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December 9, 2022

Vosganian: Trade deficit could drop to 3-4 pc of GDP this year

Romania’s Chamber of Commerce and Industry organized a ceremony occasioned by the Economy Ministry’s signing of a protocol with Romania’s Chamber of Commerce and Industry and the Union of Chambers of Bilateral Commerce.

The trade deficit could drop to 3-4 per cent of GDP this year considering the evolution of exports and imports in the first months of the year, Economy Minister Varujan Vosganian stated on Tuesday, Mediafax informs. “Exports represent Romania’s great chance of overcoming the economic crisis. The figures are encouraging. In the first four months exports grew by 7.6 per cent to EUR 15.6 bln, while imports to a bit over EUR 17 bln, which means that Romania’s trade deficit dropped significantly compared to last year and there are encouraging signs that it will stand below 5 per cent of GDP by the end of the year,” Vosganian stated during a conference occasioned by the signing of a protocol with Romania’s Chamber of Commerce and Industry and with the Union of Chambers of Bilateral Commerce.
Vosganian also pointed out that Romania registered the performance of having a trade surplus with several economically competitive countries such as Great Britain and the Scandinavian Countries. Likewise, Romania has a very high competitive advantage over markets that have a very large absorption capacity. “In Romania’s relationship with the Russian Federation for instance, if we are to leave out the energy component Romania has an overwhelming trade surplus of over USD 1 bln, compared to imports of USD 400 M from Russia. Which shows we have an extraordinary surplus of quality and efficiency over a huge market and we have to capitalize on this advantage,” he said.
The minister pointed out the Romanian exports’ performance on non-EU markets where the growth registered stood at 10 per cent compared to 6.2 per cent on European Union markets, which shows that Romania has started to be less dependent on European markets.
Returning to the event per se, the protocol signed by the two private sector structures seeks the inclusion of private commercial representations within the structure of commercial attaches.

Thus, Mihai Vlasov, President of Romania’s Chamber of Commerce and Industry, compared the state’s relationship with the private sector to that of a horse rider (the state) with his horse (the private sector). “But each time we hope it will be good, that this will help us and we welcome them with open arms, like we do today too,” Vlasov said after the protocol was signed. In reply, Economy Minister Varujan Vosganian stated that the barriers between the state and the private sector will disappear. The goal of the measure is to expand commercial representatives to as many places in the world as possible, so that Romanian investors will be connected to emerging markets, economic growth areas with high absorption capacity such as India, Vietnam, Brazil, Mexico and China.
The Economy Ministry also wants to start collaborating with the Foreign Affairs Ministry in what concerns the network of honourary consuls, a network which covers almost the whole world. Thus, Romania’s commercial network can be expanded in order to promote not just Romanian exports but also local investments abroad.
CupruMin needs serious investments
Economy Minister Varujan Vosganian also stated yesterday that the sale of CupruMin could include a preliminary negotiations stage, pointing out that “things got a bit complicated” because of the drop in the price of copper, so that the government will have to guarantee a minimum price for investors. “We cannot sign a long-term contract with a possible investor considering the hypothesis of a price that continues to drop, that is why we have to find a formula to guarantee a minimum price, but I will have to present this to the Prime Minister and to jointly agree on a solution,” Vosganian stated after a press conference.
Vosganian reiterated the idea that CupruMin needs significant investments after 7-8 years in which such projects were absent, pointing out at the same time that the process of assessing the plant’s assets has been finalized.

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