marketing of fertilisers. Regarding medicines for human use, the Regulation adopted in November 2001 aims at aligning to the acquis in this field. Amendments to the law on veterinary medicine were adopted in December 2001. In the field of aerosol dispensers, the regulation, adopted in March 2002, aims at transposing the acquis in this area. Since the last Regular Report, there has been no progress in the field of explosives for civilian use.

As regards the issue of food safety and foodstuffs legislation (see also Chapter 7 -- Agriculture), Latvia transposed legislation on genetically modified foods, novel foods and labelling.

Some progress has been made regarding the transposition of the acquis on firearms and cultural goods. Amendments to the law on cultural monument protection were adopted in November 2001. The Law on weapons, ammunition, explosives and pyrotechnical products was adopted in June 2002. The Law provides for classification of weapons, special tools and pyrotechnics, and determines the terms of production, repair, purchase, collection, export, import and transit, awarding, usage, storage, transportation, forwarding, confiscation of the mentioned articles and mechanisms.

As regards the development of Latvia`s administrative capacity for the implementation of horizontal and procedural measures and sector-specific legislation, since the last Regular Report, further efforts have been undertaken to strengthen the administrative capacity, in particular in the areas of standardisation, metrology, and market surveillance. The national standardisation institution has continued its programme of transposing European standards. Since January 2002, it has represented Latvia, as an associate member, in the International Electrotechnical Commission, and since March 2002, as an affiliate member, in CENELEC. In 2001, the Latvian National Metrology Centre strengthened its administrative capacity and the market surveillance system has been enhanced. Since January 2002, the Market Surveillance Council, a consultative forum including representatives of ministries, surveillance authorities, customs authorities and consumer organisations, has been operational. Its main tasks are to ensure effective co-operation between members and to create an uniform approach to the market surveillance of all sectors, taking into account consumer and industry interests. As concerns food safety, the Joint Food Supervision Service, the Food and Veterinary Service (FVS), as the sole institution responsible for official control of the entire food chain, has been operational since January 2002. Institutional preparations in the field of Rapid Alert System for Foodstuffs and Feed (RASFF) as well as genetically modified and novel food have commenced.

Since the last Regular Report, progress has been made as regards the non-harmonised area. The screening of legislation for provisions that might not be compatible with Articles 28 to 30 of the EC Treaty has been completed, and some obstacles have been identified. They mainly concern licence systems.

In the area of public procurement, progress has been made both with regard to the alignment of legislation through the adoption of the law on procurement for state or local government needs, and regarding the administrative capacity through the establishment of the Procurement Monitoring Bureau in January 2002. The Bureau provides information, statistics and training on public procurement and is the central point for the publication of tender notices and award results. It also ensures the proper application of rules, receives complaints, investigates and is able to stop procedures.

Overall assessment

Latvia has transposed a significant part of the acquis on free movement of goods. The legal framework on the New and Global Approach is in place and there is sustained development of the standardisation system in Latvia. Steps have been taken in order to reform the market surveillance system. Regarding notification procedures, the Latvian Standards body acts as the WTO/TBT enquiry point and is also responsible for the co-ordination of the exchange of information in the areas of technical barriers to trade and sanitary and phytosanitary measures in the context of the acquis.

As regards the non-harmonised area, correct implementation of Articles 28 to 30 of the EC Treaty, identification and elimination of trade barriers by amending the relevant legislation, implementation of the mutual recognition principle, and the establishment of appropriate administrative capacity to deal with problems related to this area should remain a priority.

As regards sector-specific legislation, a large part of the acquis is in place. The transposition of the New Approach directives has progressed and for the remaining sectors such as aerosols, radio and telecommunications terminal equipment, recreational craft, gas appliance and pressure vessels, the transposition is underway. As regards the Old Approach, the legal and administrative framework on drug precursors, glass, textiles, footwear and wood are already in place and transposition of legislation is progressing steadily. However, completion of alignment is still necessary in the fields of medicines for human use, medicines for veterinary use, and explosives for civilian use.

As regards food legislation, Latvia is fairly advanced in transposition, but the process needs to be completed, including legislation on irradiation, so as to remove any possible inconsistencies between Latvian legislation and the acquis in this field. Further efforts have now to be made to ensure enforcement of the transposed legislation.

As for administrative capacity in this area, the Latvian accreditation, standardisation and metrology bodies have been in place for years and their administrative capacity continues to be strengthened. The Accreditation Council together with the Latvian National Accreditation Bureau and the Technical Committees constitute the accreditation system. The Latvian Accreditation Bureau has been a full member of the European co-operation for Accreditation since June 1999. A new assessment of the Bureau is ongoing in order to make it possible to sign Mutual Recognition Agreements between the Bureau and other European co-operation for Accreditation members by the end of 2002. The good pace of adoption of European standards needs to be maintained. New equipment and training allowed strengthening the administrative capacity of the Latvian National Metrology Centre.

In the field of Market Surveillance, some efforts have been made to enhance the administrative capacity. The Market Surveillance Council has been established to ensure co-ordination between Market Surveillance bodies. Moreover, the Consumer Rights Protection Centre, which is the main authority responsible for general product safety in almost all non-food products, has strengthened its administrative capacity through training. Latvia should continue to develop infrastructure in the areas of market surveillance.

Regarding food safety (see also Chapter 7 -- Agriculture), the establishment of the Food and Veterinary Service now requires more adequate resources and further training to ensure in particular a sufficient level of sampling and to bring control activity of food of non-animal origin up to the required level. Latvia also needs to boost its preparations for future membership of the Rapid Alert System for Foodstuffs and Feed with particular focus on procedures in case of alerts and withdrawals. Implementation of novel food legislation is advanced, but the laboratory for genetically modified foodstuff testing needs to be designated and additional resources should be made available.

As regards sector specific legislation, Latvia has to make further efforts to enhance administrative capacity, in particular in the food sector.

As regards safety checks on products at external borders, Latvia has to continue to strengthen customs and market-surveillance infrastructure, as well as administrative co-operation between competent authorities.

The new legislation on public procurement constitutes a significant step towards alignment with the acquis in this area. However, incompatibilities remain in particular regarding coverage and publicity. While a public procurement body is now in place, the administrative structures and notification procedures need to be strengthened in order to comply with the requirements of the acquis.

Conclusions

In its 1997 Opinion, the Commission concluded that Latvia had made some efforts to fulfil the requirements of Community legislation on free movement of goods. Efforts from Latvian authorities should focus on improving the alignment record in technical legislation where reinforcement of technical expertise is needed. The Commission added, that, if the pace of harmonisation was maintained, implementation of the acquis should not represent a serious obstacle to Latvian accession, but the major difficulty in this process was the lack of experienced staff. The Latvian authorities should also ensure that in the non-harmonised sector, their own national laws did not hamper trade. Further legislative work was also necessary in the field of public procurement.

Since the Opinion, Latvia has made steady progress in the adoption of the acquis in this field, and a good level of transposition has been achieved. The legal and institutional framework is generally in place, and there is sustained development of the standardisation system, which needs however to be reinforced. Steps have been taken in order to reform the market surveillance system and to establish the respective infrastructure, including on food safety and public procurement, but further strengthening is necessary. Overall, Latvia is at an advanced stage in terms of transposition and administrative capacity in the field of free movement of goods.

Negotiations on this chapter have been provisionally closed. Latvia has not requested any transitional arrangements in this area. Latvia is generally meeting the commitments it has made in the accession negotiations in this field.

In order to complete preparations for membership, Latvia should now focus efforts on completing transposition (notably in the area of sectoral legislation, with a special focus on food safety and foodstuffs legislation, as well as on public procurement). It should continue efforts on eliminating trade barriers which were identified during the screening of legislation in the non-harmonised areas by amending the relevant legislation, and on implementing the mutual recognition principle as well as strengthening administrative capacity, in particular in the areas of market surveillance.

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