Free trade with EU will bring convenient prices for buyers, expert

The signing of the Deep and Comprehensive Free Trade Agreement with the EU will positively influence the prices for Moldovan buyers. At the same time, the national goods risk becoming uncompetitive if the imported products are cheaper. Economic expert Alexandru Fala told Info-Prim Neo that the prices in Moldova are higher than in the EU member states because the costs are higher. “First of all, the production costs are high. Second, there are uncompetitive practices in some of our sectors. Other sectors are not efficient and functional, especially those related to state-run companies. Their productivity is low,” he stated. Agriculture is a low productivity sector, said the expert. “It is much weaker than the European one and the costs here will be high. The liberalization in the sensitive sectors will take place gradually. There are negotiated protection mechanisms. This is correct towards the national producers as there should be kept a balance. We cannot destroy all the branches because they offer jobs,” said Alexandru Fala. By gradually liberalizing trade in the sensitive sectors, they try to protect some sectors so that the necessary changes are made in the period of transition and these sectors become competitive. According to Alexandru Fala, the EU remains the main export market for Moldova. “Moldova’s exports to the EU will soon constitute 50% of all the exports. The share now decreased slightly owing to the economic crisis. There are yet a number of problems. For example, we do not export products of animal origin to the EU,” stated the expert, adding that these problems will disappear when a free trade regime is instituted with the EU. The Deep and Comprehensive Free Trade Agreement with the EU is expected to be signed in November. A new round of talks on the Association Agreement with the European Union, which includes the Free Trade Agreement, will take place this week.

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