The European Parliament adopted by 459 votes to 65, with 57 abstentions, a legislative resolution on the proposal for a regulation of the European Parliament and of the Council on temporary trade-liberalisation measures supplementing trade concessions applicable to products from the Republic of Moldova under the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and the Republic of Moldova, of the other part.

The European Parliament adopted its position at first reading under the ordinary legislative procedure by taking over the Commission proposal.

Russia’s unprovoked and unjustified war of aggression against Ukraine since 24 February 2022, has had a profoundly negative impact on the ability of the Republic of Moldova to trade with the rest of the world, in particular because exports from the Republic of Moldova rely on transit via Ukrainian territory and on Ukrainian infrastructure, which are currently largely unavailable.

In 2022, the European Parliament and the Council adopted Regulation (EU) 2022/1279, which puts in place temporary trade-liberalisation measures supplementing trade concessions applicable to products from Moldova under the EU-Moldova Association Agreement.

The present legislative proposal aims to once again renew these trade-liberalisation measures for a period of one year as of the date on which the current measures expire (i.e., as of 25 July 2024). Under the proposed regulation, all outstanding tariffs under Title V of the Association Agreement will be suspended. This concerns fruits and vegetables subject to the entry-price system and tariff-rate quotas, namely tomatoes, garlic, table grapes, apples, cherries, plums and grape juice. Most Moldovan exports already benefit from duty-free access to the EU market under the Association Agreement.

The proposal introduces a strengthened safeguard mechanism to prevent and counteract adverse market effects in the EU Member States. The Commission can take any necessary measures, including the reintroduction of customs duties if it finds that imports of a specific product covered by this regulation leads to market disturbances in the EU or any of its Member States. The Commission will regularly monitor the impact of the trade-liberalisation measures in terms of import volumes and prices.

Trade liberalisation measures are subject to Moldova's compliance with democratic principles, human rights and fundamental freedoms as well as the countering of the proliferation of weapons of mass destruction, related materials and their means of delivery; respect for the principles of the rule of law and good governance, the fight against corruption, criminal activities, organised or otherwise, including those of transnational character, and terrorism, and the respect for the principles of sustainable development and effective multilateralism.

PURPOSE: to increase the trade flows concerning all imports from Moldova by suspending all outstanding tariffs and import duties applied to Moldovan products.

PROPOSED ACT: Regulation of the European Parliament and of the Council.

ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.

BACKGROUND: Russia’s unprovoked and unjustified war of aggression against Ukraine since 24 February 2022 has had a profoundly negative impact on the ability of the Republic of Moldova to trade with the rest of the world, in particular because exports from the Republic of Moldova relied on transit via Ukrainian territory and on Ukrainian infrastructure, which are currently largely unavailable.

Under such critical circumstances, and to mitigate the negative effects on Moldova’s economy of Russia’s war of aggression against Ukraine, it is necessary to accelerate the development of closer economic relations between the Union and Moldova and to provide continued support to Moldova’s economy.

Regulation (EU) 2023/1524 of the European Parliament and of the Council will remain in force until 24 July 2024. These measures have provided flexibility and certainty for Moldovan producers and have further deepened Moldova’s trade relations with the EU and supported its economy. However, the situation remains extremely challenging and therefore Moldova has asked the EU to retain the current conditions to enable the country to continue its trade with the EU and with the rest of the world via the EU.

CONTENT: given Russia’s continued war of aggression against Ukraine and the ongoing impact on Moldova, and considering that Moldova was granted EU candidate status in June 2022 and Accession Negotiations were opened in December 2023, the Commission proposes a Regulation of the European Parliament and of the Council that will renew these trade-liberalisation measures for a period of one year as of the date the current measures expire (i.e. as of 25 July 2024).

The measures should take the form of a temporary suspension of all outstanding tariffs under Title V of the Association Agreement. This concerns fruits and vegetables subject to the entry-price system and seven agricultural products subject to tariff-rate quotas (tomatoes, garlic, table grapes, apples, cherries, plums and grape juice).

Through these measures the Union will deepen economic integration between Moldova and the Union and temporarily provide appropriate economic support to the benefit of the Republic of Moldova and the economic operators that are affected by Russia’s war of aggression against Ukraine.

The trade-liberalisation measures set out in this proposal for a Regulation are in line with the Association Agreement which commits to respecting democratic principles, human rights and fundamental freedoms as well as to countering the proliferation of weapons of mass destruction, related materials and their means of delivery.

In addition, under the same Article, the Parties commit in particular to respecting the rule of law and good governance, the fight against corruption, criminal activities, organised or otherwise, including those of transnational character, and terrorism, as well as the principles of sustainable development and effective multilateralism. The trade-liberalisation measures themselves would need, as a prerequisite, to respect these essential elements and general principles.

The trade-liberalisation measures outlined in this proposal aim to ensure that the EU’s common commercial policy is conducted in line with the principles and objectives of the EU’s external action.

According to the proposal, a safeguard mechanism will apply on the basis of regular monitoring, allowing for any measure which is necessary to be imposed.

Budgetary implications

According to an estimate based on Moldova’s imports of the products concerned in 2021, which was the last year before autonomous trade measures were introduced, the EU will see a loss of customs revenue corresponding to around EUR 0.3 million per year. Therefore, the impact on the EU’s own resources will be very limited.