The Deep and Comprehensive Free Trade Agreement (DCFTA) between Moldova and the EU signed in summer is not incompatible with other free trade agreements. The process of adjusting Moldova’s legislation to the Community acquis will be a difficult one, but the transition can be facilitated by continuous monitoring and negotiation and by technical and financial assistance on the part of the EU. At the beginning, the liberalization of the markets will be asymmetric in order to protect the Moldovan producers. Statements on the issue were made in the debate “How to ensure the successful implementation of the DCFTA in Moldova”, IPN reports.
Wicher Slagter, head of the Political and Economic Section of the EU Delegation to Moldova, said the DCFTA ensures the basis for a legal relationship that cannot be used for political purposes. Among the projected effects of this accord are an 8% rise in imports from the EU, a 16% increase in exports to the EU and a 5.4% GDP growth in Moldova. Internal reforms are needed for increasing the competitiveness of the Moldovan economy. “Sincerely speaking, the business climate in Moldova is rather poor for foreign investors and this is evident in different international ratings as well,” stated Wicher Slagter, adding that namely the DCFTA offers Moldova a guide for improving the situation in this respect.
According to the European official, the EU is aware of the challenges and risks of the liberalization of trade with Moldova so that the opening of the markets will take place asymmetrically: the European market will be accessible to Moldovan products almost immediately, while the Moldovan market will open to the EU producers gradually so that the Moldovan producers are protected from an invasion of European products and are given time to adjust themselves. The adjustment process won’t be easy owing to the high standards in the EU, but Moldova will have access to considerable technical and financial assistance. The European standards are accepted almost everywhere in the world so that Moldova will be able to export not only to the EU if it meets them.
Kataryna Wolczuk, researcher at the University of Birmingham, said the accord creates a free trade area, not a customs union, and this are is compatible with other free trade areas, such as those from the CIS. Russia’s objections to the signing of the DCFTA by Ukraine, Georgia and Moldova are geopolitical, not juridical or technical in character.
The researcher noted that the EU acquis with which Moldova must comply wasn’t thought as a development model for the non-member states. Therefore, the process of negotiating and monitoring the implementation of the DCFTA is crucial. “It is a living agreement because Moldova and the European Union can negotiate and modify certain stipulations. Surely, not all of them. It’s clear that the rules will not be relaxed for Moldova only because it is Moldova. Instead, the transition periods and certain quotas can be adjusted,” stated Kataryna Wolczuk, adding that the EU will have continuous monitoring missions, including on the spot in Moldova.
The researcher also said that when flying to Moldova the last two times she met with a British businessman and a Dutch one aboard. “I think it is very relevant that we interacted with businessmen already, not only with European officials or members of NGOs,” she stated.
The debate “How to ensure the successful implementation of the DCFTA in Moldova” was staged by the Romanian Center for European Policies in Chisinau on October 16.
