EUROPEAN COMMISSION - PRESS RELEASE
Commissioner De Gucht visits Moldova and Georgia
to open trade negotiations
Brussels, 24 February 2012 – EU Trade Commissioner Karel De Gucht will travel to
Moldova and Georgia on 27 and 28 February respectively to launch negotiations on
Deep and Comprehensive Free Trade Areas (DCFTA) between the EU and the two
countries.
"The free trade area will be a key vehicle to advance Moldova's and Georgia's trade
and economic ties with the EU", said Commissioner De Gucht. "I am confident that
these negotiations will move ahead swiftly and pave the way to closer economic
ties with the EU. The opening of negotiations confirms the EU's commitment to
deepen progressive economic integration and political association with our Eastern
Partners."
Together with the countries' political leaders, Commissioner De Gucht will launch
the free trade area negotiations and confirm the parameters within which the lead
negotiators will operate. Meetings in Moldova are scheduled with Acting President
Marian Lupu and Prime Minister Vladimir Filat. In Georgia, Commissioner De Gucht
will meet Prime Minister Nika Gilauri.
The Commissioner's visit takes place ahead of the first negotiation rounds
scheduled for 19-23 March (Moldova) and 26-30 March 2012 (Georgia), and follows
the first technical preparatory meetings between the parties, which took place on 18
January (Moldova) and 31 January 2012 (Georgia).
The Deep and Comprehensive Free Trade Areas will be part of the Association
Agreements currently being negotiated with Georgia and Moldova, which have the
overall objective to significantly deepen political association and economic
integration with these Eastern Partner countries.
Background
In the framework of the Eastern Partnership, the EU has been negotiating since
2010 Association Agreements with Georgia and Moldova. Free trade areas will
become an integral part of these Agreements, aiming to strengthen the export and
investment performance of both countries and facilitate their progressive integration
with the EU's Internal Market of 500 million consumers.
The 'deep and comprehensive' trade areas (DCFTA) are very ambitious in nature,
aiming to tackle trade obstacles at the borders and eliminating those behind the
border. One objective is to bring legislations of our trade partners closer together
with EU legislation in trade-related areas ('deep'). In addition, the scope of the
agreements is very broad, addressing matters that are fundamental to a modern,
transparent and predictable trade and investment regime, such as competition,
government procurement and intellectual property rights ('comprehensive').
IP/12/162
Both countries currently enjoy preferential access to the EU market through
autonomous lower import duties through the Generalised System of Preferences,
with further incentives for good governance ("GSP+" for Georgia) and Autonomous
Trade Preferences (Moldova). The future trade agreements will extend significantly
beyond the scope of current cooperation, governed by the Partnership and
Cooperation Agreements, in force since July 1998 (Moldova) and July 1999
(Georgia).
The decision to launch DCFTA negotiations was endorsed by the Council's Trade
Policy Committee in December 2011, after Georgia and Moldova had conducted
substantial reforms in key trade and investment-related regulatory areas, notably in
the fields of technical regulations, sanitary and phytosanitary measures, protection
of intellectual property rights and competition rules. The EU assisted both countries
in this process, providing technical assistance in the framework of the European
Neighbourhood Partnership Instrument and of the Comprehensive Institution
Building programme, as well as with the support of EU Member States.
Current trade relations
The EU is Georgia's and Moldova's first trading partner. Bilateral trade in goods
amounted to €2.2 billion with Georgia and €2.7 billion with Moldova in 2011.
Due to the unilateral trade preferences granted to both countries by the EU, existing
import duties are already very low, so the benefits of the future trade agreement lie
predominantly "behind the border", through regulatory reforms in Moldova and
Georgia.
For further information:
On EU trade relations with the South Caucasus countries, including Georgia:
http://ec.europa.eu/trade/creating-opportunities/bilateral-relations/regions/south-caucasus/
On EU trade relations with Moldova:
http://ec.europa.eu/trade/creating-opportunities/bilateral-relations/countries/moldova/
On the Eastern Partnership: http://eeas.europa.eu/eastern/index_en.htm
Contacts :
John Clancy (+32 2 295 37 73)
Helene Banner (+32 2 295 24 07)
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