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Statement of the Delegation of the Republic of Moldova Delivered by H.E

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Statement of the Delegation of the Republic of Moldova Delivered by H.E Statement of the Delegation of the Republic of Moldova delivered by H.E. Tudor ULIANOVSCHI, Permanent Representative to the United Nations in Geneva, WTO and other international organizations WTO Joint Trade Policy Review of Switzerland and Liechtenstein (16 May 2017) Thank you Mr. Chair, I would like to join others in welcoming H.E. Ms Marie-Gabrielle Ineichen-Fleisch, Secretary of State for Economic Affairs of the Swiss Confederation, and H.E. Mr. Peter Matt, Ambassador, Permanent Representative of the Principality of Liechtenstein in Geneva, together with their distinguished Delegations from Bern and Vaduz for their 5th Joint Trade Policy Review. Let me also express my appreciation to Ambassador David Walker (of New Zealand) for his insightful analysis in his capacity of discussant. I would like to commend the Governments of Switzerland and Liechtenstein and the Secretariat for their precious work in compiling the useful reports on trade policy practices in Switzerland and Liechtenstein since their last trade policy review in April 2013. The Republic of Moldova acknowledges Switzerland and Liechtenstein as strong supporters of the WTO advocating for further liberalization of world trade, actively participating in the Doha Development Agenda (DDA) and engaging in initiatives aimed at strengthening the rules-based multilateral trading system. We would also like to seize this opportunity to congratulate Switzerland and Liechtenstein, for the establishment of their respective national trade facilitation committees and compliance with Section 1 of the TFA Agreement. We also commend the implementation of the ITA Expanded since January 2017 by the Swiss Government and the ratification of the revised plurilateral Agreement on Government Procurement by Liechtenstein in 2013. Also, we are looking forward to the finalization of the ratification process of the Revised GPA by Switzerland, in parallel with ongoing reforms at the federal and cantonal levels. As a high-income country with a diversified economy and good governance, Switzerland has shown strong resilience in the challenging monetary context that has marked the period since its last trade policy review. We would like to underline that the main economic and financial developments under the period of review was marked by the smart monetary policy and a strong appreciation of the Swiss franc. While this appreciation has impacted considerably GDP growth and traditional export industries, modest quarterly GDP growth has been registered for 2016 – beginning of 2017. Positive trends have also been registered in Liechtenstein, despite its share of the same monetary challenges. In this context, we believe that the New Growth Policy 2016-2019 will manage to further open the economy to imports and reduce parallel barriers such as high input costs and output prices. We welcome the active expansion by Switzerland and Liechtenstein, in the framework of EFTA, of the network of regional trade agreements. Currently, the EFTA FTAs in force comprise a large network of 25 agreements with 35 partners outside the EU. Since 2013, several new FTAs entered into force with countries in Central America (Panama and Costa Rica), Bosnia and Herzegovina, and the Gulf Cooperation Council. Agreements with the Philippines and Georgia are pending to be entered into force and negotiations with others are under way. The Republic of Moldova has also expressed its interest for a FTA with EFTA countries. In this respect, I am pleased to note the openness of EFTA Governments to initiate consultations on this important endeavor. Moldova and EFTA Secretariat has reached a decision to start this process by signing a Joint Declaration on Cooperation as a first step towards the initiation negotiations of Free Trade Agreement. We hope that the Joint Declaration between Moldova and EFTA will address several important trade-related topics, including customs and origin matters, technical barriers to trade, intellectual property rights, trade in services, public procurement, competition, and information on foreign trade. Regarding the agricultural sector, we encourage Swiss and Liechtenstein Governments to further implement the commitments undertaken under paragraph 31 of the Nairobi Ministerial Declaration regarding the elimination of all of the export subsidies and domestic support granted to the agricultural sector. The agriculture sector is sheltered from import competition through relatively high tariffs on sensitive agricultural products and direct payments. We note a paradigm shift to the Swiss approach on food safety – moving from the positive principle to the precautionary principle and thus eliminating an unnecessary barrier to trade. Moldova welcomes the strengthening of the IP system and Switzerland’s status of one of the most innovative OECD economies with a vibrant technology industry. In this context, we congratulate Switzerland on ranking first in the Global Competitiveness Index and Global Innovation Index in the years 2013-2016. On some of the points raised above, the Government of the Republic of Moldova has addressed several questions to Switzerland and Liechtenstein, mainly regarding - the compatibility of its stock requirements with the WTO rules; - processing under customs control system; - rules of origin included in its FTAs with trading partners; - specific duties and - public procurement procedures related to the financing of hospitals. We thank Switzerland and Liechtenstein for the comprehensive replies provided to our questions in due time. Regarding bilateral trade and economic relations between Moldova and Switzerland, we believe that the current legal framework ca be further expanded, which already includes the basic agreements, such as Agreement on protection and mutual promotion of investment, Agreement on trade and economic cooperation, as well as Agreement on humanitary assistance and technical cooperation. Moldova is interested to initiate negotiations on the air transportation agreement, which will have a positive economic impact mutually beneficial, especially in the course of this year marking the 25th anniversary of Moldova’s bilateral diplomatic relations with Switzerland. Swiss Agency for Development and Cooperation (SDC) and Liechtenstein Development Service (LED) are among Moldova’s main development partners working closely with local authorities through technical assistance programs and projects in the fields of health, water and sanitation, education and migration. So far, there are more than 50 successfully implemented projects by SDC in Moldova and we look forward to working together to identify new areas for the next Strategy of Cooperation between SDC and the Republic of Moldova for 2018-2021, in the framework of Sustainable Development Goals. Also, on the investment side, there are currently 94 Swiss enterprises active in Moldova and we are pleased to see an increasing trend of Swiss direct investments in Moldova. We are interested to attracting great manufacturing and building companies from Liechtenstein, especially HILTI Company, to invest in the Republic of Moldova and set up production in our country. We are also note a positive dynamic in the volume of bilateral trade. In 2016, exports of Moldovan products to the Swiss Confederation and Liechtenstein increased by 26% and 20% respectively. Moldova mainly exports agricultural products, while imports comprise pharmaceutical and electrical products and hope to see further expansion of exports of Moldovan wine and organic products to the market in Switzerland and Liechtenstein. Mr. Chairman, The Republic of Moldova is confident that the 5th joint exercise of the trade policy review will help Switzerland and Liechtenstein to achieve their economic objectives and fully honor their international commitments. We look forward to continue further strengthening our bilateral relations with Switzerland and Liechtenstein and, on behalf of the Republic of Moldova, I wish to the Swiss and Liechtenstein Delegation the utmost success during their fifth joint WTO Trade Policy Review Cycle. I thank you Mr. Chairman. .
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