ROMANIA

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MINISTRY OF ECONOMY AND COMMERCE Department for
Foreign Trade
ROMANIA Member of the European Union ECONOMIC
DEVELOPMENTS AND OPPORTUNITIES IN ROMANIA
By Olguta Marian, director EU Directorate

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Romania Member of EU as of January 1st, 2007
Changes of legislative and treaty nature

• European Commission takes over the national
  authorities competence with regard to
  international trade
• Common Customs Tariff
• Integrated Tariff of the European Communities
  (TARIC)
• Intra-community trade statistics (Intrastat)
• Common defense trade policy
• Free Trade Agreements concluded by EU and
  Stabilization and Association Agreements with
  West Balkan states
• Tariff concessions extended by the EU to goods
  originating in developing countries (GSP)
• Non-preferential Trade Agreements concluded by EU
  based on the Most Favored Nation Clause Treatment
• Other commitments taken by the EU within the
  trade and cooperation fields

Source Ministry of Economy and Commerce
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Benefits of EU Accession

• Access to an extended market of more than 500
  mill consumers for companies settled in Romania
• Harmonization of capital market regulations,
  taxation, accounting rules gt higher transparency
  and simplification
• Simplified procedures in business administration
  when exporting to EU member states
• Elimination of exchange risks and conversion
  charges when Romania will join the Euro zone

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Competitive Taxation
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Macroeconomic Performance Trend
Source National Institute for
Statistics, National Bank of Romania, National
Committee for Prognoses (trend)
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FDI Annual Inflows in Romania2001 2006 (11
months)
The first 11 month 2006 8,3 billion Euro
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FOREIGN DIRECT INVESTMENT

• Foreign direct investment by the investors
  origin country, at 30 November 2006

• Source National Trade Register Office

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DIRECT INVESTMENT WITH SIGNIFICANT IMPACT ON
ROMANIAN ECONOMY, BY MAIN FIELDS, IN 2006

• Source Romanian Agency for Foreign Investment

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Foreign Investor Rights

• foreign investment allowed in all sectors of
  economy
• possibility to freely manage the company with
  full ownership rights
• full repatriation of capital and profits
• protection against expropriation and
  nationalization
• national treatment for foreign investors

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New Investment LawDraft under public debate

• Purpose
• This law determines the principles and terms of
  stimulating investments in Romania that aim at
  contributing to a sound country development
• This project fully complies with the EU
  legislation
• The Government will issue also legal/administrativ
  e decisions in order to regulate the state aid
  schemes for each action aiming at contributing to
  law implementation
• These Government decisions will set out the
  goals, objectives, timing, budgets,
  beneficiaries, eligibility and selection criteria
  and the competent authorities responsible to
  grant incentives
• This Law will set up a Responsible Authority for
  implementing and monitoring the legal provisions
  

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FOREIGN TRADE, IN THE PERIOD 2001 2006
Source National Institute of Statistics
(www.insse.ro)
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THE STRUCTURE OF THE ROMANIAN EXPORTS, BY MAIN
GROUPS OF PRODUCTS, IN 2006
Source National Institute of Statistics
(www.insse.ro)
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THE STRUCTURE OF THE ROMANIAN IMPORTS, BY MAIN
GROUPS OF PRODUCTS, IN 2006
Source National Institute of Statistics
(www.insse.ro)
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GEOGRAPHICAL ORIENTATION OF THE ROMANIAN EXPORTS,
IN 2006
Source National Institute of Statistics
(www.insse.ro)
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GEOGRAPHICAL ORIENTATION OF THE ROMANIAN
IMPORTS, IN 2006
Source National Institute of Statistics
(www.insse.ro)
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Billateral relations with Ireland

• Treaty concerning the accession of the Republic
  of Bulgaria and Romania to the European Union,
  signed in Luxembourg, April 2005
• Convention for the Avoidance of Double Taxation,
  signed in October , 1999
• Agreement regarding the Mutual Promotion and
  Protection of Investments, under negotiation

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COMMODITY TRADE BETWEEN ROMANIA AND IRELAND,
WITHIN THE PERIOD 2001 2006
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STRUCTURE OF THE BILATERAL TRADE, BY MAIN GROUPS
OF PRODUCTS, IN 2006

• Romanian Exports
• Textile and leather products 25,45
• Equipment for railways infrastructure 25,3
• Machinery and electrical equipment 20,58

• Romanian Imports
• Chemical products 49,6
• Machinery and electrical equipment 40,16
• Agricultural and food products 4,18

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Irish FDIs in Romania

• Ireland ranking the 32nd among the foreign
  investors in Romania
• The total Irish share-capital registered in
  Romania - reaching 18,67 Euro mill.
• 441 companies with Irish share-capital in Romania
  
• The main Irish investors Pepsi-Cola
  International, Xerox LTD., Oracle
• The main investing sectors are IT, FMCG

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TOP REASONS TO INVEST IN ROMANIA

• STRONG MARKET POTENTIAL

2. FUNCTIONAL MARKET ECONOMY
3. HIGH SKILLED LABOR FORCE
4. COMPETITIVE TAX POLICY
5. SIGNIFICANT ECONOMIC GROWTH
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Potential Sectors for Investment

• Manufacturing
• Automotive parts
• IT Communication
• Electric Electronics
• Wood processing
• Energy sector

• Construction materials
• Textile
• Food processing
• Infrastructure
• Outsourcing and logistics

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THANK YOU !
MINISTRY OF ECONOMY AND COMMERCE Foreign Trade
Department Phone [phone] Fax 40 21
315 0086 E-mail olguta.marian_at_dce.gov.ro
Website www.dce.gov.ro