​DIALOG WITH RUSSIA ABOUT CANCELING EMBARGO ON MOLDOVAN GOODS TO BE CONTINUED – DEPUTY PREMIER

Moldova will continue the dialog with Russia on canceling the embargo on importing Moldovan goods, said Deputy Premier, Minister of Economy Octavian Calmic, who is heading the Moldova-Russia Inter-Governmental Commission for Trade and Economic Cooperation.

In an interview to Radio Free Europe, he said that a great work has been done and it should be brought to a logical conclusion.

According to him, Chisinau hoped that during President Igor Dodon’s visit to Moscow an announcement will be made about canceling of embargo on importing a number of Moldovan goods, but this did not happen.

“I think that a quite positive dialog was established at the political level. Respectively, certain signals shall follow about openness of Russian authorities towards Moldova. We will resume the dialog at the level of experts and leadership of a number of institutions for overcoming the earlier mentioned problems. We are completely open for find the solution for these problems”, Calmic said.

As for the EU-Moldova Association Agreement, he said that after the document signing, a permanent diversification of exports and its massive re-orienting from traditional markets – to European markets is taking place.

According to the Minister, 65% of Moldovan exports accounted for the EU market in 2016. The growth accounted for 15% over 3 years, while over 10 years it tripled.

“The volume of Moldovan exports to traditional CSI markets started falling since 2006, when Russia has first introduced tariff and non-tariff restrictions concerning Moldovan products. This decline became more shaped in 2014 [after signing of the EU-Moldova Association Agreement], when tariff measures were introduced for most of goods, imported from Moldova. Besides, requirements and exclusions from the free trade regime to lists of companies, who have the right to export, as well as many other requirements, which can be qualified as barriers on the path of trade”, Deputy Premier said.

He maintains that it is due to this, the amount of trade or exports to the EU fell to 20% in 2016 from 38% in 2013, while the trade volume with Russia – to 12% from 26%.

“All this led to the fact that economic agents from Moldova have found alternative markets for exports, mainly in the European market, as well as in Turkey, China and Mediterranean region, where the Moldovan goods are trying to reach”, Calmic said.

According to him, the signing of the Association Agreement, allowed Moldova to minimize losses from the economic crisis in the country and in the whole region.

“I think that had the crisis in banking sector, the political crisis and their negative influence on 2015-2016 economic results not occurred, positive aspects from the Association Agreement introduction would have been much more considerable”, Calmic said.