In the modern world, most of the trade between countries is carried out within Global Value Chains (GVCs), which have become a strong driver of global economic growth. Also, not all countries are sufficiently penetrated into these chains and can benefit from integration in there. Most developing economies and former communist countries not only suffer from the lack of strategy framework of including local intermediate products in GVC, but didn't have developed country's research on this topic. Our research will fill in the gap for the Republic of Moldova. We paid special attention to the exploitation of the potential of Foreign Trade Agreement (FTA) between the Republic of Moldova and EU and elaboration on the adequate economic mechanisms for this scope. We explore the measure of engagement of RM in external fragmentation of trade, using the wide range of WEB simulation tools of International institutes. The study showed that backward participation is the predominant type of engagement of the Republic of Moldova in the external fragmentation of production. It also revealed that the list of products engaged in external fragmentation of the country is highly concentrated as well as their markets. Articles of apparel, accessories are the main product of external fragmentation of production, provided in the customs regime of inward processing. Our research found that Moldova did not make enough use of the benefits of FTA between RM and EU to deepen the penetration of products into the value chains of European space, being represented in their low-medal and low-income nets. The results of the study can be used in the process of implementation of FTA with the EU by decision makers and the private sector.