Latvian Chamber of Trade
LTK
support international trade, education and information concerning international trade, developing export-import, take part in neighbor policy and building FTA, antipoverty actions, environment protection
ID: 098542210935-41
Lobbying Activity
Response to Pact for the eastern border regions
10 Sept 2025
Submission from The Latvian Traders Association (LTA) Response to DG REGIO Consultation: Pact for the Eastern Border Regions We welcome the European Commissions consultation on the Pact for the Eastern Border Regions. We represent retailers operating in Latvia and wish to underline the severe economic, social and security threats posed by the production, transit and sale of illegal, non-compliant and/or tax-evaded excisable consumer products - alcohol, tobacco, vaping, petrol originating from or transiting through Belarus, Russia, Ukraine, and increasingly from China. Economic and fiscal impact Illicit trade directly undermines legitimate Latvian businesses and retailers. Europol has reported that smuggling routes through the eastern external border are among the most active, with over 450 million illicit cigarettes seized in 2022the majority at EU entry points in Latvia, Lithuania, and Poland, from either Belarus or Ukraine (Europol; EU Council Law Enforcement Working Party 2023). OLAF and Europol estimates that the illicit cigarette trade across EU costs Member States over 13 billion in lost tax revenues annually. This erosion of excise and VAT revenues deprives Latvian municipal and national government agencies of resources needed for public services and regional investment. Security and organised crime Illicit excisable good flowing across the EU external border into Latvia and other Baltic states is not a petty crime problem but a strategic enabler of organised crime. Europol has consistently highlighted links between tobacco, alcohol, and fuel smuggling networks and other serious crimes, including arms trafficking and money laundering (Europol, SOCTA 2021). These activities undermine community safety, distort markets, reduce job creation and directly fund hostile regimes. According to the EU Council Working Party on Law Enforcement (2024), smuggling networks operating out of Belarus and Russia generate revenues that support the state apparatuses responsible for aggression in Ukraine. Consumer safety risks Illicit alcohol, fuel, and vaping products frequently fail to meet EU safety standards, endangering consumers. Europol and OLAF report recurring seizures of counterfeit or toxic goods, including fuel adulterated with chemicals and alcohol containing methanol (OLAF Annual Report 2023). The circulation of non-compliant products in border communities harms public health and erodes trust in legitimate retailers and supply chains. Local and regional consequences The border regions of Latgale, Daugavpils and Ludza face a disproportionate burden. According to Latvias State Revenue Service, seizures of illicit tobacco increased by 30% in 2023, with major hotspots along the Belarusian border. These regions suffer twice: legitimate retailers lose business to illegal operators, while municipalities lose excise revenues that could otherwise be reinvested into local infrastructure, healthcare, and jobs. The result is a deepening cycle of depopulation, economic decline, and insecurityprecisely the vulnerabilities that the Pact seeks to address. By destabilising EU border economies, fuelling organised crime, and generating revenues for Russia and Belarus, the trade poses a direct security threat to the EUs cohesion and resilience. The EU Council Working Party on Law Enforcement has underlined that criminal groups operating in excise smuggling often overlap with those facilitating human, weapons, and drug trafficking, creating a convergence of threats at the EUs eastern border. Recommendations To address these challenges, we urge that the Pact: ....... see file
Read full responseMeeting with Ivars Ijabs (Member of the European Parliament, Rapporteur)
26 Sept 2024 · Late payments regulation
Response to Unfair trading practices in the agricultural and food supply chain
19 Oct 2023
Iespējams, tas ietekmēja negodīgas komercprakses apkarošanu sākotnējā posmā - starp ražotāju un pārstrādātāju. Diemžēl, tas neatrisināja komunikācijas efektivitāti starp ražotāju un globālo tirgotāju (piemēram, RIMI), kā arī nesekmēja mazo tirgotāju konkurences spēju paaugstināšanu, saglabājot aizliegumu ražotājam pārdot mazajam tirgotājam par tām pašām cenām kā globālam tirgotājam.
Read full responseMeeting with Roberts Zīle (Member of the European Parliament)
21 Sept 2023 · Meeting with Latvian Chamber of Commerce