Moldova is a landlocked nation in Eastern Europe that shares borders with Romania and Ukraine with a strategic position in terms of the neighbouring geopolitical factors covering natural, economic and politico-geographical situation.

In June 2014, Republic of Moldova has signed the Association Agreement with the European Union and has been in full effect since July 2016.

Since the Agreement's provisional application - September 2014, Moldova has benefitted from a DCFTA (Deep and Comprehensive Free Trade Area) with the EU.

This preferential trade system has allowed Moldova to benefit from reduced or eliminated tariffs for its goods, an increased services market and better investment conditions.

The DCFTA sets up a free-trade area between the EU and Moldova in line with the principles of the World Trade Organization.

The DCFTA allows for:

  • The removal of import duties for most goods traded between the EU and Moldova
  • Provides for broad mutual access to trade in services for both partners
  • Both EU and Moldovan companies can create a subsidiary or a branch office on a non-discriminatory basis. This means they receive the same treatment as domestic companies in the partner's market when setting up a business.

An important part of the DCFTA is aligning Moldovan trade-related laws to selected EU legislative acts. The aim of Moldova's adoption of EU approaches to policy-making is to improve governance, strengthen the rule of law and provide more economic opportunities by widening the EU market to Moldovan goods and services.

The trade in a summary:

  • The European Union is Moldova's biggest trade partner, accounting for 54% of its total trade, followed by Russia (10%) and China (7%). Around 64% of Moldovan exports are destined to the EU market.
  • Moldova ranks 59th among the EU's trade partners, with a total turnover of €4.7 billion in 2019, an increase of about 40% since 2015.
  • The EU's exports to Moldova amounted in 2019 to €2.9 billion, an increase of 8,5% from 2018. Key EU exports are mineral fuels, electrical machinery and vehicles.
  • The EU's imports from Moldova slightly decreased by 2,7% in 2018-2019, from €1.83 billion to €1.78 billion in 2019, but remains stable after a particular increase in the previous years. The main EU imports from Moldova are electrical machinery and equipment (notably insulated wire and cables), apparel and clothing and oil seeds (especially sunflower seeds).
  • The number of companies involved in trade with the EU has continued to increase, with approximately 1 837 Moldovan companies exporting to the EU in 2019 up from 1 734 firms engaged in exporting to the EU in 2018.

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     On 26 July 2001, The Republic of Moldova has become a member of the World Trade Organization and continued to pursue integration through CIS membership and participation in the Central European Free Trade Agreement.

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Republic of Moldova – The underestimated potential?

     Republic of Moldova, nevertheless, trade competitiveness is still hindered by limited financial access, cumbersome regulatory and business environments, and underdeveloped physical and quality management infrastructure.

Being a small and open economy, Moldova's development potential is linked to trade and investment integration strategy. It is located between two large markets: The European Union, which absorbs more than half of Moldova's exports, and the Russian Federation. As a small economy, Moldova's growth and development prospects are closely related to its performance in international and regional markets.

Reducing the economic distance to large regional markets and reaping the benefits of openness is essential for overcoming Moldova's structural constraints and stimulating export-led growth.

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