REPORT on the proposal for a regulation of the European Parliament and of the Council on temporary trade-liberalisation measures supplementing trade concessions applicable to products from the Republic of Moldova under the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and the Republic of Moldova, of the other part

EXPLANATORY STATEMENT

The illegal and unjustified Russian military aggression against Ukraine has negatively impacted the Republic of Moldova and its ability to sell its products beyond its borders, as Moldova relied heavily on Ukrainian transit routes and infrastructure for its own exports.

In this context, in 2022, the European Parliament and the Council adopted Regulation (EU) 2022/1279, which puts in place temporary trade-liberalisation measures supplementing trade concessions applicable to products from Moldova under the EU-Moldova Association Agreement. This regulation has allowed Moldova to redirect some of its trade with the rest of the world via the EU, as well as to deepen its trade relations with the EU and to stabilise its economy. The trade-liberalisation measures were extended by one year in July 2023.

The present legislative proposal aims to once again renew these trade-liberalisation measures for a period of one year as of the date on which the current measures expire (i.e., as of 25 July 2024). Under the proposed regulation, all outstanding tariffs under Title V of the Association Agreement will be suspended. This concerns fruits and vegetables subject to the entry-price system and tariff-rate quotas, namely tomatoes, garlic, table grapes, apples, cherries, plums and grape juice. Most Moldovan exports already benefit from duty-free access to the EU market under the Association Agreement. Therefore, the quantities and range of products covered by the present proposal are relatively small.

The proposal introduces a strengthened safeguard mechanism to prevent and counteract adverse market effects in the EU Member States. The Commission can take any necessary measures, including the reintroduction of customs duties if it finds that imports of a specific product covered by this regulation leads to market disturbances in the EU or any of its Member States. The Commission will regularly monitor the impact of the trade-liberalisation measures in terms of import volumes and prices.

In the light of the strengthening of safeguard measures and the expansion of adverse effect from the Union market to one or several Member States, the Rapporteur underlines that any measures resulting by this regulation should be considered as exceptional and should not establish a precedent for the future of temporary trade liberalisation.

The proposed temporary trade-liberalisation measures will facilitate and support the existing trade flows from Moldova to the Union and help Moldova’s economy. They are also in line with the main objectives of the Association Agreement, namely to establish the conditions for enhancing economic and trade relations leading toward Moldova’s gradual integration into the EU internal market and contributing to the strengthening of democracy and political, economic, and institutional stability in Moldova, which has been an EU candidate country since 2022.

Given the continued hardship the Moldovan people have experienced as a result of the Russian war of aggression against Ukraine, it is vital that the EU continue supporting Moldova both economically and politically. Therefore, the rapporteur anticipates adopting this proposal in a swift manner ahead of the expiry of the existing trade-liberalisation measures.

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur declares that she has received input from the following entities or persons in the preparation of the report, until the adoption thereof in committee:

The list above is drawn up under the exclusive responsibility of the rapporteur.

LETTER OF THE COMMITTEE ON AGRICULTURE AND RURAL DEVELOPMENT (27.2.2024)

Mr Bernd Lange

Chair of the Committee on International Trade

BRUSSELS

Subject: Opinion on Proposal for a Regulation of the European Parliament and of the Council on temporary trade-liberalisation measures supplementing trade concessions applicable to products from the Republic of Moldova under the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and the Republic of Moldova, of the other part (COM2024/0051 – C9‑0022/2024 – 2024/0029(COD))

Dear Chair,

I refer to the Commission proposal for extending temporary trade liberalisation measures applicable to Moldovan products [2024/0029 (COD)].

The Committee on Agriculture and Rural Development considered the matter at its meeting of 26 February.

The Committee agreed with the proposed extension of temporary measures, and asked me to convey its opinion to you pursuant to Rule 56.

Yours sincerely,

Norbert Lins

ANNEX: ENTITIES OR PERSONS
FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

The rapporteur declares under his exclusive responsibility that he did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

PROCEDURE – COMMITTEE RESPONSIBLE

FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE

Key to symbols:

+ : in favour

- : against

0 : abstention