 established in 2014 under the Association Agreement between the European Union and the Republic of Moldova. DCFTA came into full force in 2016 and boosted the total exports of the Republic of Moldova to the EU, fully compensating for the losses from the decrease in exports to the CIS.){kind=link}
The EU-Moldova trade relations are determined by the Deep and Comprehensive Free Trade Area (DCFTA) established in 2014 under the Association Agreement between the European Union and the Republic of Moldova. DCFTA came into full force in 2016 and boosted the total exports of the Republic of Moldova to the EU, fully compensating for the losses from the decrease in exports to the CIS.
Since 2016, deliveries of products to the EU market have doubled and reached nearly $2.5 billion at the end of 2022.
Sales to the EU began to increase after the implementation of the Free Trade Agreement when the Union granted export quotas for certain products to our country. This contributed to the reorientation of Moldovan exporters towards the West, given that most Moldovan companies were dependent on the Russian market – 30% of Moldovan products were delivered to the Russian Federation.
The latest data from the National Bureau of Statistics shows that deliveries of products to EU countries, in January-February 2023, totaled $429.3 million (3.5% more than in the corresponding period in 2022), accounting for 62.4% of total exports.
However, Moldovan exporters remain vulnerable to a limited number of markets. Another problem is the low value of products due to small investments in production lines. The majority focuses on the export of primary products. For example, according to the BNM Balance of Payments data, less than half (44%) of the products exported to the EU are processed products. These include vegetable oil, sugar, fruit and vegetable preserves, beverages, confectionery, and bakery products. Also, 12.3% of the Republic of Moldova’s total goods exports in 2022 were re-exports.
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The latest data from the EU Delegation to Chisinau shows that the export potential for fruits is underutilized. Moldovan apples are the most underutilized fruits for export to the EU, with an unrealized potential of $42.1 million. Germany is the country with the highest potential demand for Moldovan fruits, where products worth $35 million could be exported.
Among all the fruits grown in the Republic of Moldova, the following are in particular demand in the EU: grapes worth $27.1 million, fresh plums worth $11.2 million, and dried plums worth $6.9 million.
One solution for Moldovan companies is the implementation of technical and financial support programs to help them increase their production capacities, stimulate investments in the manufacture of high-value-added products, promote the brand identity of local products and expand the contacts of Moldovan producers with potential partners in EU countries.
Top Moldovan products sold in the EU
The European Union Delegation to Chisinau has published a ranking of Moldovan products exported to EU countries. Electric machinery and equipment are in first place with an indicator of $510.4 million.
The European Union delegation in Chisinau has published a list of Moldovan products that are exported to EU countries. In first place are electric cars and electrical equipment with an indicator of 510.4 million dollars.
In 2022, the Republic of Moldova exported to Romania goods worth over $1.24 billion, 48.9% more than the previous year. The next in the ranking of the largest consumers of Moldovan products in the EU are Italy and Germany, where last year were exported Moldovan goods worth $331.3 million (+38%) and $230.8 million dollars (-6 %).