OREANDA-NEWS. May 24, 2010. The document was signed on April 21 2009 in Chisinau, and provides that Moldova withdraws from the free trade regime with the Ukraine such goods as: sugar, ethanol and sugar beet seeds, and Ukraine, in its turn, will withdraw sugar, ethyl alcohol, cattle hides, ferrous and nonferrous metals. These changes were made to improve the trade balance of Moldova and Ukraine, anmd to protect the Moldovan producers.

The Government of Moldova and Ukraine signed a free trade agreement on November 13, 2003. It has come into force only at time of joining the WTO in 2008. The Ministry of Economy of Ukraine noted that exceptions to the free trade regime with Moldova are one of the Ukraine’s obligations before the WTO. Kiev also suggests that the increase in the cost of Ukrainian alcohol will make it less competitive at the Moldavian market and will deprive it of the cost advantages.

The Ministry of Economy of Ukraine stressed that the exclusion of scrap metals and leathers from the free trade regime will make difficult the re-exports from Moldova to EU.