“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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“Consumer prices will increase as a result of the DCFTA”
Economic expert Viorel Chivriga said that this assertion is a myth. Prices cannot go up when there is competition. When the DCFTA agreement, which forms part of the Association Agreement, takes effect, palpable results will appear in the area of competition where, at this stage, Moldova lags behind.
“Competition means greater consumer access to products of a higher quality, to competitive products whose prices are reasonable. As import duties will be annulled, the consumers will only gain. They will have access to cheaper products and will be able to choose,” said the expert.
According to Viorel Chivriga, the myth that the prices will rise appeared because of lack of information in the period when the Association Agreement has been negotiated. “Not much was communicated to the people, while those who do not really approve of the European path used different stratagems. Communication is needed with the people, mayors, the business community and those who do not speak Romanian. I think the authorities have a shortcoming here. There is yet a lot of space for using foreign experience in this respect, of the states that joined the EU recently,” he stated.
On its website, the EU Delegation to Moldova says that the DCFTA will make the Moldovan market more open for imports from the EU. This will bring more competition, which normally brings prices down for the consumers. According to independent research, consumer prices are expected to decrease by about 1.0 and 1.3 percent over the short and long run, respectively.
Alina Marin, IPN
