{"id":447823,"date":"2019-12-24T15:16:55","date_gmt":"2019-12-24T15:16:55","guid":{"rendered":"http:\/\/www.moldova.org\/en\/?p=447823"},"modified":"2019-12-24T15:29:14","modified_gmt":"2019-12-24T15:29:14","slug":"east-vs-west-the-exports-of-the-republic-of-moldova-to-the-cis-and-the-eu-countries-a-comparative-analysis","status":"publish","type":"post","link":"https:\/\/www.moldova.org\/en\/east-vs-west-the-exports-of-the-republic-of-moldova-to-the-cis-and-the-eu-countries-a-comparative-analysis\/","title":{"rendered":"East vs. West\/\/ The exports of the Republic of Moldova to the CIS and the EU countries – a comparative analysis"},"content":{"rendered":"Reading Time: <\/span> 5<\/span> minutes<\/span><\/span>

The Republic of Moldova is a former soviet country, having tight commercial relationships established with all countries forming the Commonwealth of Independent States<\/strong> (CIS) –\u00a0\u00a0a regional intergovernmental organisation of ten post-Soviet republics in Europe and Asia, that formed after the dissolution of the Soviet Union in 1991.<\/p>\n

On the other hand, Moldova signed the Association Agreement with the European Union<\/strong> in June 2014 and\u00a0has benefited from a preferential trade within the\u00a0Deep and Comprehensive Free Trade Area (DCFTA) with the EU, that meaning\u00a0reduced or eliminated tariffs for goods, increased services market and better investment conditions, as the official website of the European Commission states<\/a>.<\/p>\n

Statistical data and newly signed trade agreements are often publicly mentioned when wishing to emphasise one or another relationship as the most strategic one for the Republic of Moldova. But how is it in reality?<\/p>\n

Moldova and the EU<\/h3>\n

On December 19th, 2019, the Council of the EU has formally endorsed an agreement granting Moldovan farmers and SMEs additional preferential export opportunities<\/strong><\/span> to the EU, following the agreement signed between the EU and the previous government led by Maia Sandu, to broaden the degree of trade liberalisation for specific agricultural products under the DCFTA<\/span>, according to a statement<\/a> of the European Commission.<\/p>\n

The agreement provided that the Republic of Moldova will be granted additional duty-free tariff rate quotas to export table grapes<\/em> (of double the current amount) and plums<\/em> (of a 50% increase on the current volume), as well as a new duty-free quota for cherries<\/em> (of 1.500 tonnes). The EU exporters will also gain additional duty-free access to the Moldovan market.<\/p>\n

Moreover, the thresholds triggering the anti-circumvention mechanism (a mechanism that\u00a0provides for the possibility of reintroducing the customs duty when imports of certain agricultural products and processed agricultural products exceed a given threshold) for wheat, barley, maize, sugar and processed cereals<\/em> have also been raised, taking into account the trade patterns over the last few years.<\/p>\n

Generally, the Association Agreement between the EU and the Republic of Moldova provides Moldova with a framework for boosting trade and economic growth<\/strong>\u00a0through improved access to the EU market and mechanisms for aligning its trade-related laws and regulations to EU\u2019s standards.<\/p>\n

According to the official statistics<\/a> of the European Commission, the Moldova’s exports to the EU grew by 62%<\/strong> between 2014 and 2018. Between 2017 and 2018, it increased by 16%<\/strong>, from\u00a0\u20ac1.6 billion to \u20ac1.9 billion.<\/p>\n

\"\"

source: ec.europa.eu<\/p><\/div>\n

The European Union is Moldova’s biggest trade partner, as around 70%<\/strong> of its exports are sent to the EU, followed by Russia (8%<\/strong>) and Belarus (3%<\/strong>). Key EU imports from Moldova are mainly machinery and appliances, vegetable products, textiles and textile articles and base metals.<\/p>\n

Moldova and the CIS<\/h3>\n

Russia is one of the most important eastern partners for the Republic of Moldova. Usually, the good news about the export of Moldovan products to this country come from the president of the Republic of Moldova, Igor Dodon<\/strong>. This December, he already made 2 announcements regarding the extension of fruit and vegetable exporters’ list<\/strong><\/span> who are allowed to export on the Russian market starting the next year. First, the list was extended from 130 to over 350 Moldovan companies, and then 150-200 other companies obtained such permission recently.<\/p>\n

“It was agreed to extend the list of categories of goods that are exported to the Russian market without customs duties for another five product categories: beef, sunflower seeds, sugar, ethyl alcohol and furniture from January 1st, 2020. I mention that so far the export taxes for five categories have been excluded: vegetables; apples, pears and fresh quinces; apricots, cherries and sour cherries; canned vegetables; wines,” informed Dodon on his Facebook page<\/a>.<\/p>\n

Additionally, the Minister of Agriculture asked the Russian profile institutions to inspect 33 wineries and four canning companies from Moldova, in order to grant them access to the Russian market. All in all, the Russian Federation will issue 16,000 transport authorisations for Moldovan carriers in the next year.<\/p>\n

A prohibition of export for Moldovan companies<\/strong><\/span> was set up after a decision<\/a> of the Government of the Russian Federation, on December 29th, 2018, which forbid to import Ukrainian products and products transiting Ukraine, including those from Moldova.<\/p>\n

At the begging of 2019, Russian customs authorities forbid to import large quantities of goods produced in the Republic of Moldova and the Transnistrian region.<\/p>\n

The Russian portal Regnum.ru was writing<\/a>, at that time, that the majority of Moldovan exporting companies affected by the Russian Government decision are precisely those for which, in the following half of 2019, Russia cancelled the import duties, such as producers of fresh and preserved fruits and vegetables<\/em>, as well as wine products<\/em>. According to the Russian publication, the measure to support Moldovan businesses was an act of political support of the Moldovan president, Igor Dodon, in the upcoming parliamentary elections, which became possible after a meeting between Dodon and the Russian president.<\/p>\n

Nowadays, more and more companies from Moldova are granted gradually back access to the Russian market, President Dodon announcing that every time on his page or at press conferences. Let’s not forget that Moldova expects new presidential elections in 2020.<\/p>\n

All in all, the statistics<\/a> of the CIS presented a total export value of $416 million in 2018, as compared to $463 million in 2017. From January to September 2019, Moldova’s exports to CIS countries amounted<\/a> $301.8 million, that decreasing by 1.6% as compared to the same period in 2018.<\/p>\n

\"\"

source: cisstat.com<\/p><\/div>\n

National statistics<\/h3>\n

When looking at the whole picture, it can be observed that in 2006<\/strong>, the Moldovan exports to the EU countries exceeded for the first time the exports to the CIS countries, the difference between the exports to the two destinations starting to be bigger and bigger, as the National Bureau of Statistics of Moldova (NBS)\u00a0displays<\/a>.<\/p>\n

\"\"

Data source: statbank.statistica.md<\/p><\/div>\n

Still, the most important trading partners for Moldova remained such European countries as Romania<\/strong> – 42.54%<\/strong> ($ 792.137 million) of the total exports to the EU countries, Italy<\/strong> – 16,62%<\/strong> ($ 309.606 million) of\u00a0the total exports to the EU countries and Germany<\/strong> – 11.81%\u00a0<\/strong>($ 219.902 million) of the total exports to the EU countries, as well as such CIS countries as Russia<\/strong>, the exports to which represented 52.55%\u00a0<\/strong>($ 218.571 million) of the total volume of exports to the CIS countries in 2018.<\/p>\n

Photo: statistica.gov.md<\/p>\n","protected":false},"excerpt":{"rendered":"

Reading Time: <\/span> 5<\/span> minutes<\/span><\/span>The Republic of Moldova is a former soviet country, having tight commercial relationships established with all countries forming the Commonwealth of Independent States (CIS) –\u00a0\u00a0a regional intergovernmental organisation of ten post-Soviet republics in Europe and Asia, that formed after the dissolution of the Soviet Union in 1991. On the other hand, Moldova signed the Association […]<\/p>\n","protected":false},"author":31,"featured_media":447830,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,56],"tags":[515,517,106,172,35,27,104,516],"class_list":["post-447823","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-reportaje","tag-agreement","tag-cis","tag-eu","tag-exports","tag-important","tag-moldova","tag-statistics","tag-trade"],"content_social_share":"Reading Time: <\/span> 5<\/span> minutes<\/span><\/span>

The Republic of Moldova is a former soviet country, having tight commercial relationships established with all countries forming the Commonwealth of Independent States<\/strong> (CIS) –\u00a0\u00a0a regional intergovernmental organisation of ten post-Soviet republics in Europe and Asia, that formed after the dissolution of the Soviet Union in 1991.<\/p>\n

On the other hand, Moldova signed the Association Agreement with the European Union<\/strong> in June 2014 and\u00a0has benefited from a preferential trade within the\u00a0Deep and Comprehensive Free Trade Area (DCFTA) with the EU, that meaning\u00a0reduced or eliminated tariffs for goods, increased services market and better investment conditions, as the official website of the European Commission states<\/a>.<\/p>\n

Statistical data and newly signed trade agreements are often publicly mentioned when wishing to emphasise one or another relationship as the most strategic one for the Republic of Moldova. But how is it in reality?<\/p>\n

Moldova and the EU<\/h3>\n

On December 19th, 2019, the Council of the EU has formally endorsed an agreement granting Moldovan farmers and SMEs additional preferential export opportunities<\/strong><\/span> to the EU, following the agreement signed between the EU and the previous government led by Maia Sandu, to broaden the degree of trade liberalisation for specific agricultural products under the DCFTA<\/span>, according to a statement<\/a> of the European Commission.<\/p>\n

The agreement provided that the Republic of Moldova will be granted additional duty-free tariff rate quotas to export table grapes<\/em> (of double the current amount) and plums<\/em> (of a 50% increase on the current volume), as well as a new duty-free quota for cherries<\/em> (of 1.500 tonnes). The EU exporters will also gain additional duty-free access to the Moldovan market.<\/p>\n

Moreover, the thresholds triggering the anti-circumvention mechanism (a mechanism that\u00a0provides for the possibility of reintroducing the customs duty when imports of certain agricultural products and processed agricultural products exceed a given threshold) for wheat, barley, maize, sugar and processed cereals<\/em> have also been raised, taking into account the trade patterns over the last few years.<\/p>\n

Generally, the Association Agreement between the EU and the Republic of Moldova provides Moldova with a framework for boosting trade and economic growth<\/strong>\u00a0through improved access to the EU market and mechanisms for aligning its trade-related laws and regulations to EU\u2019s standards.<\/p>\n

According to the official statistics<\/a> of the European Commission, the Moldova’s exports to the EU grew by 62%<\/strong> between 2014 and 2018. Between 2017 and 2018, it increased by 16%<\/strong>, from\u00a0\u20ac1.6 billion to \u20ac1.9 billion.<\/p>\n

\"\"

source: ec.europa.eu<\/p><\/div>\n

The European Union is Moldova’s biggest trade partner, as around 70%<\/strong> of its exports are sent to the EU, followed by Russia (8%<\/strong>) and Belarus (3%<\/strong>). Key EU imports from Moldova are mainly machinery and appliances, vegetable products, textiles and textile articles and base metals.<\/p>\n

Moldova and the CIS<\/h3>\n

Russia is one of the most important eastern partners for the Republic of Moldova. Usually, the good news about the export of Moldovan products to this country come from the president of the Republic of Moldova, Igor Dodon<\/strong>. This December, he already made 2 announcements regarding the extension of fruit and vegetable exporters’ list<\/strong><\/span> who are allowed to export on the Russian market starting the next year. First, the list was extended from 130 to over 350 Moldovan companies, and then 150-200 other companies obtained such permission recently.<\/p>\n

“It was agreed to extend the list of categories of goods that are exported to the Russian market without customs duties for another five product categories: beef, sunflower seeds, sugar, ethyl alcohol and furniture from January 1st, 2020. I mention that so far the export taxes for five categories have been excluded: vegetables; apples, pears and fresh quinces; apricots, cherries and sour cherries; canned vegetables; wines,” informed Dodon on his Facebook page<\/a>.<\/p>\n

Additionally, the Minister of Agriculture asked the Russian profile institutions to inspect 33 wineries and four canning companies from Moldova, in order to grant them access to the Russian market. All in all, the Russian Federation will issue 16,000 transport authorisations for Moldovan carriers in the next year.<\/p>\n

A prohibition of export for Moldovan companies<\/strong><\/span> was set up after a decision<\/a> of the Government of the Russian Federation, on December 29th, 2018, which forbid to import Ukrainian products and products transiting Ukraine, including those from Moldova.<\/p>\n

At the begging of 2019, Russian customs authorities forbid to import large quantities of goods produced in the Republic of Moldova and the Transnistrian region.<\/p>\n

The Russian portal Regnum.ru was writing<\/a>, at that time, that the majority of Moldovan exporting companies affected by the Russian Government decision are precisely those for which, in the following half of 2019, Russia cancelled the import duties, such as producers of fresh and preserved fruits and vegetables<\/em>, as well as wine products<\/em>. According to the Russian publication, the measure to support Moldovan businesses was an act of political support of the Moldovan president, Igor Dodon, in the upcoming parliamentary elections, which became possible after a meeting between Dodon and the Russian president.<\/p>\n

Nowadays, more and more companies from Moldova are granted gradually back access to the Russian market, President Dodon announcing that every time on his page or at press conferences. Let’s not forget that Moldova expects new presidential elections in 2020.<\/p>\n

All in all, the statistics<\/a> of the CIS presented a total export value of $416 million in 2018, as compared to $463 million in 2017. From January to September 2019, Moldova’s exports to CIS countries amounted<\/a> $301.8 million, that decreasing by 1.6% as compared to the same period in 2018.<\/p>\n

\"\"

source: cisstat.com<\/p><\/div>\n

National statistics<\/h3>\n

When looking at the whole picture, it can be observed that in 2006<\/strong>, the Moldovan exports to the EU countries exceeded for the first time the exports to the CIS countries, the difference between the exports to the two destinations starting to be bigger and bigger, as the National Bureau of Statistics of Moldova (NBS)\u00a0displays<\/a>.<\/p>\n

\"\"

Data source: statbank.statistica.md<\/p><\/div>\n

Still, the most important trading partners for Moldova remained such European countries as Romania<\/strong> – 42.54%<\/strong> ($ 792.137 million) of the total exports to the EU countries, Italy<\/strong> – 16,62%<\/strong> ($ 309.606 million) of\u00a0the total exports to the EU countries and Germany<\/strong> – 11.81%\u00a0<\/strong>($ 219.902 million) of the total exports to the EU countries, as well as such CIS countries as Russia<\/strong>, the exports to which represented 52.55%\u00a0<\/strong>($ 218.571 million) of the total volume of exports to the CIS countries in 2018.<\/p>\n

Photo: statistica.gov.md<\/p>\n

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