The European Council has today (Monday, July 18) adopted a regulation to temporarily cut tariffs on selected agricultural produce from Moldova.
The trade agreement applies to items not already fully liberalised, including; tomatoes; garlic; table grapes; apples; cherries; plums; and grape juice.
This means that Moldova can at least double its exports of these products to the European Union, for a period of one year, without any tariffs.
The EU Council explained that Moldova’s ability to trade with the rest of the world has been heavily impacted by the Russian invasion of Ukraine.
Moldova heavily relies on Ukrainian infrastructure to export its produce, while it has also largely lost access to its markets in Ukraine, Russia and Belarus.
The temporary trade measures will redirect those Moldovan exports towards the EU.
The Czech Republic’s Minister for Industry and Trade, Jozef Sikela has welcomed today’s trade agreement; the country assumed the presidency of the EU Council on July 1.
“We cannot overlook the impact of Russia’s war of aggression against Ukraine on Moldova,” he said.
“With duties lifted from the remaining agricultural products not already fully liberalised, Moldova can now export at least twice as much of these products to the EU without duties.
“With these exceptional measures, the EU deepens its trade relations with Moldova and shows its support for the stabilisation of Moldova’s economy,” Sikela concluded.
EU-NZ trade deal
Meanwhile, the EU and New Zealand recently struck a trade deal, which it is claimed will provide “significant economic opportunities” for farmers, companies and consumers.
However, it has lead to some concerns within the beef and dairy industries.
The agreement removes all tariffs on EU agri-food exports to New Zealand including some dairy products, pigmeat, wine, chocolate and pet food.
The move could cut around €140 million a year in duties for EU companies.
Bilateral trade is expected to grow by up to 30%, with EU annual exports potentially growing by up to €4.5 billion.
There will be limited access to the EU market for “sensitive products”, including several dairy products, beef and sheep meat, ethanol and sweetcorn.
Under the agreement, a tariff rate quota of 10,000t of beef can be imported with reduced duty of 7.5%.
This volume will be gradually phased in over seven years from when the deal comes into force.