Moldova starts talks on Free Trade Agreement with China

Chisinau, 05 March /MOLDPRES/ – The first round of negotiations for drafting and signing the Free Trade Agreement (FTA) between Moldova and China takes place on 05 – 06 March. The negotiations are held in Chisinau by a team of negotiators from Moldova, which includes representatives of several ministries and relevant institutions.

The signing of FTA with China will contribute to strengthening of commercial and economic relations between Moldova and China, facilitate access to Moldovan market for Chinese products and attract investments into main sectors of activity of Moldova, said Ministry of Economy and Infrastructure, Iuliana Dragalin.

The Chinese side reiterated that long – term diplomatic relations and growing bilateral economic relations were at basis of drafting of FTA with Moldova, and signing of that agreement seeked to strengthen economic partnership, liberalise trade and bilateral investment.

The signing of FTA with China is part of the objectives set out in the Strategy of of Moldova to attract investments and promote exports. Previously, a feasibility study was conducted jointly with Chinese side on opportunity to launch and eventually sign the Agreement. According to the study, Moldova's exports to China could increase by 39.85 per cent and Gross Domestic Product could increase by 0.42 per cent.

The first round of negotiations discusses legal aspects of future agreement, but also application areas, including trade in goods, elimination of customs duties and technical barriers to trade, customs administration, competition, healthcare services, sanitation and phytosanitary measures etc.

The signing of FTA between Moldova and China was supported by participants in the meeting of the Moldovan-Chinese Trade and Economic Cooperation Commission and the Moldovan-Chinese Business Forum held in Chisinau in December 2016.

According to official data, there are 84 companies operating in Moldova with Chinese capital worth about MDL 5 million. Data from National Bureau of Statistics (BNS) reveals that Moldovan exports to Chinese market rose by 30.9 per cent in 2017 and imports by 26.4 per cent. China ranked fifth in TOP10 countries of which Moldova supplied goods with import figure $505 million in 2017.

The wines and grapes, optical instruments, furniture represent bulk of Moldovan exports to China, while import structure dominate chemical products and metal products.

(Reporter V. Bercu, editor L. Alcaza)