7. You need to analyse the tools of the trade policy your countries (Moldova) are applying towards the trading partners.
1) describe the measures to protect the local producers (tariffs, quotas, subsidies) – the size, the products that are covered, the time when they are (were) applied;
2) what are the reasons of applying these measures and how it benefits the local economy
In terms of traderelations, Moldova can be considered a member of the Commonwealth of Independent States (CIS). Alongside Albania, Kosovo, Macedonia, Montenegro, Bosnia and Herzegovina, Croatia, and Serbia as an associate member of the Central European Free Trade Agreement (CEFTA) which is a multilateral trade pact that is part of Central Europe. A Association Agreement and Deep and Comprehensive Free Trade Area (DCFTA) was signed by Moldova with the European Union (EU) on June 27, 2014 and the provisional application for it began on September 1st, 2014. After ratification the AA/DCFTA between Moldova and EU entered into effect on July 1st June, 2016. (Lupan, 2019). Moldova is one of members of the World Customs Organization, imposes import duty on products that are given an HS code from members of the world body (HS). The value of the item, the quantity of goods, or both , are the criteria used to determine the customs fee. Customs duty ad valorem is the most frequently used method, and it could vary between 0% and 25 percent of the item’s purchase. Certain types of meat imported employ a mix of both methods (Lupan 2019,). In the case of Moldova, Moldovan Customs Service may impose additional duties, also known as “exceptional duties” for example, protection duty or anti-dumping or countervailing duty in addition to standard customs taxes. In the past, a safeguard duty levied exclusively on imports of sugar however it was the only tax on which a special type was imposed. Cont…
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