On the occasion of the III summit held on 28 and 29 November in Vilnius in Lithuania, Eurostat published the updates relating to trade in goods between the 28 EU member states and the 6 Eastern Partnership countries. In the last ten years, trade in EU goods with the markets of Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine has grown significantly (from 11,9 billion in 2002 to 39,5 billion in 2012), despite the sharp decline in 2009. Over the past ten years, the EU trade balance has recorded a continuous surplus with its Eastern partners, with the only exception being a deficit of 1,2 billion in 2011. And if the surplus in 2012 amounted to 4,1 billion, in the first six months of 2013 EU exports to Eastern partners continued to grow up to 19,4 billion, while imports decreased to 16,1 billion euro.
From the point of view of the Member States Germany, Poland and Italy are the most important trading partners of the Eastern Partnership, representing 24% (4,7 bn), 15% (3,0 bn) and 8% (1,6 bn) respectively. Italy, for its part, represents the largest importer (4,4 billion, equal to 27% of the EU total), followed by Germany (2,1 billion, 13%), France (1,2 billion, 7% ) and Poland (1,1 billion, 7%). Here then is that the largest surpluses in the first half of 2013 were recorded by Germany (+2,6 billion) and Poland (+1,8 billion), while the largest deficit from Italy (-2,8 billion). Among the countries of the Eastern Partnership, Ukraine alone accounts for half of the flows to EU markets (11,2 billion, equal to 58% of total exports), followed by Belarus (4,1 billion or 21%). Ukraine leads the area's imports (7,1 billion, 44% of the total), followed by Azerbaijan (6,3 billion, 39%). From this point of view, the largest surpluses were recorded by Ukraine (+4,1 billion) and Belarus (+2,4 billion), while the heaviest deficit by Azerbaijan (-4,5 billion).
During the Vilnius summit the EU initialed Association Agreements with Georgia and Moldova, including provisions establishing a free trade areathereby further strengthening their political and economic relations. Negotiations on the Association Agreements started in January and July 2010 respectively and were concluded in mid-2013 and focus on the support for political, economic and social reforms with a view to trade liberalisation between the EU and the two Eastern European countries. Go cysts in this perspective agreements reached on tariff reduction, simplification of customs procedures, anti-fraud provisions, competition and defense of intellectual property rights. These arrangements will also serve to promote the free movement of people and related activities, be it education, tourism or culture. More concretely, the Association Agreements will focus on promoting gradual rapprochement between the EU and partner countries on the basis of common values, strengthening political dialogue and promoting peace, stability, the legal system, freedom and social security. Without to forget environment, agriculture, tourism, energy, transport, consumer protection and support for SMEs. Georgia and Moldova will thus be able to benefit from EU financial assistance through existing funding mechanisms and ad hoc instruments to achieve the goals outlined at the Vilnius summit. Of particular interest in this sense are the health regulations in reference to the export of agricultural and industrial products. They aim at create a food safety framework similar to that of the EU, allowing products of animal origin to be exported to European markets, focusing on consumer protection aspects and thus creating a more favorable environment for investment, competitiveness and opportunities for SMEs.
Uno studio forecasts that the agreements signed in Vilnius will increase Georgian exports to the EU by 12%, imports by 7,5%, with GDP could increase by 4,3% in the long term, provided these decisions are actually implemented and sustained. For Moldova, the change in national income is estimated at around +5,4% of GDP, while exports and imports should increase respectively by 16% and 8%, counting on the increase in wages and on the better level of prices for consumers. Everything will depend on approval by the Council and the European Parliamentwhich can still take several months for such decisions to become operational.
