Romanian market still untapped

GSP+preferences for Lankan products:

Ramani Kangaraarachchi

Sri Lanka and Romania could consider this year as the year of re-launching of mutual trade relations if the positive beginning in January and February could be maintained.

Economic Counsellor, Charge d" Affairs, Embassy of Romania' Lonel Gombos, told a seminar organised by the Sri Lanka Poland Business Council and Ceylon Chamber of Commerce on "Business Opportunities in Emerging Economies in the EU," said during January and February 2008 ,Sri Lanka Romania bilateral relations reached US$ 1.87 million. Exports from Sri Lanka to Romania stood at US$ 0.61 million and imports from Romania to Sri Lanka stood at US$ 1.26 million.

He pointed out in 2007 the bilateral trade reached US $ 8.87 million and it was only US $ 7.9 million in 2006 which was a positive sign.

Elaborating on business opportunities in twelve areas Gombos said the machine building industry, ITC, electrical and electronic engineering industry, chemical and petrochemical industry, apparel, leather, furniture, porcelain, industries and organic Farming are the main areas where opportunities are available.

He said that starting from January 2007, Romania in her capacity as full member of the EU is part of Single European Market where the free movement of people ,goods, services and capital are guaranteed and from that very date Romania implemented the common trade policies of the EU.

As a result imports to EU are subject to the common Customs tariff of EU which means that exports of Sri Lankan products to Romania benefit GSP+ preferences, being the only country from the region benefiting all facilities from EU.

He said that rules and regulations related to trade and cooperation between Sri Lanka and EU, which are fully applied on relations between Sri Lanka and Romania , are strongly encouraging the re-launching of mutual trade.

"On the other hand, Romania can offer for export a wide range of products of interest for Sri Lanka market and ,can be the destination for products offered by Sri Lanka.

Large domestic market with over 22 million consumers, excellent location at the cross roads, extensive maritime and rivers navigation facilities, friendly environment for foreign investors with flat taxation of 16% tax facilities for major investments are some other positive factors," he said.