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Products which are "Made in PMR" are seen in Germany and the United States, two of the country's largest export markets

KUCHURHAN (Tiraspol Times) - The trucks line up at the Kuchurhan border crossing point, one of the busiest customs stations on the border between Pridnestrovie and Ukraine. The trucks bear license plates from all over Europe, with some also bearing the registration of the local PMR plate with the unrecognized country's red and green national flag.

The European Union states in a recent report that Pridnestrovie has "a very open economy with a high degree of trade with the EU and the US."

The economy of Pridnestrovie is a mixed market-based economy. Following a large scale privatization process, most of the companies in the country are now privately owned. The economy is export-oriented and based on a mix of heavy industry and manufacturing.

According to the latest data from the nation's Customs, Pridnestrovie - which is also known as Transnistria, or Transdniester - now trades with 99 foreign countries. Of these, the main trading partners are the USA, Germany, Russia, Ukraine, Moldova, Belarus, Switzerland, Italy, Romania, Great Britain, Poland, Cyprus, and Turkey.

On a per capita basis, average annual foreign trade turnover exceeded $2,000 for the first time in 2004. This is a level which is unsurpassed in the post-Soviet economies. It is only matched by European nations like Greece or Portugal.

Modern industry

Among the more-often-than-not rusting industrial assets of Eastern Europe, Pridnestrovie's manufacturing sector is proud of its more modern infrastructure. Several companies in Pridnestrovie meet ISO-9000 international quality standards.

After World War II, Pridnestrovie was heavily industrialized, to the point that in 1990, it was responsible for 40% of the GDP of the Moldavian SSR, within the Soviet Union. It also produced 90% of its electricity, and the presence of a highly modern manufacturing sector was a big factor in securing the viability of the PMR economy when it declared independence as a new country in September 1990.

In the waning days of the Soviet Union, it was the region which received most industrial investment. MMZ, the Rybnitsa-based steel plant, was inaugurated in 1985. Today it is still the largest and most modern in this part of Europe.

Another new and modern factory, the Tiraspol-based Tirotex, is the second largest textile producer in Europe. Its products are sold worldwide, and carried in catalogs and retail outlets such as Quelle and Aldi in Germany.

And quality is not the only field where Pridnestrovie stands out. In the area of environmental protection (ISO series 14000), the government has partnered with local companies to meet these standards, too.

Pridnestrovie's government has a good relationship with the Spanish power company Union Fenosa, which currently buys electricity from Pridnestrovie and sells it to Moldova. Among other things, Fenosa pays its bills ... unlike the Moldovan government, which owes Pridnestrovie $37 million in unpaid electribity bills.

The country's president is supporting the market liberalization and seeks to integrate Pridnestrovie closer with the rest of the world's economy:
" - It’s necessary to provide maximum integration of Pridnestrovie to the global economic space. Our active interaction is determined by the necessity of integration of Pridnestrovie into the world democratic community," says recently re-elected independence leader Igor Smirnov.

In 2004, Pridnestrovie's small but active stockmarket was opened. The "Pridnestrovskaia Stock Exchange" was created with the participation of the Chamber of Commerce & Industry of Pridnestrovie and leading banks in the country.

Showing how Pridnestrovie is forging closer ties to other nations, the local economy is becoming increasingly more globalized. Based on 2005 data, the share of companies with foreign investments grew to 53.4% of the total number of private companies. This shows the pro-Western orientation of the country's economy.

EU: "Open trade with EU, US"

A report from the European Union Institute for Security Studies called the economy open and internationally integrated.

On the economy, the report stated that Pridnestrovie "is not geographically or economically isolated from the region around it. Quite the opposite in fact: it is relatively open economically to the outside world".

The Chambers of Commerce and Industry of Tiraspol and Leipzig, Germany, have direct ties. And a large share of Pridnestrovie's dollar earnings come from exports to the United States.

In its summary, the EU calls Pridnestrovie "a very open economy with a high degree of trade with the EU and the US."

Freedom and democracy can flourish when a country and its constitution is based on an open, Western-oriented model of respect for the individual and for his or her human rights. Pridnestrovie is seeking to integrate itself in the international community and become an established, recognized partner to countries with similar views of the world, and it looks increasingly succesful trade relations is the way to make that happen.

With international trade relations firmly in place, Pridnestrovie now has commercial ties to 99 countries worldwide. Now, many in the new and emerging country are hoping that diplomatic relations will be next. Pridnestrovie meets the requirements for statehood under international law, and is seeking closer integration as a responsible partner with the international community.

In terms of trade, the economy which the EU calls "a very open economy with a high degree of trade with the EU and the US" has already made it. Now, the same openness and integration must be applied to other aspects of international relations.

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