“The Association Agreement will lead to Moldova’s loss of sovereignty”, “The Association Agreement will further enflame Russia-Moldova relations”, “Consumer prices will increase as a result of the Deep and Comprehensive Free Trade Area”. These are only some of the most spread hypotheses about the Association Agreement with the European Union. Are they true theories or just myths? IPN aimed to find out the answer from a number of independent experts and officials working in the addressed areas.
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“The signature of the Agreement will lead Moldova to immediate economic difficulties, while the national producers will be ruined”
Executive director of the Independent Analytical Center “Expert-Grup” Adrian Lupusor said the European Union is already the main commercial partner of Moldova, while the Association Agreement boosts bilateral trade.
According to the expert, greater opportunities appear for export and not only to the EU, but also to other markets as the EU standards are recognized worldwide. The competitiveness of those that import raw material, process it and then export it will increase. Thus, the cheaper raw material will be an advantage for them. The imported goods are expected to grow cheaper. The liberalization of trade will lead to increased competition on the internal market and this will allow diversifying products, improving quality and reducing consumer prices.
Adrian Lupusor does not exclude that the Association Agreement will disadvantage the less competitive national producers, but the hypothesis that the Moldovan producers will be ruined is false as the accord envisions transitional periods and includes clauses that support the producers and certain sectors, if losses are sustained on particular segments. Generally, the agreement will benefit the honest companies and investors.
“We will witness the disappearance of monopolies and oligopolies and particular narrow spheres of interest that now enjoy protection from the state and benefit from a favorable position on the home market, being protected by customs duties. These monopolies will be removed when trade with the European Union is liberalized. Even if there are certain losses, they will be sustained by monopolists and the rest of the economy will gain,” stated Adrian Lupusor.
The EU Delegation says that Moldova will actually benefit from new trading opportunities and easier access to the EU market – the largest in the world. The agreement will allow the Moldovan economy to catch up with the EU in terms of competitiveness and thereby gradually find its place in the world economy. This will open up new opportunities not only in EU-Moldova trade, but in Moldova's trade with the rest of the world, given the worldwide recognition of EU norms and standards. The most sensitive sectors will benefit from long transitional periods to ensure the smooth adaptation of Moldova’s economy.
Alina Marin, IPN
