G/C/W/688  
 
9 October 2013  
(13-5506)  Page: 1/7  
Council for Trade in Goods  Original: English  
 
REQUEST FOR AN EXTENSION OF THE WAIVER FOR THE 
APPLICATION OF AUTONOMOUS PREFERENTIAL TREATMENT 
TO MOLDOVA FROM THE EUROPEAN UNION 
 
Pursuant to Article IX:3 of the Marrakesh Agreement Establishing the World Trade Organisation (the WTO Agreement), the European Union hereby submits for the consideration of the Council for 
Trade in Goods a request for the extension of the currently existing waiver of its obligations under 
Article I and Article XIII of the General Agreem ent on Tariffs and Trade 1994 (the GATT 1994), 
concerning autonomous trade preferences grante d by the European Union to the Republic of 
Moldova.  
1  PURPOSE OF THE REQUEST 
1.1.  On 7 May 2008, the European Union (EU) was granted a waiver (WT/L/722) of its obligations 
under paragraph 1 of Article I and under Article XIII of the GATT 1994 to the extent necessary to 
permit the EU to afford duty-free or preferential treatment to products originating in the Republic 
of Moldova (Moldova), including certain agricultural products for which limited concessions are given as defined in the Annex to the waiver decision, without being required to extend the same 
duty-free or preferential treatment to like prod ucts of any other WTO Member. This waiver was 
granted by the General Council for a six-year period running from 1 March 2008 until 31 December 2013 (the Existing Waiver). 
1.2.  The EU requests the extension of this waiv er for a limited time-period of two years because 
the reasons justifying the waiver continue to exist. Moldova continues to be in a particularly 
difficult economic situation and to rely stro ngly on exports to the EU. Moldova has made 
substantial progress in economic and trade-related reforms in recent years. In order to support 
these developments and to stimulate its economic  growth, the extension of the waiver appears 
necessary. 
1.3.  In order to permit the European Union to continue providing preferential treatment for 
imports originating in the Republic of Moldova, without being required to extend the same 
preferential treatment to the like products of an y other Member of the WTO the EU presents this 
request for extension of the existing waiver of its obligations under paragraph 1 of Article I of the GATT 1994 and Article XIII of the GATT 1994 to the extent necessary to permit the EU to 
afford duty-free or preferential treatment to pr oducts originating in Moldova, including certain 
agricultural products for which limited concessions are given as defined in Annex II to this request until 31 December 2015.   
2  DESCRIPTION OF THE MEASURES FOR WHICH AN EXTENSION OF THE WAIVER IS 
REQUESTED 
2.1.   Products originating in Moldova continue to be admitted for import into the EU duty-free, 
including certain agricultural products for which limited concessions are given in the form of 
exemption from customs duties within the limit of tariff rate quotas or reduction of customs duties 
as defined in Annex II.  G/C/W/688 
 
- 2 - 
 
  2.2.   The following agricultural products, listed in Annex II, are subject to annual duty free tariff 
quotas: 
- Meat, meat products, dairy products, eggs, cereals and white sugar (the EU common 
  nomenclature codes are specified in Annex II). 
2.3.  The following agricultural products, listed in Annex II, are admitted for import with exemption 
of the ad valorem  component of the import duty: 
- Tomatoes, garlic, cucumbers and gherkins, courgettes, globe artichokes, grapes, 
  apples, pears and quinces, apricots, cherries, peaches, including nectarines, plums 
  and sloes (the EU common nomenclature codes are specified in Annex II). 
2.4.   The entitlement to benefi t from the preferences is subject inter alia  to the following 
conditions: 
(a) compliance with the rules of origin of pr oducts and the procedures related thereto as 
  provided for in Title IV, Chapter 2, section 2 of Regulation (EEC) No. 2454/93;  
(b) compliance with the methods of administrative co-operation as provided for in  
  Articles 121 and 122 of Regulation (EEC) No. 2454/93; 
(c) the involvement of Moldova in effective ad ministrative co-operation with the EU in 
  order to prevent any risk of fraud; 
(d) Moldova's continued engagement in the implementation of the priorities set in  
  the European Neighbourhood Policy (ENP) Action Plan for Moldova of 2005, in    particular as regards effective economic reform; and  
(e) Moldova’s maintaining the ratification and the effective implementation of the  
  conventions listed in Annex II of Council Regulation (EC) No. 55/2008 and accepting 
  regular monitoring and review of its implementation record in accordance with the   implementation provisions of the conventions it has ratified.  
2.5.   In case of serious and systematic viol ation of the above mentioned conditions for the 
entitlement to the preferential a rrangements, fraud or failure to provide administrative cooperation 
for the verification of origin of goods or failure of Moldova to show continued engagement in the 
implementation of the priorities set in the ENP Acti on Plan and the conventions listed in Annex II to 
Council Regulation (EC) No. 55/2008, the EU can take  measures to suspend in whole or in part the 
autonomous trade preferences. 
2.6.   The preferential treatment continues to be  granted to Moldova by the EU on the basis of 
Council Regulation (EC) No. 55/2008 of 21 January 2008 introducing autonomous trade 
preferences for the Republic of Moldova
1, as amended. The request for extension of the Existing 
Waiver covers a recent Commission proposal for updating Council Regulation (EC) No. 55/2008. 
3  CIRCUMSTANCES JUSTIFYING THE WAIVER 
3.1.   Moldova’s economy continues to be in a particularly difficult situation. It is on 54th place in 
the world measured by GDP per capita based on purchasing power parity according to the 2012 
World Bank data, and is considered the most vuln erable  economy in Europe. The EU is the first 
trading partner of Moldova, absorbing 51.9% of  Moldova’s total exports in 2012. Therefore, 
Moldova relies strongly on access to the EU market for its exports. 
3.2.   The waiver granted by the WTO to the EU  in 2008 has ensured preferential access to the EU 
market which allowed Moldova to continue its economic and trade-related reforms, and boost its 
domestic production and export capacity. Moldova has made good progress in reforms in areas such as sanitary and phytosanitary measures, customs legislation, competition policy, and 
technical barriers to trade. It has concluded the negotiations of a Deep and Comprehensive Free 
Trade Agreement with the EU with the objective of  achieving deeper trade integration with the EU 
market. 
                                               
1 OJ L 20, 24 January 2008, p. 1. G/C/W/688 
 
- 3 - 
 
  3.3.   The short extension of the preferences will  protect the achievements so far in the on-going 
process of economic reforms in trade-related ar eas and offer economic operators legal certainty 
during the transition from the autonomous measure to a bilateral free trade area. The scope of the waiver reflects the export capacity of Moldova an d thus contributes to the sustainable development 
of its economy.  
3.4.   The preferences provided under the autonomous trade regime do not create any impediment 
to the reduction or the elimination of tariffs or other restrictions to trade on a 
most-favoured-nation basis. Furthermore, the tariff preferences under the autonomous trade 
regime will not affect benefits to other deve loping countries under the European Union’s GSP 
programme. 
4  CONCLUSION 
4.1.   The EU requests on the basis of Article IX:3 of the Marrakech Agreement Establishing the 
World Trade Organisation the extension of the waiver of its obligations under Article I:1 and Article XIII of the General Agreement on Tariffs an d Trade 1994 to the extent necessary to permit 
the EU to afford duty-free or preferential treatm ent to products originating in Moldova, including 
certain agricultural products for which limited concessions are given as defined in Annex II until 31 December 2015, without being required to extend  the same duty-free or preferential treatment 
to like products of any other WTO Member.  A draft waiver Decision is attached for consideration.  
4.2.   The European Union requests that the Council for Trade in Goods give expeditious and 
favourable consideration to its application for the extension of the waiver.  In the meantime, the EU is prepared to give full consideration to re presentations made to it by other WTO Members and 
to engage in consultations with them as may be necessary. 
 
_______________ 
 G/C/W/688 
 
- 4 - 
 
  ANNEX I 
REQUEST FOR AN EXTENSION OF THE WAIVER FOR THE APPLICATION OF AUTONOMOUS 
PREFERENTIAL TREATMENT TO MOLDOVA FROM THE EUROPEAN UNION 
DRAFT WAIVER DECISION OF […]20131 
 The General Council, 
Conducting  the function of the Ministerial Confer ence in the interval between meetings 
pursuant to paragraph 2 of Article IV of the Marrakesh Agreement Establishing the World Trade 
Organization (the "WTO Agreement"); 
Having regard  to paragraphs 1 and 3 of Article IX of the WTO Agreement, the Guiding 
Principles to Be Followed in Considering Applications for Waivers adopted on 1 November 19562, 
and the Understanding in Respect of Waivers of Obligations under the General Agreement on 
Tariffs and Trade 1994 (the “GATT 1994”); 
Taking into account that by a Decision of 7 May 2008 the General Council granted the 
European Union a waiver of its obligations under paragraph 1 of Article I and Article XIII of the 
GATT 1994 for a six-year period running from 1 March 2008 until 31 December 20133 (the 
“Existing Waiver”);   
Noting that the Existing Waiver is due to expire on 31 December 2013; 
Taking note  of the request of the European Union, pu rsuant to paragraph 3 of Article IX of 
the WTO Agreement, for an extension of the waiver of its obligations under paragraph 1 of Article I 
and under Article XIII of the GATT 1994 to the exte nt necessary to permit the European Union to 
afford duty-free or preferential treatment to pr oducts originating in the Republic of Moldova, 
including certain agricultural products for which limited concessions are given as defined in the 
Annex to this Decision until 31 December 2015, without being required to extend the same duty-free or preferential treatment to like products of any other Member; 
Considering  the persistent difficult economic situation in the Republic of Moldova, the efforts 
made by the Members to foster economic transiti on and development in the Republic of Moldova, 
as well as the initiative of the European Union to include the Republic of Moldova in the European 
Neighbourhood Policy and foster deeper trade integration; 
Considering  that the duty-free and preferential tr eatment the European Union affords to 
Moldova is intended to promote economic development in a manner consistent with the objectives of the GATT 1994 and not to raise new barriers to the trade of other Members; 
Noting  that, in light of the foregoing, the except ional circumstances justifying the extension 
of the waiver from paragraph 1 of Article I and from Article XIII of the GATT 1994 exist; 
Decides as follows:  
1. Subject to the conditions set out in this Decision, the provisions of paragraph 1 of Article I 
and the provisions of Article XIII of the GATT 1994 shall be waived from 1 January 2014 until 
31 December 2015 to the extent necessary to permit  the European Union to afford duty-free or 
preferential treatment to products originating in the Republic of Moldova, including certain 
agricultural products for which limited concessions are given as defined in the Annex to this Decision, without being required to extend the sa me duty-free or preferen tial treatment to like 
products of any other Member. 
                                               
1 Adopted in accordance with the Decision-Makin g Procedures under Articles IX and XII of the 
WTO Agreement agreed by the General Council on 15 November 1995 (WT/L/93). 
2 BISD 5S/25 
3 WT/L/722 G/C/W/688 
 
- 5 - 
 
  2. Such duty-free or preferential treatment sh all not raise new barriers to the trade of other 
Members. 
3. The European Union shall consult promptly  with any Member on the operation of its 
preferential or duty-free concessions in respect of  the Republic of Moldova, or on any other matter 
arising in respect of this Decision.  Where a Member considers that its benefits under 
the GATT 1994 are or may be impaired unduly as a result of measures put in place by the European Union and covered by this Decision, the European Union shall examine the possibility of 
a satisfactory adjustment of the matter. 
4. This Decision does not affect Members' rights as set out in the Understanding in Respect of 
Waivers of Obligations under the GATT 1994. 
5. The European Union shall report annually to the General Council on the preferences and 
duty-free treatment afforded to products from  the Republic of Moldova, including certain 
agricultural products for which limited concessions are given as defined in the Annex to this Decision, including the extent to which such pref erences and duty-free treatment is different from 
the European Union' MFN and GSP concessions, with a view to facilitating the annual review 
provided for in paragraph 4 of Article IX of the WTO Agreement. 
 
 
_______________ 
  
  G/C/W/688  
 
- 6 - ANNEX II 
PRODUCTS SUBMITTED TO QUANTITATI VE LIMITS OR PRICE THRESHOLDS 
1.  Products subject to annual duty free tariff quotas  
 
Order No. CN Code Description 2013(1) 2014(1) 2015(1) 
09.0504 0201 to 0204 Fresh, chilled and frozen meat of bovine animals, swine and sheep and goats 4 000(2) 4 000(2) 4 000(2) 
09.0505 ex 0207 Meat and edible offal of the poultry of heading 0105, fresh, chilled or frozen, 
other than fatty livers of subheading 0207 34 500(2) 500(2) 500(2) 
09.0506 ex 0210 Meat and edible meat offal of swine and bovine animals, salted, in brine, 
dried or smoked; edible flours and meals of meat or meat offals of domestic swine and bovine animals 500
(2) 500(2) 500(2) 
09.4210 0401 to 0406 Dairy products 1 500(2) 1 500(2) 1 500(2) 
09.0507 0407.00 Birds' eggs, in shell 120(3) 120(3) 120(3) 
09.0508 ex 0408 Bird's eggs, not in shell and egg yolks, other than unfit for human 
consumption 300(2) 300(2) 300(2) 
09.0509 1001 90 91  
1001 90 99 Other Spelt (other than spelt for sowi ng), common wheat and meslin 55 000(2) 60 000(2) 65 000(2) 
09.0510 1003 00 90 Barley 50 000(2) 55 000(2) 60 000(2) 
09.0511 1005 90 Maize 45 000(2) 50 000(2) 55 000(2) 
09.0512 1601 00 91  
and1601 00 99 Sausages and similar products, of meat, meat offal or blood; food 
preparations based on these products 600(2) 600(2) 600(2) 
 
ex 1602 Other prepared or preserved meat, meat offal or blood: 
- of fowls of the species Gallus domesticus , uncooked; 
- of domestic swine; and 
- of bovine animals, uncooked. 
09.0513 1701.99.10 White Sugar 34 000(2) 34 000(2) 34 000(2) 
(1) from 1 January until 31 December 
(2) tonnes (net weight)  (3) million units G/C/W/688 
 
- 7 - 
 
  2.  Products for which the ad valorem  component of the import duty is exempted 
 
CN Code Description 
0702 Tomatoes, fresh or chilled 
0703 20 Garlic, fresh or chilled 
0707 Cucumbers and gherkins, fresh or chilled 
0709 90 70 Courgettes, fresh or chilled 
0709 90 80 Globe artichokes 
0806  Grapes, fresh or dried 
0808 10 Apples, fresh 
0808 20 Pears and quinces 
0809 10 Apricots 
0809 20 Cherries 
0809 30 Peaches, including nectarines 
0809 40 Plums and sloes 
 
 
__________