Similar economic reforms in Egypt and Romania have positioned the two for prosperous bilateral business relations, writes Sherine Nasr As Egypt and Romania celebrate 100 years of diplomatic relations this year, economic ties between the two countries are also cause for celebration. Romanian President Traian Basescu's two- day visit to Cairo, which began on 21 February, set the tone for future economic cooperation. Addressing the Egypt-Romania Business Council (ERBC) at an event hosted by the Egyptian Businessmen's Association (EBA) on 22 February, Basescu stated that over the past decade both Romania and Egypt have undertaken similar economic reforms. "Like Egypt, Romania has chosen to adopt an open-door policy and be actively involved in the global economy," noted the president. He added that his country also mirrors Egypt's determination to reform the legal and financial systems in order to encourage more foreign direct investments (FDIs), as well as enhance public and private sector partnership. "Both countries can work together to develop business in a third market where potentials for trade are available," he suggested. Since it gained EU membership in January, Romania has become the most eastern gateway for Egyptian exports to the EU -- a market of 480 million people and Egypt's largest trade partner. "Joining the EU is a turning point in the history of Romania," he asserted. Economic reforms in both countries have already reflected well on bilateral trade between Egypt and Romania. The volume of trade between both countries is estimated at $370 million for 2006, and is expected to further increase thanks to a number of agreements in the fields of gas and agriculture. Egypt's exports to Romania doubled in the past two years, jumping from $72 million in 2005 to $150 million in 2006. Egypt's main exports to Romania include rice, oil products, pharmaceuticals and ceramics. while main imports are wood, airplanes engines, vehicles, machinery and metallurgical products. "Wider prospects for cooperation will further increase the volume of trade," according to ERBC Chairman Hassan El-Shafei, who believes that Egypt can also rely on Romania as a major wheat exporter. "The coming years will see the establishment of joint ventures in different fields," predicted El-Shafei, adding that Romania can work as a gateway for Egyptian gas to the EU. Prospects of jointly manufacturing oil well equipment and constructing petrochemical plants will also be on the agenda of joint projects soon. Basescu asserted that Romania can actively participate in the Egyptian government's plan to upgrade the railway system, as well as in the sectors of petroleum, oil and IT. The fourth round of Egypt-Romania Business Council was held on 19 February, on the eve of Basescu's visit, to discuss cooperation in several fields. These include tourism, agriculture and irrigation, chemicals, pharmaceuticals, gas and oil, transportation, trade and investment promotion. Romanian reforms have borne many concrete results, such as a 6.5 per cent growth rate for six consecutive years. "In 2006, an eight per cent growth rate was achieved and we expect further growth this year," Basescu stated. Also, a 16 per cent flat tax rate, replacing 34 per cent in 2005, has resulted in a 19 per cent increase in state revenues. Once the business climate improved, Romania was able to attract EUR9 billion in FDIs last year, compared to EUR7 billion in 2005. Basescu noted that FDIs are expected to exceed EUR10 billion this year.
