Moldova’s potential to export to the EU is of 85% of all its exports, said economic adviser to the Prime Minister Octavian Calmîc. According to him, trade between the EU and Moldova could have been larger than now if the commercial advantages provided by the Deep and Comprehensive Free Trade Agreement (DCFTA) had been fully used, in particular the possibility of trading in products of animal origin that are not exported to the EU now, except for bee honey and caviar, IPN reports.
“This year we have the largest foreign trade with the EU, on exports - about 70% and on imports - about 50%. But we have growth potential according to the study conducted while the Agreement was being negotiated. The practice of the Baltic states also shows that the potential can be developed to at least 85%,” Octavian Calmîc stated in the program “Emphasis on today” on TVR Moldova channel.
The adviser said they expect Moldova will be authorized to export products of animal origin to the EU during the next two years, together with the strengthening of the institutional capacities to transpose and implement the European legislation. “We will start with simple products, like fowl eggs, powdered milk or frozen meat and will later pass to more complex products. This will give us a considerable advantage,” stated Octavian Calmîc.
Executive director of the independent think tank “Expert-Grup” Adrian Lupușor said that without the DCFTA, Moldova’s exports to the EU would have been by about US$ 400 million lower. “We speak about a rise in exports that can be even higher indeed, but the growth is anyway positive,” he stated, noting the banking crisis, the drought of 2015 and political instability affected Moldova’s capacity to fully implement the Agreement.
The expert said the exports in 2015-2017 grew by 22% and the growth continues in 2018. Surprisingly, the agrifood sector is the main beneficiary of the DCFTA. “According to our estimates, this sector benefitted the most from the DCFTA. But it was the most insusceptible sector initially, before the liberalization,”’ stated Adrian Lupușor, adding the increase in exports from this sector in 2015-2017 was of about 44%.
The Deep and Comprehensive Free Trade Agreement forms part of the Association Agreement that was signed by Moldova and the European Union on June 27, 2014.
