John Baird: Canada's freedom agenda - Diplomat Magazine

DIPLOMATICA|TRADE WINDSRomania: fine wine and renewable energyBy Elena StefoiThe embassy of Romania in Ottawapursues two complementary tradeobjectives. The first is to stimulate bilateraldialogue to increase trade and identifynew niches of economic co-operation.The second is to harmonize the bilateralrelations between Romania and Canadawith the commercial policies of the EUacquis (body of European Union law).Visits to Bucharest in 2009 and 2010 byInternational Trade Ministers StockwellDay and Peter Van Loan led to the accelerationof the signing of a FIPA (ForeignInvestment Promotion and ProtectionAgreement). And when the president ofthe Romanian Senate and his Canadiancounterpart met, both in Bucharest and inOttawa, bilateral trade was part of theiragendas. Romania’s minister of foreignaffairs also discussed possibilities for economiccooperation with federal ministerson his Canadian tour in 2011.This is the most recent chapter in thelong-time partnership that Romania andCanada enjoy, one guided by a solid legalframework, with agreements on doubletaxation avoidance, nuclear co-operationand trade, legal assistance on criminalmatters, FIPA and social security.As an EU member, Romania applies“communitarian policies” in the commercialarea but also takes part in adoptingEuropean strategic decisions. Thus,Romania is an active supporter of theCanada-EU Trade Agreement (CETA).We hope it will entrench consistent andmodern practices that benefit both sidesand extend outward to wider internationaleconomic relations.The total volume of Romanian-Canadianbilateral commercial trade in 2010was US$257 million, of which $123.4 millionwere Romanian exports to Canada,and $133.7 were Canadian exports to28Romania. These figures represent a 78percent increase over 2009 figures forRomania’s exports, and a decrease ofRomania’s commercial trade deficit withCanada of $73 million. In the first half of2011, Romania’s exports increased by 122percent when compared to the same periodin 2010.Romania’s exports to Canada includetires and auto parts, common metals,generators, power transformers, furniture,clothing wear and accessories. From Canada,Romania mainly imports solvents,reactive agents, transmission equipment,medical drugs, cereals, radiators, electricpanels and optical instruments.We would like to see a greater opennessto the Canadian market for the followingRomanian goods: IT equipment and cellulartechnology, naval radio-detection andradio-sound machines, warning monitorsThe Danube at the Romanian-Serbian border.along with optical, photographic andmedical instruments and equipment. Romanianwines, including Chevalier DyonisMerlot, Feteasca Neagra Reserve, TerraRomana Millenium and Prahova ValleyReserve, are relatively new products introducedon the beverage market. The lattertwo have reached Canada through itsAtlantic Gateway (New Brunswick) wherethey have gained connoisseurs’ praise.As of December 2010, some 1,562Romanian-Canadian companies wereregistered in Romania, operating mainlyin the agri-foods, transport, construction,and tourism sectors. Bombardier, SNCLavalin and Intelcan Technosystems Inc.,among others, have expanded their operationsin my country. We would like a moreDenis Barthelactive Canadian presence, through directinvestment, in the aeronautic and defenceindustries, unconventional and atomicelectric energy, the petroleum industry, IT,tourism, agriculture and in the agri-foodsindustry. Infrastructure projects offer awide variety of opportunities — a largepercentage of the 30 billion euros providedby EU structural funds are destinedfor this sector.Geographically, Romania is wealthy inimportant waterways. The Danube River,Europe’s second-longest, passes throughor borders 10 countries and Romania enjoysdirect access to more than a quarter ofthe river’s length. With Romania’s coastlineon the Black Sea, as well, maritimetransport ranks as another attractive areaof expansion with Canada.However, the current level of bilateraleconomic exchanges is far below potentialof the two markets and economies.Canadian investors should take note thatRomania is recognized globally for its ICTexperts. (At Microsoft headquarters in theU.S., the second spoken language afterEnglish is Romanian).Romania’s unconventional energysector is a very appealing area for investmentand trade. Recently, Ernst & Young’sworldwide ranking of investment-worthycountries awarded Romania 45 points outof 100, placing it in the category of attractivestates for foreign investors. And Ernst& Young ranked Romania 16th out of 35countries worldwide (just ahead of theNetherlands and Japan) for its potentialfor unconventional energy sources and relatedinfrastructure — wind (land/water),solar, geothermal and biomass.Worth noting is Romania’s unique corporatetax of 16 percent (among the lowestin the region), the flexibility of the locallabour market and government incentivesfor initial investment in renewable energy.The government also offers individuallytailored stimulus packages for investmentprojects in conventional industries, includingtourism and construction.We await your trade and investmentproposals in any domains of interest mentionedabove. Another point of interest: In2012, we are planning a Romanian-CanadianBusiness Forum in Ottawa.Elena Stefoi is Romania’s ambassador toCanada. Reach her at email: romania@romanian-embassy.com or 613-789-4037.WINTER 2012 | JAN-FEB-MAR