The Moldovan and the Ukrainian Prime Ministers Signed the Amendment to the Free Trade Agreement

The Moldovan and the Ukrainian Prime Ministers Signed the Amendment to the  Free Trade Agreement
by
30 August 2021 | 11:15

Moldovan producers will be able to import raw materials and components originating in Ukraine for processing in Moldova, and then export the final product to EU member states, accompanied by certificates of Moldovan origin free of duty or reduced customs duty, according to the existing preferential regime. The provisions were announced after the meeting between the Prime Minister of Moldova, Natalia Gavrilița, and her Ukrainian counterpart, Denis Shmyhal.

Natalia Gavrilița and Denys Shmyhal signed the Protocol on Amending the Agreement on Free Trade between the Moldovan Government and the Cabinet of Ministers of Ukraine. According to the chief executive of Chișinău, this will allow the application of European rules of origin in bilateral trade.

“This protocol reaffirms the will of the two countries to contribute to the development of bilateral trade and economic relations. The document will facilitate investments and will encourage the business environment to fully capitalize on the existing trade regime with the EU,” mentioned Gavrilița.

According to the Ukrainian Prime Minister, the amendments stipulate that pan-European and Mediterranean rules on the transport of goods will apply in trade between Ukraine and Moldova.

“This is a significant change in trade relations. The transition to this regime allows the combination of association agreements with the EU into a single system. A year ago we signed this agreement with Georgia, and now we unite the trade regimes of all the states in the Associated Trio between them and the EU. That cumulation system allows trade to take place under a system in which the components of manufactured products pass through that system of all the States. Ukraine applies such a regime in relation to all EU countries, but also Norway, Switzerland, Iceland, Lichtenstein, Israel, Georgia. Now, Moldova also joins this system for Ukraine. At the same time, this protocol is an additional step of the Associated Trio states to get out of the CIS trade relations and move to an EU model economy,” specified Shmyhal.

Thus, domestic producers in Moldova will be able to import raw materials and components originating in Ukraine to process them in Moldova, and subsequently export the final product to EU member states, accompanied by certificates of Moldovan origin free of charge or with reduced customs duty, according to the existing preferential regime.

At the same time, during the meeting, the topic on the liberalization of road and air transport was addressed, which provides for the elimination of authorizations for road freight transport.

The Prime Minister of Ukraine, Denys Shmyhal, visited Chișinău in the context in which on Friday, August 27, Moldova celebrated 30 years since the proclamation of independence.

Presidents of Ukraine, Poland, and Romania on Moldova’s 30th Anniversary of Independence

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