Implementing Aid-for-Trade Road Maps Tackling internal barriers to trade: lessons from Moldova
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Transcript of 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
• 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
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
Key external trends
Russian consumers switch to supermarkets
Russia joined WTO in 2012
Looking beyond Russia - DCFTA
• 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
• 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
Key issues and responses
Key issues and responses
• 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