Government Proposes Licensing Grain and Oilseed Imports Only Until October 31

The government supports, with certain reservations, a bill introducing licensing for imports of grain and oilseed crops, but believes the mechanism should remain in effect only until October 31, 2026, with no possibility of extension. The corresponding opinion was approved at a government meeting, reports rupor.md. The bill, submitted by Our Party MP Serghei Ivanov, proposed introducing import licensing for grain and oilseed crops until December 31, 2027, with the possibility of extending it for another 12 months. The government considers this period excessive and potentially capable of producing disproportionate consequences. Therefore, the executive recommends making the measure strictly temporary, allowing authorities to monitor the market and assess the impact of imports on domestic producers. At the same time, the government notes that import licensing constitutes a non-tariff measure that could potentially restrict trade. It therefore needs to be assessed for compliance with Moldova's obligations under the EU Association Agreement, the Deep and Comprehensive Free Trade Area (DCFTA), and the World Trade Organization. The government also points out that the problems facing the agricultural sector, including rising production costs, market volatility, and the consequences of climate-related events, are not in themselves sufficient grounds for imposing trade restrictions. Moreover, the bill's author has not provided sufficient data demonstrating the effectiveness of the licensing mechanism previously used. The executive also warns of possible consequences for other sectors, including livestock farming, feed production, flour milling, and agricultural processing. Restricting access to raw materials could increase costs and reduce the competitiveness of these industries. In addition, the government believes it is necessary to clarify the conditions for issuing licenses, the list of required documents, and the procedure for reviewing applications. Some concerns also relate to the participation of industry associations in the application review process, as this could create conflicts of interest. Ultimately, the government supported the bill on the condition that its recommendations are taken into account and that the licensing mechanism is limited to October 31, 2026, with no possibility of extension. The Farmers’ Power Association welcomed the governmentэs positive opinion but considers the October 31 deadline insufficient. The organization is also calling on parliament to adopt the bill as a matter of urgency, with the possibility of extending the licensing regime, and to hold consultations on the planned 50% increase in the VAT rate on grain and oilseed crops.