The commercial policy of the Republic of Moldova is the component of the economic policy that refers to foreign economic relations and implies the regulations, tools and measures of commercial policy that aim at promoting foreign commercial exchanges and stimulating the development of domestic economy protected from foreign competition.
In this sense, the commercial policy of the Republic of Moldova is intended to foster foreign relations, especially, by intensifying exports, protecting the domestic economy from foreign competition, regulating and monitoring the importation and by maintaining the commercial balance.
Thus, since July 26, 2001, the Republic of Moldova is a full member of the World Trade Organization that fosters the liberalization of trade with goods and services by removing the obstacles and developing new rules in trade-related areas. The WTO Agreements also stipulate a joint dispute settlement mechanism whereby the members protect their rights and regulate the arising disputes.
In this context, the new wording of the Agreement on the Trade Area in the CIS, signed on October 18, 2011 stipulates the facilitation of regional trade by improving commercial relations between signatory states, maintaining the zero customs tax for over 10 thousand groups of goods, reducing and gradually cancelling taxes for products that represent an exception from the free trade regime and non enforcing the new restrictions in trade. Due to the new Agreement, the number of previously concluded bilateral agreements that regulated the commercial-economic relations with CIS countries was reduced. In addition, the Agreement stipulates the mechanisms of solving commercial litigations under the WTO platform and within the limits of mechanisms and procedures agreed by the parties.
The main objective of the Central European Free Trade Agreement (CEFTA) the Republic of Moldova is party to since 2007 is to increase the trade with goods and services and impel the investments between the CEFTA member states, as well as eliminate obstacles and distortions from the way of trade and facilitate the circulation of goods in transit and the trans-border circulation of goods and services between the Parties’ territories.
Moreover, Regulation no. 55/2008 of January 21, 2008 on the introduction of Autonomous Trade Preferences (ATP) for the Republic of Moldova was adopted through the modification of Regulation 980/2005 and Decision of the Commission 2005/924/EC, Council of the European Union.
The above mentioned regulation provides autonomous trade preferences by withdrawing the tariff ceilings for industrial goods and improving the access of agricultural products to the community market. Thus, the original products from the Republic of Moldova obtained free access to the European Union markets except for certain products for which tariff contingents were established and the fresh or refrigerated fruit and vegetables for whose importation a customs tax without the ad valorem component will be applied (specified in the Government Decision no. 262 of 07.03.2008 on the administration of tariff shares for the exportation of goods to the European Union).
Prospects:
The Agreement on the creation of the Deep and Comprehensive Free Trade Area between the Republic of Moldova and the European Union, initialed on November 29, 2013, at the Eastern Partnership Summit held in Vilnius, is part of the Association Agreement between the Republic of Moldova and the European Union. It will provide the Republic of Moldova with the framework required to modernize its commercial relations and achieve economic development due to market opening by excluding customs taxes and shares and by comprehensively harmonizing the national legislation, norms and regulations with the European legislation on trade-related sectors.
The free trade agreement between the Republic of Moldova and the Republic of Turkey that provides for the facilitation of regional trade by improving commercial relations between the signatory states is determined by Turkey’s commitments with the European Union according to which Turkey needs to align its commercial policy to the community one and this alignment will also include the preferential trade agreements that the European Union has to sign with third parties, including the Republic of Moldova.
