Globes, Israel business news
Israel, Romania to jointly export duty-free goods to EU
The agreement is in preparation for Romania’s entry into the European Union in 2007.
22 February 2005
By Hadas Manor
Israel and Romania have signed an upgraded trade agreement, which will enable companies from both countries to jointly export goods to the EU, duty free. Minister of Industry Trade and Labor Ehud Olmert yesterday signed a new and improved protocol in the countries’ bilateral trade agreement, which enables Israel and Romania to participate in pan-European accumulation agreements with the EU, thereby boosting joint exports.
The EU allows member states and neighboring countries to jointly produce goods, which can be exported duty-free to the EU. The EU decided to expand its pan-European accumulation agreements, which currently cover 32 European countries, to the Mediterranean basin.
Israel and Romania have a free-trade agreement. Romania is due to join the EU in 2007, and cancel its existing agreements with other countries, including Israel. Thanks to the present agreement, Israeli and Romanian companies will be able to jointly produce goods under the pan-European accumulation agreements.
The upgraded trade agreement Israel signed with Jordan in December 2004 includes a clause allowing Israeli-Jordan accumulation vis-à-vis the EU.
Following the upgrading agreement with Romania, the Ministry of Industry, Trade and Labor plans to amend Israel’s agreement with Bulgaria, which is also due to join the EU in two years.
Israel and Romania are also negotiating to broaden bilateral agricultural trade liberalization.
Israeli investment in Romania is estimated at $1 billion, and bilateral trade is estimated at $200 million in 2004. 500 Israeli exporters operate in Romania.