Implementing Aid-for-Trade Road Maps Tackling internal barriers to trade: lessons from Moldova

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Implementing Aid-for-Trade Road Maps Tackling internal barriers to trade: lessons from Moldova Geneva, 11 July, 2013

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Implementing Aid-for-Trade Road Maps Tackling internal barriers to trade: lessons from Moldova Geneva, 11 July, 2013. Shifting landscape for the sector. Agriculture: around 11% of GDP; Employing almost third of labor force; Balanced external trade in agrifood ; - PowerPoint PPT Presentation

Transcript of Implementing Aid-for-Trade Road Maps Tackling internal barriers to trade: lessons from Moldova

Page 1: Implementing Aid-for-Trade Road Maps  Tackling internal barriers to trade: lessons from Moldova

Implementing Aid-for-Trade Road Maps

Tackling internal barriers to trade: lessons from Moldova

Geneva, 11 July, 2013

Page 2: Implementing Aid-for-Trade Road Maps  Tackling internal barriers to trade: lessons from Moldova

• Agriculture: around 11% of GDP;• Employing almost third of labor force;• Balanced external trade in agrifood;• Still relatively protected but changing;• Fresh fruits and vegetable exports around 13% (2012)• High external market concentration

Shifting landscape for the sector

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Key Constraints:Administrative (Customs, Tax, SPS)- occasional, short-term, can be dismantled by administrative

decisions Structural – long-term and costly- Satisfying prospective demand (quantity and quality);- Infrastructure and skills;- Marketing knowledge and know-how;

Key constraints and key trends

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Key external trends

Russian consumers switch to supermarkets

Russia joined WTO in 2012

Looking beyond Russia - DCFTA

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• Quantity to lure supermarket chains;• Consistent quality;• Rhythmicity (whole year availability)• Price competitiveness• Increased competition on open air markets + lack of hold on

Russian supermarkets + need for stronger positioning and promotion of the country brand

• Lack of experience on the European markets, lack of cooperation and positioning

Arising challenges

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• Insufficient cooperation: public support for cooperation + grants for association

• Lack of big intensive orchards: state subsidies + land consolidation (underdeveloped land market, suboptimal privatization model)

• Lack and under-use of cooling storages: association and state support (customs duties vacation for import of cooling storage equipment)

• Lack of calibration equipment: state subsidies, custom duties’ facilitation, cooperation

Key issues and responses

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Key issues and responses

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Key issues and responses

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• Lack of modern orchards (80% old/apples) – state subsidies, support for cooperation, adoption of the EU catalogue, land consolidation

• Lack of hold on abroad markets: promotion of the country’s commercial brand + strengthening capacity of association for export promotion + PPP-based platform to advance exports

Key issues and responses

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UNDP Moldovahttp://md.undp.org/

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