Summed up

LATVIAN TRUCKERS, FARMERS WAIT AND SEE: Latvian haulers and farmers who met in Priekuli, northern Latvia, July 9 decided they would not stage protests for the time being. The haulers and farmers will wait until the new government is formed, said Valdis Trezins, secretary general of the Latvian international truck haulers association Latvijas Auto. The chief grievances of the haulers is the improvement of visa issues and the system of transportation permits. The farmers meanwhile demand better domestic market protection and increase of agriculture financing. The haulers and farmers also want new thinking on their problems, asking President Vaira Vike-Freiberga not to allow the new government to be formed by any of the former prime ministers, including People's Party leader Andris Skele.

ESTONIAN BUTCHERS CRY FOUL ON LATVIA'S PORK: Estonia's meatpacking company Rakvere Lihakombinaat estimates Latvia's tariffs on imported pork will cost the company 283 million kroons ($19.82 million). The company estimated its losses caused by cutting supply, processing and sales to reach 32 million kroons. The company representatives said they might have to lay off workers at its subsidiaries Rigas Miesnieks, Ekseko and the slaughterhouse. Rakvere Lihakombinat has invested 162 million kroons in Rigas Miesnieks, but is now considering closing the Latvian plant.

U.S. COMPANY BUYS INTO LITHUANIA FERTILIZER: The U.S. agribusiness corporation Cargill has acquired a 15 percent stake in Lifosa, the only phosphate fertilizer producer in Lithuania. Cargill became the official distributor of Lifosa's phosphate products under the deal. The partnership with one of the world's largest agribusiness corporations is expected to improve marketing of fertilizers produced by the plant based in Kedainiai, central Lithuania.

LATVIA'S INFLATION TOPS THE CHART: Latvia had the highest inflation among the Baltic states in June with consumer prices rising 0.7 percent, announced the Central Statistics Bureau. Latvian consumer prices in June grew 1.9 percent year-on-year, while in the first half of the year the figure was 2.4 percent. In Estonia, the consumer price index stayed unchanged in June, while the year-on-year index grew 3.1 percent. Lithuania for the second time this year has seen deflation in June over May with the index declining 0.1 percent. In 1998, Lithuania had the lowest inflation among the Baltic states at 2.4 percent. In Latvia inflation was 2.8 percent and in Estonia 6.5 percent.

COMPETITION'S IN THE MAIL: The Estonian Transport Ministry has drafted a postal service bill which would completely open up the market to competition from abroad, head of the ministry's communications department Edvard Saarma said. Under one version of the draft, all companies having a license for postal service in Estonia must provide universal service, i.e. cover the country's whole territory. The draft leaves the communications board the right to exempt specific companies from the task of providing a universal service. A second version of the postal service bill suggests that the government would give the right to provide postal service in Estonia to a company under a concession agreement for a limited period of time.

MOSCOW LAUDS LITHUANIAN FOOD BOOSTERS: Moscow has urged Latvia and Estonia to follow Lithuania's example and introduce foodstuffs' export promotion. "Without additional mechanisms of market control, a two-way trade is practically impossible," the Moscow mayor's adviser Aleksandr Perelygin said in Vilnius July 7. Valentin Zhilinskiy, director general of the Moscow state enterprise Mosprodkontrakt, said a special market regulation agency in Lithuania helps to facilitate the supply of products to Russia. The Lithuanian market regulation agency purchases surplus products from local farmers, supports it by export subsidies and sells it abroad.

LATVIA'S MAIN BUDGET RUNS 37.5 MILLION LATS SHORT: The financial deficit of Latvia's main budget has increased to 37.5 million lats ($62.5 million) as of July 8 with a fiscal deficit of 81 million lats, said Finance Ministry spokeswoman Baiba Melnace. On July 1 the financial deficit was 27.3 million lats and fiscal deficit was 62 million lats. Melnace said there are bigger expenditures at the beginning of the month because wages, allowances and other regular payments should be made at that time while the biggest tax revenues are expected to flow in only during the second half of the month.

LITHUANIAN SUDS RISE: The Lithuanian beer market showed a 15 percent year-on-year growth in the first half of this year, according to data provided by the Lithuanian Brewers' Association. The country's ten major breweries boosted their total six-month sales to 8.14 million deciliters this year from 7.08 million deciliters a year ago.