The Republic of Moldova will enjoy more advantages from the creation of the Deep and Comprehensive Free Trade Area with the European Union than from joining the Russia-Belarus-Kazakhstan Customs Union. The free trade with the EU will lead to lower prices and enhanced competitiveness, while in the Customs Union the prices will rise. Such a conclusion was reached by the authors of the report “Quo vadis Moldova: European integration, Eurasian integration or status quo?” that was presented by the Analytical Independent Center “Expert-Grup” in a news conference at IPN on September 10.
 
One of the authors, economic expert Adrian Lupusor said the option of Moldova joining the Deep and Comprehensive Free Trade Area is more advantageous as it would facilitate the national producers’ access to the EU market, without excluding the participation in the Multilateral Trade Agreement with the CIS countries. Thus, Moldova will concomitantly have facilitated trade regimes with both of the markets that are important from strategic viewpoint, and with Turkey that became the third most important destination for Moldovan exports in 2013.

Adrian Lupusor underlined that the joining by Moldova of the Russia-Belarus-Kazakhstan Customs Union will have only negative effects on the country. The Moldovan companies will lose access to the EU market, while the country’s economy will shrink by about 4%.

Another report author, expert Alexandru Fala said that the Russian Federation promises an energy bonus of 30% to the countries that will join the Eurasian union, but the cheapening of gas will not compensate for the rise in the prices of other products owing to the higher customs duties. Moldova will have to adjust itself to the tariff policies of Russia that practically dictates the rules within the Customs Union.

Denis Cenusa, co-author of the report, referred to the effects on migration. The Moldovans in the EU will be able to find employment without being discriminated. A number of principles will be respected and migrants’ rights will be protected, while the authorities will promote circulating emigration. The agreements within the Customs Union left a discriminatory door, which is a quota on the number of migrants. If Moldova joins the Russia-Belarus-Kazakhstan Customs Union, it will have to withdraw from the energy community, while Russia will maintain its energy monopoly in the country.

The report authors also said that the interest of the Transnistrian businesses is in the EU as 50% of the goods made in the region are exported to the European Union. The fragile economy of Transnistria will be affected if it separates itself from the European community. The full report is available on the website of “Expert-Grup”. It was compiled with support from Soros Foundation Moldova, in cooperation with IPN News Agency.