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Myths and truths about Association Agreement: European products on Moldovan market


https://www.ipn.md/en/myths-and-truths-about-association-agreement-european-products-on-moldovan-7978_1014261.html

““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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"Moldova will be flooded by EU goods as a result of the DCFTA”

This is a myth, said former Minister of Economy Valeriu Lazar, who took part in the negotiation of the Deep and Comprehensive Free Trade Agreement that forms part of the Association Agreement with the EU. “We agreed with the Europeans, as we earlier agreed with the partners from the East, to analyze things every year. Even in the absence of an accord, our status of member of the World Trade Organization implies attentively following the commercial flows. If we see that imports of certain goods rise suddenly, we have the right to take protection measures and to return to the initial provisions. Nobody intends to leave things to someone’s mercy,” said the ex-minister.

According to Valeriu Lazar, the large European producers are not interested in entering a so small market as Moldova’s. If we theoretically admit that the national products will be in danger if the EU goods flood Moldova, the Moldovan authorities have enough instruments to prevent such a development. “The Europeans are looking for large markets. It’s not worth compromising their commercial policy for a market of 3.5 million consumers. On the contrary, they realize that at least for a period of 10-15 years, we will enjoy the advantage of manufacturing own products and exporting them to their market. We are not an important market for them,” he stated.

On its website, the EU Delegation to Moldova says that once the Association Agreement is in force, the market will open asymmetrically, in favor of Moldova: Moldovan exporters will have immediate and full access to European markets, while the Moldovan market will open up much more gradually to EU products. Thanks to the long transition periods in relation to sensitive products and sectors that have been negotiated, the Moldovan market will open to EU products only when its own production has become sufficiently competitive.

Alina Marin, IPN