LegiStorm

Summary:

Although a small country, Moldova has been of interest to U.S. policy makers due to its position between NATO and EU member Romania and strategic Ukraine. In addition, some experts have expressed concern about Russian efforts to extend its hegemony over Moldova through various methods, including a troop presence, manipulation of Moldovas relationship with its breakaway Transnistria region, and energy supplies and other economic links. Moldovas political and economic weakness has made it a source of organized criminal activity of concern to U.S. policy makers, including trafficking in persons. U.S. and Moldovan experts have expressed concern about whether Russian President Putins annexation of Crimea and attempted destabilization of eastern Ukraine presages a similar effort toward Moldova, including Russian recognition of the independence of Transnistria. After July 2009 parliamentary elections, a group of opposition parties to the then-ruling Party of Communists of the Republic of Moldova (PCRM) formed a governing coalition that pledged to carry out reforms with the goal of closer integration with the European Union. There are few ideological differences among the governing parties, which are mainly vehicles for key political leaders and politically connected big businessmen. New parliamentary elections are expected to be held in November 2014. Moldova is Europes poorest country, according to the World Bank. Moldovas GDP grew by a rapid 8.9% in 2013, spurred by strong consumer spending and a good agricultural harvest, rebounding from a drought the previous year. Growth in 2014 may be affected by the unstable situation in neighboring Ukraine and a possible slowdown in Russia due to the threat of sanctions against that country. As a self-declared neutral country, Moldova does not seek NATO membership, but participates in NATOs Partnership for Peace (PFP) program. In June 2014, Moldova expects to sign an Association Agreement with the European Union (EU), which includes a free trade agreement, and closer cooperation in a wide variety of spheres. Moldova hopes to become a candidate for EU membership, although the EU is unlikely to accept Moldova in the foreseeable future, due to Moldovas poverty, the EUs own internal challenges, and possibly also due to concerns that it would set a precedent for the candidacy of other former Soviet states, such as Ukraine. The United States and Moldova have enjoyed good relations since the countrys independence in 1991. In a signal of U.S. support, Secretary of State John Kerry visited Moldova on December 4, 2013, to congratulate the country on initialing its Association Agreement with the EU in Moldova. The United States and the EU are working to enhance market opportunities for wine and other Moldovan products in part in order to reduce the impact of current and possible future Russian embargoes. During a visit to Moldova on March 30, Assistant Secretary of State Victoria Nuland confirmed U.S. support for Moldovas path toward European integration and for continued U.S. aid for anti-corruption efforts, strengthening border security (for which Ms. Nuland announced an additional $10 million in U.S. aid), boosting Moldovan exports (including Moldovan wines), energy security, and other areas. The 112th Congress addressed a long-standing Moldovan concern by adopting legislation to grant the country permanent normal trade relations (PNTR) with the United States (P.L. 112-208).