{"id":267786,"date":"2013-11-18T12:02:56","date_gmt":"2013-11-18T12:02:56","guid":{"rendered":"http:\/\/new.moldova.org\/2013\/11\/18\/association-agreement-may-involve-several-costs-for-economy-of-transnistria-240152-eng\/"},"modified":"2013-11-18T12:02:56","modified_gmt":"2013-11-18T12:02:56","slug":"association-agreement-may-involve-several-costs-for-economy-of-transnistria-240152-eng","status":"publish","type":"post","link":"https:\/\/www.moldova.org\/en\/association-agreement-may-involve-several-costs-for-economy-of-transnistria-240152-eng\/","title":{"rendered":"Association Agreement may involve several costs for economy of Transnistria"},"content":{"rendered":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> &lt; 1<\/span> <span class=\"rt-label rt-postfix\">minute<\/span><\/span><p style=\"text-align: justify\">The Association Agreement between Moldova and the European Union that is expected to be initialed at the end of this month will cause some economic trouble to the districts located in separatist region of Transnistria.<\/p>\n<p>According to an <a href=\"http:\/\/expert-grup.org\/en\/activitate\/item\/881-cinci-mituri-despre-acordul-de-asociere-cu-uniunea-european%C4%83\/881-cinci-mituri-despre-acordul-de-asociere-cu-uniunea-european%C4%83\">analysis <\/a>by Expert-Group, an independent think tank based in Chisinau, the Association with EU &ldquo;may imply several costs for the economy of the separatist region.&rdquo;<\/p>\n<p style=\"text-align: justify\">Lifting customs duty will be the major issue for Transnistrian enterprises. Companies based in this region have tariffs of 7.3%, while the ones located on the remaining territory of Moldova have tariffs of 4.6%.<\/p>\n<p style=\"text-align: justify\">&ldquo;Therefore, liberalization of the customs duty policy would lower the region&rsquo;s revenues by 6%-10% and would expose the local companies to a major competitive shock,&rdquo; said Adrian Lupusor in his analysis.<\/p>\n<p style=\"text-align: justify\">However, the expert claims that despite the existing risks and costs, there is a high likelihood that boosting export opportunities and improving business climate will contribute to a 3%-5% economic increase, enhancing regional economy on a longer term.<\/p>\n<p style=\"text-align: justify\">This will be possible through the expansion of the access to the European market for the top producers based in Transnistria. Over 45% of production originating from Transnistria is currently landing on the EU market.<\/p>\n<p style=\"text-align: justify\">Raw materials are also expected to become cheaper once the Transnistrian region will import it from the EU member states, fact that will boost competitiveness.<\/p>\n<p style=\"text-align: justify\">After enforcement of the Association Agreement, which includes the Deep and Comprehensive Free Trade Area, all companies based in Moldova and Transnistria, that will respect the EU quality standards, will be able to export at zero-tariff their products to the European market.<\/p>\n<p style=\"text-align: justify\">The Agreement is foreseen to be signed next autumn. &nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> &lt; 1<\/span> <span class=\"rt-label rt-postfix\">minute<\/span><\/span>The Association Agreement between Moldova and the European Union that is expected to be initialed at the end of this month will cause some economic trouble to the districts located in separatist region of Transnistria.<\/p>\n","protected":false},"author":3,"featured_media":267785,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-267786","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy"],"content_social_share":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> &lt; 1<\/span> <span class=\"rt-label rt-postfix\">minute<\/span><\/span><p style=\"text-align: justify\">The Association Agreement between Moldova and the European Union that is expected to be initialed at the end of this month will cause some economic trouble to the districts located in separatist region of Transnistria.<\/p>\n<p>According to an <a href=\"http:\/\/expert-grup.org\/en\/activitate\/item\/881-cinci-mituri-despre-acordul-de-asociere-cu-uniunea-european%C4%83\/881-cinci-mituri-despre-acordul-de-asociere-cu-uniunea-european%C4%83\">analysis <\/a>by Expert-Group, an independent think tank based in Chisinau, the Association with EU &ldquo;may imply several costs for the economy of the separatist region.&rdquo;<\/p>\n<p style=\"text-align: justify\">Lifting customs duty will be the major issue for Transnistrian enterprises. Companies based in this region have tariffs of 7.3%, while the ones located on the remaining territory of Moldova have tariffs of 4.6%.<\/p>\n<p style=\"text-align: justify\">&ldquo;Therefore, liberalization of the customs duty policy would lower the region&rsquo;s revenues by 6%-10% and would expose the local companies to a major competitive shock,&rdquo; said Adrian Lupusor in his analysis.<\/p>\n<p style=\"text-align: justify\">However, the expert claims that despite the existing risks and costs, there is a high likelihood that boosting export opportunities and improving business climate will contribute to a 3%-5% economic increase, enhancing regional economy on a longer term.<\/p>\n<p style=\"text-align: justify\">This will be possible through the expansion of the access to the European market for the top producers based in Transnistria. Over 45% of production originating from Transnistria is currently landing on the EU market.<\/p>\n<p style=\"text-align: justify\">Raw materials are also expected to become cheaper once the Transnistrian region will import it from the EU member states, fact that will boost competitiveness.<\/p>\n<p style=\"text-align: justify\">After enforcement of the Association Agreement, which includes the Deep and Comprehensive Free Trade Area, all companies based in Moldova and Transnistria, that will respect the EU quality standards, will be able to export at zero-tariff their products to the European market.<\/p>\n<p style=\"text-align: justify\">The Agreement is foreseen to be signed next autumn. &nbsp;<\/p>\n<div class='heateorSssClear'><\/div><div  class='heateor_sss_sharing_container heateor_sss_horizontal_sharing' data-heateor-sss-href='https:\/\/www.moldova.org\/en\/association-agreement-may-involve-several-costs-for-economy-of-transnistria-240152-eng\/' 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6.896L6.027 14.41c-1.33.534-1.322 1.276-.243 1.606l5 1.56 1.72 5.66c.226.625.115.873.77.873.506 0 .73-.235 1.012-.51l2.43-2.363 5.056 3.734c.93.514 1.602.25 1.834-.863l3.32-15.638c.338-1.363-.52-1.98-1.41-1.577z\"><\/path><\/svg><\/span><\/a><\/div><div class=\"heateorSssClear\"><\/div><\/div><div class='heateorSssClear'><\/div>","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Association Agreement may involve several costs for economy of Transnistria - Moldova.org<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.moldova.org\/en\/association-agreement-may-involve-several-costs-for-economy-of-transnistria-240152-eng\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Autor invitat\" \/>\n\t<meta name=\"twitter:label2\" 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