Expert-Grup

Free Trade with the EU and the CIS: Two Compatible Options

Monday, 27 April 201510474 views
Free Trade with the EU and the CIS: Two Compatible Options

Automatically translated summary. The full article is available in Romanian.

Independent Think Tank “Expert-Grup” has released an analytical note and an infographic on Budgetstories.md showing that the Free Trade Agreements with the EU and with the CIS are compatible options for the Republic of Moldova, which can pursue its external economic activity in both zones simultaneously.

The EU agreement was signed to expand and diversify Moldova's external economic relations and to facilitate investment, as the EU supplies over 60% of the country's capital goods. Both agreements allow participation in other free trade areas, and neither provides for more restrictive trade barriers towards third parties. Membership of several free trade areas is a normal situation.

Some provisions of the CIS agreement, such as Annex 6, are discriminatory towards Moldova: Customs Union states may impose duties on other CIS countries that form free trade areas with third parties, whereas CIS countries outside the Union, like Moldova, may not. Russia introduced tariff and non-tariff barriers that have no economic or legal justification and no connection to the EU-Moldova DCFTA. The infographic was funded by a US Department of State grant.