Cabinet recognises Moldova imports more and exports less

The exports dropped, while the imports rose in January-September 2006, and this resulted in a record increase in the trade balance deficit and transformed Moldova into a consumption economy, not a producing one. This state of affairs was recognised even by Premier Vasile Tarlev, in his report on implementation in 2006 of the government Programme “The Country’s Modernization – The People’s Welfare”. The report was forwarded to Info-Prim Neo after the Prime Minister failed to present it in the Parliament. According to the report, in January-September 2006, the exports totalled USD 718.6 mln, or 92 % against the volume registered in the respective period of 2005. At the same time, the imports totalled USD 1 bln 843.3 mln, by 14.5 % more than in January-September 2005. As well, the industrial enterprises manufactured production in the amount of 17 bln 445.7 mln lei, the index of the industrial production volume being set at about 93 %, compared to January-November 2005. The report says the decrease in the industrial output volume was caused by the reduction of the production volume at the enterprises dealing with wine, distilled alcoholic beverages, tobacco, glass and glass-related articles, paper and cardboard. The Prime Minister mentions that, at the end of the Parliament’s spring-summer session, the head of state stressed “the essence of the start of a new stage in Moldova’s development, a stage intended to create adequate conditions for using the competition benefits we have to the people’s advantage”. Thus, in the following period the Government has initiated a series of actions to attain these goals. As such, Tarlev brings up the Strategy for attracting investments and promoting exports for 2006–2015, which provides for the following priorities: improvement of the policies framework with a view to attracting investments; promotion of investments in infrastructure; development of goods and services exports, quality infrastructure, promotion of exports; denationalisation and improvement of public property management, development of financial market; development of free economic zones and creation of industrial parks. The Strategy for developing industry by 2015 and Strategy for developing agri-food sector in 2006-2015 have been laid at the basis of this document. In the same context, it was approved the Concept of quality infrastructure in Moldova, designed for creation of certain favourable conditions for entrepreneurial environment and public administration as concerns the improvement of the quality of products, Tarlev says. The Prime Minister also recalls the Strategy for developing the agri-food sector in 2006-2015, drawn up following the basic principles of the EU Common Agrarian Policy. In Tarlev’s opinion, the achievement of the strategic goal will be guaranteed by ensuring macroeconomic stability and a favourable investment environment; developing the spirit of entrepreneurship, creating certain equal conditions to develop diverse forms of enterprises; structural reform of the agrarian sector on the basis of active policies on stimulation to develop branches and major targets of agricultural production; promoting active policy on science and innovation; developing an efficient infrastructure in rural sector (production and social sector); ensuring ecological safety of the agricultural production. As Premier states, the consultations with the European Commission concerning Moldova’s progress in obtaining EU Autonomous Commercial preferences are at an advanced stage. As from July 1, 2006, the Customs Service put into effect the new system of certifying and verifying the origin of goods, instituted in compliance with the EU’s requirements. A final decision aimed to obtain the asymmetrical trade preferences (PCA) for Moldova could be taken by the EU Council in 2007. At the same time, the Concept of mediating the Generalized System of Preferences (GSP Plus), as well as the eventual EU Autonomous Commercial preferences are being implementing since the beginning of 2006. As a result, out of the total group of goods – about 1093 positions – according to the Goods Nomenclature, Moldova exports to EU products classified into about 700 positions, 607 groups of which are under GSP Plus. The PM says if the total export of Moldova in ten months of 2006 reduced by 7%, the exports to EU made up USD 274.8 mln (33.7% of the total of exports), increasing by 9 % compared to the similar period in 2005. Under the conditions of the new commercial preferences granted by EU, about 80% of the Moldovan exports to EU benefit from free access. The most significant increases in the Moldovan goods export were registered for Austria (by 27%), Estonia (64%), France (67%), Spain (184%), Slovakia (31%), and Cyprus (29%). Tarlev trusts that the possibility to obtain from EU the preferential access for the Moldovan wines will enable the creation of an important sale market, while the progress in negotiations carried on with the European officials as regards the development of the sphere of goods and services exports, especially of the regimes of asymmetrical trade preferences, as well as the actions taken to return the Moldovan goods to the Russian market, create new opportunities to develop the economy efficiently. At the same time, the Government actively participated in the negotiations regarding the working out and finalisation of the new text of the Central European Free Trade Agreement (CEFTA), which will help to create the space of free trade between the countries in South-East Europe. On December 19, 2006, Moldova was admitted as full-right member of this regional organisation. The presentation of the report by Premier Vasile Tarlev at the Parliament’s sitting was interrupted by protests staged by a number of opposition MPs. They explained their actions by the parliamentary majority’s rejection of the proposal concerning the creation of a commission to examine the violations committed in the process of reorganising the municipal stations “Antena C” and “Euro TV Chisinau”.