A free trade area

A Free Trade Area
Between the Republic of
Moldova and the
European Union:
Feasibility, Perspectives and
Potential Impact
Authors: Valeriu Prohnitchi (coordinator), Ana Popa, Alex
Oprunenco, Matthias Luecke, Mahmut Tekce, Eugen Hristev,
Georgeta Mincu, Victoria Vasilescu
Chisinau, 2009
EXPERT-GRUP 2
This study was published in the project
“Trade relations of the Republic of Moldova with the European Union:
Current Situation and Perspectives for Enhancement”.
This project was implemented by the Expert-Grup independent think-tank
With the financial support of the Moldova-Soros Foundation.
Note: the statements made in this report express the opinion of the authors alone and do not necessarily
Correspond to the official views of the Moldova-Soros Foundation, the Government of the Republic of
Moldova, the European Commission, or any other public or private entity mentioned

in this publication.
EXPERT-GRUP 3
Contents
About Expert-Grup……………………………………………………………………………………………………….. 7
About the Project…………………………………………………………………………………………………………. 8
Executive summary…………………………………………………………………………………………………….. 10
Introduction………………………………………………………………………………………………………………… 13
1. Major economic developments in Moldova………………………………………………………. 15
From deep recession to economic growth……………………………………………………………. 15
Replacing consumption-based with investment-led economic growth……………….. 16
Moving from agrarian to modern economy………………………………………………………….. 18
Significant structural changes……………………………………………………………………………… 18
Moldovan agriculture………………………………………………………………………………………….. 20
Current situation in industrial sector…………………………………………………………………….. 22
Financial services…………………………………………………………………………………………………. 23
Energy sector……………………………………………………………………………………………………….. 25
Transport………………………………………………………………………………………………………………. 26
Macroeconomic stabilization and new challenges ahead…………………………………… 28
Conclusions……………………………………………………………………………………………………………… 30
2. Trade policy and trade relations between Moldova and EU……………………………… 32
Moldova’s trade policy: progresses and stalemates……………………………………………… 32
General overview of the Moldovan trade policy……………………………………………….. 32
Non-tariff barriers and trade restrictive measures……………………………………………….. 34
EU trade policy………………………………………………………………………………………………………… 38
General policy issues…………………………



A free trade area