Business Articles

The commercial exchanges between France and Romania

France is the fourth largest trading partner of Romania and the fifth largest investor in the Romanian economy.
Commercial exchanges between Romania and France are conducted in accordance with trade regime established by the Treaty of Accession of Romania to the European Union, signed at Luxembourg April 25, 2005.

Other important agreements which took place in bilateral trade were :
• The Convention between France and Romania for the avoidance of double taxation with respect to taxes on income and on capital, signed on 09.27.1974, entered into force on 27.09.1975;
• The Agreement for the encouragement and reciprocal protection of investments, signé le 21.03.1995, signed on 21.03.1995, entered into force on 20.06.1996.
Franco-Romanian commercial exchanges had an upward trend up to double them.


In 2009, on the background of the global economic crisis, trade was reduced by 16.17% relative to 2008, reaching up to 4.78 billion euro. The ascension trend is resumed in 2010, when the Romanian side had the largest trade surplus (331.45 million euros). In the following years this trend continued to influence Franco-Romanian relations.
The Franco-Romanian bilateral trade has a particularly positive momentum in 2013, with growth of 35% bringing the commercial trades to 6.529 billion euros extremely close to the record level on 2011. Export operations have totaled 3,357,770,000 Euros, while the imports reached at 3,170,930,000 euro. Now the importance of France in the commercial exchanges of Romania is 6.23% (4th place), respectively: 6.77% for export and 5.74% for import. France strengthens its positions as commercial partner, both import and export, mainly due to dynamic exchanges in the automobiles sector.


 

Romanian exports to France

The Romanian exports to France have experienced meaningful growth last year, reaching 84.8% and focusing on six product groups. The structure of exports ranks first the vehicles, aircraft and transport equipment, with a weight of 25.7%, followed closely by the machinery and electrical equipment, with a weight of 25.4%. The third position is occupied by textiles and textile articles with 11.7%. The last three positions are occupied by various goods and products with 7.9%, base metals and metal products with 7.4% and plastics and plastic articles, rubber 6.7%.


 

French exports to Romania

After a decline of -11% in 2009, French exports to Romania resumed at a slower rate than imports from Romania pace: they have nevertheless increased by 15.1% in 2010, reaching 2.51 billion of € (second best performance after 2008). The segment of exports from France in Romania which occupies the first position is the one of machinery, electrical appliances and equipment, with a weight of 30.9%. The field of vehicles, aircrafts and transport equipment is placed on the second position in the structure of exports. The following positions are occupied by the chemicals products and related industry with 13.2%, base metals and metal products 9.9%, plastics materials and articles, rubber with 8.9%, followed by materials and textile articles 6.9%.




The French investments in Romania


The Franco-Romanian economic cooperation, the result of privileged traditional exchange as well as strategic, partnership is increasingly diversified. At the end of February 2014, were recorded in Romania 7687 companies with French capital (4.02%from all companies with foreign capital ), with a volume of subscribed share capital of 2,129,790,000 euro ie 6.21% of total foreign direct investment, France being located on the 5th place in the ranking of foreign investors, after the Netherlands, Austria, Germany and Cyprus. According to the French authorities, the investments of French companies in Romania surpassed 7 billion euro, calculating the increases of capital, the acquisition of some Romanian companies, investments in modernization / expansion of the activity of large French groups, industrial and services already established in Romania and also  the reinvested profit.


The most important areas of cooperation between Romania and France by the presence of French investments are :


The automobile industry

• The Renault Group made investments of several billion euro in Romania 
Subsidiary in Romania operates at maximum despite the economic crisis of the high demand in
European markets. Factory Renault - Dacia became the supply center of CKD for Logan factories from Russia, Morocco, Colombia, Iran, India, Brazil etc. In 2008 was created the Renault Technologie Romania Titu center of Dacia Renault, the brand that was a true global success becoming an undisputed player in the automobile market.


• Delphi Diesel Systems France, a division of Delphi Corporation, one of the largest companies in the auto components industry, is located in Iasi for the production of high precision components for diesel engines.


The industry of Aerospace and defense

Dassault Aviation – cooperation with the factory of Avioane Craiova SA

 EADS and its subsidiary Eurocopter - investment in Brasov 


The field of energy

• Gaz de France-(GDF) SUEZThey signed a memorandum with Termoelectrica  for  an investment in a unit  in Borzesti. By the subsidiary GDF SUEZ Energy România, the Company the company concluded supply contracts with electric energy for Romanian clients.

• Dalkia International, present in Tulcea since 1992 for private clients, by improving of facilities at inhabited buildings ; at Otopeni provides operation and maintenance of the heating system. In addition, Dalkia presents the  interest in the modernization and development of energy and heating systems in Romania in the field of renewable energies.

 

Rail and naval field

• Alstom deals with maintenance of the subway network in Bucharest; there is a center for the coordination of environmental projects and projects aimed at the modernization and development of transport systems in Romania.

• Systra: projects in the field of railway and urban transport in Bucharest and in the province.

 

Telecommunications, networks and computer systems

The two main players in this field are Alcatel Group and Orange , for the development of telecommunications network (fixed and mobile).

 

Banking and insurance

• BRD Société Générale is the second bank in the country.

• Crédit Agricole is present on the Romanian market since 1996, addressing to all categories of customers.

• Groupama: present in Romania since 2007 through the purchase of insurance companies Asiban, BT Asigurare and OTP Garancia Company.


The specialized distribution field

• Carrefour's objective is the development of hypermarkets in Romania by opening stores in major cities.

• Auchan opened his first hypermarket in 2006 in Bucharest and arrived at 31 stores in the country.

 

The hotel sector

• Accor – construction of new hotels across the country.


 

The evolution of the French presence

French-Romanian trade had a growing trend over the past 12 years, in the range 2003 to 2009, encreased by approximately two times

Since 2007, France was the third largest trading partner of Romania, after Germany and Italy.
In 2009, on the background of the economic crisis, trade has decreased by 16.17% with respect to 2008, reaching 4.78 billion euro. The upward trend in bilateral trade was resumed in 2010, when was recorded the largest trade surplus in favor of the Romanian party (331.45 million euros).
The Bilateral trade in 2011 totaled 6.5 billion euros, surpassing the record level of bilateral trade (euro 5.8 billion) recorded in 2010. The export was 3.3 billion euro, the import was 3,1 billion euro and the balance was in favor of the Romanian side with 210,210,000 euro. The trade balance was tilted in favor of Romania.
A growth was recorded in 2013, coming close to the record level of 2011,either in the exporting as in import. Now the weight of France in the Romanian trade is 6.23% (France, arriving on the fourth position as a trading partner).


Recent projects

There are many companies who have invested large amounts in developed activities on Romanian territory. We speak either large groups and also middle and small businesses who want to find solutions to problems of competitive markets where they activate.
The Renault Group makes investments for the modernization of the company and the launch of new car models.
GDF Suez has started construction of a wind farm in Braila with a capacity of 48 MW.
The interest of French companies to develop on the Romanian market is more evident and clear.
Many business meetings underlined the willingness of French investors to consolidate existing relationships.Telecommunications represented by Orange have developed with the new 4G technology.