Market Information
Europe

Biotechnology Sector Profile: Romania

May 2002

Octavian Bonea
Business Development Officer
Canadian Embassy
36 Nicolae Iorga St.
Bucharest, Romania
Tel.: (011-40) 1307-5025
Fax: (011-40) 1307-5015
E-mail: octavian.bonea@dfait-maeci.gc.ca
Internet: www.canadexport.gc.ca/ro

Market Overview

Although Romania has developed biotechnologies since the early 1970s (in 1972, Romania inaugurated the first industrial capacity in Europe for producing proteins for animal feed from crude oil with the help of bacteria), the concept as such is not yet officially encouraged. Biotechnology may present a range of potential environmental, social and economic benefits for Romania, but local legislation has not been properly adapted to encourage this industry.

The complexity of some of the issues surrounding modern biotechnology has served to confuse and cloud official debate in Romania. Complicating things even more is the significant opposition to agricultural biotechnology in Western Europe that has successfully planted seeds of doubt in the minds of Romanian decision makers and the public at large. West European countries have done so by adroitly exploiting public fears about food safety, very effectively publicizing reports or research that indicate potential environmental or health risks connected to genetically modified (GM) crops or foods, and casting doubt on the adequacy of regulatory processes by highlighting past failures. Large retail chains in Europe have declared themselves "GMO-free" in order to maintain the loyalty of shoppers.

Opportunities

For the time being, only small areas of GM corn, soybeans and potatoes (from PEI) are being grown in Romania. The novel traits are herbicide tolerance and hybridization. However, it is expected that new traits introduced in the future will benefit consumers through improved appearance, flavour, nutrition and shelf life. Many Romanian processed food products, while not "novel" as such, could soon contain proteins, starches, enzymes, etc. from genetically modified products.

Market Access Considerations

A National Commission for Biological Security was established in January 2000 to monitor and approve the production and trade of GMOs and of biotechnology products. The discontent of some local non-governmental organizations (NGOs) stems from the fact that this Commission has approved, by a simplified procedure, the introduction of GMOs in Romania, skipping what the NGOs perceive to be an extremely important phase - public information and consultation. The NGOs maintain that many questions need to be answered regarding this subject: Who are the members of the Commission and what are its operational regulations? Why did the Commission not observe the legal procedure for informing the population according to the law (Ordinance 49/2000)? When, by whom, and based on what results where GMO experiments approved? Where were the GM hybrids, which received approval to be cultivated in Romania, previously used? Do farmers know what seeds are they using? NGO leaders claim that the secret way in which the authorizations were given may have a serious effect on agriculture, and even on the population's health on a mediumand long-term basis. They are asking that an investigation be conducted by the Control Department of the Government, if not by the Supreme Court of Defence.

Major Competition

The EU's approach to labelling of GMOs and novel food and feed might be introduced in Romania in the near future. This will create a serious trade barrier for Canadian exports. The biotechnology sector in Romania has become fairly prominent but sensitive. Biotechnology is emerging as an important issue where an innovative approach would be required (creative financing and official lobbing) for gaining a more substantial market share for Canadian biotech companies. In this context, companies must be prepared to discuss biotechnology issues in various local scientific and business forums, and be able to effectively address bilateral problems, should they arise. Canadian regulators and the Canadian biotechnology industry require more information regarding regulatory approaches being taken by Romania for biotechnology in general and GMOs in particular, as well as regarding overall consumer reaction to such products.

Other Useful Information Sources/Web Sites

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