Benefits for Moldova

The DCFTA offers a variety of advantages, both for Moldovan society and for businesses.

1. DCFTA is beneficial for Moldova in terms of national income growth. In the short run, the DCFTA is expected to lead to an increase in national income EUR 75m for Moldova, in the longer run, the estimated change in national income for Moldova would be about double that figure (EUR 142m). Relative changes in national income of Moldova should translate to an increase in GDP of +5, 4 % in the long run. Majority of this increase will result from lowering of sanitary and phytosanitary measures (SPS) and technical barriers to trade (TBT) which account for 62 million EUR. The second most important contribution for Moldova in the short run originates from services trade liberalisation, amounting to 28 million EUR.

2. DCFTA will boost trade between the EU and Moldova. Exports are estimated to increase by +15% and +16 % in the short and long run respectively, with imports increasing by 6% and 8 % respectively. This implies that the DCFTA is expected to relatively improve the trade balance for Moldova in the short run. In the long run, for Moldova reduction of non- tariff measures should result in reaping the benefits amounting to EUR 283 million.

3. Stronger domestic rules will improve the safety of consumer products and therefore of consumers in general. The DCFTA, by providing more stable and predictable trade regime, based on EU legislation, is expected to boost the inflow of EU FDI to the country, creating more enterprises and strengthening the competitiveness of the economy and individual sectors.

4. Wages in Moldova are projected to increase by 3, 1 % and 4, 8 % over the short and long run respectively. Meanwhile, consumer prices are expected to decrease by about 1,0% and 1,3% over the short and long run respectively, mainly due to increased competition of imports. This implies that on average purchasing power of Moldovan citizens will increase, especially in the long run.