During the first years of implementation of the Deep and Comprehensive Free Trade Agreement (DCFTA), trade between Moldova and the EU witnessed positive developments. Even if export prices decreased, the volume of exports grew and the value of supplies to the EU consequently increased. On the other hand, imports declined under the influence of the modest growth of imports from the EU and the reduction in import prices. As a result, the commercial relations improved. The balance of trade deficit with the EU in 2016 halved compared with 2014. The findings are contained in an analysis conducted by Alexandru Fala, expert of the independent think tank “Expert Grup”, IPN reports.
The expert said the liberalization of trade with the EU didn’t cause shocks for the vulnerable sectors of the national economy, such as agriculture. Moreover, the exports of agrifood products exceeded the imports of these goods from the EU.
According to Alexandru Fala, the structure of the national economy hasn’t yet changed significantly event if the DCFTA favored the export and, implicitly, the economic dynamics. Thus, exports to the EU continue to be dominated by products from economic sectors based on the extensive use of labor force, such as agriculture. Even if the functioning of the DCFTA is a precondition for modernizing the country, the restructuring and development of Moldova’s economy can be ensured only if authentic reforms are done.