The Republic of Moldova

01 October 2009
by eub2 -- last modified 01 October 2009

European Union bilateral trade with Moldova represents only 0.1 per cent of total trade, but it is growing and the EU is encouraging closer economic ties.

Bilateral trade between the EU and Moldova has shown an increasing trend in the last 5 years, except for a decline in 2005 due to a fall in exports of steel products. In 2008 the total turnover of trade with Moldova reached EUR 2.5 billion. The growth of bilateral trade was slower than in the previous years and imports from Moldova increased by 2.7% and exports to Moldova by 14.1% compared to 2007. The EU is Moldova's most important trading partner with a 50% share of its external trade.. Despite continuous growth, Moldova's exports to the EU remain rather limited and non-diversified. In it is expected that the autonomous trade preferences that the EU has extended to Moldova at the beginning of 2008 will lead to a further diversification of exports and as a result stimulate economic growth in Moldova.

Trade in goods

EU good exports to Moldova 2008: EUR 1.7billion
EU goods imports from Moldova 2007: EUR 748 million

Trade in services

EU services exports to Moldova 2006: EUR 171 million
EU services imports from Moldova 2006: EUR 141 million

More statistics

The European Neighbourhood Policy Action Plan for Moldova

Moldova is a partner country within the European Neighbourhood Policy (ENP). The 2005 EU – Moldova ENP Action Plan is based on the Partnership and Cooperation Agreement and lays out the strategic objectives for political, economic and institutional reforms. This Action Plan is currently under implementation.

Autonomous Trade Preferences for Moldova

In the ENP Action Plan for Moldova the EU agreed to consider granting Moldova Additional Autonomous Trade Preferences (ATPs) beyond the GSP+ preferences, provided that some substantive progress was made in the area of customs control. In January 2008 the Council adopted Regulation (EC) No 55/2008 on ATPs for Moldova (as amended by Reg. (EC) 1210/2008) by giving unlimited and duty free access to the EU market for all products originating in Moldova, except for certain agricultural products. To avoid having overlapping systems of preferences, Moldova was removed from the list of GSP beneficiaries.

Multilateral context

Moldova has been a Member of the WTO since 26 July 2001. Moldova is also a member of the Commonwealth of Independent States (CIS) since 1994. The CIS does not have supranational powers, but promotes cooperation in various fields. Moldova is also a party to the amended and enlarged Central European Free Trade Agreement (CEFTA), which entered into force on 26 July 2007. Moldova has concluded 16 agreements on market access within the CIS and the Pact on Stability in South-Eastern Europe.

Future deeper trade relations

Article 4 of the PCA states that the parties shall examine jointly whether circumstances allow the start of negotiations on the establishment of an FTA. In light of the progress Moldova has made in the field of structural reforms and economic development the Commission has launched an FTA feasibility study to get an updated view on the possibilities for developing future deeper trade relations through an FTA. In line with the EU's Eastern Partnership Strategy the objective is to start negotiations on a deep and comprehensive FTA as a core element of an Association Agreement if and when Moldova is deemed to be ready and certain conditions are fulfilled.

Source: European Commission