Russia imposes bans on food and wine from Moldova
In 2013 and 2014, it was reported that Moldovan products were banned from import into Russisa, in an attempt by Russia to dissuade Moldova from signing an agreement with the European Union. Reports included allegations of inadequate sanitary and phytosanitary standards, as well as other informal mechanisms.
According to an OECD Policy Paper on the Trade Impacts of Economic Coercion, nearly 1/3 of Moldova’s goods exports to Russia were impacted. They report:
Import bans had strong and immediate negative effects on Moldovan exports but different longer-term implications. For some products, including wines & spirits and canned fruits & vegetables, the bans resulted in a definitive shift of exports away from Russia and towards the European Union. However, export diversification was lower for products such as fresh fruits, with greater sensitivity to time-to-market.
New Free Trade Agreements or Areas (FTAs) appear to have helped support Moldova’s export diversification. Merchandise exports to Russia fell from 28% of the total value of Moldova’s goods exports in 2011 to just 9% in 2021, while trade grew with new and prospective FTA partners, including the European Union, United Kingdom, Türkiye, and EFTA economies. FTAs lowered the average tariff faced by Moldova’s exports from around 6.3% in 2007-2009 to 1.4% in 2016-2018.
Moldova’s acting Prime Minister, Vlad Filat, commented, “It isn’t a secret that the Russian Federation would like to change the vector of Moldova’s foreign policy. I confess there are lots of forces that want this [a move towards Moscow] both inside Moldova and outside it … Russia obviously has an interest. They never hide this fact. They would prefer us to be in the Eurasian project, not the EU project. “
Responses
The EU issued a statement of solidarity with Moldova, clarifying that the EU did not share Russian concerns about SPS issues with Moldovan products. It also announced that it would increase import quotas of Moldovan wine at concessional tariff rates, with the Euopean Parliament later allowing duty free imports.
The Guardian reported other efforts by the Moldovan Government to absorb the extra supply within the country. Additional measures that were reported inlcued voluntary agreements by Moldovan canning companies to increase their purchasing, Air Moldova purchasing impacted fruit for use in-flight as snacks, and government “also allocated roughly $1.44 million (20 million Moldovan leis) to provide Moldovan apples daily to kindergartens, public schools and the army”
Media also reported a public protest in Chisinau, with a farmers market and the symbolic creation of a very large apple pie, which the Prime Minister described as a symbol of national unity – “the pie that unites us“.
This case shares some parallels with FOOD (AUSTRALIA – RUSSIA) and AGRICULTURAL PRODUCTS (UNITED STATES – RUSSIA) and FOOD (ALBANIA – RUSSIA).
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References
European Commission, Štefan Füle, Statement on the pressure exercised by Russia on countries of the Eastern Partnership (11 September 2023) https://ec.europa.eu/commission/presscorner/detail/en/SPEECH_13_687
European Parliament, MEPs back freeing wine trade with Moldova to offset Russian trade sanctions (10 December 2013) https://www.europarl.europa.eu/news/en/press-room/20131206IPR30026/meps-back-freeing-wine-trade-with-moldova-to-offset-russian-trade-sanctions
OECD, Trade Impacts of Economic Coercion, OECD Trade Policy Paper 281 (May 2024), https://www.oecd.org/content/dam/oecd/en/publications/reports/2024/05/trade-impacts-of-economic-coercion_044bdb0a/d4ab39b9-en.pdf
Victoria Puiu, Moldova fights back against Russia’s food bans (16 August 2014) The Guardian, https://www.theguardian.com/world/2014/aug/15/moldova-fights-back-russia-food-bans
Victoria Puiu, Moldova: Can an Apple a Day Keep Russia at Bay? (13 August 2014) EurasiaNet, https://eurasianet.org/moldova-can-an-apple-a-day-keep-russia-at-bay
Stanislav Secrieru, In the Shadow of War: Moldova’s Quest for Stability and Security, May 2023, (link)