Business Opportunities ROMANIA - UNITED STATES OF AMERICA

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► Bilateral Relations Romania - United States of America

► Doing business in Romania

► Reasons to invest in Romania

According to Romanian trade statistics, the volume of trade between Romania and the United States reached 1.969 million USD at the end of 2011, out of which, 1.110 million USD represented Romanian exports and 859 million USD represented imports of American goods to Romania.

At the end of 2010, the volume of trade was of 1.327 million USD, out of which, 671 millions represented the Romanian exports and 656 millions USD the imports from the U.S. Basically, this shows a 65% increase in Romanian exports to the U.S. and a 30% increase for Romanian imports of American goods compared to 2010.

During the past years, the Romanian exports to the U.S. increased constantly and reached levels above the recorded volume in the years preceding the financial crisis. The highest share of exports consists of electrical machinery, various metals, plastics, rubber, textiles, and industrial chemicals.

For imports, cars, electronics, agricultural products, industrial chemicals, optical instruments, and other types of metals enjoy the largest share of the U.S.-Romanian trade. Some of the more prominent U.S. corporate names include: ADM, Aecom, Alcoa, Amgen, Bungee, Cargill, Citibank, Coca-Cola, Colgate Palmolive, Cooper Cameron, Delphi Packard, Euro Tire, Eli Lilly, Flextronics, Ford, General Electric, GE Money, Hewlett Packard, Hilton, Hoeganaes, Honeywell, IBM, Johnson Controls, JW Marriott, Kodak, Kraft, McDonald's, Met Life, Microsoft, New Century Holding, Office Depot, Oracle, PepsiCo, Philip Morris, Procter & Gamble, Qualcomm, Raytheon, Romanian-American Enterprise Fund, Sigma Blazer, Smithfield Foods, Timken, UPC, Visa, Washington International Group/URS.

According to the statistics published by the National Bank of Romania, in 2011 U.S.A. ranked 12th in foreign investment - the source investment representing 2.32% of Romania’s total foreign direct investment - after the Netherlands, Austria, Germany, France, Greece, Italy, Cyprus, Panama, Spain, Switzerland, and Luxemburg.

These investments are primarily in the areas of automotive industry, engineering industry, machinery and equipments, agriculture and food processing industry, information technology, energy, banking and finance, electronic industry, chemical and pharmaceutical industry, telecommunications, tourism.

Source: http://washington.mae.ro/en/node/535

Romania is an upper-middle income economy and is a member of the European Union. With a GDP of $263.9 Billion, Romania is in the top 50 of world economies.

Romania recorded a $7,830 million trade deficit in goods in 2010, giving it one of the largest trade deficits in Eastern Europe. It has the 52nd largest labor force in the world, with 9.252 million, 49% of which work in the service sector.

In 2011, U.S.-Romania trade in goods and services totaled $2,347 million. U.S. agricultural machinery and equipment, energy, environmental technologies, healthcare, information technology, packaging equipment and waste recycling, and chemicals are particularly attractive to Romanian importers.

Principal Romanian exports to the United States are fertilizers, insecticides and pesticides, industrial machinery and equipment, metals and metal products, textiles and footwear, and civilian aircraft engines.

The U.S. Commercial Service in Romania promotes economic prosperity, enhances job creation, and strengthens national security through a global network of the best international trade professionals in the world. It promotes and protects U.S. commercial interests abroad and delivers customized solutions to ensure that U.S. businesses compete and win in the global marketplace.

 Source: http://romania.usembassy.gov/business.html

Why Romania?

A marketplace of 22 million, 37 million acres of arable land, a vibrant oil and gas industry, breathtaking landscapes, an expanding economy, a well-educated workforce with more than 50,000 specialists in information technology, access to the Black Sea and Asia. These features of Romania have attracted U.S. investors in banking, energy, biotechnology, manufacturing, electronic components, cable operation, consumer products, telecommunications and film production, among others. They have discovered that American management and capital works profitably in Romania.

U.S. exports in Romanian are growing as well, fueled by Romania’s economic expansion and new reductions in trade barriers. Romania offers significant opportunities to American businesses with products, services, or technologies that either meet growing private demand or contribute to the country’s development priorities.

The country’s entry into the European Union in January 2007 was preceded by a series of government reforms in order to satisfy the conditions of EU membership. Now the requirements of membership – including EU directives – make up one of the driving forces in Romania’s program of reform, modernization and investment in infrastructure. More significantly, these directives are accompanied by funding from the EU in the form of Structural Adjustment Funds and other programs to enable the new members to align their economies with the rest of the EU.

At the same time, Romania’s membership in NATO has supported demand for defense and security products, and American vendors are well-regarded and active in this market. Romania’s defense and security relationship with the United States is strong and productive; the two countries’ militaries serve alongside each other in Iraq and Afghanistan. Private demand has been strong and provided a market for a wide variety of products, and Romanian businesses regularly express interest in U.S. suppliers as alternatives to European competitors.

The effects of the slowing worldeconomy arrived late to Romania, but are now beginning to announce themselves in the form of rising unemployment, a drop in demand from Romania’s export markets, and a growing budget deficit. Romania has not yet entered the "Eurozone," but has set 2014 as the target year to adopt the euro. In the meantime, many Romanian companies with debts denominated in Euros but income in the local currency, the leu, are exposed to exchange rates losses as the value of the leu has fallen against both the dollar and euro.

As a result, both consumer and corporate purchasing power have fallen, and investment plans are being reconsidered. Romania’s rate of economic growth in 2008 stood at an impressive 7.1%, but has decelerated and is now expected to remain at or below 1% in the year ahead. Against this backdrop, CS Romania advises U.S. businesses to investigate and pursue opportunities – both public and private sector -- in which the funding sources and prospects for payment are reliable.

The public sector plays a major role as purchaser and procurer of products and services, and projects in areas such as ICT, infrastructure, water and wastewater treatment, energy, and agriculture are supported by funds from external sources such as the EU or development banks such as the European Bank for Reconstruction and Development (EBRD) or World Bank.

Recognize these names?

Your competitors are in Romania or will be soon… 3M, AIG, Alcoa, Amway, Avon, Bunge, Cargill, Cisco, Citibank, Coca-Cola, Colgate Palmolive, Ernest & Young, Delphi, General Electric, HBO, Honeywell Garret, Howard Johnson’s, HP, IBM, Johnson Controls, Kodak, Kraft, Lockheed Martin, McDonald’s, Microsoft, Motorola, New Century Holdings, Oracle, Philip Morris, Proctor and Gamble, Qualcomm, RAEF, Solectron, Timken, UPS, Visa, Washington Group, Xerox...to name a few! Can your company afford to miss out on this important opportunity?

 Source: http://export.gov/romania/doingbusinessinromania/eg_ro_031135.asp