European Parliament 2019-2024 Committee on International Trade The Chair 11.3.2022 Mr David McAllister Chair Committee on Foreign Affairs BRUSSELS Subject: Opinion on Annual implementing report on the EU association agreement with Moldova (2021/2237(INI)) Dear Mr Chair, Under the procedure referred to above, the Committee on International Trade has been asked to submit an opinion to your committee. At its meeting of 3 March 2022, the committee decided to send the opinion in the form of a letter. During November 2021 meeting, INTA coordinators decided to deliver the INTA contribution to annual report of AFET, in form of letter (agreed among the groups), provided that such a letter will be substantially treated as an opinion and properly taken into account. I ask you therefore to share this letter, with your AFET Rapport, and consider attached INTA contribution to AFET report on Annual implementing report on the EU association agreement with Moldova. In these exceptional circumstances, I trust you will treat this letter during the procedure of the AFET votes on the report. Yours sincerely, Markéta Gregorová CC: INTA Chair, B. Lange AFET Rapporteur, D. Tudorache SUGGESTIONS 1. Welcomes the continuous positive trends in trade between the Republic of Moldova and the EU, where the EU remains the leading partner, accounting for 53% of total Moldovan trade, including Transnistria; 2. Welcomes the approximation of 499 (152 partially) out of 681 pieces of EU acquis into the Moldovan national legislation provided by the AA/ DCFTA and underlines the importance of continuous reforms in public administration, banking system and independence of the judiciary; 3. Calls on the Moldovan authorities to implement reforms improving transparency, tackling corruption and clientelism, which hinder the country's sustainable development and limit the full potential of the DCFTAs, notably to SMEs; 4. Underlines the importance of the EU financial assistance in advancing the implementation of DCFTA provisions and recalls the strict need for conditionalities being primarily linked to democratic reforms rather than economic factors; 5. Stresses the need for further diversification of energy sources, investments in renewable energy and improving the gas storage capabilities, as the current settings are vulnerable to rising costs and supply disruption, especially in view of Russian actions in the east and Moldova’s dependence on gas imports via Ukraine; 6. Calls on Moldova to fully implement the DCFTA Trade and Sustainable Development chapter and to remain committed to the Paris agreement and its objectives; 7. Calls for the rectification of the domestic trade law that runs contrary to Moldovan commitments under the DCFTA and the WTO provisions. AL\1251081EN.docx EN PE719.933v01-00 United in diversity EN