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DRAFT REPORT (COM(2024)0051 – C90022/2024 – 2024/0029(COD))

On the proposal for a regulation of the European Parliament and of the Council on temporary trade-liberalisation measures supplementing trade concessions applicable to products from the Republic of Moldova under the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and the Republic of Moldova, of the other part

INTA-PR-759004

Committee on International Trade · Rapporteur: Markéta Gregorová

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The rapporteur's draft report backs a Commission proposal to renew temporary trade-liberalisation measures for Moldova for one year from 25 July 2024, suspending remaining tariffs under Title V of the Association Agreement. It amends the safeguard recitals so that measures can be taken because of the specific difficulties at the time of adoption, and so that safeguard measures are adopted exclusively under this regulation. The rapporteur calls the measures exceptional and says they should not set a precedent for future trade liberalisation, and wants the proposal adopted swiftly before the current measures expire.

Committee position. The rapporteur backs the Commission proposal and proposes two amendments to the safeguard recitals: to state that the measures are needed because of the specific difficulties at the time of adoption and should not set a precedent, and that safeguards are adopted exclusively under this regulation. She anticipates swift adoption before the current measures expire.

Key points

  1. Parliament adopts its position at first reading on the proposal and calls on the Commission to refer the matter back to it if the proposal is replaced or substantially amended.
  2. The proposal renews the trade-liberalisation measures for one year from 25 July 2024, when the current measures expire.
  3. All outstanding tariffs under Title V of the Association Agreement would be suspended, covering tomatoes, garlic, table grapes, apples, cherries, plums and grape juice.
  4. A strengthened safeguard mechanism lets the Commission take any necessary measures, including reintroducing customs duties, if imports cause market disturbances in the EU or one or more member states.
  5. The Commission will regularly monitor the impact of the measures in terms of import volumes and prices.
  6. Amendment 1 adds to Recital 11 that the possibility to take measures is needed because of the specific difficulties at the time of adoption, and that the safeguard regime should not set a precedent for future trade-liberalisation measures for Moldova.
  7. Amendment 2 adds Recital 11a: safeguard measures addressing adverse effects on the Union market or one or more member states must be adopted exclusively under this regulation, to protect the unity of the common commercial policy and the internal market.
  8. The rapporteur underlines that measures under this regulation are exceptional and should not establish a precedent for future temporary trade liberalisation.
  9. The rapporteur says the measures support existing trade flows from Moldova, help its economy, and fit the Association Agreement's aims of closer economic integration and stability; Moldova has been an EU candidate country since 2022.
  10. The rapporteur anticipates adopting the proposal swiftly ahead of the expiry of the existing measures, given the hardship caused by the Russian war of aggression against Ukraine.

Who is affected

  • Moldova: its exports gain duty-free access and its economy is supported.
  • EU producers of like or directly competing products: safeguard measures can address adverse effects on the Union market or member states.
  • The Commission: it monitors imports and may take measures, including reintroducing customs duties.
  • Member states: their markets can trigger safeguards, but measures are adopted only under this regulation.

Figures and deadlines

  • 25 July 2024: date on which the current measures expire and the renewal starts.
  • One year: period for which the trade-liberalisation measures are renewed.
  • 2022: year Moldova became an EU candidate country.

Legal basis: Article 294(2) and Article 207(2) of the Treaty on the Functioning of the European Union.