EU free trade agreement a priori unfavourable for Pridnestrovie's economy

08/31/15 12:08

EU free trade agreement a priori unfavourable for Pridnestrovie's economy

According to the president, in case it is fully implemented since 1 January 2016, the agreement will bring about even greater losses for Pridnestrovie's budget

This was said by the president, Yevgeny Shevchuk, during the news conference.

According to the president, when making their budgets for the next fiscal year, Pridnestrovie's economic agents «are very concerned over the possibility of EU trade preferences being revoked.»

«These are external conditions that will or may be applied since 1 January, and they will have negative consequences for us," underscored Yevgeny Shevchuk.

The president recalled that Pridnestrovie's Ministry of Foreign Affairs has been actively negotiating a short-term extension of the existing trade regime.

«This situation does show to which extent Pridnestrovie's economy depends on external conditions. If the conditions remain as such, additional duties will be imposed on our exporters. In this case we will face a decrease in business activity of our economic agents on the EU markets, which will affect the republic's budget, taking into account a possible loss of revenue," noted the president.

With regard to the reorientation of markets for Pridnestrovie's production, the head of state said that this requires high competitiveness of the production and corresponding logistics.

«The reorientation will require some time: no less than a year, or even longer. This is why imposed conditions or real situation are dictating us certain rules of conduct which lie in the necessity to revise, first of all, fundamental conditions of Pridnestrovie's domestic economic policy. There is no doubt, we have to negotiate with the partners the possibility for our economic agents to trade on all markets," concluded Yevgeny Shevchuk.

 

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