Integration into European Union versus Russia-Belarus-Kazakhstan Customs Union

Moldova’s accession to the Russia-Belarus-Kazakhstan Customs Union will have a negative impact on several fields, such as the economic, social, and human rights one. This is the point of view of several opinion leaders, participants at a roundtable on the implications of Moldova’s integration to the European Union versus the Russia-Belarus-Kazakhstan Customs Union. Those who had a different perspective during the discussions said that only the Eurasian space can contribute to Moldova’s development in all fields, reports Info-Prim Neo. Valeriu Prohnitchi, executive director of the Expert-Grup independent analytical center, stated that joining the Customs Union may have a disastrous impact for the Moldovan economy. "The promised benefits are illusions, whereas the losses are quite sizeable, and we speak not only of economic losses, but also losses of economic sovereignty. Joining the Customs union is contradicting the interests and basic imperatives of Moldova, including those of technological modernization", said the analyst. According to the Expert-Grup director, the free trade agreement recently signed by Moldova is sufficient for the country’s to make use of the Eastern markets’ potential. "Thus, there is no credible argument for joining the Customs Union, the initiative being political and geopolitical", said Valeriu Prohnitchi. According to the Expert-Grup director, the effects of accession imply the appreciation of our national currency by 5.7%. Moldova, by tripling its customs tariffs, greatly decreases exports and imports to and from all directions. The model suggests, in fact, that imports will decrease less than exports, thus we should expect this effect on the national currency, said Valeriu Prohnitchi. Additionally, the analyst stated that joining the Customs Union implies the increase in the price posted by producers, which results from the increase in customs taxes. These impacts will result in the decrease of the citizens’ well-being, general absorption throughout the economy decreasing by 6%. Additionally, joining the Customs Union will lead to a sizeable decrease of the income to the State Budget, by 2-3%. Head of the CReDO Resource Center for Human Rights Sergiu Ostaf pointed out that, from the perspective of human rights, Moldova will be at loss if it joins the Russia-Belarus-Kazakhstan Customs Union. "We currently have few institutions for the development of the society within the Eurasian space. The CIS Charter of Human Rights is not currently applicable, thus the respective field is not developed enough, and lacks practice. However, powerful institutions must ensure sustainable and qualitative growth in the society. In this sense, the European space offers a net preference", said Sergiu Ostaf. On the other hand, analyst Victor Gurau, municipal councilor from the PCRM group, stated that Moldova has chances to modernization only by joining the Customs Union. "All economic and political visions are not set by the intellectual capacity of our elites, but by cabinets and chancelleries from abroad. Moldova is currently in a state of financial doping. Joining the Customs Union implies the chance of getting a period of relaxation, in order to refortify our national economy", the analyst pointed out. Victor Gurau mentioned that, based on Moldova’s priorities, accession to the Russia-Belarus-Kazakhstan Customs Union will benefit the country both economically and technologically. Vladimir Golovatiuc, head of Moldova’s Institute for Modernization, stated that, if Moldova joins the European Union, most of the country’s enterprises will be closed, most of the producers will go bankrupt, due to the European standards imposed on Moldova, and due to competitors from Europe. The roundtable discussing the topic "Implications of Moldova’s integration to the European Union versus the Russia-Belarus-Kazakhstan Customs Union" was organized by the National Participatory Council’s (NPC) Task Force on Economy, Finances and Entrepreneurial Environment.