A free trade agreement will be signed in Liechtenstein on Tuesday: the EFTA will trade with Ukraine and Moldova

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On Tuesday, representatives of the four EFTA states will meet in Liechtenstein for a ministerial meeting. Apparently not much has happened in the European Free Trade Association in recent years. Since its foundation in 1960, today it has shrunk from ten to four members. When Britain left the EU, it was hoped that the kingdom would come knocking. There was nothing to participate.

Nevertheless, the meeting in Schaan contains an explosive agenda item. The ministers of the member states Iceland, Liechtenstein, Norway and Switzerland want to conclude a free trade agreement with the Republic of Moldova.

Clap to Putin

It is a further commitment of the EU accession candidate to the West and at the same time a slap in the face to Russian President Vladimir Putin (70), because the Moldavian region of Transnistria is controlled by Moscow. Time and again it is said that Russia could overrun the militarily virtually defenseless country.

Swiss Henri Gétaz (58), secretary general of EFTA, tells Blick: “Negotiations began in early 2021 and essentially concluded on March 24, 2023.” How was the reaction from Moscow? Gétaz says only: “We cannot speculate on any attitudes of non-participating third parties.”

The Republic of Moldova lives mainly from agriculture and related industry. The climate is favorable for fruit and wine growing. Along with spirits and preserves, wine is one of the most important export items, along with textile products and small electrical appliances.

Stronger together

Apart from further planned trade agreements – including with Ukraine – no major steps are planned for EFTA in the near future. The admission of another country is not in sight. Henri Gétaz: “At the moment there are no talks, not even with Ukraine or Moldova.” The two countries are candidates for accession to the EU.

Gétaz is convinced that EVA will continue to be necessary. “Over the past 30 years we have discovered that we get more out of our relations with third countries together than we do separately.”

Geopolitical tensions such as the Russian invasion of Ukraine and the growing Sino-American rivalry increase “the risk of fragmentation of the world economy”. For major trading partners, trade policy becomes a tool to achieve political goals.

This is especially problematic for small, open economies such as the EFTA countries. Gétaz: “In such a trading environment, we have every interest in staying together as a group and facing the associated challenges.”

Source: Blick