commercial diplomacy€¦ · commercial diplomacy journal volume i, issue 2 - 2018 h.e. mr. davor...

URNAȘCOMMERCIALDIPLOMACY

Official Journal of the Union of Bilateral Chambers of Commerce from Romania

volume I, issue 2 - 2018

JOURNAL

Partnership between

the Union of Bilateral Chambers

of Commerce from Romania

and the Ministry for Business

Environment, Commerce and

Entrepreneurship from Romania

Partnership between


of Commerce from Romania

and the Ministry for Business

Environment, Commerce and

Entrepreneurship from Romania

Union of Bilateral Chambers of Commerce from Romania

Commercial Diplomacy Journal

volume I, issue 2 - 2018

©2017 Union of Bilateral Chambers of Commerce from Romania

ISSN 2537 – 4699

ISSN-L 2537 – 4699

Bucharest, Romania

www.uccbr.ro

offi [email protected]

graphic concept & DTP

3

COMMERCIAL DIPLOMACY JOURNALvolume I, issue 2 - 2018

SUMMARY

H.E. Mr. Oleksandr BANKOV Ambassador of Ukraina in RomaniaRelations between Ukraine and Romania in

the context of common priorities realizing

6

H.E. Mr. José Miguel MENCHACAAmbassador Extraordinary and Plenipotentiary of the Republic of Chile in RomaniaChile, an open country to the world

10

H.E. Mr. Felipe Alvarez DE TOLEDOAmbassador of Argentina in RomaniaBilateral relations will continue to grow

in the near future

16

H.E. Mr. Valery I. KUZMINAmbassador Extraordinary and Plenipotentiary of the Russian Federation in RomaniaRussian trade diplomacy in Romania

20

H.E. Mr. Walid OTHMANAmbassador of the Syrian Arab Republic in RomaniaThe development of syrian economy and

Romania’s role in the Syrian economy / the

modern industrial revolution

24

H.E. Mr. Zakonyi BOTONDAmbassador of Hungary in RomaniaTrends in economic diplomacy

28

4

volume I, issue 2 - 2018COMMERCIAL DIPLOMACY JOURNAL

H.E. Mr. Davor VIDIŠAmbassador of the Republic of Croatia in RomaniaWill the growth of tourism be accompanied

by the growth of the overall economic

relations between the Croatia and Romania

32

H.E. Mr. Osman Koray ERTAȘAmbassador of Turkey in RomaniaTurkey and Romania: strong strategic

and economic partners

36

H.E. Mr. Branko BRANKOVIĆAmbassador of the Republic of Serbia in RomaniaEconomic cooperation between Serbia

and Romania

40

On November 2, 2017, the Union of Bilateral

Chambers of Commerce from Romania signed

the partnership agreement with Minister

for Business Environment, Commerce and

Entrepreneurship

44

Offi cial Opening of the Commercial

Diplomacy Chamber with Kingdom of Spain

within the 3rd meeting

of the Commercial Diplomats Club

46

6


H.E. Mr. Oleksandr BANKOV

Ambassador of Ukraina in Romania

Relations

between Ukraine

and Romania

in the context

of common

priorities

realizing

In recent years active political dialogue

between Ukraine and Romania showed the pres-

ence of a wide range of common interests and

mutually benefi cial areas of cooperation. Active

bilateral contacts at all levels emphasize the im-

portance of building mutually benefi cial part-

nership for sustainable socio-economic develop-

ment of both countries. As well as joint counter

new security threats in the region.

Especially those interests are shown in the

context of European processes and realization of

European integration aspirations of Ukraine. An

important aspect of this is the Ukraine–European

Union Association Agreement, enters into force

on 1 September 2017. This Agreement providing

7


a deep and comprehensive free trade zone is

the main instrument of convergence between

Ukraine and the European Union as a

whole, as well as deepening of relations with

Romania. It promotes the intensifi cation

of political relations, the strengthening of

economic ties, and the adherence to common

European values.

According to the Association Agree-

ment Ukraine has committed and eff ectively

provides structural reforms in the areas of

democracy, human rights, Rule of Law, high-

quality public administration, trade and sus-

tainable development, with the support of

European partners.

We can already state the fi rst con-

crete results of the implementation of the

Agreement - Ukrainian export to the Euro-

pean Union has increased, and the European

Union has already approved the position of

Ukraine’s largest trading partner. The latest

eff orts of Ukraine to implement reforms in all

spheres are unprecedented. However, there

is still a lot of work ahead. For example, the

fi ght against corruption which should be con-

tinued.

Romania’s experience in adapting it to

European Union standards in all spheres of

life, in particular the fi ght against corruption,

implementation of structural reforms, over-

coming of negative economic phenomena,

etc. is important for Ukraine.

During the last three years Romania has

become an important ally in counteracting

the military aggression of the Russian Federa-

tion and supported the territorial integrity of

Ukraine. Also condemning the apparent vio-

lation of the sovereignty and territorial integ-

rity of the country through the acts of aggres-

sion of the Russian armed forces. Romania

fully supports all initiatives aimed at fi nding

a political solution to the confl ict in eastern

Ukraine, resorting to all available means.

Ukraine is developing a diversifi ed re-

lationship with Romania both bilaterally and

within international and regional structures

today. The similarity of strategic tasks within

the framework of European and Euro-Atlantic

priorities form the basis of development and

strengthening of bilateral relations between

the countries. Romania plays an important

role in the foreign policy interests of Ukraine.

This is due to the adjacent border, common

guidelines to build eff ective relationships

within the European Community, wide po-

tential for the development of mutually ben-

efi cial trade and economic cooperation, as

well as residence in countries of Ukrainian

and Romanian minorities respectively.

The presence of signifi cant potential of

bilateral economic cooperation was also con-

fi rmed by the regular meeting of the Mixed

Ukrainian-Romanian Intergovernmental

Committee on Economic, Industrial, Scien-

tifi c and Technical Cooperation held on July

10-11, 2017 in Bucharest. The discussion on the

expert level of the priority directions of two

sides cooperation showed interest in specifi c

areas and laid the foundation for the transfer

of existing economic relations to a new high-

quality and eff ective level of cooperation in

most spheres of the economy.

In particular, eff orts will be made

to implement agreed measures aimed at

8


strengthening trade relations and economic

cooperation aimed at increasing export-

import operations, expanding the range of

goods and services and establishment of

direct contacts between economic entities

in both countries. Romania’s experience

in introducing scientifi c and technical

innovations in the fi eld of industry, reforming

and adapting small and medium-sized

businesses to European Union standards,

creating a favorable business climate is

very important for Ukraine. Sharing this

experience will not only actively develop

foreign trade activities between the two

countries but also attract more investment in

basic sectors of the economy. To achieve this

the practice of interactive communication

between representatives of the business

environment of Ukraine and Romania

through the mediation of the system of

Chamber of Commerce and Industry of two

countries, conducting online conferences,

round tables, seminars and other similar

events using modern Internet technology.

The geographic location and the avail-

able transit potential of both countries re-

quire comprehensive and balanced approach

to transport cooperation. Therefore, as pri-

orities by strengthening cooperation towards

the realization of joint projects in the fi eld

of cross-border transport infrastructure, de-

velopment of cross-border communication

Kiev City Centre

9


in the near future. In addition, an important

aspect in this direction is the unifi cation of

eff orts for the mutually benefi cial use of the

existing transit potential, including interna-

tional transport corridors across the territory

of Romania and Ukraine.

In the context of the growing impor-

tance of ensuring energy security of countries

and diversifying energy sources cooperation

will continue to coordinate the development

of transport energy infrastructure to ensure

bilateral fl ows and improve the security of

gas supply in both countries, the implemen-

tation of The European Third Energy Package

Codes.

An important segment of cooperation

between the two neighboring European coun-

tries is interregional and cross-border coop-

eration. Existing European instruments such

as the EU Strategy for the Danube Region, the

European Neighborhood Instrument (ENI),

the Romania-Ukraine Operational Program

2014-2020, the Black Sea Basin 2014-2020 and

others provide conditions for realization of

joint projects in various spheres of sustain-

able and balanced development of border re-

gions, development of economic, cultural and

humanitarian ties. This is particularly impor-

tant given the fact that most of the Romanian

and Ukrainian minorities live in these regions

of Ukraine and Romania, respectively.

In addition, both Ukraine and Roma-

nia have an extraordinary tourist potential,

which is associated with a common history,

traditions similarity, a large number of tourist

and natural attractions. Therefore, its shar-

ing by establishing eff ective cooperation with

mutual popularization both directly in coun-

tries and abroad will allow to deepen people-

to-people contacts, create conditions for in-

forming citizens of two countries about their

history, traditions, etc. In order to implement

these priorities at present carried out eff ec-

tive cooperation.

The aforementioned spheres of com-

mon interest are only a small part of those ar-

eas of bilateral cooperation which have signif-

icant potential for development and already

today are fi nding practical implementation.

At the present stage the basis of bilat-

eral relations is fi rst of all deepening of co-

operation in the European and Euro-Atlantic

dimension, intensifi cation of regional coop-

eration, expansion of trade economic ties,

and humanitarian cooperation. It should be

noted that despite the diffi cult history, cur-

rent diffi culties and problems Ukraine-Ro-

manian relations have entered an active phase

of mutually benefi cial development from the

perspective of bilateral cooperation between

Ukraine and Romania. The geopolitical situa-

tion of Ukraine and Romania, historical ties,

cooperation in many international organiza-

tions not only contribute to strengthening

economic and political relations but also en-

courage both countries to seek new dimen-

sion of cooperation at regional and interna-

tional levels.

Further intensifi cation of cooperation

between Ukraine and Romania will open new

ways for establishing and implementing joint

initiatives are in the interest of both coun-

tries.

10


H.E. Mr. José Miguel MENCHACA

Ambassador Extraordinary and Plenipotentiary of the Republic of Chile in Romania

Chile,

an open country

to the world

First of all, I would like to thank the Union

of Bilateral Chambers of Commerce from Roma-

nia (UBCCR) for the opportunity to share with

the readers of this prestigious publication some

refl ections on economic diplomacy.

In the case of Chile, rather than a concept,

economic diplomacy constitutes one of the pil-

lars on which the objectives of its foreign policy

have been established. All of them are pointing

in one direction, diplomacy in the service of the

country’s development.

This strategy has been implemented for

almost 30 years, and has become a real state pol-

icy that has been maintained by all governments

since the return of democracy. In this regard, I

11


think it is appropriate to emphasize that a

relevant factor is the strong partnership be-

tween the public sector and the private sec-

tor in terms of insertion into the globalized

world of today.

This public private partnership has al-

lowed us to establish a common vision on

the main guidelines and objectives of our

economic diplomacy, allowing us to consoli-

date a wide network of bilateral trade agree-

ments, including the main economies of the

world. In fact, Chile has now signed 26 trade

agreements with 64 economies (as has been

pointed out the most important economies in

the world). This represents 87% of the world’s

GDP and 64% of the total population of the

planet.

Chile and the European Union (EU)

concluded an Association Agreement in 2002,

which included a comprehensive Free Trade

Agreement (FTA) that entered into force in

February 2003, and has led to a signifi cant in-

crease in trade in goods and services between

the EU and Chile. The EU is Chile’s third im-

port supplier, after China and the US, and is

Chile’s second largest export market, after

China. We are currently in a process to mod-

ernize the existing FTA pillar, so as to ensure

that it addresses all relevant aspects of the

trade and investment relationship between

the EU and Chile.

This economic opening of Chile to the

rest of the world was part of a strategy in which

important elements stand out: the need to

generate alternative sources of income reduc-

ing the dependence on copper exports that

for many years represented almost 80 % of

the country’s GDP. To do this, the export ma-

trix had to be diversifi ed with emphasis on

those areas where Chile was perceived to have

comparative advantages. Thus, after 30 years

of opening, and although the mining sector

remains the most important in the Chilean

economy, copper exports now account for

only 50%, as a result of the strong growth of

agro-food exports, fruit, wine, salmon, pre-

served seafood products etc.

At the same time, in this eff ort to diver-

sify our export supply, the export of services

has become especially important in recent

times. Over the last ten years, the export of

Chilean services has expanded signifi cantly

and now account for about 13% of total ex-

ports and more than 4% of gross domestic

product. The services exports increased to

nearly US $ 1 Billion in 2016. Among them,

exports of business services (professional ser-

vices, consulting, technical services in mining

sector, architecture, engineering) and com-

puter and information services (IP services)

aims to convert Chile in an innovation hub for

Latin America.

In March 2012, the Chilean govern-

ment issued the “Plan de Innovación al 2014”

to specify a national strategy based on the

“Oslo manual” issued by the Organisation for

Economic Co-operation and Development

(OECD) in 2005, defi ning innovation as “the

use of new knowledge, to generate a product,

process or novel method, or the redefi nition

of business models that create new value in

the market.” This plan specifi es how innova-

tion in the country will be achieved and new

technologies developed and disseminated to

the market.

The result was that Chile was named the

12


most innovative country in South America in

the 2013 Global Innovation Index issued by

the World Intellectual Property Organisation

and INSEAD Business School (recognizing

“the key role of innovation as a driver of eco-

nomic growth and prosperity”). With organ-

isations such as Start-Up Chile, BSTinnova-

tion, Club de Innovación and Imagina Chile,

which were created to foster technological

advancements, and conferences like the fi rst

ever LatAm Innovation Summit, which ex-

amines greater innovation initiatives, there

can be no doubt of the country’s commitment

to the idea of innovation.

We have mentioned here the very suc-

cessful program Start-Up Chile that has posi-

tioned the country as the entrepreneurial hub

of Latin America, creating links with profes-

sionals from over 100 diff erent countries. This

program was attended by over 20 young tal-

ented people from Romania since its imple-

mentation by the Chilean Government. But

Chile innovation policies go way beyond

Start-Up Chile, which happens to be just

the visible part of the iceberg. The Chilean

Economic Development Agency (CORFO)

implemented about 50 programs to support

entrepreneurship and innovation. CORFO’s

programs off er equity-free subsidies, or loans,

and sometimes mere mentoring. In any case

the objective remains the same: showing

Chileans they can count on the support of

their government to undertake an innovative

project, and show the rest of the world Chile

now off ers much more than mining resources

or a developed banking and insurance indus-

try.

Beyond the free trade agreements, the

Santiago

13


regional integration must play and important

role and become a political platform for eco-

nomic and commercial integration with the

world. Chile is an active participant in major

international forums, including the United

Nations, Organisation of American States

(OAS), Asia Pacifi c Economic Cooperation

(APEC), Organisation for Economic Devel-

opment and Cooperation (OECD), Interna-

tional Monetary Fund (IMF), World Bank,

Inter-American Development Bank, World

Trade Organisation (WTO), Union of South

American States (UNASUR) and Commu-

nity of Latin American and Caribbean States

(CELAC) and an a political associate member

of Mercosur. Also, Chile is part of the Pacifi c

Alliance, a deep regional integration initia-

tive that seeks to progressively move toward

the free circulation of goods, services, capi-

tal, and people, as well as facilitate members’

(Chile, Colombia, Mexico, and Peru) strong

economic pivot to the Asia-Pacifi c region and

focus their eff orts on improving competitive-

ness as means to achieve strong growth, reach

higher levels of social cohesion, and alleviate

poverty.

The bloc represents a real convergence

eff ort between existing bilateral trade agree-

ments, establishing itself as an extended eco-

nomic zone relevant to regional and world

trade. The AP countries have a combined 200

million inhabitants and an average per capita

income of USD 10,000, and account for 35%

of Latin American GDP and 50% of regional

trade. The Alliance thus becomes the eighth

economy in the world and the seventh largest

world exporter. Chile is working to strength-

en the diff erent models of integration that

co-exist in Latin America as convergence

platforms and to promote Open Regionalism

that integrate our countries in this globalized

world, linking us to other regional initiatives.

Perhaps it would be the appropriate moment

to enhance that Chile fully supported Roma-

nia’s application to become observer of this

organisation in 2016. The new status pro-

motes a broader dimension of the economic

and commercial relations between Romania

and the member countries of the Pacifi c Al-

liance, in areas of common interest, and pro-

vides new cooperation opportunities in the

areas of commerce, energy, climate changes,

management of natural disasters and aca-

demic cooperation.

Chile is currently playing a very active

role for a deeper rapprochement and eco-

nomic convergence between the Pacifi c Al-

liance and the Mercosur, both the most im-

portant integration mechanism in the Latin

American region.

I would like to conclude this article by

sharing with you some aspects of the bilateral

relation between Chile and Romania. This

is the opportunity to confi rm the strength

of the friendship between our countries.

From a political point of view, we have an

excellent relationship with a very active,

permanent and dynamic bilateral dialog.

We have recently celebrated 90 years since

the establishment of Diplomatic Relations

between our two countries; also, in May

this year, in Santiago, was held the political

bilateral consultations meeting between the

Chilean and Romanian Ministries of Foreign

14


Aff airs. We are sharing common values such

as a commitment to human rights, democracy

and the rule of law, and we have identifi ed

common interests, both at the bilateral and

the multilateral level. In the last couple of

years we have organized with the support of

the UBCCR some seminars on business and

investment opportunities with Chile, also as a

member of the Pacifi c Alliance. Our Embassy

participated with institutional stands in

specialized fairs of tourism and wine, we

organized wine tastings and promoted our

products on the Romanian market. Despite

all that, from the economic point of view, we

must agree there is a lot more to be done, that

the volume of bilateral trade does not refl ect

the true potential of our economies.

That is why I invite the Romanian

business community to explore what Chile

has to offer. Chile has a consolidated po-

sition as Latin America’s most competi-

tive economy. This is mainly due to its

sustained economic growth and openness

to trade which have set it apart interna-

tionally as a free and dynamic market. Its

performance is ref lected in the rankings of

institutions that annually measure com-

petitiveness around the world. Is a reliable

partner that offers grate opportunities for

trade: Chile is the world’s largest exporter

of copper, frozen salmon, mussels, prunes

and fresh blueberries - grapes – cherries.

Its exportable offer includes goods as: fruit

and vegetables, wines, dried fruits, sea-

food products, meat, agroindustry, organic

products, pisco, olive oil, dairy products,

among others. In terms of service offerings

we can mention: engineering for mining

facilities, R&D in pharmacology, ICT consul-

tancy, fi lm post-production, R&D in seeds,

software design, and videogames produc-

tion, among other. Regarding the opportuni-

ties for investment, we might mention that

UNCTAD (The United Nations Conference

on Trade and Development) ranked Chile as

the world’s 11th largest recipient of foreign di-

rect investment (FDI). Chile off ers attractive

investment openings in sectors that include

mining, services, the food industry, infra-

structure, tourism and energy, including re-

newable energy.

ProChile, the institution of the Min-

istry of Foreign Aff airs of Chile in charge of

promoting exports of products and services,

has a network of over 50 offi ces worldwide

and 15 Export Centers in Chile which have

experience and tools to help boost the export

sector and position Chile’s attributes in in-

ternational markets. So we invite you to get

in touch with any of ProChile’s 54 offi ces in

the world, where you can organize business

meeting schedules, get advice on the quali-

ties of the Chilean productive and services

sectors, as well as information on investment

opportunities in Chile. Also, at the offi ces you

can learn more about Chile´s wonderful tour-

ist attractions.

Finally, I would like to reiterate that

as an Embassy we are open to attend any re-

quirements or concerns the Romanian entre-

preneurs may have, and together contribute

to strengthen the economic and political bi-

lateral relations, in accordance with the mu-

tually shared principles and values.

16


H.E. Mr. Felipe Alvarez DE TOLEDO

Ambassador of Argentina in Romania

Bilateral relations

will continue

to grow

in the near future

Abstract

The traditional bonds of friendship and

cooperation that have developed throughout

history constitute a promising basis for exploit-

ing the potential of linkage both in the political

area and in the economic, commercial, cultural

and technical fi elds.

In the last two years, the cooperation ties

between Argentina and Romania have been in-

creased by identifying sectors that are conducive

to the implementation of specifi c projects.

Keywords: Romania, Argentina, bilateral

trade, agreements, opportunities, agriculture,

sectors.

17


Argentina Economic Outlook

Argentina is one of the largest econo-

mies in Latin America:

is the third-largest economy in Latin

America (after Brazil and Mexico); estimated

GDP by the Instituto Nacional de Estadistica

y Censo (INDEC) to be USD 594.25 billion;

has the highest GDP per capita in the

region in PPP terms;

is 4th country in the region in terms of

population (43 Mn).

While the country´s economy remains

rooted in agriculture, mandatory education

up to the age of 18 means the country off ers

a highly skilled population, with a literacy

rate of 98%. The country has advanced nu-

clear and satellite industries. Argentina is the

fourth-largest oil producer in Latin America

(after Brazil, Venezuela and Colombia).

Since 1995, Argentina has been a mem-

ber of the Mercado Comun del Sur (South

Common Market or MERCOSUR), a customs

union including Brazil, Paraguay, Uruguay

and, from 2012, Venezuela. With a total popu-

lation of almost 278 million, the GDP of the

MERCOSUR customs union is estimated at

USD 5,138 billion. Chile, Colombia, Ecuador

and Peru are associate members of MERCO-

SUR, with Bolivia in the process of becoming

a full member.

Following the December 2015 election

of President Mauricio Macri, the govern-

ment launched a bold economic program to

strengthen the economy and improve the in-

vestment climate. Recent measures include

lifting capital controls, moving to a fl oating

currency, removing export taxes and reduc-

ing subsidies on utilities tariff s. On the other

hand, to stimulate private sector economic

activity, the government has eliminated ex-

port duties, except for certain products (soy

and products containing soy, soy oil, biodies-

el, certain leather, certain cork, certain paper

and cardboard for recycling and certain iron

and steel waste).

Argentina continues to make eff orts to

reduce its fi scal defi cit (through reductions in

benefi ts and subsidies, together with tax and

other reforms), with the new administration

committed to reducing the country´s current

38.9% infl ation rate to single fi gures within

the next four years.

The end of the dispute with holdout

creditors and the successful USD 16.5 Bn

bond issue (4 times oversubscribed) marked

a signifi cant milestone. These measures, cou-

pled with the fact that Argentina is open for

investment and has a good business climate,

have improved investors’ perceptions and en-

couraged FDI.

Argentina has a highly diversifi ed econ-

omy. The primary sector is internationally

renowned for its high productivity levels and

use of advanced technologies. Key sectors

in Argentina’s developed industrial base are

agribusiness, automobiles, pharmaceuticals,

chemicals and petrochemicals and biotech-

nology. The service sector is the largest con-

tributor to total GDP, representing over 60%

of the total.

Argentina has abundant natural re-

sources in energy and agriculture. In its ter-

ritory of 2.8 million square kilometers, with

53% of agricultural land, the country has

18


extraordinarily fertile agricultural land and

enormous potential in renewable energies. It

is a leading country in food production, with

large-scale industries in the agriculture and

livestock sectors. Likewise, Argentina has

great opportunities in some manufacturing

subsectors and in the sector of innovative

high technology services.

Argentina stands out as:

World leader in food production per

capita

Top ten amongst the countries with

land suitable for agricultural development

(30 million arable hectares)

1st exporter of soybean fl our and oil

1st producer and exporter of lemons

3rd exporter of soybeans, soymeal

and corn

4th exporter of sunfl ower oil

Bilateral relations

On the bilateral level, Argentina and

Rumania have a solid legal basis to promote

commercial, economic, investments, sci-

ence and technology, culture and education.

Among the agreements in force between the

two countries, I would like to highlight only

some of them. For example, the ones in the

fi eld of mutual protection of investments,

science and technology (signed in 2011 during

the visit of Minister of Science and Technol-

ogy to Bucharest), the one which modifi es the

Buenos Aires

19


economic and commercial agreement signed

in the 90´s (revised in 2009 during the Joint

Meeting of the Trade Commission in Bucha-

rest), the one between the two Diplomatic In-

stitutes (signed in 2011 in Bucharest).

The trade and cooperation relations be-

tween Romania and Argentina are regulated,

in addition to the EU agreements with Argen-

tina, by the “Economic and Trade Coopera-

tion Agreement between the Government of

the Argentine Republic and the Government

of Romania” signed on November, 27th, 1990

and entered into force on July, 2nd 1993. The

agreement was subject to a process of harmo-

nization of Romania’s obligations as a mem-

ber of the EU.

It can be said that there is considerable

interest in developing a broad cooperation in

agriculture, livestock, forestry, fi sheries and

agro-food. This could be seen in the short

term since a Cooperation Agreement between

the Ministry of Agroindustry of the Argentine

Republic and the Ministry of Agriculture and

Rural Development of Romania is in the fi nal

phase of negotiation.

It should also be noted that during the

last two years the agricultural sector has been

identifi ed as an area of high potential for bi-

lateral cooperation projects. In this regard,

meetings and visits have been held both with

the Romanian Ministry of Agriculture and

with counterparts from the local private sec-

tor. It has also received delegations of agri-

cultural entrepreneurs from Argentina, who

have been conducted and advised during

their stay in Romania.

Although bilateral trade value is

reduced (140 million dollars in 2015 according

to the Atlas of Economic Complexity, OEC

and 92 million dollars in 2016 according to

United Nations Commodity Trade Statistics

Database), Argentina ranks third among

trading partners in South America (after

Brazil and Colombia), the fourth market

destination of Romanian goods on this

continent (after Brazil, Colombia and Chile)

and the second country of origin for goods

imported by Romania in this geographical

area (after Brazil). Most of the Argentine

exports to Romania in 2016 are represented

by the soybean meal (soybean pellets), with

a value of almost 42 million dollars (63% of

total exports), Citrus and others rank second

in Argentine exports (up to 65% over 2015),

followed by “iron and steel”, whose export

value declined by 61% compared to 2015.

I would also want to highlight the in-

terest in consolidating the bilateral relation-

ship as well as cooperating in the following

sectors: agriculture, agricultural technology,

energy (fossil, renewable, nuclear), aerospace

industry, automotive industry and informa-

tion technologies. The importance of consoli-

dating bilateral legal aspects and increasing

parliamentary relations is also a priority.

In conclusion, I must say that I am very

confi dent that the bilateral relations between

Argentina and Romania will continue to grow

and strengthen in the near future. Nowadays,

our two countries enjoy a promising partner-

ship across a broad range of fi elds, and are

committed to the task of strengthening and

diversifying our bilateral ties.

20


H.E. Mr. Valery I. KUZMIN

Ambassador Extraordinary and Plenipotentiary of the Russian Federation in Romania

Russian

trade diplomacy

in Romania

Russian economy is currently going

through the process of deep transformation. In

the coming years, Russia is to accomplish a radi-

cal modernization of its economic system ac-

cording to the challenges and changes, which

are taking place in the global geopolitical and

economic order.

Russia is to determine its own model of

development, which will be suffi cient for con-

ducting a sovereign policy in the modern world.

There are enough reasons to believe that our

country together with like-minded states and

partners will be capable of fi nding answers to

global challenges.

Russia has managed to preserve the basis

21


for ensuring macroeconomic stability, re-

maining a country with one of the lowest in

the world levels of national debt; and budget

defi cit stays below the acceptable margin of

3% of GDP.

In the situation of global economic

crisis and following introduction of unlaw-

ful sanctions by the EU and the US against

our country, the set of measures, which was

timely taken by our Government, allowed to

preserve national gold and currency reserves

and ensured stability of the monetary system.

Infl ation keeps steadily descending and was

lower than 6% in 2016.

Banking system is going through a

complicated clearance procedure with inef-

fi cient banks being closed, at the same time

remaining stable. In addition, a suffi cient de-

crease in the outfl ow of capital from Russia

has occurred.

In the environment of an ongoing cri-

sis, many Russian companies have succeeded

in reducing their expenses that by itself has

led to increasing effi ciency of certain enter-

prises and industries. Russian metallurgical

companies today are among the best in the

world in terms of cost of production. Russian

oil companies in the circumstances of falling

oil prices manage to increase their corporate

ratings compared to other global leading oil

producers (according to the Moody`s).

The importance of import substitution

as a part of our long-term strategy is men-

tioned quite often. Now we are witnessing

the eff ects of import substitution – on the

domestic market scale as well as in Russian

foreign trade. The ratio between imports of

food products and their national production

is gradually changing in favor of the latter

one. Further growth of demand for domes-

tic products is becoming a signifi cant factor

stimulating further expansion of their pro-

duction.

Diversifi cation of Russian exports and

supporting its non-raw materials component

not only contribute to making our country

less dependent on price fl uctuations at the

global markets of raw materials, but also cre-

ate additional demand for Russian produce.

Russian companies, working in the fi elds

of metallurgy, chemical industry, means of

transport and agriculture have a good export

potential. Numerous export opportunities

are available in the pharmaceutics, automo-

bile and aircraft building industries.

A number of sectors of Russian econ-

omy have demonstrated impressive export

potential given the access to the international

industrial cooperation. They are the produc-

tion of optical and electronic equipment,

plastics and rubber, pulp and paper products,

transport vehicles.

Despite geopolitical diffi culties, Rus-

sia will proceed with the open foreign trade

policy, creation of free-trade areas with states

and groups of states. Russia sees enormous

opportunities in liberalization of interna-

tional trade if conducted on the equal rights

approach.

The European Union remains the key

trade partner for Russia being accountable

for more than 45% of overall Russian ex-

ternal trade turnover. Russia is the fourth

largest trade partner for the EU after the

22


US, China and Switzerland. Despite some

disagreements, Russia and the EU remain

important partners in trade as well as in in-

vestment cooperation: 75% of foreign direct

investments (FDI) to Russia are coming from

the EU countries. It clearly demonstrates the

economic signifi cance of our relations. Com-

panies, belonging to European partners, but

registered in Russia, have no limitations in

access to the Russian market.

In the last three years Russian-Roma-

nian relations have been characterized by

the remaining mutual interest in deepening

trade and economic ties, which are restrained

by the political confrontation resulting from

Bucharest`s support for NATO and US policy,

aimed at “containing” Russia. As a result, the

key feature defi ning our relations within the

period of 2014-2016 was decline of the bilat-

eral volume of trade.

According to the Romanian National

Institute of Statics (INS) data, in 2016 Russia

and Romania trade turnover reached 3,27 bil-

lions of USD (1,5% lower than in 2015), which

is equal to 2,29% of overall amount of Roma-

nian foreign trade. Moreover Russia exported

goods to Romania for 2,19 billions of USD,

and imported for 1,08 billions of USD. Posi-

tive trade balance in favor of Russia remained

at the level of 1,1 billion of USD.

By the end of 2016 Russia was placed

third (after China and Turkey) among non-

EU trade partners of Romania with a share

of 9,9%, also third in terms of export volume

(12,8%), second – when it came to imports

(6,78% - after Turkey).

The EU policy of sanctions has visibly

harmed national interests of Russia and Ro-

mania. Many representatives of Romanian

companies have noted that restrictions im-

posed on ties with Russian market are hin-

dering development of their businesses.

The Russian Federation off ers Romania

an opportunity to promote trade and eco-

nomic collaboration based on a pragmatic

and mutually benefi cial basis. In this con-

nection, we expect Romanian government to

support our approach and proceed with the

appointment of a co-chairman of Intergov-

ernmental Russian-Romanian Commission

on Economical, Scientifi c and Technological

Cooperation (IC).

Activity of this institution (IC) would

help to resume contacts, focus attention

on both economic and legal issues through

widening of business relations. Thus, a

positive practice of arranging agreements

at the level of leading companies, banks,

commercial organizations and regions could

be established. The resumption of Business

Council`s activity, which was founded by

Kremlin Palace

23


Industry and Commerce Chamber (ICC)

of Bucharest and its counterpart in Russia,

altogether with representatives of big Russian

and Romanian companies, can bring positive

outcome.

10th and 11th sessions of IC in 2011 and

2013, respectively, defi ned the key priorities

of economic collaboration between Russia

and Romania, which include fuel and ener-

gy sector, industry, agricultural production,

transport, scientifi c and technological coop-

eration. Desire to create the basis for a quali-

tatively higher level of business partnership

was highlighted.

In October 2016, for the fi rst time since

2013, meeting of co-chairmen’s` deputies of

IC both from Russian and Romanian sides

was held, altogether with the session of the

Working group on trade and investment, in

which representatives of Romanian Ministry

of Foreign Aff airs, Ministry of Science and

Technology, National Offi ce on Tourism, Na-

tional Sanitary and Veterinary Service, Bu-

charest Industry and Commerce Chamber

(ICC), Embassy of Romania in Moscow took

part.

During the session, an overview of

bilateral trade and economic relations was

made with an emphasis on perspectives of

their development. Both sides noted interest

in creation of new working groups within the

IC structure dedicated to the issues of tour-

ism, innovation activity and cooperation in

the fi eld of small and medium enterprises.

The Russian side proposed to reconsider sign-

ing Intergovernmental agreement on eco-

nomic cooperation. Currently perspectives of

convening a regular meeting of chairmen`s

deputies of IC in Moscow in autumn 2017 are

being discussed.

Interregional ties, oriented on explor-

ing potential of Russian regions and Roma-

nian counties, are off ering new opportunities.

Direct connection links between regional

ICCs, administrations, businessmen allow to

enlarge economic relations.

In practical terms, the series of busi-

ness meetings, arranged on the platforms

of Moscow, Saint Petersburg and Yaroslavl

ICCs, were very useful. The contacts between

businessmen allowed to re-evaluate, in accor-

dance with the new reality of international

situation, perspectives of cooperation, ex-

pansion of trade, investments and opportu-

nities for implementation of joint projects.

The business meetings were arranged with

the support of Embassy of Russia in Romania.

Assisting Russian investors in Romania

is one of the key priorities of Russian diplo-

macy in Romania. Such big state and private

companies as “Lukoil”, “Gazprom”, “TMC”

have been working for a long period of time

on the Romanian market, gaining a solid rep-

utation of responsible employers and taxpay-

ers. We expect that no artifi cial obstacles will

be created for their operations in Romania,

conducted in a full accordance with the local

laws.

It’s a common knowledge that after

winter come spring and summer. We hope

that it can be referred to our economic coop-

eration as well. Everything depends on the

proper political will, readiness to establish an

equal-in-rights dialogue and to take into ac-

count lawful interests of each other.

25


to minimize the infl ation and the mobiliza-

tion of human and material resources for the

increase of economy in general, of effi ciency

and its abilities and to create a friendly envi-

ronment for the long-term investments. Also,

it was pursued the ban of monopolies and the

deepening of market competition. In the 90’s

the oil production helped the Syrian’s econ-

omy increase rate to 7% and the public sec-

tor restarted to work after the 80’s crisis. The

fi nancial measurements taken by the gov-

ernment (tax reforms) decreased the budget

defi cit and the infl ation and helped the signif-

icant increase of agricultural production. In

the 2000’s the state gave many more payment

exceptions and exemptions for the industrial,

touring and services sectors investors. So the

private sector received an important role in

economical increase and allowed the govern-

ment and citizens to open accounts in foreign

currency. It’s been canceled, as well, the law

that banned the foreign currency circulation

in the Syrian state and this led to a substantial

increase of fi nancial increase. The number of

banks and fi nancial companies increased to

over 20 and it has been founded the Damasc

Scholarship and the fi nancial market.

In the industrial fi eld

This fi eld earned an important role in

the national economy for a few reasons:

- the industrial productivity increase

- the complementarity of the relations

between industrial sector and the other sec-

tors, the industry contribution to the prod-

uct needs ensuring of the local market-which

led to the requests decrease from outside the

country and changed the exchanges balance

with the external markets.

The government supports and encour-

ages the industrial sector, considering its ma-

jor role in the Syrian economical ensemble.

The industry ended up representing 40% of

GDP and off ers permanently new jobs, ab-

sorbing a huge part of the Syrian workforce.

In this way the need of import raw materials

it’s signifi cantly reduced and this thing sup-

ports and improves the local services market

included.

The minister of industry managed to

stop the production decrease which aff ected

the economy in the second half of the 80’s

and recorded a signifi cant progress at the

level of the capitals invested in the industrial

companies-this thing constituted the proof of

an important increase of the industrial sector.

The industrial companies had a private,

mixed or public character. In the transition

context to the social market system, the state

looked forward to encourage the private in-

dustrial companies through investment sup-

port laws and taxes exemptions for 7 years

from the production beginning. Also there

have been established and upgraded indus-

trial complexes beside the big Syrian cities.

Some of the industries by which Syria is re-

marked are: textile industry (with its steps-

harvest, assortment, ginning, lintersare,

melitare, the transformation into textile ma-

terial), food industry, the industries based on

building materials, two cars factories for the

internal market needs or the industries like

the extractive industries of natural resources

such as cement or fertilizers factories.

26


The agricultural sector

The agriculture activity is considered to

be one of the main Syrian production areas

that it has been increasing since 1980, when

the surface of agricultural land was consid-

erably extended. Its has been implemented

big agriculture projects and it introduced

modern machinery. The government paid

increased attention to agriculture and water

sources and the infrastructure has been im-

proved. The share of agriculture in GDP is

currently estimated at 30%.

The agricultural area has an impor-

tant role in the national economy not only

internally but also contributing to exports,

being an important component of foreign

trade that brings the foreign currency and

raw materials needed in various other fi elds.

The agriculture occupies a large part of the

workforce, providing a better life for a big

part of the population. In recent decades,

the Syrian agriculture has discovered the do-

mestic needs for the most of the food, under

the circumstances of population growth for

4 times. This has spurred the export of tra-

ditional produce such as cotton and the new

markets for fruit, vegetables and Syrian wheat

have also been opened.

The services sector

The services sector represents 30% of

the Syrian GDP. The banking services are di-

vided between the public and the private sec-

tors. Most of the big banks from Middle East

has also offi ce in Syria and the Syrian National

Bank manages all fi nancial operations in the

country and facilitated the open economic

transit and it allowing non-governmental ac-

tors to invest in the banking business of fi -

nancial companies. This has helped remove

the barriers to capital movements from and

to Syria.

The tourism

The tourism’s fi nance came to be in

2007 14,4% from GDP. The tourism assured

about 13% of jobs and it brought 31% from the

total of amounts in currency who came in the

country. The number of the foreign tourists

in 2007 arrived to 3,6 millions, according to

statistics of Tourism Ministry, this number

being registered without taking into consid-

eration the syrians who live outside the coun-

try and who came to visit home that period.

The syrian government has given a special at-

tention to tourism and he has increased the

amounts from the budget for the costs in this

domain.

The privat and public tourism

investments have reached 6 millions dollars.

The tourists has developed a biggest interest

in Syria, because here exist many medieval

castles, archaeological sites of very old age,

beside the increasing number of summer

resorts and forest areas who are made for

recreation and where the temperatures are

pleasant. The holidays in Syria costs much less

than in the other tourist states, like Turkey

and Lebanon. Also, the Syrian State organize

for several years more and more festivals and

expositions, some of the most important

27


being “The International Exhibition Damasc”,

“The Castel and the Valley Festival” ( The

Castel of the Knighthoods and The Valley

of Christians). One of the most important

museum of that tourist circuits is The

National Museum Damasc.

Starting with 2011, the Syrian economy

has been aff ected by war’s conditions. The

state institutions and the privat companies

from all the domains – agricultural, indus-

trial, services – were targeted by the terorist

groups. USA and EU imposed to Syria various

economic restrictions which forced many syr-

ians to emigrate and also the country was re-

stricted by their experience and their energy,

most of them being young men. As much as

the peace and the security return to diff erent

areas realised by the syrian army from the ter-

rorists, the economic activity slowly begins to

recover, in the domains as industrial, agricul-

tural, etc. It is expected that the Syrian econ-

omy will recover quickly to the level which

it was in 2011, as soon as the war is over and

the conditions of life will become completely

safe.

Romania’s role in the

development / industrial

revolution of Syria

Syria and Romania are connected

through solid historical relationships in all

areas - cultural, social, political, economic.

Bilateral relations have never been inter-

rupted. We have a common history span-

ning hundreds and even thousands of years.

The experience of the Romanian specialists

contributed to the reforms in the Syrian

economy and industry - land improvements

brought thousands of hectares of land to

agriculture, dams like Euphrates, Banias

refi nery, Alep tractors factory, heat generat-

ing stations, factory of Homs phosphates,

countless vital facilities for the industry that

are still functional today. Romania also con-

tributed to the development of education

- about 40,000 Syrian students graduated

from university studies in Romania, many of

them married with romance, others stayed

in Romania, and this led to the creation of

thousands of mixed families.

Syrian students who have studied in

Romania and returned to the country have

played an important role in building and

modernizing the country at all levels. Those

who stayed in Romania became mostly busi-

nessmen who contributed to the economy

and social life here. On the other hand, about

20,000 Romanian citizens currently live in

Syria, most of them coming from mixed

families, some of whom are Syrian families

who have studied in Romania, as mentioned

above, and others in Romania worked in Syria

and remained in their own country forming

families in Syria.

28


H.E. Mr. Zakonyi BOTOND

Ambassador of Hungary in Romania

Trends

in economic

diplomacy

The far-reaching and rapid changes in the

world are leading to signifi cant economic, po-

litical and military rearrangements. These chal-

lenges should be answered with new solutions

and suitable measures.

For this reason the responsibilities and in-

stitutional framework of the Ministry of Foreign

Aff airs and Trade of Hungary was reorganized in

order to adjust our own interests, emerging chal-

lenges and set of solutions to the changing glob-

al political, commercial and geopolitical trends.

As an integral part of this renewal we

have shifted our foreign policy direction in or-

der to promote Hungary’s interests in the most

eff ective manner. Therefore we have decided to

29


pursue a path of pragmatic foreign policy, fo-

cusing mainly on national economic interests

while in symbiosis with the system and set

of tools classical and cultural diplomacy of-

fer. This new direction has highlighted Hun-

gary’s key foreign policy objectives, namely

that Hungary obtain the highest contribution

of industry to GDP as well as export ratio to

GDP level in Europe and additionally have

the highest per capita direct foreign capital in

Central Europe.

The Government has made each struc-

tural and organizational change so that our

foreign policies contribute to the perfor-

mance of the Hungarian economy in an ever

greater increase. Within this new framework,

export development (Hungarian National

Trading House Plc.), investment promotion

(Hungarian Investment Promotion Agency),

export fi nancing (Exim), Joint Economic

Committees and the strategic partnership

agreements have become an institutional

part of the Ministry of Foreign Aff airs and

Trade. By these important changes, the suc-

cess of our new foreign policy will be easily

measured through the level of export, thriv-

ing investments, and achievements Hungar-

ian companies reach on foreign markets.

The foreign trade plays an important

part in the strengthening of Hungary, and

the performance of foreign trade underlines

the growth of the Hungarian economy to a

Budapest

30


greater extent than ever before.

Hungarian foreign trade closed a re-

cord year in 2016 in every respect. The exports

were 3,1 per cent higher (reaching EUR 93,3

billion) in 2016 than in 2015 when the highest

exports of all time were recorded.

The surplus of foreign trade, too, broke

a record in 2016, it amounted to EUR 9.9 bil-

lion, by EUR 1.3 billion higher than in 2015

when the highest foreign trade surplus was

registered in the history of the Hungarian

economy.

The large international corporations

constitute the backbone of Hungarian for-

eign trade, which employ Hungarian workers

and use the products and services of Hungar-

ian small and medium-sized businesses as

suppliers.

In this year, the system of investment

incentives is focusing more on supporting

technological improvements, and it will be

suffi cient to maintain employment to win a

grant from the central budget for such proj-

ects. (Previously, raising employment was a

condition to get such grants.)

The more big international companies

settle in Hungary, the more international

companies expand their capacities in Hun-

gary, the better it will be for domestic SMEs,

the more domestic SMEs will be able to get

involved in the supply network of these com-

panies.

A record number of investment proj-

ects, some 71 were closed successfully via the

Hungarian Investment Promotion Agency

during the course of 2016. This is the highest

number of all time, and it is a further record

that these investors brought investments

worth EUR 3.25 billion to Hungary, by virtue

of which 17,647 new jobs came into being in

the country.

This is facilitated by the fact that new

tax regulations entered into force in Hun-

gary as of the 1st of January 2017, which, for

instance, promote work force mobility, and

the corporation tax is now the lowest in the

region. Additional investment incentives

have been introduced which also promote

technology development, and further boost

the fi nancing of exports in the case of small

and medium-sized enterprises.

Budapest

32


H.E. Mr. Davor VIDIŠ

Ambassador of the Republic of Croatia in Romania

Will the growth

of tourism be

accompanied by

the growth of the

overall economic

relations between

the Croatia and

Romania

Croatia and Romania can take pride in ex-

cellent political relations and long-lasting eco-

nomic cooperation in which tourism records

the highest growth so fare. In 2016 Croatia was

visited by more than 93,000 Romanian tourists

and it is expected that this trend will continue

in 2017, particularly driven by the introduction

of the Croatia Airlines direct fl ight between Za-

greb and Bucharest as well as connecting fl ights

to other Croatian cities (starting from May 19,

2017). Past experiences have confi rmed that di-

rect fl ights have signifi cant impact on arrivals

and overnight stays of foreign tourists in the

proximity of the airport and beyond. It is ex-

pected that Romanians will visit Croatian tourist

33


destinations such as Dubrovnik, Split, Zadar,

Rijeka, as well as Zagreb, which in the last few

years recorded a signifi cant increase in arriv-

als and overnight stays of Romanian tourists.

Zagreb Tourist Board has been partici-

pating in Bucharest tourism spring and au-

tumn fairs for many years, in February 2017

for the eighth time, promoting Zagreb as an

attractive tourist destination for a city break,

highlighting its cultural and historical sights,

rich cultural life, wonderful atmosphere and

gastronomy, the beauty of its surroundings

and its excellent road connections with other

Croatian tourist destinations. On the other

hand, Romania is becoming more and more

attractive to Croatian tourists, especially in

the context of travel packages that include

not only Bucharest, but also other interesting

travel destinations such as Sinaia and its Peleș

Castle or Braşov and the Bran castle. It is also

expected that a direct fl ight connection will

attract a greater number of individual Croa-

tian tourists, visiting Bucharest and other

nearby tourist destinations.

However, although the most promising,

tourism is not the only backbone of Croatian

- Romanian economic relations. Croatian

companies did business in Romania more

than twenty years ago, especially in the rail-

way (Koncar), food (Podravka), agriculture

and electrical industry sectors. Today, look-

ing back at some previous good experiences,

we can see that there is room for improve-

ment on both sides of the economic and trade

relationship. Croatian “Podravka” continues

doing business successfully on this market

with its products and brands such as “Vegeta”,

while AD Plastik achieved good results by in-

vesting in the spare parts segment of the au-

tomotive industry. In Romania only 127 com-

panies have been registered with Croatian

capital in various sectors, from food industry

and machinery to retail, tourism, consulting,

games of chance and small family businesses.

Romania is ranked 23rd in terms of Cro-

atian exports to third markets with a 110 mil-

lion euros value and 25th in imports with 147

million value. Unfortunately, trade exchange

with Romania has a share of less than 1% in

total world’s Croatian commodity trade ex-

change. Croatian exports to Romania include

fertilizers, textile yarn fi bres, mineral prod-

ucts, machinery, foodstuff s, beauty products,

furniture, medical and pharmaceutical prod-

ucts, and others, while imports from Romania

include live animals, cars, clothes, tires, tubes,

meat, fruits and others. This data indicates an

insuffi ciently diversifi ed trade structure and

is far from what the two countries’ coopera-

tion in the economic fi eld could reach or what

the both countries strive for. We believe that,

refl ecting the long tradition and good busi-

ness results in the domestic and foreign mar-

kets, Croatian companies can be competitive

in the sectors of railcars, agricultural machin-

ery, energy, infrastructure, shipbuilding, tele-

communications equipment, pharmaceuti-

cal, chemical and other industries.

Just as Croatians highly value and buy

the Romanian “Dacia” or Romanians buy

the Croatian “Vegeta”, it is certain that other

Croatian products (food and confectionery

34


industries) or Croatian trams, can be com-

petitive on this large and important Euro-

pean market. Croatia and Romania are both

members of the EU and NATO, they share the

common association with the region, previ-

ous and current experiences in cooperation

within the framework of regional and in-

ternational organizations. Also, both coun-

tries have national minorities that construct

bridges of friendship and cooperation. The

oldest Croatian national minority consisting

6.000-7.000 Croats lives in Romania, in seven

villages of Caraș-Severin county where they

learn Croatian language while a small com-

munity of Istro-Romanians lives in north-

easter Istria.

The Croatian Chamber of Economy

and the Chamber of Commerce and Indus-

try of Romania have formalised its relations

since 1996 and have regular contacts. Roma-

nia-Croatia Chamber of Commerce and In-

dustry has been established and cooperation

of Vukovar and Constanta ports initiated.

Croatian Embassy in Bucharest has been en-

riched by a diplomat in charge of economic

aff airs, the Croatian business community

in Bucharest is growing and is in general

pleased with the achieved business results.

Of course there are some problems, but we

believe that such exceptions will be less fre-

quent. This year we expect the President of

the Republic of Croatia to visit Romania and

the Romanian Prime Minister to visit Croatia

accompanied by business people. Few other

high level visits are expected. We hope these

business gatherings and forums will result in

fruitful new agreements and business deals.

Our goal is to encourage more compa-

nies to export to the Romanian market and

thus strengthen overall economic coopera-

tion between the two countries.

Zagreb

36


H.E. Mr. Osman Koray ERTAȘ

Ambassador of Turkey in Romania

Turkey and

Romania:

strong strategic

and economic

partners

Turkish-Romanian relations have wit-

nessed a steady expansion in the last quarter

century, creating a mutually advantageous, solid

partnership covering diverse range of fi elds. At

the basis of this relationship lies the existing

strategic partnership, the strong NATO bond,

and above all the mutual political commitment

to advance cooperation.

The most dynamic part of this coopera-

tion has been economic and trade relations. In-

deed, since early 1990s our business communi-

ties have actively sought to use and develop the

existing potential for cooperation, pushing for

higher levels of economic integration. Today we

37


are happy to see the concrete results of these

joint eff orts.

Currently, Turkey is the 4th largest trad-

ing partner of Romania and the biggest one

outside the European Union. Romania is our

largest trading partner in the Balkans. Bilat-

eral trade volume which was only $ 2 billion

back in 2003, increased to $ 7 billion by the

end of 2011, marking more than a three-fold

increase. Despite the drop in bilateral trade

to some $ 5 billion last year due to the nega-

tive impact of the regional developments, we

believe, we have a strong basis to build on

to reach the mutually set target of 10 billion

USD trade volume.

On the investment front, Romania con-

tinues to be a major destination for Turkish

businesses. Currently more than 14.000 Turk-

ish companies are registered in Romania in

a wide range of sectors, including banking,

production, machinery, home appliances,

construction, construction materials, tex-

tiles, health, transportation, tourism, agri-

culture and food industry. The total value

of investments of Turkish companies, both

direct and indirect, exceeded 6 billion USD.

Most recently, Turkish group Yıldız Entegre,

one of the biggest producers of wood panels,

has started a new investment of 150 million

Euros near Piteşti to be completed by the end

of this year. ETİ, one of Turkey’s largest candy

producers, opened a candy factory in Craiova.

Similarly, Arctic and Kastamonu Entegre set

to increase their investments in Romania.

Contribution of the Turkish companies to

the Romanian economy is expected to grow

stronger with the completion of the ongoing

and planned investment projects. In this con-

text, we would also like to see more Romanian

investments in Turkey, which stand at the lev-

el of $ 20 million.

Why Turkey?

As a G-20 member country, Turkey is

a rising economic powerhouse and a strong

emerging player in the global economy. Turk-

ish economy is the 17th largest in the world

and 6th largest in Europe. In the next ten

years, Turkey aims to be among the 10 larg-

est economies, receive a 1,5% share from the

global trade, reach 500 billion USD of exports

and attain 80% exports/imports ratio.

The Turkish economy has achieved

an outstanding performance with its steady

growth over the last 14 years. Sound macro-

economic strategies, prudent fi scal and mon-

etary policies, structural reforms resulted

in high rates of growth and increased con-

fi dence in the Turkish economy. Following

last year’s failed coup attempt, the economy

recovered quickly. The fi gures of the Q1 this

year shows the state of emergency declared

after the coup attempt to tackle the FETÖ

threat against the state did not aff ect the daily

lives and economic activity, as stated clearly

at the onset.

From 2002 to 2016 the economy grew

on an average of 4.6 %. Despite the drop in

last year’s growth rate to 2,9 %, the IMF ex-

pects Turkish economy to grow by 3,4 % in

2017. Taking this into account, Fitch revised

38


Turkey’s 2017 growth forecast upwards from

2,3% to 4,7% in just 3 months following Q1

growth results of 5%.

Reform processes include acceleration of

the privatization of state owned enterprises,

increase in R&D spending, taking measures

for sustainable growth and the expansion

of foreign trade. Due to the comprehensive

macro-economic reforms, Turkish economy

proved resilient against the shock waves of

the global economic crisis that has aff ected

the world economy since 2008.

While the EU continues to be a major

destination for Turkish exports with a share

of 50%, Turkey’s export portfolio has been

diversifi ed. As a result, in the last fi ve years,

Turkish exports have reached more than 90

countries including the ones in South Amer-

ica, Africa and Asia. Turkey’s total exports in-

creased to $157 billion in 2014, hitting a record

high in the history of the Republic. Between

2002 and 2016 there was a fourfold increase in

our exports from $ 36 billion to $ 132 billion.

We have a dynamic picture on the in-

vestment side as well. Currently, approxi-

mately 40,000 companies with foreign capi-

tal operate in Turkey. The total amount of

foreign investments has exceeded $ 165 bil-

lion. The legislative amendments and steps

to ease bureaucratic procedures over the last

decade were instrumental in achieving these

fi gures. According to the A.T. Kearney FDI

Confi dence Index, Turkey ranked the world’s

22th most attractive destination for FDI in

2015. FDI into Turkey reached $ 16.8 billion

in 2015 alone at a growth rate of 32 percent

over the preceding year, thereby attaining the

highest annual FDI fi gure since the global fi -

nancial crisis. Although the amount of FDI

decreased to $12.1 billion FDI in 2016, Turkey

attracted $2,8 FDI in the fi rst quarter of 2017,

registering % 1,85 increase year-on-year.

Turkish government has also been de-

vising new instruments for fi nancing invest-

ments. Establishment of “Turkish Asset Fund”

last year, is a notable example in this regard.

The fund is expected not only to facilitate the

fi nancing of strategic investment projects in

Turkey, but also to provide depth to our capi-

tal markets. By creating a local resource base

it will also provide greater maneuverability in

executing projects of strategic importance.

The Turkish economy continues to

grow on a structurally sound basis. Despite

last year’s negative developments both in

our country and in our neighborhood, the

economy has proven its resilience and main-

tained its dynamism. We are confi dent that

combined with the reform agenda, the Turk-

ish economy will continue to expand along

with its partnerships abroad. Romania, in

this respect, remains a valuable cooperation

partner and attractive destination for Turkish

businesses.

UBCCRUnion of Bilateral Chambers of Commerce from Romania

TRUST MARK SEAL

UBCCR Trust Mark Seal

indicates that your company is an appreciated business worth to be recommended by UBCCR,

whose services and/or products present high-quality standards.

An original idea byUNION OF BILATERAL CHAMBERS OF COMMERCE FROM ROMANIA

40


H.E. Mr. Branko BRANKOVIĆ

Ambassador of the Republic of Serbia in Romania

Economic

cooperation

between Serbia

and Romania

I.

Traditionally, the bilateral relations be-

tween Serbia and Romania have always been

on a very high level. This year, we are marking

139 years since the establishment of diplomatic

relations between our two countries. During all

these years, the relations between Serbia and

Romania have gained both on intensity and on

diversifi cation, but especially on its quality and

on mutual assistance, both on bilateral and on

international level.

Our two countries have helped each other

on many occasions in order to overcome diff erent

diffi culties and problems. There are many such

examples of support and cooperation between

our two countries.

41


Today’s level of such bilateral coopera-

tion between Serbia and Romania is not only

very high, but it represents a well known ex-

ample for bilateral cooperation not only in

the region, but also in Europe.

In many aspects, the Romanian experi-

ence on its road to the EU integration repre-

sents very useful guidelines for Serbia on its

own way to gaining its full membership in the

EU. At the same time, respect of the basic

principles of international law and the Char-

ter of the UN by Romania, is highly important

for us. In this respect, the non-recognition of

the unilateral proclamation of the indepen-

dence of the Serbian province Kosovo and

Metohija, represents an essential example of

the high level of friendship and political rela-

tions between Serbia and Romania.

We believe that the existing relations

between Serbia and Romania will result in

further improvement of economic coopera-

tion, as it still has not reached the level of

political relations between out two countries.

II.

Romania, as the biggest neighboring

country to Serbia, represents an important

commercial partner of the Republic of Serbia.

The bilateral trade is in accordance with the

Transitional Agreement of Trade and Trading

Issues between an EU country and the Re-

public of Serbia.

Amongst the countries to which Serbia

has exported its products in 2016, Romania

is placed on the 4th place, amongst the most

important trade partners of Serbia. At the

same time, Romania is on the 11th place con-

sidering the import of goods from Serbia in

2016, according to the value of the imported

goods.

The total amount of trade revenue for

the 2016 was 1.3 billion Euros, which repre-

sents a 12% increase comparing to 2015. The

export of goods from Serbia to Romania was

in the amount of 769.5 mil Euros, which is

14.8% more that the previous year, while the

import from Romania was in the amount of

499.9 mil. Euros, which is 7.7% higher com-

paring to the same period of 2015. Serbia has

recorded a surplus in commodity exchange

with Romania, in the amount of 269.6 mil-

lion Euros. The coverage of imports by ex-

ports was 153.9%.

In spite of the fact that some achieve-

ment has been reached in commodity ex-

change, the level of economic cooperation is

still not in accordance with the economic and

natural resources’ potentials of the two coun-

tries. In the past fi fteen years, the commod-

ity exchange between the Republic of Serbia

and Romania took place through classical

trade arrangements, whereas before this pe-

riod the participation cooperation in product

exchange was around 30%. The trade of raw

material goods is noted, but the commodity

exchange of the added value goods should be

improved.

During the 2016, the goods exported

from Serbia to Romania included mostly ag-

ricultural products, such as cereals, with the

corn leading with 29.3% of the entire export

goods from Serbia to Romania, followed by

wheat with 9.7%, sugar, molasses and hon-

ey with 2%. The leading export products of

Serbia to Romania are the following: the

electrical energy distribution equipment

42


(7% of the exported goods), waste oil prod-

ucts and similar goods (2.9%), automobile

tires and similar goods (2.7%), furniture

and furniture spare parts (2.6%), oily seeds

for “light” oils (2.2%), petroleum and min-

eral oils petroleum-based oils and minerals

(2%), and so on.

As for the import from Romania to

Serbia during the same period, the most im-

portant products were petroleum and min-

eral oils (14% of the imports), unclassifi ed

goods (12.3%), spare parts and tools for mo-

tor vehicles (9.6%), veneer and other pro-

cessed wood(6.7%), electrical energy distri-

bution equipment (5%), soaps and cleaning

products (3.5%), construction materials and

spare-parts (3%), rolled products-unplated

(2.8%), aluminum (2.3%), etc.

During the fi rst 5 months of 2017, the

most exported goods from Serbia to Romania

were corn (35.6%), electrical energy distri-

bution equipment (10.3%), pumps and com-

pressors (3.2%), paper and cardboard (2%),

hydrocarbon and its derivatives (2%), furni-

ture and spare-parts (1.8%), wheat (1.8%), au-

tomobile tires (1.8%), etc.

In the same mentioned period, Ser-

bia has imported from Romania petroleum

and mineral oils (14%), unclassifi ed goods

(11%), spare parts and equipment for motor

vehicles (10%), electrical energy distribution

equipment (6%), veneer and other processed

wood (5%), rolled products-unplated (5%),

soaps and cleaning products (3%), electricity

(2%), etc.

III.

The Serbian Chamber of Commerce

along with the “Velexpo d.o.o Belgrade” com-

pany which is the general representative of

the Romanian Romexpo Bucharest company

in Serbia, will organize the participation of

Serbian companies to the 22nd Internation-

al Agricultural Fair “Indagra 2017” (http://

www.indagra.ro/en/), which will take place

between October 25-29, 2017 in Bucharest,

Romania. There will be 11 Serbian companies

attending the fair, including: “Vitamin” from

Horgos, “Beoinox” from Belgrade, “Gumil Ko-

merc UB”, “Medela” form Vrbas, “Rubin” from

krusevac, “Vital” from Vrbas, “Mini Pani”

from Subotica, “Aroma Zacini” from Futog,

“Remy Family” from Futog. The meeting B2B

between Romanian and Serbian companies

will also take place at the mentioned fair.

The Serbian companies were present

at the fairs organized by Romexpo Bucharest

since 1997, but their presence to the “Indagra”

fair, where Serbia has participated 5 times al-

ready, is of special interest to us.

Belgrade

44


On November 2, 2017,


of Commerce from Romania signed

the partnership agreement with Minister

for Business Environment, Commerce

and Entrepreneurship

The agreement stipulates that the two institutions will collaborate in projects for the interna-

tionalization of Romanian companies and in the intensifi cation of Romania’s foreign activity on

commercial diplomacy.

The Partnership agreement was signed by Mr. Ilan Laufer, Minister for Business Environment,

Commerce and Entrepreneurship and phd. Nasty Vlădoiu – President of the Union of Bilateral

Chambers of Commerce from Romania.

Mr. Ilan Laufer, Minister for Business Environment, Commerce and Entrepreneurship and phd. Nasty

Vlădoiu, President of the Union of Bilateral Chambers of Commerce from Romania

45






46


Offi cial Opening of the Commercial Diplomacy Chamber

with Kingdom of Spain

within the 3rd meeting

of the Commercial Diplomats Club

47


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