The embassy of Romania in Ottawa pursues two complementary trade objectives. The first is to stimulate bilateral dialogue to increase trade and identify new niches of economic co-operation. The second is to harmonize the bilateral relations between Romania and Canada with the commercial policies of the EU acquis (body of European Union law).
Visits to Bucharest in 2009 and 2010 by International Trade Ministers Stockwell Day and Peter Van Loan led to the acceleration of the signing of a FIPA (Foreign Investment Promotion and Protection Agreement). And when the president of the Romanian Senate and his Canadian counterpart met, both in Bucharest and in Ottawa, bilateral trade was part of their agendas. Romania’s minister of foreign affairs also discussed possibilities for economic cooperation with federal ministers on his Canadian tour in 2011.
This is the most recent chapter in the long-time partnership that Romania and Canada enjoy, one guided by a solid legal framework, with agreements on double taxation avoidance, nuclear co-operation and trade, legal assistance on criminal matters, FIPA and social security.
As an EU member, Romania applies “communitarian policies” in the commercial area but also takes part in adopting European strategic decisions. Thus, Romania is an active supporter of the Canada-EU Trade Agreement (CETA). We hope it will entrench consistent and modern practices that benefit both sides and extend outward to wider international economic relations.
The total volume of Romanian-Canadian bilateral commercial trade in 2010 was US$257 million, of which $123.4 million were Romanian exports to Canada, and $133.7 were Canadian exports to Romania. These figures represent a 78 percent increase over 2009 figures for Romania’s exports, and a decrease of Romania’s commercial trade deficit with Canada of $73 million. In the first half of 2011, Romania’s exports increased by 122 percent when compared to the same period in 2010.
Romania’s exports to Canada include tires and auto parts, common metals, generators, power transformers, furniture, clothing wear and accessories. From Canada, Romania mainly imports solvents, reactive agents, transmission equipment, medical drugs, cereals, radiators, electric panels and optical instruments.
We would like to see a greater openness to the Canadian market for the following Romanian goods: IT equipment and cellular technology, naval radio-detection and radio-sound machines, warning monitors along with optical, photographic and medical instruments and equipment. Romanian wines, including Chevalier Dyonis Merlot, Feteasca Neagra Reserve, Terra Romana Millenium and Prahova Valley Reserve, are relatively new products introduced on the beverage market. The latter two have reached Canada through its Atlantic Gateway (New Brunswick) where they have gained connoisseurs’ praise.
As of December 2010, some 1,562 Romanian-Canadian companies were registered in Romania, operating mainly in the agri-foods, transport, construction, and tourism sectors. Bombardier, SNC Lavalin and Intelcan Technosystems Inc., among others, have expanded their operations in my country. We would like a more active Canadian presence, through direct investment, in the aeronautic and defence industries, unconventional and atomic electric energy, the petroleum industry, IT, tourism, agriculture and in the agri-foods industry. Infrastructure projects offer a wide variety of opportunities — a large percentage of the 30 billion euros provided by EU structural funds are destined for this sector.
Geographically, Romania is wealthy in important waterways. The Danube River, Europe’s second-longest, passes through or borders 10 countries and Romania enjoys direct access to more than a quarter of the river’s length. With Romania’s coastline on the Black Sea, as well, maritime transport ranks as another attractive area of expansion with Canada.
However, the current level of bilateral economic exchanges is far below potential of the two markets and economies. Canadian investors should take note that Romania is recognized globally for its ICT experts. (At Microsoft headquarters in the U.S., the second spoken language after English is Romanian).
Romania’s unconventional energy sector is a very appealing area for investment and trade. Recently, Ernst & Young’s worldwide ranking of investment-worthy countries awarded Romania 45 points out of 100, placing it in the category of attractive states for foreign investors. And Ernst & Young ranked Romania 16th out of 35 countries worldwide (just ahead of the Netherlands and Japan) for its potential for unconventional energy sources and related infrastructure — wind (land/water), solar, geothermal and biomass.
Worth noting is Romania’s unique corporate tax of 16 percent (among the lowest in the region), the flexibility of the local labour market and government incentives for initial investment in renewable energy. The government also offers individually tailored stimulus packages for investment projects in conventional industries, including tourism and construction.
We await your trade and investment proposals in any domains of interest mentioned above. Another point of interest: In 2012, we are planning a Romanian-Canadian Business Forum in Ottawa.
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