Bassarabia software technology (BST) was founded in 2021. It works at the intersection of two sectors – electronics and information technology, specializing in software development for the automotive and robotics industries in Germany, Sweden, Romania, and others. Its latest clients are auto giants BMW and Renault, with whom BST works through intermediaries. The company also creates software for Smart Home systems.
So far, the EU has not imposed duties on US goods. And the US has suspended duties for three months for countries that have not mirrored its response. “But when they come into force, the end product will become more expensive,” says Georgy Girzhev, head of Bassarabia software technology. – This will affect its demand. Especially on the competitiveness of the product. Even today European companies are losing their positions against the background of China’s strengthening, and the duties will aggravate the situation. China has already won the battle in Europe on electric cars. Now investments are declining, and in the future it will be a question of their feasibility. Who will want to invest in such difficult times in expensive products?”.
The company hopes that the EU will continue to create partnerships with our companies rather than Indian companies, for example. “Then we can win something,” Georgy Girzhev continues. – They are now looking for more competitive markets in Asia, going to India, Africa. Our companies are less competitive compared to them. In Moldova, salaries in the IT sector are almost equal to those in Europe, besides, we are residents of the IT park, and this obliges us to make all social payments. In Asia such costs are less. The problem is that the EU and the US themselves have nurtured China by transferring technology and investments there. Now the same thing is happening in India. If nothing changes, it will grow into a major player in a few years. So there are a lot of problems for everyone. The automobile market is frozen. Europe is in recession, so there are few projects, investments are going to war.”
Experts add to this the macroeconomic factor – the intensification of inflationary processes and, as a result, a decrease in purchasing power, which will indirectly affect all companies operating in the European market.
“Directly, the American trade duties imposed on Moldova do not apply to services,” notes Alexandru Gozun, president of Amcham Moldova. – On the other hand, we have stable commercial relations with the EU. The trade agreement works bilaterally”.
We are not talking about direct, but indirect interdependence with companies that operate on the U.S. market. Anything related to duties can have an impact on our exports to the EU. There can be many scenarios. That is why many companies are now looking for solutions in view of the current situation.
“It is a long process, but I would not rush to conclusions,” says Alexander Gozun. – Many companies will still try to stay on the American market, even at the current level of duties, because it will be more difficult to enter it later than it is to leave it now. Some companies are waiting, despite the increased prices, and are preparing to operate under such conditions. It is clear that we need to wait and see what the future actions will be. But in general, the landscape of trade relations is changing, because there are no medium- and long-term guarantees that any trade regime will be preserved, given the dynamics of recent weeks”.
