Integration and Competitiveness: Moldovan Goods in the European Union Market

Abstract

The economic integration of the Republic of Moldova with the European Union (EU) has intensified since the signing of the Association Agreement and the granting of EU candidate country status in 2022. The Deep and Comprehensive Free Trade Area (DCFTA) has strengthened Moldova’s exports to the EU, which reached over 65% of total exports by 2023. However, structural weaknesses such as low labor productivity, limited access to financial resources, demographic decline, and reliance on remittances continue to constrain competitiveness. Moldovan exporters also face significant challenges in meeting EU sanitary, phytosanitary, and technical requirements. Export performance remains concentrated in a few sectors, including vegetable products, electrical equipment, textiles, and foodstuffs, with Romania, Italy, and Germany as the main EU partners. Moldova primarily exports raw materials, low-processed goods, and products manufactured under inward processing schemes, with limited high value-added production. To ensure sustainable competitiveness and deeper economic integration, Moldova must address internal structural problems and transition towards innovation-driven, high-quality, and branded exports that can compete effectively on the EU market.