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Regulatory and Procedural Barriers to Trade in the Republic of Moldova +41(0)22 91705 +41(0)22 91744 Needs Assessment

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Regulatory and Procedural Barriers to Trade in the Republic of Moldova +41(0)22 91705 +41(0)22 91744 Needs Assessment UNECE Regulatory and Procedural Barriers to Trade in the Republic of Moldova Regulatory and procedural barriers to trade in the Republic of Moldova trade barriers to Regulatory and procedural Needs Assessment Needs Assessment Regulatory and Procedural Barriers Regulatory and Procedural to Trade in the Republic of Moldova Trade to Information Service United Nations Economic Commission for Europe UNITED NATIONS UNITED Palais des Nations CH - 1211 Geneva 10, Switzerland ISBN 978-92-1-117134-1 Telephone: +41(0)22 917 44 44 Fax: +41(0)22 917 05 05 E-mail: [email protected] Website: http://www.unece.org Layout and Printing at United Nations, Geneva – 1718053 (E) – August 2017 – 693 – ECE/TRADE/433 UNITED NATIONS ECONOMIC COMMISSION FOR EUROPE Regulatory and Procedural Barriers to Trade in the Republic of Moldova Needs Assessment United Nations New York and Geneva, 2017 2 Regulatory and Procedural Barriers to Trade in the Republic of Moldova: Needs Assessment Note The designation employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area, or of its authorities, or concerning the delimitation of its frontiers of boundaries. This publication will be issued in English, Romanian and Russian. ECE/TRADE/433 UNITED NATIONS PUBLICATION Sales No.: E.17.II.E.13 ISBN: 978-92-1-117134-1 e-ISBN: 978-92-1-361399-3 Copyright © 2017 United Nations All rights reserved UNITED NATIONS publication issued by the Economic Commission for Europe Foreword 3 Foreword A small landlocked country, the Republic of Moldova remains one of the poorest countries in South East Europe, with the economy showing continued dependence on low value-added manufacturing and agriculture along with remittances from workers abroad for income generation. The country is yet to reap the benefits of the intensive reform efforts, which have been consistently geared towards consolidating a market-based economy driven by trade and investment. This study sheds light on the factors influencing the country’s development prospects and the role of trade therein by bringing forward growth bottlenecks stemming from regulatory and procedural trade measures. Using the UNECE evaluation methodology, the study also traces the manner in which these bottlenecks combine to act as trade barriers and provides action-oriented recommendations that address immediate and long-term capacity building needs for removing the identified barriers. The recommendations were discussed during a stakeholder meeting in Chișinău, which was organized on 24 February 2017 by the Ministry of Economy of the Republic of Moldova with the participation of public and private stakeholders, including economic operators from the region of Transnistria. The study integrates the outcome of the stakeholder meeting as well as the written comments, which were submitted by the Government in March 2017. The emphasis is on scaling up and substantiating the recommendations in a manner that ensures building on achievements to date, complementing the Government’s development strategies and informing technical assistance activities by United Nations agencies and development partners. The Government launched a concerted effort to address the business environment and foreign trade conditions using the evidence based analysis of the study, which creates a factual solid background for measures to be undertaken. As such, it has integrated the recommendation into the National Action Plan for implementing the country’s commitments under the World Trade Organization Agreement on Trade Facilitation, which was launched on 16 June 2017, and into the United Nations-Republic of Moldova Partnership Framework for the period 2018–2022. ECE considers this study as a reference framework for guiding its support of the Republic of Moldova’s trade development efforts. The ECE secretariat is working closely with the Government of Moldova to mobilise the required resources and partnerships to ensure successful implementation of the recommendations. Tudor Ulianovschi Olga Algayerova Ambassador Permanent Representative Under-Secretary-General of the United Nations of the Republic of Moldova Executive Secretary of the to the United Nations Office in Geneva United Nations Economic Commission for Europe 4 Regulatory and Procedural Barriers to Trade in the Republic of Moldova: Needs Assessment Acknowledgments This study is the sixth in a series of national assessments of regulatory and procedural barriers to trade in the UNECE region. It was prepared by Ms. Hana Daoudi under the guidance of Mr. Mika Vepsäläinen. The UNECE would like to acknowledge the contribution of the following consultants: Mr. Veaceslav Sterbet, Center for Economic and Social Projects, for supervising the team of national consultants who conducted the face-to-face interviews with traders and carried out the business process analysis; Mr. Sergey Mazol, who assisted the national team of consultants in conducting the face-to-face interviews with traders; Mr. Chris Page, who conducted face-to-face interviews with State agencies responsible for trade facilitation as well as freight forwarders, customs brokers and market support institutions and summarised the results of the interviews in a background report that was used for preparing this study; Mr. Cornel Coser, who conducted the face-to-face interviews with agencies responsible for standardization, quality assurance, accreditation and metrology and provided the secretariat with the detailed transcripts of the results; and, the Overseas Development Institute, particularly Mr. Maximilano Mendez-Para, who prepared a background paper on the country’s regional integration dynamics. The UNECE would also like to thank the international polling institution, SATISCAN Sàrl, that designed the electronic database for compiling the results of the face-to-face interviews with traders; provided on the job training to the national team of experts who conducted the interviews; and, conducted the data validation and reconciliation of the results generated from the interviews. The UNECE is grateful to the national stakeholders for their active participation throughout the assessment process and for their valuable comments during the stakeholder meeting. The study was made possible thanks to the financial support of the Swiss Government. Contents 5 Contents Foreword ................................................................................................................... 3 Acknowledgments ................................................................................................... 4 Abbreviations ........................................................................................................... 11 Chapter One .............................................................................................................. 15 Introduction ............................................................................................................................................................................ 15 1.1 Country background .............................................................................................................................................. 15 1.2 Methodology ............................................................................................................................................................ 15 1.3 Scope of the assessment ...................................................................................................................................... 18 1.4 Study outline ............................................................................................................................................................ 19 Chapter Two ............................................................................................................... 21 Trade dynamics in Moldova............................................................................................................................................... 21 2.1 Introduction .............................................................................................................................................................. 21 2.2 Economic and trade performance..................................................................................................................... 22 2.3 Traders’ profile ........................................................................................................................................................... 25 2.4 Trade facilitation conditions ............................................................................................................................... 31 2.5 Regulatory and standardization polices ......................................................................................................... 53 2.5.6 Metrology ................................................................................................................................................................... 66 Chapter Three ............................................................................................................ 67 The region of Transnistria .................................................................................................................................................. 67 3.1 Introduction .............................................................................................................................................................
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