WORLD TRADE  
ORGANIZATION  G/C/W/592 
29 February 2008 
 
 (08-0924) 
Council for Trade in Goods Original:   English 
  
 
 
EUROPEAN COMMUNITIES - REQUEST FOR A WAIVER FOR THE APPLICATION OF 
AUTONOMOUS PREFERENTIAL TREATMENT  
TO MOLDOVA 
 
 
 The following communication, dated 28 February 2008, is being circulated at the request of 
the delegation of the European Communities.  
_______________ 
 
 
 Pursuant to Article XI:3 of the Marrak esh Agreement Establishing the World Trade 
Organisation (WTO Agreement), the European Comm unities hereby submits to the consideration of 
the Council for Trade in Goods a request for a waiver from GATT Articles I and Article XIII, 
concerning autonomous preferences for Moldova, who se text and annexes are enclosed herewith.  
 
1. Purpose of the request
 
 
 The Republic of Moldova currently benefits  from the special incentive arrangement for 
sustainable development and good governance under th e European Communities' Generalised System 
of Preferences provided for in Council Regulati on (EC) No 980/2005 of 27 June 2005 (the GSP+).  
Import duties are still levied for ar ound 14% of imports from Moldova. 
  Considering that Moldova is the poorest country  on the European continent and in order to 
offer Moldova an improved access to  the European Communities' market to support the development 
of its economy through increased export performance , the European Communities' committed itself in 
the 2005 European Neighbourhood Action Plan (ENP Action Plan) for Moldova to consider granting Moldova additional autonomous trade preferences beyond the Generalised System of Preferences, 
provided that Moldova substantially improved its syst em of controls and certification of origin of 
goods. In 2006 Moldova reformed its customs legislat ion and a satisfactory level of implementation of 
the new legislation was reached at the beginning of 2007.  
  Accordingly, the European Communities inte nds to introduce additional autonomous trade 
preferences for Moldova by removing all remaini ng tariff ceilings for industrial products and by 
significantly improving access to the European Co mmunities' market for agricultural products. 
 
 To permit the European Communities to provide  preferential treatment for imports originating 
in Moldova, without being required to extend the sa me preferential treatment to the like products of 
any other Member of the WTO, the European Commun ities presents this request for a waiver from the 
provisions of paragraph 1 of Article I of th e GATT 1994 and Article XIII of the GATT 1994 to the 
extent necessary.    G/C/W/592 
Page 2 
 
 
  2. Description of the measures for which a waiver is requested  
 
 In the proposed Regulation introducing aut onomous trade preferences for Moldova it is 
foreseen that all products originating in Moldova sh all be admitted for imports into the European 
Communities without quantitative restrictions or measures having equivalent effect and with 
exemption of customs duties and charges having e quivalent effect, except for certain agricultural 
products for which limited concessions are given in the form of exemption from customs duties within 
the limit of tariff quotas or reduction of customs duties.   
 The agricultural products for which limited con cessions will be given are listed in Annex I to 
the Regulation (annex I to this request), and generally they cover the following: 
 
• Imports of meat, meat products, dairy produc ts, eggs, cereals, white sugar and wine are 
subject to annual duty free tariff quotas. 
 
• Imports of tomatoes, cucumbers and gherkins, courgettes, globe artichokes, grapes, apples, 
pears and quinces, apricots, ch erries, peaches and nectarines, plums and sloes are admitted 
for import with exemption of the ad valorem component of the import duty. 
 
The entitlement to benefit from the preferen ces is subject to the following conditions: 
 
(a) compliance with the rules of origin of products and the procedures related thereto as 
provided for in Title IV, Chapter 2, sec tion 2 of Regulation (EEC) No 2454/93;  
(b) compliance with the methods of admi nistrative co-operation as provided for in 
Articles 121 and 122 of Regulation (EEC) No 2454/93; 
(c) the involvement of Moldova in effective administrative co-operation with the 
European Communities in order to prevent any risk of fraud; 
(d) the abstention of Moldova from introducing new duties or charges having equivalent 
effect and new quantitative restrictions or  measures having equivalent effect for 
imports originating in the EU or from increasing existing levels of duties or charges or from introducing any other restrictions from the day of the entry into force of the preferential regime; 
(e) Moldova's continued engagement in the implementation of the priorities set in the 
ENP Action Plan for Moldova of 2005, in particular as regards effective economic 
reform; and  
(f) Moldova maintaining the ratification and e ffective implementation of the conventions 
listed in Annex II of the proposed Regul ation and accepting regular monitoring and 
review of its implementation record in accordance with the implementation provisions 
of the conventions it has ratified.  
 
 In case of serious and systematic violati on of the above mentioned conditions for the 
entitlement to the preferential arrangements, fraud or  failure to provide administrative cooperation for 
the verification of origin of goods or failure of  Moldova to show contin ued engagement in the 
implementation of the priorities set in the ENP Actio n Plan and the conventions listed in Annex II to 
the Regulation, the European Comm unities can take measures to susp end in whole or in part the 
autonomous preferences extended to Moldova. Where products imported under the preferential 
regime cause, or threaten to cause, serious di fficulties to a European Communities producer, Common 
Customs Tariff duties may be reintroduced.  G/C/W/592 
 Page 3 
 
 
   The introduction of the proposed measures for products originating in Moldova will make the 
inclusion of Moldova in the European Commun ities' scheme of generalised tariff preferences 
superfluous. Therefore Moldova woul d be removed from this scheme. 
 
 As stated above, because the arrangement would only be available to imports originating in 
Moldova, a waiver from the provisions of paragraph 1 of Article I of the GATT 1994 and Article XIII appears necessary before they can effectively en ter into force for reasons of legal certainty. 
 
3. Circumstances justifying the waiver
 
  The relationship between the European Comm unities and Moldova builds on the Partnership 
and Cooperation Agreement (PCA) that entered into force on July 1998. One of its main objectives is 
to promote trade and investment and harmonious ec onomic relations between the Parties and so to 
foster their sustainable economic development. In order to fulfil the provisions in the PCA and in 
view of the enlargement of the European Co mmunities on 1 May 2004, the European Communities 
and Moldova agreed in 2005 on the European Neighbourhood Policy (ENP) Action Plan for Moldova 
to develop an increasingly close relationship and to  engage in significant economic integration and 
deeper political cooperation.    The main motive for including this commitment in the Action Plan was that Moldova is the 
poorest country on the European continent (with a GDP per capita around 1400 €
1) and to offer 
Moldova an improved access to the European Comm unities' market would support the development 
of its economy through increased export performance.  Furthermore it was clear at the time that 
Moldova did not have the competitive strength to ta ke on reciprocal obligations of a free-trade 
agreement with the Eu ropean Communities.  
 
 Receiving autonomous trade preferences from th e European Communities is one of the most 
important priorities for Moldova in its trade relati ons with the European Communities. This objective 
has become a stimulus for Moldova to reform not only its customs legislation and the implementation 
of customs control, but also to make progress in other relevant trade related areas like for example 
veterinary, sanitary and phytosanitary standards and technical standards. 
 
 The European Communities recogni ses also that the economic situation of Moldova is fragile 
and that the two external shocks in 2006 (the increase in prices of natural gas supplies from Russia 
and Russian ban on imports of Moldovan wine) t ogether with the drought this summer have had a 
significant negative impact. Further market opening offered through the additional trade preferences 
will support the efforts to alleviate the negative e ffect of these incidents. In addition, extending 
autonomous trade preferences for Moldova is likely to attract more foreign direct investments to the 
country and to support the diversifi cation of local production and exports. 
  The tariff preferences provided under the aut onomous regime do not create any impediment 
to the reduction or the elimination of tariffs or ot her restrictions to trade on a most-favoured-nation 
basis. Furthermore, the tariff preferences under the autonomous regime will not affect benefits to 
other developing countries under the Eu ropean Communities’ GSP programme. 
  The European Communities also would like to re call that since the year 2000 a similar regime 
of autonomous trade preferences has been extended to the countries of the Western Balkans (Albania, 
Bosnia and Herzegovina, Croatia, the former Yugos lav Republic of Macedonia, Serbia, Montenegro, 
Kosovo
2). In 2005 this arrangement was extended for a nother 5 years and the extension of a waiver 
for the autonomous trade preferences for the W estern Balkans was adopted by the WTO General 
Council on 27-28 July 2006 (G/C/W/556).   
                                                      
1 EBRD country fact sheet on Moldova, 2006 
2 As defined in United Nations Security Council Resolution N° 1244 G/C/W/592 
Page 4 
 
 
  4. Conclusion  
 
 The European Communities requests on the b asis of Article IX :3 of the Marrakech 
Agreement Establishing the World Trade Organisation a waiver from its obligations under Article I :1 
and Article XIII of the General Agreement on Tariffs  and Trade 1994 with respect to the granting of 
tariff free or preferential treatment for products orig inating in Moldova, as provided for in the specific 
Regulation introducing autonomous trade preferences for this country. An annex listing the products 
for which limited preferences are foreseen and a draft waiver Decision are attached for consideration.  
 
 The European Communities request s that the Council for Trade in Goods give its application 
for a waiver expeditious and favour able consideration. In the mean time, the European Communities is 
prepared to give full consideration to representa tions made to it by other WTO Members and to 
engage in consultations with them as may be necessary.  
   G/C/W/592
 Page 5ANNEX I  
 
PRODUCTS SUBMITTED TO QUANTITATIVE LIMITS OR PRICE THRESHOLDS 
 1. Products subject to annual duty free tariff quotas
 
 
Order No CN Code Description 2008  (1) 2009  (1) 2010  (1) 2011  (1) 2012  (1) 
09.0504 0201 to 
0204 Fresh, chilled and frozen meat  of bovine anim als, domestic 
swine and sheep and goats 3 000 (2) 3 000 (2) 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 
0207.34 400 (2) 400 (2) 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 sm oked; edible flours and meals 
of meat or meat offals of domestic swine and bovine 
animals 400 (2) 400 (2) 500 (2) 500 (2) 500 (2) 
09.4210 0401 to 0406 Dairy products 1 000 (2) 1 000 (2) 1 500 (2) 1 500 (2) 1 500 (2) 
09.0507 0407.00 Birds' eggs, in shell 90 (3) 95 (3) 100 (3) 110 (3) 120 (3) 
09.0508 ex 0408 Bird's eggs, not in shell and egg yolks, other than unfit for 
human consumption 200 (2) 200 (2) 300 (2) 300 (2) 300 (2) 
09.0509 1001.90.91 Common Wheat 25 000 (2) 30 000 (2) 35 000 (2) 40 000 (2) 50 000 (2) 
09.0510 1003.00.90 Barley 20 000 (2) 25 000 (2) 30 000 (2) 35 000 (2) 45 000 (2) 
09.0511 1005.90 Maize 15 000 (2) 20 000 (2) 25 000 (2) 30 000 (2) 40 000 (2) 
1601 00 91 and 
1601 00 99 Sausages and similar products , of meat, meat offal or 
blood; food preparations based on these products 
09.0512 
ex 1602 Other prepared or preserved meat, meat offal or blood: 
- of fowls of the species Gallus domesticus, uncooked, 
- of domestic swine, 
- of bovine animals, uncooked 500 (2) 500 (2) 600 (2) 600 (2) 600 (2) 
09.0513 1701.99.10 White Sugar  15 000(2)  18 000(2)  22 000(2)  26 000(2)  34 000(2) 
09.0514 2204 21 and 
2204 29 Wine of fresh grapes, of an actual alcoholic strength by 
volume not exceeding 15% vol, other than sparkling wine 60 000 (4) 70 000 (4) 80 000 (4) 100 000 (4) 120 000 (4) 
 (1) From 1 January until 31 December, except for 2008 from the first day of application of the Regulation until 31 December (2 ) tonnes (net weight). (3) million units, (4) hectolitres G/C/W/592 
Page 6 
 
 
  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 
  G/C/W/592 
 Page 7 
 
 
  ANNEX II  
 
EUROPEAN COMMUNITIES - REQUEST FOR A WAIVER FOR THE APPLICATION OF 
AUTONOMOUS PREFERENTIAL TREATMENT  
TO MOLDOVA 
 
Draft Waiver Decision of […] 20083 
 
 
 The General Council, 
 
Conducting  the function of the Ministerial Conference 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 Appli cations for Waivers adopted on 1 November 19564, 
and the Understanding in Respect of Waivers of Ob ligations under the General Agreement on Tariffs 
and Trade 1994;   Taking note  of the request of the European Communities, pursuant to paragraph 3 of 
Article IX of the WTO Agreement, for a waiver 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 ropean Communities 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 the Annex to this Decision, 
without being required to extend the same duty-free or  preferential treatment to like products of any 
other Member; 
  Considering  the difficult economic situation in Moldova and its inclusion in the European 
Neighbourhood Policy initiative of the European Co mmunities, as well as the efforts made by the 
Members to foster economic transition and development in Moldova;  
 Considering  that the duty-free and preferential treat ment the European Communities affords 
to Moldova is intended to promot e economic expansion 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 excepti onal circumstances justifying 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 Deci sion, the provisions of paragraph 1 of Article I 
and the provisions of Article XIII of the GATT 1994 shall be waived from 1 March 2008 until 
31 December 2013 to the extent necessary to permit the European Communities to afford duty-free or 
preferential treatment to products originating in 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 same duty-free or preferential treat ment to like products of any other Member. 
 
                                                     
 
3 Adopted in accordance with th e Decision-Making Procedures und er Articles IX and XII of the 
WTO Agreement agreed by the General Council on 15 November 1995 (WT/L/93) 
4 BISD 5S/25. G/C/W/592 
Page 8  
 
  2. Such duty-free or preferential treatment sha ll not raise new barriers to the trade of other 
Members.  3. The European Communities shall consult promptly with any Member on the operation of its preferential or duty-free concessions in respect of Mo ldova, or on any other matter arising in respect 
of this Decision.  Where a Memb er 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 Communities and covered by this Decision, the European Comm unities shall examine the possibility of a satisfactory adjustment of 
the matter.  
4. This Decision does not affect Members' right s as set out in the Understanding in Respect of 
Waivers of Obligations under the Genera l Agreement on Tariffs and Trade 1994. 
 5. The European Communities shall report annuall y to the General Council on the preferences 
and duty-free treatment afforded to products from Mo ldova, including certain agricultural products for 
which limited concessions are given as defined in the Annex to this Decision, including the extent to 
which such preferences and duty-free treatment is  different from the European Communities' MFN 
and GSP concessions, with a view to facilitating th e annual review provided for in paragraph 4 of 
Article IX of the WTO Agreement.  
__________