After the provisions of the Deep and Comprehensive Free Trade Agreement with the European Union (DCFTA) started to be applied, the export of agricultural products from the left side of the Nistru increased essentially. Supplies of oleaginous seeds and fruit, alcoholic and nonalcoholic drinks have doubled. Exports of goods of the first group rose in monetary value from US$25.8 million in 2016 to US$57.5 million in 2019. Exports of alcoholic drinks increased from US$7.1 million to US$14.8 million. Exports of vegetables also grew significantly, from US$5.1 million in 2016 to US$9 million in 2019, shows a study that was presented in a press club meeting centering on the left side’s potential of exporting to the EU, IPN reports.
The study reveals that the vegetal production in the districts from the left side of the Nistru, in relation to the vegetal production in the districts from the right side of the Nistru, of fruit, walnuts, berries, grapes, corn, soybean and potatoes is by 10% lower, of legumes, sunflower - by 20%, of winter wheat - by 30%, of rape and field vegetables - by 50%. However, the production of buckwheat on the left side of the Nistru exceeds the production on the right side ten times.
Economist Viorel Chivriga, programs director at the Institute for Development and Social Initiatives “Viitorul”, said the insufficient equipment of the region’s economic operators is a problem. A large part of the agricultural machinery is worn-out. The financing for the agricultural sector is reduced. Among the problems are the narrow assortment of products with export potential and the lack of cooperation between economic operators and the weak connections with producer associations and groups of producers from the right bank of the Nistru.
The producers cannot have land in private ownership. The lots can be rented for a long period of time, of up to 99 years. The region’s status and the nonobservance of the human rights are a significant risk factor for the entrepreneurs who want to invest in the region.
The conditions for doing business on the left side of the Nistru are less adequate. Of the interviewed respondents, only 9% said they are fully satisfied with the investment and business climate in the region. It was determined that the interest of the businessmen from the right bank in establishing commercial and cooperation relations with business entities from the left side of the Nistru is low owing to the existing administrative barriers.
The study author underlined the opportunity of making collective efforts to increase the capacity of associating of small producers from both sides of the Nistru so as to develop the collectible export offer and to efficiently promote it on target markets. Consultancy is also needed for working out strategies for supporting and developing clusters in sectors with export growth potential. The producers from both sides of the Nistru, who are associated and export goods using geographical indicators, names of origin and local brands, should be supported.
The study was developed within the Advanced Cross-River Capacities for Trade Project (AdTrade), funded by Sweden and implemented by UNDP.
