Moldova and Italy could protect each other’s investments after the agreement’s signing. The cabinet of ministers has given the green light for negotiations to begin.
The authorities thus aim to strengthen investment relations and intensify bilateral economic dialogue between the two countries. The document provides “a level playing field for investors and mutual protection of investments by one state in the territory of the other,” according to the economy ministry.
The new document is necessary after the previous one, signed in 1997, expired in 2016. Thus, the provisions will be updated, considering that Italy ranks 4th among the top investors in Moldova, with a total capital of 1.7 billion lei, finding about 1207 enterprises with Italian capital, according to the authority.
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“The current period of the new agreement is intended to be ten years, with automatic extension for another five years. In this way, investors will have protection, and investments will have stability. The agreement will also provide dispute prevention and resolution mechanisms,” says the Economy Ministry.
The agreement will promote investment in main sectors such as agriculture, food processing, tourism, and information technology. Ministers believe that signaling the document will improve relations between Moldova and Italy and respect international labor, health, safety, and environmental rights.