World Trade Organization (WTO)
The WTO is an international organization that oversees a large number of agreements defining “commercial rules” between the member states. The WTO is the successor of the “General Agreement on Tariffs and Trade” and aims at reducing and abolishing the obstacles of international trade.
The Republic of Moldova is a full member of the World Trade Organization since June 6, 2001.
The European Union:
Autonomous Trade Preferences:
The provision of Autonomous Trade Preferences (ATP) by the European Union following the approval by the EU Council of the Council Regulation no.55/2008 of January 21, 2008 introducing autonomous trade preferences for the Republic of Moldova determined the need to create a mechanism for distributing the shares for products produced in the Republic of Moldova for which tariff contingents were established. To this end, Government Decision no. 262 of 07.03.2008 on the administration of tariff shares for the exportation of goods to the European Union was approved. It envisages creating a system of export share distribution based on the production volume of exporting companies and/or their capacity to capitalize the offered shares.
It must be mentioned that the information on capitalization of tariff contingents offered by the EU can be received on the telephone no. (+373 22) 250-603
Free Trade Area with the EU (DCFTA)
The Free Trade Agreement between the Republic of Moldova and the European Union implies the gradual liberalization (up to 10 years since conclusion) of the trade with goods and services, the free circulation of labor force, reduction of customs taxes, technical and non-tariff obstacles, cancellation of quantitative restrictions and harmonization of the Moldovan legislation to the EU Acquis.
Thus, the DCFTA is part of the European Association Agreement and brings additional economic benefits to the Republic of Moldova.
Unlike the current trade regime between the RM-EU (ATP), which is a unilateral regime provided by the EU for a limited term – the DCFTA will be a multilateral agreement concluded for an unlimited term offering higher export benefits than the ATP and long-term predictability for business and investments.
Within May 31 – June 2, 2010, the Evaluation Mission of the European Commission regarding the DCFTA was conducted.
Within this evaluation mission, the European Commission (EC) experts’ goal was to obtain a clear picture of the institutional and legislative capacities to negotiate and implement the DCFTA in a number of priority sectors, such as: sanitary and phytosanitary actions; trade with goods and services; technical, tariff and non-tariff obstacles; intellectual property rights; public procurement, trade facilitation; customs administration; financial services and competition.
As a result of the evaluation mission, the EC presented the official recommendations on October 26, 2010.
Based on the above recommendations, the Ministry of Economy, as the authority coordinating the preparation of the future negotiations concerning the DCFTA strengthened the efforts in conjunction with all the institutions in charge (Ministry of Foreign Affairs and European Integration, Ministry of Agriculture and Food Industry, Ministry of Finance, Customs Service, Public Procurement Agency, AGEPI, Reintegration Bureau, National Consumer Protection Agency, National Bank of Moldova, National Bureau of Statistics, National Commission for Financial Markets, State Chancellery etc.) and the CE high-rank experts within the above mentioned institutions, developed the Action Plan for the implementation of European Commission Recommendations on establishing the Deep and Comprehensive Free Trade Area between the Republic of Moldova and the European Union (DCFTA).
The Central European Free Trade Agreement (CEFTA)
was concluded in 1992 between Poland, Hungary and Czechoslovakia in the context of the CMEA system elimination, with a view to facilitate intra-regional economic exchanges and cooperation. In addition, the Agreement was seen from the very beginning as a tool for preparing the participating states to join the European Union.
The current CEFTA members are: Albania, Bosnia and Herzegovina, Macedonia, Moldova, Montenegro, Croatia, Serbia, UNMIK Kosovo.
At the meeting of Prime Ministers of country members of the Stability Pact for South Eastern Europe held in Bucharest on December 19, 2006, the participants signed the draft Agreement on accession and modernization of the Free Trade Agreement for Central Europe, CEFTA 2006, that came into effect in the Republic of Moldova on May 1, 2007.
CEFTA 2006 is an agreement with modern provisions and an extended degree of liberalization, especially, of the industrial products trade, efficient collaboration and coordination procedures, transparent mechanisms for enforcing commercial protection actions. CEFTA 2006 provides for the establishment of its own mechanism for solving commercial litigations or using the WTO tool.
CEFTA 2006 replaces the Central European Free Trade Agreement (CEFTA) concluded in 1992 and the bilateral free trade agreements. The agreement proposes a unique, predictable and long-term legal framework, which will contribute to developing bilateral and multilateral commercial-economic relations between the member states.
The objectives of this Agreement are to:
•Consolidate in a single agreement the current level of trade liberalization achieved through the system of free trade bilateral agreements already concluded between the Parties;
•Continue improving the conditions for the promotion of investments, including direct foreign investments;
•Increase the trade with goods and services and stimulate investments through fair, clear, stable and predictable rules;
•Eliminate obstacles and distortions on the way of trade and facilitate the flow of products in transit and the trans-border flow of goods and services between Parties’ territories;
•Provide fair competition conditions for foreign trade and investments and gradual opening of the markets for public procurements of the Parties;
•Provide appropriate protection of the rights to intellectual property in line with the international standards;
•Provide efficient procedures for implementing and enforcing this Agreement and contribute to the smooth development and growth of global trade.
CEFTA 2006 stipulates the cancellation of all customs taxes for imports and exports, of quantitative restrictions and other taxes with equivalent effect in the trade of industrial products and most agro-industrial products.
The agreement contains extended provisions on the trade with services, state procurements, customs administration and preferential origin rules, procedure and conditions for enforcing safeguarding actions and commercial protection tools. Moreover, it is suggested to establish a permanent CEFTA Secretariat that will prepare the meetings and materials of the Joint Commission.
The Republic of Moldova held the presidency of CEFTA in 2008.
Community of Independent States
Agreement on the Free Trade Area in the CIS
