. /.RESTRICTEDWORLD TRADE
ORGANIZATIONG/C/W/191
17 March 2000
(00-1098)
Council for Trade in Goods Original:  English
QUESTIONS FROM THE EUROPEAN COMMUNITIES REGARDING
THE ROMANIAN REQUEST PURSUANT TO ARTICLE 5.3
ON THE AGREEMENT ON TRIMS
The following communication, dated 16 March 2000, has been received from the Permanent
Mission of the European Commission.
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EC Questions
1. Please describe in detail the measure for which the GoR is requesting an extension (local
content percentages, trade balancing requirements, basis for calculation, product coverage, type of
investment, type of producers to which it applies etc.).
2. We understand that fulfilment of TRIMs is a condition to obtain certain advantages.  If so,
please explain what is meant by “the Trims is applied by the GOR under mandatory legislation”?
(See G/TRIMS/N/1/ROM/1).  Does it mean that author isation to invest/operate is (was) denied unless
local content requirements were fulfilled?  In other words, is (was) fulfilling the TRIM a condition for
establishment?  Or, alternatively, is (was) any form of penalties/sanctions envisaged in case
conditions are not met?
3. Please quantify the total value of these benefits (foregone customs duties, taxes and other) and
describe how they accrue to beneficiaries.
4. Describe also the legislative state of play and the process that has led to Government
Ordinance 67/1999, eliminating investment incentives for new investments.
5. What has the FDI inflow been since the GoR eliminated the investment incentives?  Please
provide FDI data for the period 1994-98 and for 1999, by country of origin.
6. The facilities for which you are requesting an extension are in the automotive and
shipbuilding sector.
a) Are there other sectors to which the TRIMs have applied in the past? If so, please
describe how the Trims applied and when and how they were phased out.
b) Please describe the main features of the Romanian automotive industry (including
parts and components) and shipbuilding industry.
c) Please describe the facilities in question (investors, level of investment, location, type
of production, markets etc.)
7. Why do you consider that the TRIMs have been effective in developing Romania’s
automotive and shipbuilding industries?G/C/W/191
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a) Please provide annual data for the period 1991-99 as regards:
- production
- export markets
8. What measures has the GoR undertaken, in the periods 1995-1999, to prepare for the
elimination of the TRIMs in question? Please explain in detail (legislative process, industrial policy
elements, consultations with industry etc.)
a) When did the GoR realise that it would be unable to meet the deadline of
31 December 1999 to phase out the TRIMs?
9. Why did the GoR wait until 27 December 1999 to notify its requests for extension?10. Please describe in detail why maintaining the TRIMs is essential for Romania’s development,
financial and trade needs.11. Please provide an evaluation of the direct impact of the TRIMs on employment in the sector
and describe the methodology used to arrive at your assessment.12. In case of rejection by the WTO of the requested extension, please describe the estimated
effect on:
a) existing level of investment
b) employment
c) parts and components industry?
13. Why did the GoR request an extension for 4 years, until 31 December 2004?  According to
our understanding of the Romanian TRIMs, law 71/94 envisages benefits accruing to investors
fulfilling the TRIMs for a period of 7 years.  Since law 71/94 was adopted on 20 June 1994,
advantages to investors fulfilling the TRIMs are due to expire in 2001. Extension up to 2001, if
granted, would allow the GoR to meet its “contractual” obligations vis-à-vis investors. Please explain.
14. What further measures does GoR plan to enforce during the period of requested extension, to
prepare for elimination of the TRIMs?
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