Free trade: Transdniestria cancels import duties on Moldovan goods

At a border crossing entering Transdniestria, local girls in traditional dress greet visitors with bread and salt

TIRASPOL (Tiraspol Times) - Recognizing that free trade brings increased contacts and cooperation, a number of obstacles on the way to the free movement of people, goods and services have unilaterally been rescinded by the Transdniestrian parliament with a decision signed into law by President Igor Smirnov.

Effective immediately, a large number of products from Moldova - mainly foodstuffs - can now be exported freely from Moldova to Transdniestria, after duties previously put in place were lifted. From 25 April 2006, customs duty was introduced on all goods from Moldova as a retaliation measure for the economic blockade of Transdniestria.

During parliamentary debates held 5 September 2007, MPs voiced their wish to remove the trade barriers and ordered the PMR Audit Chamber to analyze its efficiency. Members of Parliament stated that the duty impedes the flow of free trade between the two banks of the Dniester, and

At the OSCE Permanent Council on 22 March 2007, US officials, commenting on the Moldovan-Transnistrian situation, urged free trade to resume as soon as possible. Specifically, a declaration was made public calling for the abolishment of "all obstacles on the way to free movement of people, goods, and services."

Bread and salt on the border

Celebrating the new open trade policy, local girls in traditional dresses greeted visitors to Transdniestria with bread and salt, accompanied by locally produced red wine, at some of the border crossings belonging to the unrecognized country.

The ancient tradition of offering a guest bread and salt dates back many centuries as a traditional Russian ceremony of welcome. As a sign of hospitality, a loaf of bread is presented to visitors and placed on a round dish covered with an embroidered towel. A cellar of salt is placed on top of the bread.

For now, the new open borders initiative applies to a wide range of goods, especially food products such as meat, dairy produce, eggs, fish, natural honey, confectionery, canned and fresh fruit and vegetables etc., as well as import of cattle, pigs and poultry.

While Moldova maintains the economic blockade against its independent-minded neighbor on the other side of the Dniester river, other duties remain in place, although the members of the Transdniestrian parliament have stated their willingness to canceling all duties on all the goods imported from Moldova as of 1 January 2008. The website of the Parliamentary Press Service, www.vspmr.org, informed that "when Parliament receives full report, legislators will discuss the opportunity of cancelling 100% customs duty on imports from the Republic of Moldova in full starting from January 1, 2008."

As reported by Moldovan news agency Infotag, Tiraspol introduced the special import duty on Moldovan products following the economic blockade imposed by Moldova and Ukraine on March 3, 2006. Calls to dismantle the illegal trade barriers caused by the economic blockade have so far not been heeded by Moldova. The blockade contravenes an agreement signed between Moldova and Transdniestria in 1997 which gives Transdniestria the legal right to conduct its own foreign trade freely.

Free trade promotes openness, liberalization

Internationally, studies have widely recognized that free and open trade helps to strengthen prosperity and democracy. South Korea, for instance, hopes to open up the North Korean dictatorship through increased contacts and free trade. Likewise, as China has embarked on more and more free and open trade with the rest of the world, its Communist government has liberalized. While Chinese citizens still don't enjoy many of the political freedoms that Transdniestrians and other Europeans take for granted, economic freedom has led to openness in other aspects of Chinese life. Increased commercial contacts with Taiwan, which like Transdniestria is an unrecognized country, has helped both sides move closer to democracy.

Taiwan, like Transdniestria, is an unrecognized country which seeks increased trade with the rest of the world and which, like Transdniestria, has never had a Communist government at any time since it declared independence. Next to both Transdniestria and Taiwan sits a larger neighbor which, in both cases, is ruled by Communist government. Moldova's Communist government is blocking Transdniestria from widespread international recognition, while China's Communist government does the same against Taiwan.

With the latest unilateral move from Transdniestria towards an open trade policy with Moldova, politicians in Tiraspol hope that it will help liberalize the Moldovan regime and foster increased contacts that will help Chisinau understand the views and opinions of Transdniestria. Moldova is Europe's poorest country and has a dismal human rights record which observers this year say has been sliding from bad to worse. Approximately half of Moldova's active work force has already left the country.

There is no word yet on whether Moldova will follow the Transdniestrian initiative and respond in kind by an equal removal of restrictions on free trade against Transdniestria. Since March 2006 Moldova has imposed what amounts to an economic blockade against Transdniestria, with estimates of $700 million in losses to Transdniestrian businesses throughout the period. (With information from Infotag, Reporter MD)

See also:
» End of customs blockade? US wants free movement of goods and services
» A year later, customs conflict has missed its mark

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