German Economic Team's economists say Moldova boosts trade with EU not to detriment of Russia

Chisinau, 01 March /MOLDPRES/ – The increased trade between Moldova and the European Union has not developed to the detriment of Russian and Eurasian Economic Union /EEU/, notes an economists’ group from German Economic Team (GET) in its study submitted to experts from Economy Ministry today.

According to German experts, the trend towards boost of trade with EU began more than 10 years ago, before the signing of the Agreement of Deep and Comprehensive Free Trade Area (DCFTA) between Moldova and the European Union. The statistics show that, since 2004, Moldovan exports to EU increased by an average of over 10 per cent, and after agreement signing, the European Union became the main trading partner of Moldova.

The latest data from the National Bureau of Statistics (BNS) show that exports of Moldovan goods to EU market amounted to $1 billion 332.4 million in 2016, after rising during the year by 9.4 per cent. The share of EU supplies of goods to foreign markets by Moldova was amounted to 65.1 per cent from 61.9 per cent the previous year.

"The boosting of trade with EU is not based on "artificial" political decisions, but the results of the decisions companies and domestic consumers," say GET experts.

"Our analysis clearly demonstrates that DCFTA was also considered to be beneficial to Moldova’s economy. But it is justified to try improving trade relations with Russia, but not at all necessary for it to happen to worsen the risk of trade relations with EU," said Ricardo Giucci, GET Moldova leader.

According to Woldemar Walter, an economist and one of the authors of the analysis, "there is no need to choose between free trade with Russia or EU because DCFTA is fully compatible with existing free trade agreement with the Russian Federation. Moldova should aim to ensuring free trade in both directions. "According to experts, improving trade relations with East should be a legitimate objective of the authorities in Chisinau, as EEU market represents 17 percent of total exports of Moldova.

Also, the study authors note that DCFTA questioning by officials, weakens the Agreement and has a negative economic impact on Moldova. Moreover, in these conditions, the potential investors, interested in Moldova to produce and to export to EU, could postpone or even cancel the project implementation decisions in the national economy.

Since 2010, German economic team in Moldova (Moldova GET) supports the Government in economic development and stabilization process modeling the needed economic reforms. GET Moldova is part of the "high-level governmental Consultancy on behalf of the Federal Ministry of Economy and Energy", which also includes Ukraine, Belarus and Georgia.

(Reporter V. Bercu, editor A. Raileanu)