WT/REG352/2  
15 June 2015  
(15-3081)  Page: 1/6  
Committee on Regional Trade Agreements  Original: English/Spanish  
 
  DEEP AND COMPREHENSIVE FREE TRADE AREA CONCLUDED AS A PART OF THE 
ASSOCIATION AGREEMENT BETWEEN THE EUROPEAN UNION AND 
THE REPUBLIC OF MOLDOVA (GOODS AND SERVICES) 
QUESTIONS AND REPLIES 
 The following communication, dated 9 June 2015,  is being circulated at the request of the 
delegations of the European Union and the Republic of Moldova. 
 
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 This document reproduces the questions addressed to the Parties and the responses 
submitted.  
Questions from the delegation of Canada 
 
1.1.  Paragraph 4.5, under what circumstance s would the EU and Moldova negotiate a 
comprehensive investment chapter including Investor State Dispute Settlement (ISDS)? 
 The circumstances under which negotiations on a comprehensive investment chapter would 
be undertaken by the EU and Moldova have not yet been determined.  
1.2.  Paragraph 4.13, in the absence of Market  Access obligations why have the Parties 
scheduled reservations for specific forms of incorporation? 
1.3.  Paragraph 4.16, in the absence of perfor mance requirements obligations, why have 
the Parties included these limitations in their reservations? 
1.4.  Paragraph 4.17, in the absence of obligatio ns on senior management and boards of 
directors, why have the Parties included these limitations in their reservations? 
Parties' combined reply to questions 1.2, 1.3 and 1.4: 
The deep and comprehensive FTA is part of the Association Agreement which aims to 
provide for gradual economic integration, market access liberalization, and far-reaching regulatory approximation. Through the definition of establishment, the DCFTA provides juridical and natural 
persons the right to take up and pursue economic activities (i.e. covering both services and 
non-services), going beyond the notion of commerc ial presence as used in GATS. As a result, the 
DCFTA is different from other models in not having a specific market access, senior management 
and boards of directors or performance requirement provision for commercial 
presence/investment. The right of establishment se t out in the DCFTA is subject to a number of 
reservations relating to discriminatory legal measures identified by each Party in a single negative 
list (respectively XXVII-A and XXVII-E). 
 WT/REG352/2 
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  Questions from the delegation of Colombia 
 
1.5.  With regard to the statement "The Agreemen t contains specific rules on medicinal 
and plant protection products protected by  a patent (Article 314)", can this be 
understood to be an adjustment of the term of the patent to compensate for 
unjustifiable delays in the administrative  procedure for marketing authorization for 
these two specific cases only? 
 This Article deals with Supplementary Protection  Certificates (SPCs). The purpose of SPCs is 
to provide protection for specific defined medicinal (and plant protection) products beyond the term of the original 'basic patent' as a way of recompensing the patentee for the time taken to obtain regulatory approval, during which commercialising of the medicinal product was not 
possible. In Europe SPCs for medicines are governed by Regulation 469/2009 
(http://eur-lex.europa.eu/LexUriServ/LexU riServ.do?uri=OJ:L:2009:152:0001:0010:en:PDF ). A 
separate, very similar, Regulation ( http://eur-lex.europa.eu/legal-
content/en/TXT/?uri=CELEX:31996R1610 ) governs SPCs for plant protection products. 
 
1.6.  With regard to the statement "It also enco urages the development, by trade or 
professional associations or organizations, of  codes of conduct aimed at contributing to 
the enforcement of IPRs (Article 331)", we  would like to hear in greater detail how 
these codes of conduct would be developed and what kind of information they would 
contain? 
 One example of a code of conduct is the Model Code of Conduct Provisions on IP for Online 
Service Providers, published by the Business Soft ware Alliance (BSA). This document provides 
model code of conduct provisions regarding prevention of IP infringement for internet service 
providers, including those providing network tr ansmission and access services, those allowing 
users to make the content publicly available on their host servers, and those providing search engine and similar information location services. The goal of this code of conduct is to support an 
internet culture which demonstrates respect for the rights, creativity, and investment of IP owners, 
and to comply with applicable laws relevant to the activity of users that may infringe IPRs. The model provisions particularly concern IP compliance policy, compliance training and contact, removal of infringing content, review of server postings for infringing content, removal of links to 
infringing sites, termination of repeat offender s, anti-piracy notices, response to notice of 
infringing activity, verifiable user in formation, enforcement efforts, etc. 
 
 For further information on this, we would refer you to the following website, in particular see 
the example of the Memorandum of Understandin g on the Sale of Counterfeit Goods via the 
Internet: 
 
http://ec.europa.eu/internal_market/ip renforcement/memoranda/index_en.htm 
 
Questions from the delegation of Mexico 
 Rules of origin 
 
1.7.  Article 11 of Protocol II includes an opti on for working or processing outside the 
territory of the Parties. However, the Article establishes that such working or processing 
must be done under the outward processing arrangements, or similar arrangements. Are 
the two Parties required to negotiate the outward processing arrangements? Have 
specific measures been develo ped for this purpose other than the provisions set out in 
paragraphs 3 and 4 of Article 11? Is ther e a format with guidelines or minimum 
requirements that must be observ ed by this type of agreement? 
There is no need for the two Parties (the EU, on the one hand, and the Republic of Moldova, 
on the other hand) to negotiate the outward processing arrangements. As far as the EU is concerned, such arrangements are provided for in the Community Customs Code (please refer to: 
http://ec.europa.eu/taxation_customs/customs/procedural_aspects/general/community_code/inde
x_en.htm )  WT/REG352/2 
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  Concerning the Republic of Moldova, similar provisions can be found in the Customs Code 
nr. 1149 – XIV of 20 June 2000 of the Republic of Moldova. 
1.8.  How is the temporary suspension of preferences established in Article 155 
compatible with the procedure to verify proof of origin set out in Protocol II? 
 Both provisions are compatible with each other. Article 155 of the Agreement provides for 
the possibility for a Party to temporarily suspend the application of preference if the other Party 
fails to apply administrative cooperation. This concerns, in particular, the respect of the 
commitments of the Parties on administrative  cooperation of Tittle VI of Protocol II. 
 Technical barriers to trade (TBT) 
 
1.9.  Why are the rights and obligations under the WTO Agreement on Technical 
Barriers to Trade only affirmed and not incorporated into the Agreement between the European Union and Moldova? 
In addition to its rights and obligations be ing affirmed, the WTO TBT Agreement is also 
incorporated into and made part of the DCFTA between EU and Moldova. This is provided for in Article 171 of the DCFTA. 
1.10.  What are the disciplines on product mark ing requirements and labelling, and what 
do they establish? 
In Article 175 of the DCFTA EU and Moldova rea ffirm with regard to marking and labelling 
requirements the principles of Article 2.2 of th e WTO TBT Agreement that technical regulations are 
not prepared, adopted or applied with a view to  or with the effect of creating unnecessary 
obstacles to international trade. Regarding obligatory marking or labelling in particular, the EU and Moldova agree that they will endeavour to mi nimise their needs for marking or labelling. 
Customs-related procedures 
 
1.11.  Under Article 156, what type of measures have been established with a view to 
resolving errors committed by the competen t authorities in the application of the 
provisions of Protocol II, concerning the de finition of originating products and methods 
of administrative cooperation? 
No specific measures have been established for the application of Article 156. 
Environmental services 
 
1.12.   In the context of trade in services , what approach has been adopted for 
environmental services? 
In respect of environmental services, the EU has improved its commitments on both 
establishment and cross-border supply of services , however with more liberalization being offered 
for establishment. The EU has also maintained an EU-wide reservation on water services reflecting 
the sensitive nature of this sector in the EU. 
 Moldova has reaffirmed in the DCFTA its full  GATS commitments on environmental services. 
 
1.13.  Is the approach involving the liberalizatio n of environmental services considered 
to be compatible with the new WTO initiative on this issue? 
 The Environmental Goods Agreement currently focuses on negotiations of tariff lines. 
To reflect the business reality of today, where wh ole systems comprising both goods and services 
are exported, the EU proposed to take up services  as part of the agreement in order to include 
services that are indispensable for the export of  goods. These would for example be engineering 
services that are needed to install or maintain and repair an environmental good such as a 
windmill or a complex solar system, but not the services that are classified as the traditional environmental services such as waste management or landscape protection. WT/REG352/2 
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Trade and sustainable development 
 1.14.  What approach has been adopted to addres s the issues of biodiversity and trade 
and conservation? 
 Under Article 368 on biological diversity the Pa rties recognize the importance of ensuring the 
conservation and the sustainable use of biological  diversity as a key element for the achievement 
of sustainable development, and reaffirm their commitment to conserve and sustainably use 
biological diversity, in accordance with the Convention on Biological Diversity and other relevant international instruments to which they are party. To that end, the Parties commit to: (a) promoting trade in natural resource-based products obtained through a sustainable use of 
biological resources and contributing to the conservation of biodiversity; (b) exchanging 
information on actions on trade in natural resource-based products aimed at halting the loss of biological diversity and reducing pressures on biodiversity and, where relevant, cooperating to 
maximize the impact and to ensure the mutual supportiveness of their respective policies; 
(c) promoting the listing of species under the Co nvention on International Trade in Endangered 
Species of Wild Fauna and Flora (CITES) where the conservation status of those species is 
considered at risk; and (d) cooperating at the regi onal and global levels with the aim of promoting 
the conservation and the sustainable use of biological diversity in natural or agricultural ecosystems, including endangered species, their habitat, specially protected natural areas and genetic diversity, the restoration of ecosystems, and the elimination or the reduction of negative 
environmental impacts resulting from the use of living and non-living natural resources or 
of ecosystems.  
1.15.  How will trade and investment in environm ental goods and services be facilitated 
and promoted? 
 In respect of environmental services, the EU has improved its commitments on both 
establishment and cross-border supply of services , however with more liberalization being offered 
for establishment. The EU has also maintained an EU-wide reservation on water services reflecting 
the sensitive nature of this sector in the EU.  
 Moldova has reaffirmed in the DCFTA its full  GATS commitments on environmental services. 
 1.16.  How is the management of fish stocks addressed? 
 Both parties commit to promoting best practices in fisheries management with a view to 
ensuring the conservation and the management of fish stocks in a sustainable manner, and based on the ecosystem approach. Management of fish stocks are addressed by adopting effective 
monitoring and control measures to ensure full compliance with applicable conservation measures. 
 1.17.  Has consideration been given to the development of new principles and 
obligations under the United Nations Framework  Convention on Climate Change, such as 
those established for the 21st Session of the Conference of the Parties to the United 
Nations Framework Convention on  Climate Change in Paris? 
 If an agreement on climate change is reached in  Paris, it will be covered by the EU-Moldova 
DCFTA. Indeed, under Article 366(4) on multilat eral environmental governance and agreements, 
the Parties reaffirm their commitment to reaching the ultimate objective of the United Nations Framework Convention on Climate Change (UNF CCC) and its Kyoto Protocol. They commit to 
cooperating on the development of the future in ternational climate change framework under the 
UNFCCC and its related agreements and decisions.  1.18.  Has consideration been given to the development of new principles and 
obligations under the Convention on Biological  Diversity, such as those set out in the 
Nagoya Protocol? 
Article 368 cited above goes beyond the mere  implementation of the Convention on 
Biological Diversity, as it covers all other relevant international instruments to which the Parties 
are party, including any new obligations under that convention, and it also extends to other cooperation at the regional and global level. WT/REG352/2 
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  1.19.  What are the role and functions of civil society? 
Civil society plays a supervisory and advisory role. Under Article 376, each party shall convene new, or consult existing, domestic advisory 
group(s) on sustainable development with the task of advising on issues relating to the Trade and 
Sustainable Development (TSD) Chapter. Such grou p(s) may submit views or recommendations on 
the implementation of this Chapter, including on its (their) own initiative. The domestic advisory group(s) shall comprise independent representative organizations of civil society in a balanced 
representation of economic, social, and enviro nmental stakeholders, including, among others, 
employers' and workers' organizations, non-gove rnmental organizations, business groups, as well 
as other relevant stakeholders. Moreover, pursuant to Article 377 the Parties shall facilitate a joint forum with civil society organizations established in their territories, including members of their 
domestic advisory group(s) and the public at large, to conduct a dialogue on sustainable 
development aspects of this Agreement. The Part ies shall promote a balanced representation of 
relevant interests, including independent representative organizations of employers, workers, 
environmental interests and business groups, as well as other relevant stakeholders, 
as appropriate. The joint civil society dialogue forum shall be convened once a year unless otherwise agreed by the Parties. The Parties shall present an update on the implementation of the 
TSD Chapter to the joint civil society dialogue foru m. The views and the opinions of the joint civil 
society dialogue forum shall be submitted to the Parties and shall be made publicly available. 
1.20.  What is the purpose of the Panel of Experts? 
The Panel of Experts is a dedicated dispute settlement for the Trade and Sustainable 
Development (TSD) Chapter. Under Article 379, each Party may request that a Panel of Experts be 
convened to examine a matter that has not been satisfactorily addressed through government consultations. The Panel of Experts shall issue its report to the Parties, which sets out the findings 
of facts, the applicability of the relevant provisio ns and the basic rationale behind any findings and 
recommendations that it makes. The Parties shall make the report publicly available. The Parties shall discuss appropriate measures to be implemente d, taking into account the Panel of Experts' 
report and recommendations. The follow-up to the report and the recommendations of the Panel of 
Experts shall be monitored by the Trade and Sustainable Development Sub-Committee. Civil society (the advisory bodies and the Joint Civil Society Dialogue Forum) may submit observations to the Trade and Sustainable Development Sub-Committee in that regard. 
Questions from the delegation of Thailand 
General exceptions 
 
1.21.  Paragraph 5.8 provides that "Article 154 ... foresees consultation between the 
Parties before a general exception may be applied" (emphasis added). 
Does the term "consultation" refer to the mandatory consultation under the 
Agreement's dispute settlement mechanism? In case that a general exception is invoked 
by the responding party as a defence du ring the dispute settlement proceedings, 
please advise whether the Parties are required  to enter into another consultation prior 
to the arbitrators could rule on the validity of the defence. 
 Article 154 foresees exchanges between the Parties "before taking any measures for which 
justification could be sought under subparagraph s (i) and (j) of Article XX of GATT 1994". Those 
exchanges are not "consultations" within the me aning of the term in the dispute settlement 
chapter. Moreover, the exchanges between the Pa rties are to take place before measures are 
adopted, while arbitration proceedings may be in itiated only after the measures are adopted. 
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  Government procurement 
 
1.22.  It states in this paragraph that … "As the gradual approximation progresses, each 
phase of the approximation process shall be  evaluated by the Association Committee in 
Trade Configuration. Following a positive  assessment by the Committee, reciprocal 
granting of market access, as set out in  Annex XXIX-B to the Agreement, shall be 
granted." 
 Please explicate in greater detail the crit eria to be considered by the Association 
Committee in Trade Configuration for its eval uation of the approximation of Moldova's 
public procurement legislation with the EU's acquis . 
 
 The Committee will have to assess the legislative texts adopted by Moldova in order to verify 
its conformity with the EU acquis to be transposed. This assessment will have to take into account not only the text of the new legislation, but also  its practical implementation on the ground, i.e. 
the ability of procuring entities to organize their tendering procedures according to those rules, 
and the ability of review bodies and the court sy stem to deal with complaints expeditiously and 
correctly. 
 
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