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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
the Union of Bilateral Chambers
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
volume I, issue 2 - 2018COMMERCIAL DIPLOMACY JOURNAL
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
COMMERCIAL DIPLOMACY JOURNALvolume I, issue 2 - 2018
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
volume I, issue 2 - 2018COMMERCIAL DIPLOMACY JOURNAL
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
COMMERCIAL DIPLOMACY JOURNALvolume I, issue 2 - 2018
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
volume I, issue 2 - 2018COMMERCIAL DIPLOMACY JOURNAL
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
COMMERCIAL DIPLOMACY JOURNALvolume I, issue 2 - 2018
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
volume I, issue 2 - 2018COMMERCIAL DIPLOMACY JOURNAL
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
COMMERCIAL DIPLOMACY JOURNALvolume I, issue 2 - 2018
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
volume I, issue 2 - 2018COMMERCIAL DIPLOMACY JOURNAL
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
volume I, issue 2 - 2018COMMERCIAL DIPLOMACY JOURNAL
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
COMMERCIAL DIPLOMACY JOURNALvolume I, issue 2 - 2018
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
volume I, issue 2 - 2018COMMERCIAL DIPLOMACY JOURNAL
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
COMMERCIAL DIPLOMACY JOURNALvolume I, issue 2 - 2018
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
volume I, issue 2 - 2018COMMERCIAL DIPLOMACY JOURNAL
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
COMMERCIAL DIPLOMACY JOURNALvolume I, issue 2 - 2018
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
volume I, issue 2 - 2018COMMERCIAL DIPLOMACY JOURNAL
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
COMMERCIAL DIPLOMACY JOURNALvolume I, issue 2 - 2018
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
COMMERCIAL DIPLOMACY JOURNALvolume I, issue 2 - 2018
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
volume I, issue 2 - 2018COMMERCIAL DIPLOMACY JOURNAL
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
COMMERCIAL DIPLOMACY JOURNALvolume I, issue 2 - 2018
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
volume I, issue 2 - 2018COMMERCIAL DIPLOMACY JOURNAL
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
COMMERCIAL DIPLOMACY JOURNALvolume I, issue 2 - 2018
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
volume I, issue 2 - 2018COMMERCIAL DIPLOMACY JOURNAL
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
volume I, issue 2 - 2018COMMERCIAL DIPLOMACY JOURNAL
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
COMMERCIAL DIPLOMACY JOURNALvolume I, issue 2 - 2018
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
volume I, issue 2 - 2018COMMERCIAL DIPLOMACY JOURNAL
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
volume I, issue 2 - 2018COMMERCIAL DIPLOMACY JOURNAL
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
COMMERCIAL DIPLOMACY JOURNALvolume I, issue 2 - 2018
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
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volume I, issue 2 - 2018COMMERCIAL DIPLOMACY JOURNAL
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
volume I, issue 2 - 2018COMMERCIAL DIPLOMACY JOURNAL
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.
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COMMERCIAL DIPLOMACY JOURNALvolume I, issue 2 - 2018
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
volume I, issue 2 - 2018COMMERCIAL DIPLOMACY JOURNAL
(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
volume I, issue 2 - 2018COMMERCIAL DIPLOMACY JOURNAL
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
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
COMMERCIAL DIPLOMACY JOURNALvolume I, issue 2 - 2018
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
46
volume I, issue 2 - 2018COMMERCIAL DIPLOMACY JOURNAL
Offi cial Opening of the Commercial Diplomacy Chamber
with Kingdom of Spain
within the 3rd meeting
of the Commercial Diplomats Club
47
COMMERCIAL DIPLOMACY JOURNALvolume I, issue 2 - 2018
www.auragoldwater.com