If, after bilateral negotiations, Moldova and Russia cannot solve a problem generated by a possible unilateral introduction of customs duties, the country that considers that its rights are violated can challenge the unilateral decision. Economic analyst Viorel Chivriga said the Free Trade Agreement signed in 1994 allows for a period of 12 months during which the parties must settle the disagreements before making use of international mechanisms.
The expert was asked by IPN to explain the procedure given Russia’s intention to unilaterally introduce customs duties on the import of particular products from Moldova. A draft decision to this effect was prepared by the Russian Ministry of Economic Development. Under the draft decision, customs duties will be imposed on the import of wine, meat, vegetables and grain and on furniture industry items.
Viorel Chivriga said that besides the agreement of 1994, rules are also laid down in the Free Trade Agreement between the CIS States signed in 2011. There are also the rules of the World Trade Organization (WTO) of which Moldova and Russia form part. “The free trade agreements envision the elimination of customs barriers. There are also provisions used to resolve disputes. If the problems in the bilateral discussions are not solved, the state that considers that its rights were violated can seek help from particular organizations. There are also mediation methods, but a longer period of time is required in this case,” he stated.
The expert noted that Moldova must learn to use the mechanisms it possesses. Both of the states are WTO members and, even if Moldova’s economic power is smaller, it has the potential needed to defend its rights. “As a result of such decisions (introduction of taxes on the import of Moldovan products – e.n.), only the Moldovan producers will be affected. Russia has good and diversified economic relations. Moldova didn’t learn the previous lessons and didn’t develop the raw material processing industry. At least a part of the raw material should be processed in Moldova as the value added will be thus higher,” said Viorel Chivriga.
Minister of Agriculture and Food Industry Vasile Bumacov has told IPN that at the instruction of the Prime Minister, there were created working groups that examine the background of Moldova’s agreements and the cooperation within the WTO. “One should not have illusions. Our fruit and vegetables were anyway unofficially taxed in markets. But we are ready to negotiate and discuss,” he said.
Prime Minister Iurie Leanca told the reporters that there is no reason for Russia to review its commercial relations with Moldova. “I do not see how Russia can unilaterally end a multilateral accord. We will analyze all the legal aspects in this respect,” he stated.
