Imagine cross-border trade procedures as an impenetrable web, hindering economic development and delaying humanitarian aid. How can these barriers be broken to make trade more efficient and accessible? With support from Switzerland's State Secretariat for Economic Affairs (SECO) and the World Customs Organization (WCO), the Republic of Moldova is actively seeking solutions through the "Mercator Program."
Recently, the WCO announced that Moldova has officially launched the Mercator Program under Phase I of the SECO-WCO Global Trade Facilitation Programme (GTFP). This initiative marks a significant step in Moldova's implementation of the World Trade Organization's (WTO) Trade Facilitation Agreement (TFA), aiming to boost economic growth and regional cooperation through streamlined customs procedures and enhanced trade efficiency.
Comprehensive Diagnostic Assessment
To better understand Moldova's current trade facilitation landscape and needs, a WCO expert team conducted a week-long diagnostic assessment of the Moldovan Customs Service (MCS) from July 15-23, 2024. The evaluation included bilateral meetings with MCS officials, representatives from other border regulatory agencies, and private sector stakeholders, along with field visits to strategic and tactical facilities.
This assessment forms a crucial component of Phase II of the SECO-WCO GTFP, which provides technical assistance to developing and least-developed countries for implementing the WTO TFA, thereby reducing trade costs and promoting sustainable economic development.
Key Findings and Action Plan
The evaluation revealed Moldova has made progress in trade facilitation but faces ongoing challenges, including cumbersome customs procedures, limited IT integration, and inter-agency coordination gaps. In response, the WCO team and Moldovan authorities identified priority technical areas for GTFP Phase II support and developed a preliminary work plan focusing on:
- Simplified Customs Procedures: Optimizing import/export processes, reducing documentation requirements, and implementing electronic declarations to accelerate clearance.
- Enhanced Risk Management: Establishing robust risk assessment systems to improve inspection targeting while minimizing disruptions to legitimate trade.
- Advanced IT Implementation: Promoting electronic payments, digital certificates, and paperless/automated customs operations.
- Interagency Coordination: Creating cross-border cooperation mechanisms for improved information sharing among regulatory bodies.
- Increased Trade Transparency: Publicizing customs regulations and operational procedures to enhance predictability.
- Capacity Building: Providing specialized training to strengthen customs personnel's technical and managerial competencies.
Building on Previous Success
Moldova was formally designated a GTFP Phase II beneficiary country in February 2024, following earlier technical assistance (2022-2023) that improved expedited clearance procedures for relief supplies and humanitarian aid. These measures helped maintain supply chain continuity during emergencies while facilitating cross-border movement of essential goods.
SECO and WCO expressed satisfaction with their ongoing collaboration with MCS, pledging continued support to elevate Moldova's trade facilitation standards and stimulate economic growth.
Global Context
The WTO Trade Facilitation Agreement, enacted in 2017, serves as a cornerstone of multilateral trade by harmonizing customs procedures and increasing transparency to reduce trade costs globally. Over two-thirds of WTO members have ratified the agreement to date.
Since its 2014 launch, the SECO-WCO GTFP has delivered measurable results across multiple countries, contributing significantly to worldwide trade facilitation efforts. Through the Mercator Program, Moldova aims to further integrate into global trade networks while strengthening its capacity to respond to crises and safeguard public welfare.