Decision of the Joint EFTA-LATVIA Committee No. [3] of 2001

(Adopted at the fifth meeting on 29 November 2001)

Amendments to article 17 and 24 and annex II, and deletion of annexes VI and VII concerning state aid

The Joint Committee,

Having regard to the developments in the field of subsides at the international level since the entry into force of this Agreement, and in particular the entry into force of the WTO Agreement on Subsides and Countervailing Measures,

Having regard to Article 35 of the Agreement,

DECIDES:

The Agreement shall be amended as follows:

1. Article 17 shall be replaced with the following wording:

"Article 17

Subsidies

1. The rights and obligations of the Parties relating to subsidies and countervailing measures shall be governed by Article XVI of the GATT 1994 and the WTO Agreement on Subsidies and Countervailing Measures, except as otherwise provided for in this Article.

2. The Parties to this Agreement shall ensure transparency of subsidy measures by exchanging their annual notifications to the WTO pursuant to Article XVI:1 of the GATT 1994 and Article 25 of the Agreement on Subsidies and Countervailing Measures.

3. Before an EFTA State or Latvia, as the case may be, initiates an investigation to determine the existence, degree and effect of any alleged subsidy in Latvia, or in an EFTA State, as provided for in Article 11 of the Agreement on Subsidies and Countervailing Measures, the Party considering initiating an investigation shall notify in writing the Party whose goods are subject to investigation and allow for a 30-day period with a view to finding a mutually acceptable solution. The consultations shall take place in the Joint Committee if any Party so requests within 10 days from the receipt of the notification."

2. Annexes VI and VII to the Agreement shall be deleted.

3. In paragraph 3(a), second line of Article 24, the words "and 17 (State aid)" shall be deleted.

4. In paragraph 6, fourth line of Article 24, the words "and in cases of state aid having a direct and immediate incidence on trade between the States Parties" shall be deleted.

5. Article 2 of Annex II to the Agreement shall be deleted.

6. The above amendments shall enter into force when the instruments of acceptance have been deposited by all the Parties with the Depositary which shall notify all the Parties.

7. The Secretary-General of the European Free Trade Association shall deposit the text of this Decision with the Depositary.