National products risk becoming noncompetitive after free trade is instituted with EU

After the signing of the Deep and Comprehensive Free Trade Agreement with the EU, the prices of the products imported into Moldova will decrease because the customs duties will be eliminated. Thus, there is a risk that the national products will become noncompetitive, the head of the Economy Ministry’s Commercial Policies Division Inga Ionesii has told Info-Prim Neo. According to Inga Ionesii, the quality of the imported products is often higher than of the Moldovan products and the part of the price formed from import taxes, on which the national producers count, will disappear and the Moldovan products will lose this competitiveness component. “Everything depends on the producers and their ability to adapt themselves. We are negotiating the transit period for sensitive products. The customs duties in the sensitive sectors will be eliminated gradually. Today, the agriindustrial sector is the most sensitive one. We produce textiles, furniture, certain products from plastic, but we need time to increase their competitiveness on the home market and offer the economic entities the possibility of attracting investments, adapting themselves to the new conditions, implementing new technology and modernizing production,” said Inga Ionesii. She also said that the Ministry of Economy will suggest possibilities of financing national producers’ measures, both from the European funds and from the national budget. The authorities also prepare a program to develop the competitiveness of the national producers. The Deep and Comprehensive Free Trade Agreement with the EU will be signed before the last session of the Eastern Partnership set for this November. Moldova and the EU have held four rounds of talks on the agreement. The last one took place last November, when the sides discussed the tariff offers concerning the goods’ access to the market, exchanged offers on the access to the services market and continued the discussions on the chapters of the agreement on intellectual property, sanitary and phytosanitary measures, and technical barriers.

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