Trade facilitation is at the heart of EUBAM’s mission but this has been given added impetus and effort since 2014 when Moldova and Ukraine signed Association Agreements with the EU which also establish a Deep and Comprehensive Free Trade Area (AA/DCFTA). The AA/DCFTA will contribute, over time, to a stronger and more prosperous economy.
In terms of the DCFTA, EUBAM is part of the EU’s combined effort to assist the two countries to fulfil the trade and business-related mandatory requirements (acquis) set out in Chapter 4 on Trade and Trade-Related Matters.
EUBAM is working with Moldova and Ukraine (especially the customs services) to create the legal basis, institutional infrastructure and administrative capacity to deliver change ensuring high levels of integrity. This allows for the implementation of legal instruments which form part of the DCFTA acquis such as:
• the WCO Revised Kyoto Convention
• the WTO Trade Facilitation Agreement
• the WCO Trade Facilitation Guidelines
• the European Commission Customs Blueprints
As well as legislation, DCFTA requires a new way of working, with clearance procedures based on risk assessment and building trust. In collaboration with EU DG-TAXUD and others, EUBAM assisted the two customs services to introduce reforms related to Post Clearance Control and Post Clearance Audit, and the Authorised Economic Operator concept and other trade facilitation measures. These systems allow companies and traders to prove their trustworthiness, so that they can benefit from faster, simpler clearance procedures. This is good for business and it is good for Customs as they can deploy their staff more effectively.
Much of this work is accomplished using the Mission’s Trade Facilitation Working Group (set up in 2015) as a platform for communications for cooperation between the relevant national government agencies, national business and key international development partners such as USAID, AmCham, the European Business Association, and the Odesa Business Forum.
A major achievement for EUBAM was the Moldova’s bold step (in May 2015) to cut the number of support documents required customs clearance (from around 11 to three). This took place following the Mission’s advice and assistance. This kind of measure cuts business costs, improves the international trade environment in Moldova, boosts competitiveness and raises Moldova’s ranking in the World Bank’s Ease of Doing Business index. This can only help sell Moldova as a place to do business.