Trade with Romania

The Romanian economy continues to display strength, posting 8.3% growth in 2004 and 4.1% in 2005. Inflation, which has been a problem area for some years, has been markedly reduced to about 8% in 2005. The growth is being driven by exports to Europe, mostly in light industries and semi-finished goods.

Canadian exports to Romania in 2005 almost doubled to C$ 158 million, with imports from Romania rising more moderately to C$ 209 million. Canada has approximately $1 billion of investment in Romania. Canada's major involvement in Romania is in the nuclear sector. The largest single element of the bilateral relationship is the Canadian-designed CANDU nuclear power plant at Cernavoda. The first nuclear reactor has been in operation since 1996 and the official launch of the second nuclear reactor at Cernavoda is expected for the second quarter of 2007. AECL and its consortium partners have recently entered Romania’s procurement process for the construction of reactors 3 and 4. They are now part of over a dozen companies to be short-listed for this major project.

New and potential opportunities are being identified in the consumer and agricultural markets, infrastructure projects and, to some extent, government procurement.

Canam-Manac, a Quebec-based design and engineering firm, has a centre in Brasov that employs 250 engineers and technicians. Celestica has opened a $100 million manufacturing plant for electronic components for the European market and has expansion plans to quadruple its size. Another Toronto corporation, Technophar, employs over 300 people in there pharmaceutical manufacturing sites and is also planning to extend. MDS Nordion is preparing to negotiate with the Romanian health authorities for the production of Cobalt 60 in Romania–a proposed new investment of $13 million.

Other investors include: Intelcan ($100 million airport project), Sterling Resources ($15 million oil exploration project ongoing), Gabriel Resources ($100 million invested in mining development with $500 million announced) and European Goldfields (mining development).

Both countries should see this partnership grow even more beginning in 2007, when Romania starts accessing EU structural funds and Canadian businesses offer their expertise.

Last updated: September 2006