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European Union
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').
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 EUR2.2 billion with Georgia and EUR2.7
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:
ec.europa.eu/trade/creating-opportunities/bilateral-relations/re
gions/south-caucasus/
On EU trade relations with Moldova:
ec.europa.eu/trade/creating-opportunities/bilateral-relations/co
untries/moldova/
On the Eastern Partnership: eeas.europa.eu/eastern/index_en.htm
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