The Deep and Comprehensive
Free Trade Area

Facebook DCFTA

Intrebari frecvente

Q:
What will Moldova gain in trade in goods at the entry into force of the Agreement?
A:

As regards goods, the import duties on all goods imported from Moldova to the EU will be removed immediately. Some agricultural products will be subject to monitoring of trade flows, to ensure that exports to the EU correspond to the true Moldovan production capacity (meat products, dairy products, sugar products, cereals). For some fruits and vegetables liberalisation is within quantitative limits (tariff-rate quotas), which are set to correspond to Moldovan production and export capacity.

Q:
How can Moldova protect itself from the inflow of EU goods once the DCFTA enters into force?
A:

Whereas the EU opens its market immediately for all Moldovan products, like under ATPs, the Moldovan market will not be liberalised immediately for all products. It will be a gradual process, which the Moldovan Government negotiated with the EU to facilitate the transition to a more open trade regime.

The negotiated scheme for liberalisation of trade in goods foresees several mechanisms which will protect the Moldovan economy from sudden changes in the most sensitive sectors from the point of view of domestic development:

1) Liberalisation of trade in sensitive industrial products (mostly textile and clothingproducts) is subject to transition periods (3 to 5 years).

2) Liberalisation of trade in sensitive agricultural products is subject either to transition periods (i.e. wine, which will start to be liberalised only 5 years after the entry into force of the Agreement), or to quantitative limitations on duty-free import from the EU (dairy, meat products).

3) Liberalisation process is subject to review, taking into account the developments in the Moldovan agricultural sectors.

4) Moldova has also the right to resort to a temporary safeguard mechanism, should there be a sudden influx of imports from the EU of a given product. Such a safeguard mechanism allows introduction of import duty for a limited period of time.

These transition mechanisms will provide the necessary time for adjustments and reforms needed in the Moldovan economy.

Q:
The EU will benefit from DCFTA immediately, while Moldova needs to implement the reforms
A:

No. At the entry into force the trade conditions for goods and services, as well as in establishment will be immediately improved for Moldova, facilitating trade and investment. Moldovan enterprises will have access to the EU market without transition periods. It is correct to say, however, that not all goods will be able to enter the EU immediately, just like now under Autonomous Trade Preferences (ATP). The reason is that Moldova has to improve its sanitary and phytosanitary framework in order to be able to export products of animal origin to the EU. So it is only this group of products which currently cannot access the EU market and depends on reforms. These reforms are planned under DCFTA and aim to lead to opening of EU market for such goods from Moldova as well.

It is also partly correct that the EU will benefit from DCFTA without restrictions in Moldova. Moldovan Government negotiated transition periods for liberalisation, as well as quantitative restrictions for some products (often in sectors which will undergo reforms in sanitary and phytosanitary regime). So EU access to Moldovan market is not unrestricted, although it respects the historic trade flows, so that current level of trade is not disrupted. These arrangements are subject to monitoring and review by the parties in the future.

Q:
How does this Agreement compare to what you have agreed with Ukraine or Georgia? Did Moldova get a better deal?
A:

The DCFTA with Moldova is based on the same model that the EU put forward to its Eastern Partners, i.e. the scope and parameters as regards the liberalisation of trade and reforms. But details differ from partner to partner, as each country has its specific trade policy, own degree of liberalisation, sensitive interests and sectors, and economic development path. These factors had to be taken into account and a dialogue with the partner, to set the most appropriate parameters, was at the core of negotiations. By means of example: the Moldovan timetable and scope of liberalisation of import duties on goods is more generous on the whole than that of Ukraine, but certainly less open than that of Georgia.

Q:
What will Moldova gain in trade in services at the entry into force of the Agreement?
A:

As regards services, both the EU and Moldova will enjoy as of the first day a much improved mutual access for service providers of both sides. This can be beneficiary to Moldova as the service providers also transfer know-how and induce innovation and movement of specialists facilitates establishment of new (European) companies through inflow of foreign direct investment as well as transfer of know-how. Furthermore, establishment rules for both sides will provide for the same rules as those applicable to national companies, to establish a subsidiary or a branch in the EU or in Moldova, respectively. These provisions should not only encourage FDI to come to Moldova, but also foster the business ties between the respective economies. Openness of the Moldovan market to European service providers can boost the skills base and fill in the market niches thanks to modern know-how and technologies, which are not in direct competition with Moldovan service providers.

Q:
Who designed the reform plan in DCFTA and what was Moldovan position?
A:

The EU and Moldova worked on the reform plans together, starting already during preparations for the DCFTA negotiations. The reforms touch upon the substance and content of the ENP Action Plan, which was agreed with Moldova in 2006. These plans took into account the Moldova-specific context, economic needs and policy choices. Moldova made sure that its position is reflected in the negotiated Agreement in full respect for Moldova’s choices and pace of development.

Q:
Which areas exactly are subject to reforms?
A:

All areas which regulate trade or touch upon the ability to trade in some way: public procurement, food safety/sanitary and phytosanitary regime, customs and trade facilitation, including border enforcement of intellectual property rules, competition, regulatory framework for services, technical barriers to trade/industrial standards.

Q:
No proper impact assessment of DCFTA has been made and the EU imposed what it wanted on Moldova without caring about the economic consequence
A:

The EU conducts the usual assessment of the economic potential and consequences of a free trade area on the partner country and itself prior to conclusion of negotiations. The assessment, the Trade Sustainability Impact Assessment, looked at the intended scope and breadth of the EU-Moldova Agreement and concluded its short- and long-term positive impact on trade of Moldova, in particular after the conclusion of the reform process.

It pointed to an expected increase of Moldovan exports to the EU by 16% and of imports by 8%, which would clearly have a positive impact on the Moldovan budget and on consumers. Moldova’s GDP is expected to rise by 5, 4%. At the same time, the study clearly indicates that the reform process would require accompanying measures in order to mitigate the difficult transition in the short-term. In this regard, EU assistance to Moldova could be of help. These are the primary indications and another study will be conducted, based on the outcome of the negotiated text. In any event, the findings of the study confirm the policy of assistance in reforms that the EU has been pursuing with Moldova since the onset of the Neighbourhood Policy.

Q:
What will happen if Moldova does not respect the deadlines, despite best intentions?
A:

The deadlines and implementation of the reforms will be discussed regularly in the different institutional bodies of the Agreement/DCFTA. Eventual problems with adherence to the timetable will also be discussed there. It is expected that the timeframes were thoroughly considered by Moldova and deemed feasible in light of internal procedures. There is, however, no consequence as such for delays in approximation, as long as the process has not yet been completed. Delays imply that Moldova will not create the necessary conditions to benefit from improved access to the EU market. The situation will differ, however, once such access has been given. Then, Moldova will be expected to maintain the approximation and undertake relevant updates as necessary within defined deadlines, which, if not respected, may lead to a temporary loss of additional benefits.

Q:
What is the timeframe for the trade-related reforms in Moldova?
A:

Moldova negotiated several transition periods, for all areas in which the reforms, ie adaptation of domestic legislation to EU law was proposed and agreed. These transition periods vary from area to area and many reforms are already underway, regardless of the date of entry into force of the Agreement

1) In the case of sanitary regime/food safety, the programme of reform will be agreed one month after the Agreement’s entry into force, and will include the necessary periods for their conduct;

2) In industrial standards/technical barriers to trade, Moldova drew up a plan for reforms that covers the period until 2017;

3) In public procurement, this period runs up to 8 years after the entry into force of the Association Agreement;

4) In customs and trade facilitation, Moldova agreed to prepare the necessary reforms within 3 years from the entry into force of the Agreement;

5) In services area, the time foreseen for completion of reforms is 10 years.

It is noteworthy that the scope of reform and number of legislative acts that are subject of the adaptation vary from area to area. The services area and the sanitary and phytosanitary regime are among the most complex ones.

  • Partners
  • Partners
  • Partners
  • Partners
  • Partners
  • Partners
  • Partners
  • Partners
  • Partners
  • Partners
  • Partners
  • Partners
  • Partners
  • Partners
  • Partners
This website has been prepared by the EU-funded project "Support to the DCFTA process in the Republic of Moldova" and implemented by the European Profiles S.A. led Consortium.
Noutăți
Biblioteca |
Harta site-ului