World Trade
Organization WT/L/861
10 July 2012 (12-3706) General Council
25-26 July 2012
Original: English

European union – application of autonomous preferential treatment to the republic of moldova

Report of the European Union under the Decision of 7 May 2008

The following communication, dated 4 July 2012, is being circulated at the request of the Delegation of the European Union.
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Introduction
On 7 May 2008, the European Union (EU) was granted a waiver (WT/L/722) from its obligations under paragraph 1 of Article I of the GATT 1994 to the extent necessary to permit the EU to afford duty-free or preferential treatment to eligible products originating in the Republic of Moldova, without being required to extend the same duty-free or preferential treatment to like products of any other member.
Under the terms of this waiver, the EU is required to submit to the General Council an annual report on the preferences and duty-free treatment afforded to products from the Republic of Moldova, including the extent to which such preferences and duty-free treatment differ from the EU's MFN and GSP concessions, with a view to facilitating the annual review provided for in paragraph 4 of Article IX of the WTO Agreement.
On 21 January 2008 the EU Council of Ministers extended the duty-free access to the EU market for products originating from the Republic of Moldova even further, by removing all remaining tariff ceilings for industrial products and by improving access to the EU market for agricultural products (Council Regulation No.
The main reason for such an extension was that the Republic of Moldova is the poorest country on the European continent and that it was necessary to offer to the Republic of Moldova an improved access to the EU's market to support the development of its economy through increased export performance.
Negotiations of a Deep and Comprehensive Free Trade Agreement (DCFTA) between the Republic of Moldova and the EU
The Eastern Partnership initiative, which involves the EU, its Member States and the Eastern European countries benefiting from the European Neighbourhood Policy (including Moldova) includes an offer from the EU to conclude a FTA in line with Article XXIV of the GATT 1994,
In early June 2010 a fact finding mission of the European Commission visited Moldova in order to assess Moldova's readiness to take on and implement the commitments of an FTA between the EU and Moldova and to sustain the effects of far-reaching market access liberalisation and regulatory approximation.
6 Area in 1000skm (2007) 33,8 Gross Domestic Product in BN € 5,2
GDP Per Capita in euro
1,452

EU 27 TRADE WITH Moldova

IMPORTS
Rank 2011: 78 EXPORTS
Rank 2011: 62 TRADE
BALANCE Year Value (Mio €) Share of total EU imports Value (Mio €) Share of total EU exports Value (Mio €) 2005 435 0.
3 Product Groups Value (Mio €) Share by products (%) Share of totals (%) SITC Rev.
3 Product Groups Value (Mio €) Share by products (%) Share of totals (%) Balance TOTAL 727.
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WT/L/722 European Communities – Application of Autonomous Preferential Treatment to Moldova, Decision of 7 May 2008 adopted in accordance with the Decision-Making Procedures under Articles IX and XII of the WTO Agreement agreed by the General Council on 15 November 1995 (WT/L/93).