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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 Olgu ţ a Marian, director EU Directorate .
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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 Olguţa Marian, director EU Directorate
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 Romania – Member of EU as of January 1st, 2007Changes of legislative and treaty nature Source : Ministry of Economy and Commerce
Access to an extended market of more than 500 mill consumers for companies settled in Romania Harmonization of capital market regulations, taxation, accounting rules => 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 Benefits of EU Accession
Macroeconomic Performance & Trend Source: National Institute for Statistics, National Bank of Romania, National Committee for Prognoses (trend)
FDI Annual Inflows in Romania2001 – 2006 (11 months) The first 11 month 2006 – 8,3 billion Euro
FOREIGN DIRECT INVESTMENT Foreign direct investment by the investors’ origin country, at 30 November 2006 Source:National Trade Register Office
DIRECT INVESTMENT WITH SIGNIFICANT IMPACT ON ROMANIAN ECONOMY, BY MAIN FIELDS, IN 2006 Source: Romanian Agency for Foreign Investment
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 Foreign Investor Rights
Purpose This law determines the principles and terms of stimulating investments in Romania that aim at contributing to a sound country development This project fullycomplies with the EU legislation The Government will issue also legal/administrative decisions in order to regulate the state aid schemes for eachaction 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 New Investment LawDraft under public debate
FOREIGN TRADE, IN THE PERIOD 2001 – 2006 Source: National Institute of Statistics (www.insse.ro)
THE STRUCTURE OF THE ROMANIAN EXPORTS, BY MAIN GROUPS OF PRODUCTS, IN 2006 Source: National Institute of Statistics (www.insse.ro)
THE STRUCTURE OF THE ROMANIAN IMPORTS, BY MAIN GROUPS OF PRODUCTS, IN 2006 Source: National Institute of Statistics (www.insse.ro)
GEOGRAPHICAL ORIENTATION OF THE ROMANIAN EXPORTS, IN 2006 Source: National Institute of Statistics (www.insse.ro)
GEOGRAPHICAL ORIENTATION OF THE ROMANIAN IMPORTS, IN 2006 Source: National Institute of Statistics (www.insse.ro)
Treatyconcerning the accession ofthe Republic of Bulgaria and Romaniato 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 Billateral relations with Ireland
COMMODITY TRADE BETWEEN ROMANIA AND IRELAND, WITHIN THE PERIOD 2001 – 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% STRUCTURE OF THE BILATERAL TRADE, BY MAIN GROUPS OF PRODUCTS, IN 2006
Ireland – ranking the 32nd among the foreign investors in Romania The total Irishshare-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 Irish FDI’s in Romania
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
Manufacturing Automotive parts IT & Communication Electric & Electronics Wood processing Energy sector Construction materials Textile Food processing Infrastructure Outsourcing and logistics Potential Sectors for Investment
THANK YOU ! • MINISTRY OF ECONOMY AND COMMERCE • Foreign Trade Department • Phone: +40 21 401 0513 • Fax: +40 21 315 0086 • E-mail: olguta.marian@dce.gov.ro • Website: www.dce.gov.ro