The Start of the Alliance
Romania is a republic situated in southeastern Europe at the lower part of the Danube River. Under the rule of the Communists, its economy was highly centralized and functioned within official plans. It was in the 1980's when the country experienced some economic problems leading to its decline. Back then, it had to payoff a debt amounting to $10 billion. The Communist era was a period for heavy and nationalized industries. Machine building was the primary factor for the state's investments. Some problems were encountered though especially because fixed assets were already aging. This increased the energy inefficiency rate of the republic. To stabilize the economy, petrochemical manufacturing capacity had been developed. Food processing as well as textile manufacturing became an essential component of the light industries. Ninety percent (90%) of Romania's agricultural and productive lands were collectivized during the Communist regime. Farm productivity was very minimal because of several factors such as lack of investments, bad management and absence of mechanized systems. After the revolution of 1989, the new government disseminated the land to private farmers. This was part of the attempt to increase production. The principal crops are corn, wheat, fruits and vegetables, rye, sugar beets, potatoes and oilseeds. Dairy products made its market share and other goods such as wines and meats were produced in bulk. Despite being left with food shortages after the Communist era, Romania is still a good food exporter. During the 1980's 25% of the foreign trade of Romania was reliant upon the existence of then Union Soviet Socialist Republic (USSR). The remaining 75% of its trade was distributed to other nations which includes the United States. Its partnership with the latter was not seen even after World War II. However, in the 1960's, bilateral relations of Romania and the US improved a lot. To make a good start they focused not only on each other's economy but also included exchanges for culture, education and science. The early years of the trade relations were characterized by differences in political conditions. Each of the two governments played a vital role to circumvent the disparities thus yielding to positive results. Up to these days, these two countries have strengthened the friendship with a variety of goods going to and coming from each other's boundaries. Major Exports and Imports between the Two Nations Romania's exports are comprised of textiles, footwear, metal and metal products, minerals and fuels, chemicals, machinery and equipment and agricultural products. Its principal imports are textiles, basic metals, machinery and equipment, fuels and chemicals, minerals and agricultural products. In 2005, the US ranked seventh among all the export partners of Romania with a contribution of 4.1% to the total. The US Census Bureau recorded US exports to Romania for the ten-month period ending October 2008 at $879.3 million. On the other hand, imports of the former from the latter gained total market share of $916.4 million. For the year 2007, the following totals were tracked by the same agency:
There are actually two notable treaties between Romania and the United States. These two are said to be the core concepts to which the rules of foreign trade between the two nations are founded. They brought significant changes to the people and the government. They produced a great impact in the economy of both lands. Here are the trade agreements between Romania and US:
The trade disparities between Romania and US were brought about by several factors. Issues came from a variety of concerns and brought war between the two countries. The conflicts date from as early as the World War II. The following barriers led to some trade conflicts:
The wars between the two nations have already ended. Since its dramatic transfer of power from dictatorship in the land to a fully democratic government, Romania had seized its war with the United States and other countries in global trade. Looking at the future, the former focuses on a better trade relation with the rest of the countries to which it is dealing on the goals of international business. The traces left by war are already minimal. What matters now is how to move forward and set a good example to other trade relations in the world. Thus, Romania and the United States will continue its diplomatic missions. This in effect will lead to a better nation for both these countries. The generations ahead will surely benefit from the understanding made by the governments of the two nations. There is no known hindrance that could get into the way of a fruitful and wonderful trade for the future. US-Romania Trade References
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Note: Trade statistics, industry links, economic projections and global business resources on this page have been compiled from hundreds of trade related websites, government guides and resources on the Internet. We provide this valuable information for industrial suppliers, manufacturers, exporters and importers seeking to enter or expland business opportunities in Romania.
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