Foreign Trade News
Romania exports cars, transport equipment worth over EUR 7 bn in first 4 months of 2014
BUSINESS | NINEOCLOCK | AUGUST 22ND, 2014
Romania exported, in the first four months of this year, cars and transport equipment worth 7.352 billion euros, by 671.3 million euros over the level in the same period of 2013, according to the data centralized by the National Statistics Institute (INS). The imports of cars and transport equipment stood at 6.547 billion euros, by 467.6 million euros higher than those in the period January to April 2013. Thus, a surplus of 804.4 million euros was recorded on this segment.
Romania requires offsets as a condition for the awarding of defense contracts. Romania revised its public procurement law in 2013, exempting certain state owned enterprises from the public procurement law and allowing them to use nontransparent procedures for their procurements. In an effort to enhance absorption of EU funds, the government has simplified the procurement procedures for private sector beneficiaries of EU funds.
In December 2006, the United States entered into negotiations with the EU, within the framework of the GATT 1994 provisions relating to the expansion of customs unions, regarding compensation for certain tariff increases related to Romania’s and Bulgaria’s EU accession on January 1, 2007. Upon accession to the EU, Romania and Bulgaria were required to change their tariff schedules to conform to the EU’s common external tariff schedule, which resulted in increased tariffs on the importation of certain, mainly agricultural, products. Under GATT Articles XXIV:6 and XXVIII, the United States is entitled to compensation from the EU to offset these tariff increases. In late 2011, the United States concluded negotiation of a bilateral compensation agreement with the EU covering several agricultural products, and the two sides signed the agreement in 2012. The agreement establishes or increases EU tariff-rate quotas allocated to the United States for several agricultural products. The United States and the EU brought the agreement into force on July 1, 2013.