V. MARKETING U.S. PRODUCTS AND SERVICES

Marketing of consumer products in Latvia is inhibited by the lack
of large distributors or wholesalers.  Food and grocery import,
wholesale and retail operations are handled by private food
wholesale companies, only a handful of which are considered
reliable and strong enough to engage foreign commercial activity.
The Latvian companies Interpegro, Prodimpex, Latgalite, Vildoga,
Abava, and Lauda are among the larger companies having their own
network of small food stores and groceries, or are supplying the
myriad of small retail outlets that characterize the Latvian
commercial scene.  Meat-processing enterprises also import meat
or livestock directly.  Seasonal agriculture and food products
are still mainly sold to the public at farmers' markets located
in the largest cities, although there is a growing network of
small grocery and produce stores.

Three forms of business organization are available to foreigners
in Latvia:

-- the limited liability company (as);
-- the joint stock company (sia); and
-- the representative (branch) office of a foreign
   Company.

Limited liability and joint stock companies are established upon
registration with the Latvian enterprise register.  A limited
liability company has the rights of a juridical person and may be
established with a minimum statutory capital of 100 lats by a
physical person or another company.  A limited liability company
may have up to 50 shareholders.  Companies with more than 50
shareholders must be established as a joint- stock company, a
less popular form of organization for foreign investors because
the structure and legal requirements for registration are more
complicated than for a limited liability company.  A joint-stock
company also has the rights of a juridical person.  In general, a
joint-stock company may be established with a minimum statutory
capital of 500 lats (higher amounts are required to establish
banks, insurance companies, currency exchanges and pawnshops).

Establishment of a foreign bank branch is subject to the approval
of the Bank of Latvia.  To protect the domestic banking industry,
the Bank of Latvia is considering limiting the number of foreign
bank branches in Latvia to two or three.  One French bank has
announced plans to open a branch bank in Riga; a second German
bank is planning to open a representative office.

Representative offices of foreign companies may be established
for an initial period of five years with the permission of the
ministry of justice.  Foreign companies or banks established in
Latvia with Latvian investment capital also requires the approval
of the Latvian ministry of foreign affairs.  The fee for opening
a representative office is $800; time extensions cost $100.  Non-
profit organizations and branch operations without an office in
Latvia may be established for $50.

Advertising may be conducted freely in any printed or electronic
media.  The leading newspaper in Latvia is "Diena" (Day), which
is published in both Latvian and Russian.  The leading business
newspapers are "Dienas Bizness" (Business of the day), published
in Latvian, and "Biznes I Baltiya" (Business and the Baltics),
published in Russian.

Applications for the grant of a patent or registration of a
trademark may be made in Latvian, English, Russian, or German to
the Latvian patent office, either directly or through a legal
representative.  Any patent or trademark may be invalidated by a
court if it does not meet the legal requirements for granting a
patent or the substantive provisions for registering a trademark.
Intellectual property rights may be enforced through Latvian
court action.

Consultation with a Latvian attorney is recommended before
establishing a business or establishing an intellectual property
right in Latvia.  While an attorney must be a Latvian citizen to
be admitted to the bar, a number of practicing attorneys in Riga
are dual-national emigres who have received their entire legal
education in the United States or Canada.