How the Association Agreement Can Resolve the Challenges of Moldova’s Agriculture

Exports to the EU have been held back by customs duties, European sanitary and phytosanitary rules incompatible with domestic ones, outdated production, missing storage, processing and quality infrastructure, and a lack of investment funds.

The Agreement removes tariff barriers for 91% of domestic products, saving farmers over EUR 11.2 million a year, and opens a market of 500 million people with purchasing power five times higher than in the Russia-Belarus-Kazakhstan Customs Union. It also harmonises legislation, improves access to finance and education, encourages producer associations and foreign investment, and supports sustainable rural development. Import duties on sensitive European products remain for 3-10 years. Funding comes mainly from the Single Support Framework (EUR 110-123 million by 2017), subject to a national strategy and at least 10% co-financing. The Baltic States illustrate the benefits.