OREANDA-NEWS. December 05, 2011. Prime Minister Valdis Dombrovskis in conversation with Estonian Minister for Agriculture Helir-Valdor Seeder agreed on common objectives of Latvia and Estonia in the multiannual financial framework of the European Union (EU) for 2014-2020 to achieve fairer conditions for direct agricultural payments. Latvia holds a view that it is necessary to set a minimum level of direct payments in the amount of at least 80% or about EUR 214 per hectare of the EU average.

The Prime Minister emphasized that the current proposal of the European Commission does not provide equal support to all EU farmers and the total Common Agricultural Policy budget should not be reduced.

At the same time, H.V. Seeder confirmed that the Estonian and Latvian positions are very similar and expressed readiness to cooperate in defending the common interests. The parties were of the same opinion that the Baltic States should develop a unified position regarding the direct payment policy and should seek support of other countries, incl., in the international public space.

The officials also agreed that it is essential to further involve and coordinate organizations of the Baltic farmers in the area of equalization of direct payments, as well as to closer cooperate at other levels.

Cooperation between Latvia and Estonia:

The countries have developed successful cooperation, incl., in the area of fisheries, forestry, food, veterinary and education. Latvia’s total exports to Estonia in first eight months of 2011 amounted to EUR 189.3 million, of which 35% were timber industry products, 11%- fish and shellfish products, 7% - non-alcoholic and alcoholic beverages. While Latvia’s total imports from Estonia in first eight months of 2011 amounted to EUR 112.6 million, of which 17% - timber industry products, 13% - non-alcoholic and alcoholic beverages, 10% - meat and meat offals.

About the multiannual financial framework of the EU:

In negotiations on the EU’s multi-annual budget for 2014-2020, Latvia pays particular attention to two important priorities: provision of sufficiently large cohesion funding in order Latvia could sooner approach the EU’s average development level and create favourable conditions for Latvia’s economic growth and infrastructure development as well as to ensure fair and equitable competition conditions for Latvian farmers in the common European market.

As we have already reported, the European Commission came up with its proposal for the EU’s multiannual budget on June 29, 2011. The first discussions on the budget proposal among the Member States of the European Union were held at the end of July, 2011, which enabled exchanging of initial positions. The evaluation of the EC’s proposals will continue until the end of this year. Discussions on the merits will continue all through 2012 while it is planned that the European Parliament and the Member States will reach the final agreement on the actual budget framework at the end of 2012 or at the beginning of 2013.