Transcript EU Markets DCFTA-New trade opportunities en

EU Markets DCFTA – New trade opportunities
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Vasile PLAMADEALA,
EU Delegation to the Republic of Moldova
The context
Why should the EU update its trade strategy now?
• To respond to the trade debate
• To adjust to the new realities, in particular in the Global
Value Chains
• To reassess the targets for access to markets
• To ensure we get the most out of the existing trade deals
Key messages
Trade for all means for the benefit of all, including:
 Consumers: by allowing for increased but better informed
choices
 Workers: by facilitating the creation of jobs but also the
respect of labour rights and protection of communities
when exposed to vulnerable situations
 Citizens: by promoting engagement and transparency
 SMEs: by taking into account SMEs' specificities/
vulnerabilities (eg higher cost of entering a new market)
 People in developing countries: by using trade agreements and
trade preference programmes as levers to promote
European values
AA/DCFTA
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Association Agreement (AA), including Deep and
Comprehensive Free Trade Area (DCFTA);
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Provisionally entered into force 1 September 2014;
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Blueprint for reform;
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Make government more accountable and transparent;
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Make business environment more predictable
DCFTA in a nutshell
• Expected economic impact on Moldova is positive:
• +8% growth of Moldovan imports from the EU;
• +16% growth of Moldovan exports to the EU;
• Boost to GDP by +5.4% ;
• Exports to the EU: already 53% of total Moldovan exports
to the world;
• But reforms are key to competitiveness
DCFTA in a nutshell : benefits
• Increased market access for industry, agriculture
and services
• Reforms in many areas of economy
• Increased competitiveness, more investments
• Substantial assistance for modernization
DCFTA: an overview
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Relations with Russia;
Comparison with Customs Union;
Impact on agricultural sector;
Impact on industry;
Impact on services sector;
Reforms
Competitiveness;
Assistance for modernization
Exporturile Republicii Moldova 01.01-31.08.2015
Export dynamics 2010-2015
EU – Moldova, Trade figures 2014
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8% growth in total trade, to EUR 3.51 billion.
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Imports from Moldova grew in 2014 by an impressive 20%, to EUR 1.16
billion.
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In agriculture, very impressive growth of MD imports to the EU: 31% increase in
value in 2014.
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EU exports, in turn, remained stable year on year, with a minor 3% or EUR 75
million of growth, totaling EUR 2.35 billion in value.
Relations with Russia
• AA/DCFTA fully compatible with CIS Free Trade Zone;
• Moldova can have free trade both with EU and Russia;
• Russian concerns: rules of origin, norms and standards;
• Politically-motivated embargo;
• Not compatible with Customs Union: leads to loss of trade
sovereignty
Impact on agricultural sector
• Vast trade potential;
• Export already almost duty-free under ATP;
• Some entry prices + quotas remain
 Quid 1: compliance with EU sanitary and
phytosanitary norms;
 Quid 2: further reductions of duties;
 Quid 3: cost of reform
Impact on industries
• Under ATP already duty-free import to the EU;
• Under DCFTA –Moldova reduces its duties too;
• EU aware of development of Moldovan industry –
gradual liberalisation in sensitive sectors;
• So no flooding of Moldovan market with EU products
 Quid 1: competitiveness;
 Quid 2: diverging standards, procedures, transparency
Impact on services sectors
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No open services market now;
DCFTA offers a wide-ranging opening – almost all sectors;
Modes 1 and 2 - cross-border services;
Mode 4 - presence of natural persons for business purposes;
Mode 3 – establishment – but opening goes beyond
services, any company in any sector can set up in the EU or
Moldova (except defence);
• Roadmap for reform: electronic commerce, postal and
courier, transport, financial services
Competitiveness
• Will not destroy Moldovan industry, but will make industry
more competitive;
• Protection of sensitive sectors: asymmetric opening of
markets, transition periods;
• Specialization, based on comparative advantages;
• Integration into EU wide supply chains;
• Will bring more investments;
• EIB/EBRD: credits up to EUR 1 billion for SME's in EaP to
adapt to new market requirements
Reforms:
the comprehensive aspects (1)
• Competition policy
• Intellectual property
• Sustainable development and transparency
Reforms: the "deep" component (2)
• Food safety/ sanitary and phytosanitary
measures
• Technical regulations and standards for industrial
goods
• Public procurement
• Services
• Customs and trade facilitation
Assistance
• EU SRC - Support to the DCFTA Process in the Republic of
Moldova;
• ESRA (Economic Stimulation of Rural Areas);
• ENPARD (European Neighbourhood Policy for Agricultural
and Rural Development);
• EIB Filiere de vin;
• EIB Fruit Garden;
• Other EU funded projects.
The Export Helpdesk
to the European Union
• www.exporthelp.europa.eu
What is the Export Helpdesk?:
• Website / interactive database
• Tariffs & import rules for the EU market for goods (not
services)
• Free of charge and accessible from all over the world
• Available in 5 languages (English, French, Spanish,
Portuguese and Russian)
• Especially created for developing countries
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Conclusion
 DCFTA means:
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more trade
better and cheaper products, quality services
competitiveness through reform
more transparency, predictable rules for business,
better investment climate and competition framework
boost to international position and more FDI
financial support
= Unique opportunity to boost trade and
modernise the Moldovan economy
Questions?
[email protected]