The State Department web site below is a permanent electronic archive of information released prior to January 20, 2001.  Please see www.state.gov for material released since President George W. Bush took office on that date.  This site is not updated so external links may no longer function.  Contact us with any questions about finding information. NOTE: External links to other Internet sites should not be construed as an endorsement of the views contained therein.

U.S.-Baltic Private Sector Program Conclusions reached at a meeting of the private sector program, Riga, Latvia, July 8, 1998

ISSUES AND DIRECTIONS:
Private Sector Notes and Recommendations

The private sector program of the U.S.-Baltic Partnership met in Riga on July 8, 1998. This inaugural meeting was attended by more than 30 business leaders from the United States, Latvia, Lithuania, and Estonia, and was observed by government officials from all four countries. Following the methods successfully employed by other public-private partnerships such as the Transatlantic Business Dialogue, the participants addressed key concerns of the private sector in its efforts to improve trade and investment links between the U.S. and the Baltic states.

The private sector program had as its guideline these elements:

• Business concerns can inform political and diplomatic decision-making, reflecting the concerns of those who are on the ground in the development of the emerging economies of the Baltic states.

• It is in the interest of all parties to consider removing barriers to trade and investment not only among the participant countries of the U.S.-Baltic Partnership Commission, but also throughout the Baltic Sea region.

The three general area topics of discussion on the agenda of the private sector program meeting were:

• Business Facilitation/Market Access Issues;
• Standards and Regulatory Policy; and
• European Integration.

Opening the meeting, Latvian Foreign Minister Birkavs emphasized the role of business in identifying the barriers to trade and investment so that policymakers can address those barriers. He noted the importance of business leaders generating dialogue among themselves and providing recommendations for political leaders.

The private sector program discussed infrastructure privatization, reciprocity of pharmaceutical registrations, improvement of intragovernmental communications and regulations, streamlining of the tax system and coordination among taxing authorities, the preparation for the advent of the Euro, U.S. governmental support of American bidders on infrastructure projects, incentives for investors (not necessarily fiscal but also regulatory), the link between increased U.S. business participation in the economies of the Baltic states and the U.S. Government commitment to the security of the Baltic states, expansion of cultural and travel ties, residential and business visas, U.S. export regulations affecting Baltic information technology companies, and intellectual property rights and patent protection.

The private sector program produced the following recommendations:

1. Baltic governments need to establish a clearly defined procedure for making infrastructure privatization decisions and support transparent implementation of these procedures.

2. Baltic states should streamline their tax systems and coordinate taxing authorities to create a clear and fair tax regimen.

3. Baltic states should consider procedures to allow the business sector to review and contribute to draft regulations.

4. All states should improve intragovernmental communication and clarity in regulations governing and interpreting competencies of governmental entities.

5. The U.S. should develop an outreach program to increase American business awareness of opportunities for strategic partnerships with Baltic companies and market opportunities in the Baltics and work for transparency in all commercial transactions.

6. All states must work toward improved enforcement of existing laws dealing with corruption and governmental ethics.

7. All states must ensure protection of intellectual property rights and protect patents.

8. All states should develop programs to facilitate travel and cultural exchanges; addressing among other subjects a visa waiver program, including business visas, work permits and residence permits, and dependent family visas.

9. Each Baltic state should consider establishing a "Private Sector Council" with a director of marketing and staff who are empowered by the government to serve an ombudsman role and to assist potential investors as well as those in place.

10. All states should work to eliminate import restrictions.

11. Baltic states should endeavor to further liberalize their financial markets.

12. All states should ratify double-taxation avoidance treaties.

Finally, the private sector program urged the governments of the United States, Latvia, Lithuania, and Estonia to respond to these suggestions, offering to work with government authorities to set up concrete goals and timelines for fulfillment of those goals. Those goals and the process should be realistic and measurable, infusing the process with a tangible sense of contribution to economic and political success in the relations of all Baltic Charter signatories.

[end of text]

Northern Europe Initiative Home Page
Bureau of European Affairs Home Page
DOSFAN Home Page