AGREEMENT ON THE
TERMS OF ACCESSION OF
THE REPUBLIC OF LATVIA
TO THE CONVENTION ON
THE ORGANISATION FOR ECONOMIC
CO-OPERATION AND DEVELOPMENT

 

STATEMENT BY THE GOVERNMENT OF THE REPUBLIC OF LATVIA CONCERNING THE ACCEPTANCE BY THE REPUBLIC OF LATVIA OF THE OBLIGATIONS OF MEMBERSHIP OF THE ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

29 April 2016

THE GOVERNMENT OF THE REPUBLIC OF LATVIA:

Having regard to the Convention on the Organisation for Economic Co-operation and Development of 14 December 1960 (hereinafter referred to as "the Convention") and to Supplementary Protocols Nos. 1 and 2 to the Convention;

Having regard to Article 16 of the Convention which provides that the Council may decide to invite any Government prepared to assume the obligations of membership to accede to the Convention;

Having regard to the Resolution of the Council on Strengthening the OECD's Global Reach adopted on 29 May 2013 by which Council decided to open accession discussions with the Republic of Latvia [C(2013)58/FINAL];

Having regard to the Roadmap for the Accession of Latvia to the OECD Convention [C(2013)122/FINAL], adopted by Council on 15 October 2013 which set out the terms, conditions and process for the accession of the Republic of Latvia to the Organisation for Economic Co-operation and Development (hereinafter referred to as "the Organisation");

STATES the following:

A. GENERAL STATEMENT OF ACCEPTANCE

1. The Republic of Latvia shall, by deposit of its instrument of accession to the Convention, assume all obligations of membership of the Organisation including, inter alia, the acceptance of:

i) the aims of the Organisation, as set out in Article 1 of the Convention as well as in the Report of the OECD Preparatory Committee of December 1960;

ii) all of the undertakings and commitments set out in Articles 2 and 3 of the Convention;

iii) Supplementary Protocols Nos. 1 and 2 to the Convention;

iv) all decisions, resolutions, rules, regulations and conclusions adopted by the Organisation relating to its management and functioning including those concerning the governance of the Organisation, the financial contributions of Members, other financial and budget matters, staff matters (including the judgments of the Administrative Tribunal), procedural matters, relations with non-Members and classification of information;

v) the financial statements of the Organisation;

vi) the working methods of the Organisation;

vii) all substantive legal instruments of the Organisation in force at the time of the decision of the OECD Council to invite the Republic of Latvia to accede to the Convention, with the remarks specified in Annexes 1 to 4 of the present Statement of which they form an integral part. With regard to any legal instruments adopted between the date of the decision of the OECD Council to invite the Republic of Latvia to accede to the Convention and the date on which the Republic of Latvia deposits its instrument of accession, the Republic of Latvia shall provide its position on each instrument within three months after its adoption.

B. AGREEMENT ON THE PRIVILEGES AND IMMUNITIES OF THE ORGANISATION

2. In accordance with Article 23 of the Agreement between the Republic of Latvia and the Organisation for Economic Co-operation and Development on the Privileges, Immunities and Facilities Granted to the Organisation (hereinafter referred to as "the Agreement on the Privileges and Immunities of the Organisation"), signed on 5 May 2014, the Agreement on the Privileges and Immunities of the Organisation entered into force on 7 November 2014.

C. PARTICIPATION IN OPTIONAL OECD ACTIVITIES AND BODIES

3. The Republic of Latvia wishes to participate in certain optional activities and bodies upon becoming a Member of the Organisation, as set out in Annex 5 which forms an integral part of the present Statement. The Republic of Latvia acknowledges that, for certain optional activities or bodies, there are specific procedures and/or criteria for participation or membership which will be applied.

D. TERMINATION OF PRIOR AGREEMENTS WITH THE ORGANISATION

4. The Republic of Latvia notes that, as from the date of its accession to the Convention, prior agreements between the Republic of Latvia and the Organisation concerning its participation as a non‑Member in certain OECD bodies shall be considered to be terminated. As from the date of its accession, the Republic of Latvia will participate in those OECD bodies as a Member of the Organisation.

E. REPORTING TO OECD COMMITTEES AFTER ACCESSION

5. The Republic of Latvia agrees to submit progress reports to selected OECD Committees after accession as set out in the Decision of the OECD Council to invite the Republic of Latvia to accede to the Convention. The Republic of Latvia further agrees to contribute resources to support the evaluation of post-accession progress reports included by the Council in its Decision to invite the Republic of Latvia to accede to the Convention.

6. The Republic of Latvia agrees to the publication of an annual summary of its post-accession progress prepared by the Secretary-General.

ANNEX 1: SPECIFIC REMARKS ON ACCEPTANCE OF OECD LEGAL INSTRUMENTS

The Republic of Latvia accepts all OECD legal instruments in force at the time of the decision by the OECD Council to invite the Republic of Latvia to accede to the Convention with the following remarks:

Corporate Governance

Recommendation of the Council on Guidelines on Corporate Governance of State-Owned Enterprises [C(2015)85]

Latvia commits to the establishment of professional boards of directors by the end of 2016 in all large commercial SOEs, based on the application of clear selection and nomination procedures for SOE board members.

Fiscal Affairs

Recommendation of the Council concerning the Model Tax Convention on Income and on Capital C(97)195/FINAL

Latvia accepts this Recommendation with the following reservations and observations on the OECD Model Tax Convention:

Reservations

Article 2, paragraph 2: Latvia holds the view that "taxes on the total amounts of wages or salaries paid by enterprises" should not be regarded as taxes on income and therefore reserves the right not to include these words in paragraph 2.

Article 4, paragraph 1: Latvia reserves the right to include the place of incorporation or a similar criterion in paragraph 1.

Article 5: Considering the special problems in applying the provisions of the Model Convention to activities carried on offshore in a Contracting State in connection with the exploration or exploitation of the sea bed, its subsoil and their natural resources, Latvia reserves the right to insert in a special Article provisions relating to such activities.

Article 5, paragraph 3: Latvia reserves the right to deem any person performing professional services or other activities of an independent character to have a permanent establishment if that person is present in the State for a period or periods exceeding in the aggregate 183 days in any twelve month period.

Article 6, paragraph 2: Latvia reserves the right to include in the definition of the term "immovable property" any option or similar right to acquire immovable property.

Article 6, paragraph 3: Latvia reserves the right to include in paragraph 3 a reference to income from the alienation of immovable property. Latvia also reserves the right to tax income of shareholders in resident companies from the direct use, letting, or use in any other form of the right to enjoyment of immovable property situated in their country and held by the company, where such right is based on the ownership of shares or other corporate rights in the company.

 

Article 7: Latvia reserves the right to use the previous version of Article 7, i.e. the version that was included in the Model Tax Convention immediately before the 2010 Update, subject to adding to paragraph 3 of that previous version a clarification that expenses to be allowed as deductions by a Contracting State shall include only expenses that would be deductible if the permanent establishment were a separate enterprise of that Contracting State.

Article 8: Latvia reserves the right in exceptional cases to apply the permanent establishment rule in relation to profits derived from the operation of ships in international traffic.

Article 8, paragraph 1: Latvia reserves the right to include a provision that will ensure that profits from the leasing of ships or aircraft on a bare boat basis and from the leasing of containers will be treated in the same way as income covered by paragraph 1 when such profits are incidental to international transportation.

Article 8, paragraph 2: Latvia reserves the right not to extend the scope of the Article to cover inland waterways transportation in bilateral conventions and to make corresponding modifications to paragraph 3 of Articles 13, 15 and 22.

Article 10: Latvia reserves the right not to include the requirement for the competent authorities to settle by mutual agreement the mode of application of paragraph 2. Latvia also reserves its position on the rates provided for in paragraph 2.

Article 10, paragraph 3: Latvia reserves the right to replace, in paragraph 3, the words "income from other corporate rights" by "income from other rights".

Article 11, paragraph 2: Latvia reserves its position on the rate provided for in paragraph 2. Latvia also reserves the right not to include the requirement for the competent authorities to settle by mutual agreement the mode of application of paragraph 2.

Article 11, paragraph 3: Latvia reserves the right to amend the definition of interest to clarify that interest payments treated as distributions under its domestic law fall within Article 10.

Article 12, paragraph 1: Latvia reserves the right to tax royalties at source if the recipient of the income is an individual who is resident of the other Contracting State.

Article 12, paragraph 2: Latvia reserves the right to include in the definition of royalties payments for the use of, or the right to use, industrial, commercial or scientific equipment. Latvia also reserves the right, in order to fill what it considers as a gap in the Article, to add a provision defining the source of royalties by analogy with the provisions of paragraph 5 of Article 11, which deals with the same issue in the case of interest.

Article 13: Latvia reserves the right to insert in a special Article provisions regarding capital gains relating to activities carried on offshore in a Contracting State in connection with the exploration or exploitation of the sea bed, its subsoil and their natural resources.

Article 15: Latvia reserves the right to insert in a special Article provisions regarding income derived from dependent personal services relating to activities carried on offshore in a Contracting State in connection with the exploration or exploitation of the sea bed, its subsoil and their natural resources.

 

Article 16: Latvia reserves the right to tax under this Article any remuneration of a member of a board of directors or any other similar organ of a resident company.

Article 20: Latvia reserves the right to refer to any apprentice and to a trainee in this Article.

Observations

Article 7, commentary: Latvia will interpret Article 7 as it read before the 2010 Update in line with the relevant Commentary as it stood prior to that update.

Convention on Mutual Administrative Assistance in Tax Matters, as amended by the Protocol Amending the Convention on Mutual Administrative Assistance in Tax Matters

Notifications:

ANNEX A - Existing taxes to which the Convention shall apply

Article 2, paragraph 1.a.i:

- Income tax;

- Corporation tax;

Article 2, paragraph 1.b.iii:

B. Taxes on immovable property;

C. Value-Added Tax;

D. Excise taxes.

ANNEX B - Competent Authorities

The Ministry of Finance or its authorised representative.

Reservations:

In accordance with Article 30, paragraph 1.a, of the Convention, the Republic of Latvia reserves the right not to provide any form of assistance in relation to the following taxes of other Parties that are listed in Article 2, paragraph 1.b:

Sub-paragraph ii:

compulsory social security contributions payable to general government or to social security institutions established under public law;

Sub-paragraph iii:

A. estate, inheritance or gift taxes;

E. taxes on the use or ownership of motor vehicles;

F. taxes on the use or ownership of movable property other than motor vehicles;

G. any other taxes;

 

Sub-paragraph iv:

taxes in categories referred to in Article 2, paragraph 1.b.iii, which are imposed on behalf of political subdivisions or local authorities of a Party.

In accordance with Article 30, paragraph 1.b, of the Convention, the Republic of Latvia reserves the right not to provide assistance in the recovery of any tax claim, or in the recovery of an administrative fine, for all taxes to which the above reservation applies.

In accordance with Article 30, paragraph 1.c, of the Convention, the Republic of Latvia reserves the right not to provide assistance in respect of any tax claim, which is in existence at the date of entry into force of the Convention in respect of the Republic of Latvia or, where a reservation has been made under sub-paragraph a or b, till the date of withdrawal of such a reservation in relation to taxes in the category in question.

In accordance with Article 30, paragraph 1.d, of the Convention, the Republic of Latvia reserves the right not to provide assistance in the service of documents for taxes covered by the above reservation regarding Article 30, paragraph 1.a.

In accordance with Article 30, paragraph 1.f, of the Convention, the Republic of Latvia reserves the right to apply paragraph 7 of Article 28 exclusively for administrative assistance related to taxable periods beginning on or after 1 January of the third year preceding the one in which the Convention, as amended by the 2010 Protocol, entered into force in respect of the Republic of Latvia, or where there is no taxable period, for administrative assistance related to charges to tax arising on or after 1 January of the third year preceding the one in which the Convention, as amended by the 2010 Protocol, entered into force in respect of the Republic of Latvia.

Declarations:

In accordance with Article 4, paragraph 3, of the Convention, the Republic of Latvia declares that according to its initial legislation its authorities may inform its resident or national before transmitting information concerning him, in conformity with Article 5 and 7.

Investment and Multinational Enterprises

Decision of the Council adopting the Code of Liberalisation of Capital Movements [OECD/C(61)96]

Decision of the Council adopting the Code of Liberalisation of Current Invisible Operations [OECD/C(61)95]

The Republic of Latvia proposes to lodge reservations to the Code of Liberalisation of Capital Movements and the Code of Liberalisation of Current Invisible Operations in accordance with Article 2(b) of the Codes. The lists of reservations are set out in Annexes 2 and 3 to the present Statement.

The Republic of Latvia wishes to make the following commitments with regards to its position under the Codes of Liberalisation:

"In accordance with Article 27 of the Vienna Convention on the Law of Treaties of 23 May 1969, Latvia commits to abide by the obligations it will undertake with respect to the OECD Codes of Liberalisation in the accession treaty with the OECD even in cases where its domestic legislation is in conflict with such obligations."

 

Third Revised Decision of the Council concerning National Treatment [C(91)147/FINAL]

In accordance with the Third Revised Decision of the Council on National Treatment [C(91)147 as amended], the Republic of Latvia proposes to lodge certain exceptions to national treatment. The list of exceptions is set out in Annex 4 to the Final Statement.

Public Governance

Recommendation of the Council on Public Procurement [C(2015)2]

Timeframe: Latvia accepts the instrument listed above with a timeframe for implementation until the end of 2018 for elements relating to e-procurement.

Tourism

Decision-Recommendation of the Council on International Tourism Policy [C(85)165/FINAL]

Reservations to Annex I:

Reservation to Section b) i)

40 cigarettes or 20 cigarillos or 10 cigars or 50 grams smoking tobacco for persons who are not air travellers. Import of tobacco products is allowed in any combination, if the part of per cent which is used from individually determined amounts, does not exceed 100 per cent in total. Import of alcohol and tobacco products is allowed for travellers who have reached the age of 18 years. The quantitative limits are not set for import of perfume, coffee and tea, these products are considered as "other goods" and monetary limits are applied to them.

Reservation to Section b) iii)

Other goods may be imported free of import duties and taxes up to the value of 300 EUR (approx. 266 units of account) for travellers using land transport, and up the value of 430 EUR (approx. 381 units of account) for travellers using air or sea transport. The import of other goods is free of import duties and taxes up to the value 285 EUR (approx. 252 units of account) for children below 15 years of age regardless of travel type.

Reservation to Section d) i)

Foreign driver may drive a vehicle in Latvia, if in possession of:

• driving permit issued in EU Member state or in EFTA country;

• driving permit where categories thereof are indicated in accordance with 1968 Vienna Convention on Road Traffic;

 

• driving permit where categories thereof are not indicated in accordance with 1968 Vienna Convention on Road Traffic. A person having such a driving permit may drive a vehicle corresponding to the category B only, provided it is allowed in the country where this driving permit has been issued. When entries in the driving permit are not made in Latin letters, a person has to submit notarized translation into Latvian.

Observation to Annex II:

Observation to Section a)

Latvia, as a Schengen member country, follows the EU common visa policy. Obtaining of visas and entry into the country takes place according to Council Regulation (EC) No. 539/2001 of 15 March 2001 listing the third countries whose nationals must be in possession of visas when crossing the external borders and those whose nationals are exempt from that requirement, Regulation (EC) No 810/2009 of the European Parliament and of the Council of 13 July 2009 establishing a Community Code on Visas (Visa Code), EU visa facilitation agreements with third countries and Regulation (EC) No 562/2006 of the European Parliament and of the Council of 15 March 2006 establishing a Community Code on the rules governing the movement of persons across borders (Schengen Borders Code). Latvia maintains the right to issue single entry visas.

 

ANNEX 2: LIST OF RESERVATIONS TO THE CODE OF LIBERALISATION OF CAPITAL MOVEMENTS

LATVIA

List A I/A

- Direct investment: - In the country concerned by non-residents. Remark: The reservation applies only to: i) The acquisition of land: • for agriculture and forestry; • of deposits of mineral resources of State importance; • in the territories of Latvia's border area; and • in the protection zones of the Baltic Sea and the Gulf of Riga and in the protected areas of other public reservoirs and water courses, except for the cases when they are intended for building; except by citizens of an EU country or by enterprises which are under joint ownership of citizens of Latvia and other EU countries. The reservation on the acquisition of land will cease to apply on 31 December 2019. ii) Air transport services, for which an operating license can be granted only to enterprises which must be majority owned and effectively controlled by EU and EEA countries and/or nationals of EU and EEA countries, unless otherwise provided for through an international agreement to which the EU is a signatory. iii) Private security and surveillance services, majority ownership except by investors of an EU country. The reservation on private security and surveillance services will cease to apply on 31 December 2019; iv) The extent that under EU Directive 65/2009/EEC, a depository of an undertaking for collective investment in transferable securities (UCITS) must either have its registered office in the same EU country as that of the undertaking or be established in the EU country if its registered office is in another EU country.

 

List B III/A1	- Operations in real estate: - Operations in the country concerned by non-residents. Remark: The reservation applies only to the acquisition of land for the following types of land: • for agriculture and forestry; • of deposits of mineral resources of State importance; • in the territories of Latvia's border area; and • in the protection zones of the Baltic Sea and the Gulf of Riga and in the protected areas of other public reservoirs and water courses, except for the cases when they are intended for building; except by citizens of an EU country and by enterprises which are under full joint ownership of citizens of Latvia and of other EU countries. The reservation on the acquisition of land will cease to apply on 31 December 2019.
List A VIII(i)/B	- Credits directly linked with international commercial transactions or with the rendering of international services: (i) In cases where a resident participates in the underlying commercial or service transaction. B. Credits granted by residents to non-residents. Remark: The reservation applies to the extent that authorities may impose higher minimum capitalisation requirements on banks maintaining loans to non-residents of over 5% of total assets.
List B VIII(ii)/B	ii) In cases where no resident participates in the underlying commercial or service transaction. B. Credits granted by residents to non-residents. Remark: The reservation applies to the extent that authorities may impose higher minimum capitalisation requirements on banks maintaining loans to non-residents of over 5% of total assets.
List B IX/B	- Financial credits and loans: B. Credits and loans granted by residents to non-residents. Remark: The reservation applies to the extent that authorities may impose higher minimum capitalisation requirements on banks maintaining loans to non-residents of over 5% of total assets.

 

List A XI/A

- Operation of deposit accounts: - Operation by non-residents of account with resident institutions. Remark: The reservation applies to the extent that authorities may impose a higher minimum liquidity ratio and a higher minimum capital requirement on banks maintaining deposits of non-residents of over 20 % of total assets.

 

ANNEX 3: LIST OF RESERVATIONS TO THE CODE OF LIBERALISATION OF CURRENT INVISIBLE OPERATIONS

LATVIA

C/3	Road transport: passengers and freights, including chartering Remark: The reservation, which does not apply to EU service providers, applies to the following operations: i) for passengers: • transit; • "closed door" tours; • picking up or setting down on an international journey; • transport within the country; ii) for freights: • transit; • delivery on an international journey; • return cargo where collection is authorised; • return cargo where delivery is authorised; • collection on an international journey; • transport within the country.
D/2	Insurance relating to goods in international trade Annex I to Annex A, Part 1, D/2 Remark: the reservation, which includes the activity of promotion, applies only to compulsory third-party liability insurance for road vehicles by foreign insurers other than undertakings established in the EU.
D/3	Life insurance Annex 1 to Annex A, Part I, D/3, paragraphs 1 and 3 Remarks: The reservation which includes the activity of promotion, does not apply to: i) insurance services provided by undertakings established in the EU, or ii) if the policy has been taken out at the proposer's initiative.

 

D/4	All other insurance Annex I to Annex A, Part I, D4, paragraphs 4, 5 and 6. Remarks: The reservation which includes the activity of promotion, does not apply to: i) insurance services provided by undertakings established in the EU, or ii) if the policy has been taken out at the proposer's initiative.
D/7	Entities providing other insurance services Annex I to Annex A, Part IV, D/7 Remark: The reservation which includes the activity of promotion applies only to intermediation services by services providers other than undertakings established in the EU.
D/8	Private Pensions Annex I to Annex A, Part IV, D/8 Remark: The reservation which includes the activity of promotion, applies only to private pension services provided in Latvia by non-resident service providers other than undertakings established in the EU, except if the policy has been taken out at the proposer's initiative.
E/1	Payment Services Remark: The reservation applies only to: i) the issuance of cash and credit cards other than by licensed EU service providers and ii) electronic fund transfer services other than by licensed EU service providers.
E/2	Banking and investment services Remark: The reservation applies only to the provision of underwriting and broker/dealer investment and banking services in Latvia other than by licensed EU service providers.
E/4	Asset management Remark: The reservation applies only to services provided in Latvia by non-residents, other than licensed EU service providers.

 

E/7

Conditions for establishment and operation of branches, agencies etc. of non-resident investors in the banking and financial services sector. Annex II to Annex A, paragraph 1 Remark: Under EU Directive 65/2009/EEC, a depository of an undertaking for collective investment in transferable securities (UCITS) must either have its registered office in the same EU country as that of the undertaking or be established in the EU country if its registered office is in another EU country.

L/6

Professional services (including services of accountants, artists, consultants, doctors, engineers, experts, lawyers, etc.). Remark: The reservation applies only to the provision of cross-border services by sworn advocates as defence counsel in criminal proceedings in Latvia other than by citizens of an EU member state.

 

ANNEX 4: LIST OF EXCEPTIONS TO NATIONAL TREATMENT IN ACCORDANCE WITH THE THIRD REVISED DECISION OF THE COUNCIL ON NATIONAL TREATMENT [C(91)147 AS AMENDED]

LATVIA

A. Exceptions at the national level

I. Investment by established foreign-controlled enterprises

Real estate: Land may be acquired by all natural and legal persons, except in the territories in Latvia's border area, dune areas of the Baltic Sea and the Riga gulf and protected areas of other public waters, land of state reserves, land usable for agriculture and forestry, and land of deposits of mineral resources of State importance, which may only be acquired by:

• Latvian citizens and the citizens of other EU countries, EEA countries, and Switzerland;

• State and self-governments and its enterprises;

• Enterprises registered in the Republic of Latvia or enterprises registered in other EU countries, EEA countries, or Switzerland and registered as taxable persons in the Republic of Latvia, which are fully jointly owned by Latvian citizens, other citizens of EU countries, citizens of EEA countries, citizens of Switzerland, the Latvian State or self-government, or which are owned by natural or legal persons from countries with which Latvia has signed and ratified an international agreement on the promotion and protection of investments before 31 December 1996 or an agreement signed and ratified by Latvia after that date, which provides for reciprocal rights to land acquisition.

Authority: Law on Land Privatisation in Rural Regions (Official Journal No.32 of 20.08.1992, as amended as of August 2014) and Law on Land Reform in Towns and Cities of Republic of Latvia (Official Journal No.14 of 13.12.1991).

Air transport: Airlines established in the country must be majority owned and effectively controlled by EU and EEA states and/or nationals of EU and EEA states, unless otherwise provided for by an international agreement to which the EU is a signatory.

Authority: Law on Aviation (Official Journal No. 123 of 20.10.1994).

 

Gambling and lotteries: Licenses for conducting activity in gambling and lotteries are issued only to enterprises with equity participation by foreign investors of 49 per cent or less. The said requirement does not apply to investors from the European Union Member States, European Economic Area States and Members of the Organisation for Economic Co-operation and Development, as well as when different provisions for foreign investments are prescribed by international treaties ratified by the Saeima.

Authority: Law on Gambling and Lotteries (26.09.2013).

Private security and surveillance services: Undertaking in which foreign investors (directly or indirectly) have majority ownership, except for investors from EU countries and states of the European Economic Area (EEA), may not receive a license to provide private security and surveillance services.

Authority: Security Guard Activities Law (Official Journal No.47 of 06.03.2014).

II. Official aids and subsidies

None.

III. Tax obligations

None.

IV. Government purchasing

None.

V. Access to local finance

None.

B. Exceptions by territorial subdivisions

None.

 

ANNEX 5: LIST OF OPTIONAL ACTIVITIES AND BODIES IN WHICH LATVIA WISHES TO PARTICIPATE

• Programme for Teaching and Learning International Survey (TALIS)

• Programme for International Student Assessment (PISA)

• Global Forum on Transparency and Exchange of Information for Tax Purposes

• OECD Schemes for the Varietal Certification of Seed or the Control of Seeds Moving in International Trade (Grass and Legume Seed; Cereals Seed)

• Co-operative Action Programme on Local Economic and Employment Development (LEED)

• International Transport Forum

• Special Programme on the Control of Chemicals

 

decision of the council to invite the Republic of LATVIA to accede to the convention on the oecd

(Adopted by the Council at its 1333rd session on 11 May 2016)

THE COUNCIL,

Having regard to the Convention on the Organisation for Economic Co-operation and Development of 14 December 1960 (hereinafter referred to as "the Convention") and, in particular to Articles 5 a) and 16;

Having regard to the Resolution of the Council on Strengthening the OECD's Global Reach adopted on 29 May 2013 by which Council decided to open accession discussions with the Republic of Latvia [C(2013)58/FINAL];

Having regard to the Roadmap for the Accession of Latvia to the OECD Convention [C(2013)122/FINAL], adopted by Council on 15 October 2013 which set out the terms, conditions and process for the accession of the Republic of Latvia to the Organisation for Economic Co-operation and Development (hereinafter referred to as "the Organisation");

Having regard to the Report of the Secretary-General on the Accession of Latvia to the Organisation [C(2016)77/REV1];

Having regard to the Final Statement by the Government of the Republic of Latvia dated 29 April 2016 concerning the acceptance by the Republic of Latvia of the obligations of membership of the Organisation [C(2016)54/REV1];

Having regard to the formal opinions of the OECD substantive Committees listed in the Accession Roadmap [C(2016)55];

Having regard to the Note by the Secretary-General on the Position of Latvia on Legal Instruments not Reviewed by OECD Substantive Committees [C(2016)56];

Having regard to the Agreement between the Government of the Republic of Latvia and the Organisation for Economic Co-operation and Development on the Privileges, Immunities and Facilities Granted to the Organisation, which entered into force on 7 November 2014;

Considering that the Government of the Republic of Latvia is prepared to assume the obligations of membership of the Organisation;

DECIDES:

1. The Republic of Latvia is invited to accede to the Convention on the terms proposed in the Final Statement by the Government of the Republic of Latvia C(2016)54/REV1 and those set out below.

2. The Republic of Latvia shall provide its position on each legal instrument of the Organisation adopted between the date of the present Decision and the date of the accession of the Republic of Latvia to the Convention within three months after the adoption of such legal instrument.

 

3. All prior agreements on the participation of the Republic of Latvia in OECD bodies as a non-Member shall be terminated as from the date of the accession of the Republic of Latvia to the Convention. As from that date, the Republic of Latvia will participate in those OECD bodies as a Member of the Organisation.

4. The Republic of Latvia shall provide progress reports to OECD bodies after its accession to the Convention as follows:

• Corporate Governance Committee: A progress report to the Committee and its Working Party in Spring 2017 and thereafter as required;

• Health Committee: A progress report within two years after its accession to the Organisation.

5. The Republic of Latvia shall contribute financial resources to support the evaluation of post-accession progress reports indicated above. An annual summary of Latvia's post-accession progress prepared by the Secretary-General shall be made public.

 

DONE in Paris, this 2nd day of June Two Thousand and Sixteen, in the English and French languages.

For the Government of the Republic of Latvia:	For the Organisation for Economic Co-operation and Development:
Pour le gouvernement de la République de Lettonie :	Pour l'Organisation de Coopération et de Développement Économiques :
Māris KUČINSKIS	Angel GURRÍA
Prime Minister Premier Ministre	Secretary-General Secrétaire général