WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIO WT/TPR/M/155/Add.1 
18 January 2006 
 (06-0213) 
Trade Policy Review Body 
28 and 30 November 2005  Original:  English/Spanish 
                anglais/espagnol                 inglés/español 
  
TRADE POLICY REVIEW 
ROMANIA 
Minutes of Meeting
 
Addendum  
Chairperson:  H.E. Mr. Don Stephenson (Canada) 
 This document contains the advance writte n questions, and replies provided by Romania.1 
__________________________________________________________________________________  
Organe d'examen des politiques commerciales 
28 et 30 novembre 2005 
 
EXAMEN DES POLITIQUES COMMERCIALES 
ROUMANIE 
Compte rendu de la réunion
 
Addendum  
Président:  S.E. M. Don Stephenson (Canada)  
 Le présent document contient les questions écrites communiquées à l'avance et les réponses 
fournies par la Roumanie.1 
__________________________________________________________________________________  
Órgano de Examen de las Políticas Comerciales 
28 y 30 de noviembre de 2005 
 
EXAMEN DE LAS POLÍTICAS COMERCIALES 
RUMANIA 
Acta de la reunión
 
Addendum  
Presidente:  Excmo. Sr. Don Stephenson (Canadá) 
 En el presente documento figuran las pre guntas presentadas anticipadamente por escrito, 
junto con las respuestas facilitadas por Rumania.1 
                                                      
1 In English and Spanish only./En anglais et espagnol seulement./En inglés y español solamente.  WT/TPR/M/155/Add.1 
 Page 3 
 
 
 ANSWERS TO WRITTEN QUESTIONS 
QUESTIONS FROM JAPAN 
Report by the Secretariat (WT/TPR/S/155) I. ECONOMIC ENVIRONMENT 
(3) TRADE PERFORMANCE AND INVESTMENT 
(ii) Foreign direct investment 
(Page 9, paragraph 19, ref.  page 12, paragraph 8) 
 The Report by the Secretariat states that Roma nia's investment climate is characterized by 
frequently changing tax and accounting rules and procedures.  It is also reported from Japanese companies operating in Romania that an additiona l tax is imposed upon them according to tax laws 
and rules which are frequently changed.  In this  regard, Japan welcomes the amended Fiscal Code. 
1.  Please indicate specific measures to be taken to improve the investment climate, such as 
frequently changing tax and accounting rules and procedures.   
(Page 9, paragraph 19, ref. page 25, paragraph 43, page 27, paragraph 5) 
As for improvement of the investment climat e, Romania established a “one-stop-office” for 
the registration of companies.  Japan appreciates su ch a measure.  However, it is also reported from 
Japanese companies operating in Romani a that they are still required to go to different authority in 
each administrative procedure for trade and investme nt other than the registration of companies. 
ANSWER  
The new Fiscal Code of Romania came into force in 2004, as Japan already noted, 
acknowledging this new legal instrument of ma ximum importance both for our country as for our 
trade partners. The Code exists, applies and covers all key elements of Romania's foreign investments 
regime, and it becomes obvious that this Code is in  fact a corner stone for ensuring the stability of the 
foreign investments regime. 
Mention has to also to be made that the macro -economic climate, that has a direct influence 
on foreign investments, has outstandingly improved, and at this moment may be described as completely stable and balanced. Thus the recent chang es in the legal provisions are not discretionary 
measures, as they materialize as a direct result of Romania's compliance with its obligation of 
transposing the acquis communautaire, therefore are de fined by a high degree of predictability.   
Another benefit is the reduction, as of 1
st January 2005, of the corporative and income taxes 
and the establishment of a flat level of 16%; this s timulates the economic activity in our country, and, 
consequently, the FDIs. 
2. Please indicate the plans to make administ rative procedures for trade and investment more 
simple and speedy, including the enlargement of a “one-stop-office” other than for the registration of 
companies. WT/TPR/M/155/Add.1 
Page 4  
 
 ANSWER 
The companies reported a substantial improvemen t in the registration process of a company; 
and efforts for further improvement, including in a larger vision related to the business environment 
are ongoing.  
Governmental policy regarding the business environment in relation with the targets 
proposed through the Governance Program 
The present policy regarding the business environm ent is focused on the continuation of the 
previously started reforms, highlighting support fo r private investors, encouraging free initiative and 
markets development, aiming to consolidate a functioning market economy. 
Thus, based on the findings and recommendations of FIAS-WB, on the Government decisions 
regarding the improvement of public  institutions activity and on the proposals of civil society, in 
order to accomplish a stable and predictable bus iness environment, the Working Group (for the 
implementation of Action Plan in order to impr ove business environment) constituency has been 
updated, an Action Plan for 2005- 2006 was elaborated and enforced.  
 Main policy targets: 
•  Continuing the simplification of administrative procedures related to the starting and 
 development of businesses; 
•  Consolidating a stable specific regula ting framework, transparent and efficient, 
 harmonized with international practices; 
•  Minimizing bureaucracy and diminishing administrative corruption. 
Specific measures and actions, included in the ab ove-mentioned Action Plan, are referring to: 
•  Increasing transparency and dialogue  efficiency Government-business 
 environment/civil society; 
•  Periodical assessment of recent fiscal measures impact, as well as of administrative 
 and procedural costs on the investment climate; 
•  Permanent monitoring of the administrative procedures simplification and 
 regulations for business environment (incl uding the replacement of the authorizations 
 with regulating measures); 
•  Amending companies legislation in order to apply corporative governance principles 
 and harmonize with international legislation; 
•  Increasing the public responsibility degree of the Government through concrete 
 specific actions developed at investors proposals; 
•  Applying expertise considered “good practi ces” in the field of public policies having 
 impact on the investment climate.  WT/TPR/M/155/Add.1 
 Page 5 
 
 
  In order to carry out the proposed ac tions, the Government increased the public 
responsibility degree of the bodies involved in the improvement of business environment, through 
actions meant to meet investors’ requirements. At Governmental level, the coordination of activities in 
the area of business environmen t, investments and SMEs has been conferred in the responsibility of a 
Minister of State (Vice Prime Minister). 
 Also, at institutional level, in order to elabor ate and implement with celerity a coherent policy 
having impact on the business environment and investment climate, based on the signals and proposals especially from international organizations (WB, FIAS, OCDE, EU etc.), but also from the 
civil society, regarding the improvement of th e institutional framework for business environment 
coordination, through Government Urgency Ordi nance no. 17/09.03.2005 (O.M. no. 229/18.03.2005) 
the transfer of the Business Environment Unit fr om the Ministry of Economy and Commerce, to the 
working structure of the State minister for the c oordination of activities for business environment and 
SME's within the General Secretar iat of the Government, has be en approved. The above-mentioned 
institutional framework permanently deals with  monitoring the implementation of measures. 
Simplify administrative and regulatory proced ures to increase transparency and reduce 
transaction costs for business entry and operation  
 The Action Plan for the development and enforcem ent of business environment in Romania 
for the period 2005 –  2006, approved by GD 669/2005, was pub lished in the Romanian Official 
Monitor no. 649/22.07.2005. 
 The Action Plan, in English and Romanian , can be accessed on the website of the 
Government/working structure of the State minister for the coordination of activities from the fields of 
business environment and SMEs/Business Environm ent Unit-information/Action Plan for the 
development and enforcement of business environmen t in Romania for the period 2005-2006. 
The Business Environment Unit gathered dat a regarding the Action Plan implementation 
stage at July 31, 2005,  completed the synthetic  document and fiches on each institution regarding the 
implementation stage and submitted the fiches for updating to each of these institutions. 
Collected data regarding the implementation stage at the end of third quarter from the 
responsible bodies will be used to elaborate a report on the issue. A synthesis of this report  will be 
presented in Government meeting for approval and after its approval the document will be accessible 
on the "business environment" website. 
 Completion of a pilot, testing the implementa tion Silent Approval Law Procedures for four 
major permits 
The consultants having expertise in order to  accomplish the proposed actions have been 
hired. The assistance was financed from USAID-CHF funds. 
1.  A comparative law study of similar regulations from Spain, Italy, France and Greece, as 
well as other EU countries has been carried out  by GEA (Group of Applied Economics) in 
cooperation with the specialized company, SALA NS, the study including recommendations for 
legislation  revising in the field of silent approval procedures. 
  WT/TPR/M/155/Add.1 
Page 6  
 
  2. Based on the consultations within the Wo rking Group, the permits (authorizations) for 
which the study for the assessment of “silent approv al” principle implementation is carried on have 
been established so: transport, environment, cons truction, utilities hook up (electricity and gas) and 
tourism authorization.  
 Questionnaires have been elaborated and distributed to the public institutions and applicants, 
the data following to be gathered and used at the assessment of the manner in which the procedure is 
implemented and to draw out recommendations in ord er to amend the specific regulation framework. 
The Pilot Program was carried on in Bucharest (district 1) and in Cluj and Timis 
municipalities. 
The Report regarding the pilot program on th e implementation of the silent approval 
procedure has been completed by GEA (with financ ial sustain of CHF-Romania-USAID), including 
findings and recommendations. Both the comparati ve law study and the Report on the pilot program 
were submitted for analysis to the members of th e Working Group for business environment in order 
to make proposals for the im provement/revising of the specific legislation.    
On September 14, 2005 the plenary meeting of the Working Group took place and  findings 
and recommendations resulted in the pilot program on silent approval implementation have been 
discussed. A synthesis of discussions  has been presented to the Working Group members, for a last 
consultation, in order to complete the proposals wh ich will be submitted to the Ministry of Justice for 
analysis and revising/amendment of the specific regulating framework in the field. (On October 14, 2005 the proposals has been submitted to the Ministry of Justice). 
 Approval of the secondary legislation to the Silent Approval Law 
 The comparative law study, elaborated by G EA with support from a consultancy company – 
SALANS, which has designated a consultant for d eveloping the report, and in collaboration with the 
representatives of the MoJ has b een finalised and was submitted to the Ministry of Justice. 
 The pilot project for evaluating the application of the silent approval procedure in three 
regions of the country (Bucharest Sector 1, Timiso ara and Cluj) and having as target six types of 
authorizations: building, transportation, utilities ( gas and electricity), environment and tourism has 
been finalised. The evaluation has as support in terviews (semistructurate questionnaires). The 
subjects of those interviews are from two categorie s: representatives of the authorities (both from 
level of decision making and execution) and persons who have been requested such authorizations. 
 MoJ is currently drafting the amendments to the Silent Approval Law, in order to improve the 
framework legislation, based on the comparative la w study, the conclusions of the pilot project and 
the proposals received from the business environment. 
II. TRADE AND INVESTMENT REGIMES (4) TRADE AGREEMENTS 
(Pages 18 to 20, paragraphs 17 to 24)  As for Romania's accession to the EC, the final step of the negotiations between Romania and 
the EC are now ongoing.  WT/TPR/M/155/Add.1 
 Page 7 
 
 
 3.  Please indicate in detail the current status a nd prospects for the conclusion of the negotiations 
on Romania's accession to the EC. 
ANSWER 
 Romania has concluded the negotiation pr ocess for accession to the European Union on 
14th December 2004, when the negotiations for a ll 31 chapters were closed. The 25 Member States 
and Romania and Bulgaria signed the Accession Treaty  in April 2005. The ratification process by the 
Member States is ongoing. Romania has already ratified it. 
(Pages 18 to 23, paragraphs 17 to 37) 
 Romania is concluding some bilateral trade ag reements and participa ting in several regional 
trade agreements other than with the EC. 
4.  How will Romania's accession to the EC  influence on these bilateral and regional 
agreements?  
ANSWER 
 The Accession of Romania implies that agreemen ts that are incompatible with Romania's 
commitments vis-à-vis the EU will have to be denounced. It should however be noted that there are 
indeed very few cases whe re Romania has an agreement with a third country and the EU does not.  
(4) INVESTMENT FRAMEWORK 
(Page 23, paragraph 38) 
 Romania has been implementing measures to in crease FDI, including the establishment of the 
Romanian Agency for Foreign Investment.  However,  the Report by the Secretariat states that some 
structural obstacles to investment are still id entified in areas such as corruption, excessive 
bureaucracy, and law enforcement problems. 
5. Please indicate specifically the evaluation for th e results of the measures to have been taken 
up until now as well as future plans to increase FDI. 
(Page 23, paragraph 38) 
 Concerning FDI, it is reported from Japanese co mpanies operating in Romania that there are 
some problems regarding the new system for the work permits of employees in foreign companies 
implemented in July 2005, such as too long a pr ocessing period to get work permits, imposing fines 
even on the delay of the renewal caused by the au thorities, and requiring di fferent papers for the 
application of work permits for each applicant. 
ANSWER 
 In the last years, Romani a's efforts towards private en trepreneurship development and FDI 
attraction focused on the identification and reduction of the administrative barriers for starting and 
operating a business, increasing the transparency of  the investment policy framework and improving 
the communication channels between the governme nt and the business community, notably foreign 
investors. These efforts ha ve been carried out in close co- operation with the Foreign Investment 
Advisory Council Service of the World Bank and th e OECD South-East Europe Compact for Reform, 
Investment, Integrity and Growth (the “Investment Compact”).  WT/TPR/M/155/Add.1 
Page 8  
 
 6. Please indicate specifically measures to be curre ntly taken as well as future plans to improve 
the system for the work permits of employees in foreign companies. 
ANSWER 
 According to the provisions of Art. 68, para. (1), letter a) of the E.G.O. no. 194/2002 on 
foreigner's regime in Romania, modified and added by E.G.O. no. 113/2005, when extending the right 
to stay for other purposes, the foreigners posted sha ll also submit the work permit, issued under the 
conditions of the law on the work permits. 
 The period of posting the foreigners in Romania has been limited by Art. 68 para. (1) of the 
E.G.O. no. 194/2002 to a period of at most 12 months . If, after the termination of the period for which 
the posting has been granted, the Romanian employer and the foreign citizen wish to collaborate, this 
can only be done by obtaining the work permit and by drawing up the individual labour contract in 
Romania, on the grounds of art. 6
2 of Law no. 203/1999 on work permits, with further modifications. 
 Currently, the necessary documents in order to  obtain the work p ermit for the foreigners 
whose posting period is to cease are established by the Protocol concluded between the O.L.F.M. and 
the Authority for Foreigners. Japanese citizens benef it of the same simplified regime of obtaining the 
work permit as the citizens of the European Union, without needing to obtain the visa for a long stay 
for employment, respectively the favourable sanction of O.L.F.M. which involves a more elaborated 
procedure. The procedures for obtaining the wo rk permits for the foreigners who's posting period 
ceases shall be detailed by approving the Government  Decision draft for approving the Methodology 
of applying the provisions of Law no. 203/1999. The work permits shall be issued by this procedure within a maximum 10 working days term from the submission of the requested documents. 
 For the other situations, the work permits for the Nippon citizens shall be issued within the 
same 10 working days term necessary for the verific ation of documents, making and approving the 
work permits. 
(Page 27, paragraph 44) 
 The Report by the Secretariat states that th ere are various investment incentive schemes 
available equally to foreign and domestic investors. 
7. Are there any conditions, for example, some  performance requirements, for investors in 
providing investment incentives?   
ANSWER 
 As regards disadvantaged areas, according to the law, the companies are eligible to benefit 
by the facilities granted to the investors, only if th ey fulfil the following conditions at the same time: 
1. They are companies with a majority private capital, established in accordance with 
the Law no. 31/1990 on the companies or they are individual entities carrying on activities according to the Law no. 507/2002 on the organization and the development of the economic activities by the individual entities; 
2. Have the premises and develop the activity in the same disadvantaged area;  WT/TPR/M/155/Add.1 
 Page 9 
 
 
 3. Make a new investment, carried out and registered in the financial and accountant 
registry of the companies, after the area has been declared as a disadvantage one, 
through a Government Decision; 
4. Make investments  – before 15 September 2004 – in fields of interest specified by the 
Government Decision whereby the area was declared as disadvantaged one and by 
other legal documents concerning this field; 
5. Create new jobs for the unemployed residi ng in that disadvantaged area (minimum 
10 employees  with an indeterminate contract of employment); 
6. The assets facilities are granted for shall be used  for the investments/production 
within the disadvantaged area, otherwise the amounts granted facilities shall be 
returned; 
7. The investment' functioning period shall be  two times longer than the one when the 
company benefited of the facilities; otherwis e the investor is obliged to return the 
amounts granted. The investment shall be maintained for a period of 6-10 years 
taking into account that the period necessa ry for an area to be declared as a 
disadvantaged one is 3 to 10 years. 
 As regards industrial parks, according to the la w, the companies are eligible to benefit by the 
facilities granted to the investors in the industria l parks, only if they fulfil the following conditions at 
the same time: 
• Make investments in industrial  parks with title granted by Order of Minister or by 
Government Decision; 
• Make investments – before 31 December 2005 in constructions or construction 
rehabilitations in the internal infrastructu re and in connexions to the utilities public 
network; 
• The investments shall be maintained for a period of minimum 5 years.  
III. TRADE POLICIES AND PRACTICES BY MEASURE (2) MEASURES DIRECTLY AFFECTING IMPORTS 
(ii) Customs procedures, clearance, and valuation  (Page 28, paragraph 8) 
 According to the Report by the Secretariat, th e main problems of Romania's customs service 
are reportedly in its administrative and operational capacity, although the au thorities are taking steps 
to address these issues.  In this regard, it is still reported from Japanese companies operating in 
Romania that there are some problems such as diffe rent customs procedures between capital and local 
areas, and losing products in the customs procedures. 
8. Please indicate specifically plans to furthe r improve customs procedures, such as ensuring 
non-discriminatory and fair treatment in the procedures. WT/TPR/M/155/Add.1 
Page 10  
 
 ANSWER 
 In order to improve the customs proce dures and ensure their correct and non discriminating 
application both in the customs offices and in th e headquarters, the immediate objective of the 
National Customs Authority is to take over all the Community customs regulations in force in a single 
normative act called Customs Code and a single normative act for its application.  
 The draft of the Customs Code of Romania was elaborated by taking over all the provisions of 
the Council Regulation (EEC) No. 2913/92 of 12 Oc tober 1992 establishing the Community Customs 
Code, Regulation (EC) No .82/97 of the European Parliament and of the Council of 
19 December 1996, Regulation (EC) No. 955/1999 of the European Pa rliament and of the Council of 
13 April 1999, Regulation of the European Parlia ment and of the Council (EC) No. 2700/2000 of 
16 November 2000 and Regulation of the European Par liament and of the Council (EC) No. 648/2005 
of 13 April 2005. 
 The draft of the Customs Code was approved  by the Government of Romania and is under 
approval in the Parliament of Romania.  
 As concerns the draft of the Implementing Pr ovisions of the Customs Code, it is under 
elaboration by the National Customs Authority and in the very near future it will be sent to the 
competent ministries for analysis and observations. 
 The Code draft includes mainly the norms  concerning the binding tariff and origin 
information, the customs regime of the free zones,  warehousing, relief of customs duties, economical 
regimes, customs value, origin, transit, as well as  those concerning the filling in and use of the 
detailed customs declaration. 
 Also, the draft law took over the provisions  concerning the direct and indirect representation, 
the interested persons having the choice to resort to  one of the two representation forms in order to 
submit to the customs authority th e goods and accompanying documents. 
 The new Romanian Customs Code makes a di stinction between the suspensive customs 
regimes and the economic customs regimes, the latter having special conditions of carrying out and 
authorization.  
 Also, free customs warehouses may be set up, as premises where, like in the case of free 
zones, the foreign goods are not considered as being in the customs territory of Romania, as concerns 
the application of the import duties and the commerci al policy measures for importation, as long as 
they are not released for free circula tion, nor placed under another customs procedure, nor used or 
consumed in other conditions than pr ovided by the customs regulations. 
 We are convinced that the new Customs Code and its rules of application will improve the 
customs activity and will have a positive influence  on the procedures simplification, the uniform 
application and the facilitation of trade. 
(iv) Tariffs, other duties, and taxes  
 Japan recognizes that the bound tariff rate of  many goods will be widely changed in 
Romania's accession to the EC.  WT/TPR/M/155/Add.1 
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 9. After Romania's accession to the EC, are there some goods for which the bound tariff rate will 
rise?  If any, please provide a specific list of su ch goods, including volumes and amounts of trade 
between Romania and Japan for each good. 
ANSWER 
 Romania will in the course of its accession to the EU withdraw its schedule of concessions, 
together with that of the EC, with a view to initi ating the process provided for by article XXIV:6 of 
GATT 1994.  
IV. TRADE POLICY BY SECTOR (5) SERVICES 
(i) Overview (Page 75, paragraphs 62 to 65) 
10. Concerning trade in services, such measur es as work permits, visas and the immigration 
system are important factors for the movement of na tural persons.  In this regard, please answer the 
following questions: 
 (a) What are the procedures for a natural pe rson who provides service as a skilled worker to 
enter into Romania and to start his/her job, in cluding the procedures for obtaining work permits, 
applications for a visa and immigration control? 
 (b) How is the skill of a worker entering into Romania reviewed in the procedure raised in 
(a)? 
 (c) How does each procedure raised in (a) and (b ) deal with transparency?  Is the reason for 
refusal notified to the applicant in each procedure? 
ANSWER  
 Regarding your question about vi sa and immigration here are the articles from Emergency 
Ordinance no. 194/2002 which are stating very clear the conditions: 
Article 24 Long-Stay Visa 
 (1) The long stay visa shall be granted to a liens, upon request, for a period of 90 days with  
one or more entries, for the following purposes:  
 a) Economic activities – to aliens that are to carry out economic activities independently 
or within family associations under the law on the organisation and performance of 
economic activities by natural persons; 
 b) Professional activities – to aliens who have the right to exercise professions 
individually on the Romanian territory on the basis of some special laws; 
 c) Commercial activities – to aliens sha reholders or associates in trade companies, 
having responsibilities for running and administeri ng them as well as to other foreign 
investors;    WT/TPR/M/155/Add.1 
Page 12  
 
  d) Employment – to aliens who are to ent er Romania with the view to being employed. 
The visa granted for such purpose  shall be  issued  also to sportsmen who are to 
perform in certain clubs and teams in Ro mania, on the basis on an employment 
contract; 
 e)  Other purposes – for aliens temporarily  transferred by the foreign companies, for 
trainees and seasonal workers, those who follow  long-term medical treatment, aliens 
whose presence on the Romanian territory is necessary out of national security interests and those performing other activiti es which do not breach the Romanian 
laws. 
 (2) Long-stay visa allows the aliens who entered the Romanian t erritory to request the 
renewal of the temporary stay right and obtain a stay permit. 
Article 41 Long-Stay Visa for Carrying Out Economic Activities 
 Long stay visas for economic activities shall be  granted to aliens that are to carry out 
independent economic activities or within family associations in  accordance with the law on the 
organisation and performance of economic activities by natural persons and who have to present the 
following documents: 
 a) The proof of complying with the conditi ons for carrying out the activity, provided for 
in the law on the organisation and perfor mance of economic activities by natural 
persons; 
 b)   Medical insurance fo r the visa validity period; 
 c) Criminal record certificate or other document with the same legal value. 
 Article 42 Long-Stay Visa for Professional Activities 
 (1)  The long-stay visa for individual professional  activities shall be granted to aliens that are 
to carry out such activities in acco rdance with the special laws regul ating the conditions for carrying 
out the respective professions. 
 (2)  This type of visa may be granted to  aliens complying to the following conditions: 
 a) The proof of complying with the conditi ons related to the means of carrying out the 
respective professions; 
 b) The proof that in the country of origin  they carry out a similar profession with the 
one they intend to carry out in Romania; 
 c) Medical insurance for the visa validity period; 
 d) Criminal record certificate or other document with the same legal value. 
Article 43 Long-Stay Visas for Commercial Activities 
(1)  This type of visa shall be granted on the basis of the approval of the Romanian Agency 
for Foreign Investment to aliens who are or will  become shareholders or associates in trade 
companies with responsibilities in running and administering them.  WT/TPR/M/155/Add.1 
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  (2)  The approval of the Romanian Agency for Fo reign Investment shall be granted to aliens 
complying with the following conditions: 
 a) A business plan to contain data regarding the nature, location and duration of the 
relevant activity and the estimated needs for labour force; 
 b) They have the funds necessary for the activ ity, in amount of minimum EUR 100.000; 
c) The activity should be beneficial to the national economy and in case of companies it 
should consist of significant capital co ntributions, technology and employment; 
 d) In the country of origin they perform a similar activity or close to the one they intend 
to carry out in Romania. 
 (3)  The application for visa shall be accompanied by the following: 
 a) The approval of the Romanian Agency for Foreign Investment; 
 b) Criminal record certificate or other document of the same legal value; 
 c) Medical insurance for the period of visa validity. 
 (4)  The application accompanied by the doc uments provided in paragraph 3 shall be 
submitted to the diplomatic missions or consular  offices of Romania and sh all be submitted through 
the Consular Relations Directorate of the Minist ry of Foreign Affairs, the Romanian Agency for 
Foreign Investment and the Authority for Aliens fo r approval according to their competence. 
 (5)  The approval of the Romanian Agency for Foreign Investment is meant to establish the 
fulfilment of the technical and economic utility conditi ons of the activity to be carried out by the 
alien.   
Article 44 Long-Stay Visa for Employment 
 (1)  Aliens may be employed in the fields and to the extent of the contributions set forth in 
Article 5(a) when the employment in vacant po sitions cannot be ensured out of local resources. 
 (2)  The visa shall be granted on the basis of  the approval of the Office for the Migration of 
Labour Force and of the Authority for Aliens. 
 (3)  The approval of the  Office for the Migr ation of Labour Force shall be issued, upon  the 
request of the employer who has to make the proof that he carries out a legal acti vity in Romania, that 
he does not have debts and that he made a legal selection,  presenting the proofs attesting all these, as well as those related to the presentation of  docum ents attesting the professional qualifications, the 
experience of the alien in this profession, the fact th at he is suitable from a medical point of view to 
carry out the respective activity, that he does not  have criminal record and that he has minimum 
knowledge of  Romanian. 
 (4)  The  visa request should be accompanied by the following documents:   
 a) The written approval of  the Office for the Migration of Labour Force; WT/TPR/M/155/Add.1 
Page 14  
 
  b) The proof of the means of support at the level of at least three average salaries per 
national economy; 
 c) Criminal record certificate or other docume nt of the same legal value issued by the 
authorities of the domicile or residence country; 
 d) The medical insurance for th e validity period of the visa.  
(5)  The long stay visa  for employment sha ll be issued also to the aliens who are cross-
border workers in Romania.  
As for the work permits, see answer to Question 6 above.  
QUESTIONS FROM THE REPUBLIC OF KOREA 
Question 1 
In Romania's UR commitment allowing foreign service-providers' access to the domestic 
market, Romania guaranteed the entry and temporary stay of natural persons serving in management 
and expert jobs necessary to opera te the foreign investment of wholesale trade and retailing services 
(Mode 4 of the above-mentioned commitment).  
However, the Ministry of Labour, Social Solidarity and Family of Romania initially rejected, 
at the end of last year, some applications fo r working permits made by a Korean company.  
The Romanian Law no. 203 from 28 December 1999, which reflects its WTO commitment, 
regulates that the aliens temporarily transferred by a foreign company headquartered in a country 
which is member of the WTO to Romania do not need a working permit. 
While this particular situation with the Ko rean nationals was resolved, there nonetheless 
seems to be an ambiguous implementation of Ro mania's WTO commitment.  What plans does the 
Romanian government have for avoiding  such situations in the future? 
ANSWER 
 Through OUG no. 130/2005 for inoculation the Law no. 203/1999 concerning the work 
permits, republished, the e) character of article no. 6 – where the obligativity of obtaining the work 
permits for the foreign citizens detached by a foreign company, which have headquarter in the 
territory of a member state of World Trade Organiza tion, to a wholesale trade, branch or subsidiary 
in the Romanian territory or to a Romanian company  where shareholder is the foreign company, with 
the same activity object, if they prove that they d on't have any work relations with other Romanian 
companies was abrogated. 
QUESTIONS FROM SWITZERLAND I. Economic Environment (3) Trade Performa nce and Investment (i) Trade in goods and 
services 
Q1 
 Para. 10  suggests that the Romanian authorities cons ider that the present level of external 
current account deficit is with 7.6% of GDP is well above the level of 5.5 - 5.75% of GDP that they  WT/TPR/M/155/Add.1 
 Page 15 
 
 
 consider sustainable. They indicat e also that they consider a further strengthening of fiscal policy. 
While the latter would clearly be welcome, there is no indication about a possible contribution of 
monetary policy. Given that the inflation rate will still reach about 7% at the end of this year and 
possibly 5% in 2006, we would appreciate to know whether the authorities are also envisaging a further tightening of monetary policy? After all, th e present inflation rate remains substantially higher 
than the average observed in the Euro Zone and such a move could also facilitate convergence. 
ANSWER 
 First of all, few considerations about the monetary policy framework:  The third quarter of 2005 was a special peri od for the National Bank of Romania (NBR) as 
regards the monetary policy strategy and tactics. In August, the NBR shifte d formally to inflation 
targeting, the adoption of which has been prepared during the past 16 months. Also in view of this 
change, the response of monetary policy played an important role given the challenging macroeconomic conditions, as the NBR  had to deal w ith the still overly rapid growth rate of domestic 
demand, on the one hand, and the impact of the st rong resurgence in speculati ve capital inflows on 
the domestic financial market, as well as with the ri sk of an increase in such inflows, on the other. The 
central bank undertook strenuous efforts to reconcile th e need of minimizing this threat in the short 
term with the goal of ensuring sustainable disinflatio n in the medium and long run. For this purpose, 
the NBR adopted and implemented an adequate mix of monetary policy, prudential, as well as some 
administrative measures, the last two categori es being meant to preserve financial stability and 
enhance the effectiveness of monetary policy instru ments with  a view to maintaining a stable 
aggregate price level. Moreover, the monetary author ity was particularly interested in strengthening 
its credibility by ensuring that the inflation target is met; consequently, it deemed necessa ry to revise 
the year-end inflation target to 7.5 percent as a result of considerably stronger-than-expected 
pressure on the aggregate price level coming from some supply-side factors. 
 The major constraints on monetary policy were best reflected by the double shift in the 
conduct of interest rate policy in only three months . Interest rate policy, mainly geared towards 
preventing the economy from overhea ting, was tightened in early August by raising the average 
effective interest rate on sterilization operations  to 8.5 percent and by eliminating the departure 
between the policy rate and the average effective sterilization rate. However, shortly thereafter, under 
the impact of the severe constraint exerted by hi gher capital inflows, the NBR Board has decided to 
gradually ease interest rate tightness. The relative easing of interest rate policy was achieved by the 
NBR's loosening control over liquidity by initiating partial sterilization of the liquidity surplus via 
deposit-taking operations rather than through cuts in its key interest rates, given the signalling effect 
of the policy interest rate. Behind this initiative st ood the following: (i) the assumption that turning 
the liquidity surplus into a catalyst for demand grow th is a difficult process and, (ii) the fact that the 
monetary authority stands ready to revert to higher st erilization and resort to the policy rate lever in 
case of a prospective upsurge in RON-denominated  credit. In order to put a break on credit growth, 
foreign exchange credit in particular, the central bank tightened reserve requirements for foreign 
exchange liabilities of credit institutions, adopted tougher requirements on bank credit to household 
and took measures to restrain bank's supply of forei gn exchange-denominated loans. In this context, 
the broadly-defined monetary conditions, including the developments in interest rate, exchange rate 
of the domestic currency and liqui dity across the economy, have remained on course to achieve 
continuation of disinflation in line with the programmed trend. 
 According to the baseline scenario of th e forecast on macroeconomic developments, the 
annual inflation rate is expected to range between  8.1 percent and 8.3 percent; the fact that this 
forecast is higher than the 7.5 – 8 percent band foreca sted in the Inflation Report issued in August WT/TPR/M/155/Add.1 
Page 16  
 
 2005 is attributed to the upward revision of oil and food prices, as well as of the exchange rate of the 
domestic currency. Disinflation will continue in 2006, largely as a result of gradual reduction in 
excess demand – assuming increasingly austere fiscal and  income policies, as well as monetary policy 
tightening – and of further favourable effects of de velopments in the exchange rate of the domestic 
currency on import prices. Should the necessary adjustmen ts of fiscal and income policy stance not be 
performed, monetary policy would have to react more decisively, facing however the constraint 
arising from the risk of a rebound in speculative c apital inflows. Even assuming the implementation of 
an adequate macroeconomic policy mix, the achievem ent of administered price adjustments as 
projected and the temporary slowdown (in the first few months of next year) in the decline of inflation 
expectations are likely to take end-2006 inflation rate  close to the upper bound of the target band. 
II. Trade and Investment Regime (5) Investment Framework 
Q2 
 Para. 39 suggests that foreign investment is made contingent upon a minimum investment 
amount, and that this investment benefits th e Romanian economy in terms of money, kind 
(technology, know-how) and/or job creation. Could the authorities explain on the basis of what 
specific criteria a foreign investment is deemed to pass the test of benefiting the economy and/or of 
the job creation and what, if any, the possibilities of recourse for a foreign investor are, should such a 
decision be negative?  
ANSWER 
By direct investments with significant impact on economy it is understood the investments 
with a value exceeding the equivalent of 1 million US dollars, and which contribute to the development and modernization of the Romanian ec onomic infrastructure, determine a positive spin-
off effect in economy and create new jobs. 
 The kind of the direct investments with significant impact on economy may consist only in 
liquidities in Romanian national currency or convertible foreign currency. 
 Investments with significant impact on economy c an be made in all economic sectors, except 
the financial, banking, insurance and re-insurance sect ors as well as the sectors regulated by special 
laws, provided they are in compli ance with the following conditions: 
a) They do not infringe environment – protection regulations; 
b) They do not affect the interests of security and national defence of Romania; 
c) They do not affect the public order, health or morality. 
 In case that an investment qualifies for incenti ves granted by several laws, the investor has to 
explicitly decide upon one single incentives system. 
 Litigation between the investors and the Ro manian authorities, regarding the rights and 
obligations provided by the law regarding the promotion of direct investments with significant impact 
on economy will be judged by the Courts of Admini strative Litigation according to the procedure 
established by the Law of Administrative Litigation no. 29/1990. The provisions of the Convention on the settlement of investment disputes between states and nationals of other states, signed in 
Washington on March 18, 1965 and ratified by Romania through Decree of the State Council 
no. 62/1975, published in the Official Bulletin, Part I, no. 56 on June 7, 1975 are still applicable in 
their field of regulation.  WT/TPR/M/155/Add.1 
 Page 17 
 
 
 III. Trade policies and practices by measure (2) Measures directly affecting imports 
Q3 
 Para. 63  refers to the scope of the various procur ing entities covered by the Romanian public 
procurement law and by the reforms under way. Could the authorities explain the main content of the 
reform and inform about the expected outcome in  terms of deadlines and implementation?  Some 
State-owned enterprises with the status of comm ercial companies continue to have their own 
purchasing policies. According to the report procurem ent by utilities companies dealing with water, 
transport, energy and telecoms are subject to the public procurement law. Would it be possible for the 
Romanian authorities to inform about the nature of  the public procurement activities of the described 
State-owned enterprises? What is the importance of th eir activities with regard to the total value of the 
procuring activities in Romania? 
ANSWER 
Regarding the use of Romanian public funds, any public authority when wants to award a 
supply, services or works contract has to observe the Romanian Public Procurement Law.  
 The Romanian Public Procurement System is decentralized, that means that any contracting 
authority, at local or central level, and also the entities dealing with water, energy, transportation 
services and postal services have to apply the provisions  of public procurement law when it wants to 
award a supply, services or works contract. 
Q4 
 Para 66: According to the public procurement la w, the Central Finance and Contracting Unit 
(CFCU) is responsible for the use of public funds  through procurement procedures. What are the role 
and the importance of the subterritorial authorities (i.e. municipalities, provinces, etc.) in procuring 
activities and how do the Romanian authorities deal with the procurements to be made by these 
procuring entities? 
ANSWER 
 We must distinguish between PHARE funds and Romanian public funds. CFCU is responsible 
only for the use of PHARE funds. As for the oth er please refer to the answer for question no.3. 
 Another way to handle the public procurement is  the electronic system for public procurement 
www.e-licitatie.ro, which is a unitary informatics infr astructure created, and operated by the General 
Inspectorate for Communications and Information Technology (IGCTI).  
The system offers to Romanian public institu tions the possibility of goods and services 
acquisition by electronic means promoting transparency, and leading to lower costs and bureaucracy, 
but only for a few fields of activities as all the ministries. 
III. Trade Policies and Practices by Measure (4) Measures Affecting Production and Trade 
(iii) Competition policy and price controls 
Q5 
 Para. 98 suggests that the Romanian Competition Law now contains all the main principles of 
the EC anti-trust rules as regards restrictive ag reements, abuse of dominant positions and merger WT/TPR/M/155/Add.1 
Page 18  
 
 control. At the same time, footnote 114  indicates that the EC considers that additional efforts by 
Romania are needed toward a more deterrent sanction policy and more emphasis on preventing serious distortions of competition. Could the Romanian authorities indicate the next steps they envisage in the process toward the strengthening of  their competition policy instruments and, if 
possible, the time frame envisaged? 
ANSWER  On October 25, 2005, the European Commissi on issued the Comprehensive Monitoring 
Report, assessing the progress achieved by Romani a towards accession. Through this Report, the 
Commission positively analysed the activity of the Competition Council since the 2004 Regular Report. 
 In the antitrust filed, the 2005 Commission Repor t outlines that Romania is generally meeting 
the commitments and requirements arising from the a ccession negotiations and is expected to be in a 
position to implement the acquis as of accession. 
 Furthermore, the Commission considers that  the antitrust enforcement in Romania is 
characterised by a pro-active role of the Comp etition Council. The following elements support the 
aforesaid EC finding: 
•  The Competition Council identified and est ablished, through various documents, a 
 list of priority sectors and focused its activities on the most serious distortions of  competition; 
•  The Competition Council started to advertise actively its leniency policy so to detect 
 cartels and other restrictive agreements; 
•  The Competition Council increasingly made use of fines in order to give its decision a 
 deterring effect. During the period covered by the 2005 Report
1, the Romanian 
 competition authority imposed fines amounti ng to EUR 38.55 million. By comparison, 
 the level of fines was more than 1,000 times higher than from September 2003 to  August 2004; 
•  In the assessed period, the Competition Council opened 20 investigations, out of 
 which 12 (60%) were ex-officio. Moreover, fo r a better use of the control tools, 13 
 dawn-raids were performed at the premises of various undertakings.  
 In order to ensure that the enforcement record in antitrust cont inues to be satisfactory, the 
Competition Council is determined to carry on in  2006 its efforts to follow a more deterrent 
sanctioning policy and to put more emphasis on preventing the most serious distortions of 
competition, and to make better use of investigative t ools, including dawn-raids and substantive fines.   
QUESTIONS FROM HONG KONG, CHINA Insurance services 
(WT/TPR/S/155, P. 77, Paras. 74 - 75) 
                                                     
 
1 The 2005 Comprehensive Monitoring Report covers the progress achieved during September 1, 2004 
– September 30, 2005.  WT/TPR/M/155/Add.1 
 Page 19 
 
 
 1. We note that authorization from the Insura nce Supervisory Commission is required for the 
establishment of an insurance company and there is  no distinction made between local and foreign 
entities.  However, it is noted from Romania's sc hedule of GATS commitments that the establishment 
of insurance companies with foreign participation is  allowed only in partnership with Romanian legal 
or natural persons, which constitutes a limitation on both market access and national treatment for 
foreign services suppliers.  We would like to seek clarification from Romania on its existing regime in 
this regard.  If the existing regime is more liber al than what it has committ ed in the GATS schedule, 
would Romania consider binding its more liberal de  facto regime in the current round of services 
negotiations? 
ANSWER 
 The issue rose in the question above was rai sed from a misunderstanding of the legislation. 
The Law no. 32/2000 regarding the insurance companies and insurance supervision does not have provisions which limit the participa tion to an insurance company established in Romania. The foreign 
participation is fully open till 100%. 
 Consequently, no partnerships with Romanian legal or natural persons are required.  
 Romania's strategy concerning its future sp ecific commitments in the current round of 
services negotiations is still under consideration requi ring further analytical and technical work.  
QUESTIONS FROM MEXICO 
 Se solicita a Rumania responder a las sigui entes preguntas formuladas con base en lo 
señalado en el documento WT/TPR/S/155, de fecha del 24 de octubre del presente año: 
II RÉGIMEN COMERCIAL Y DE INVERSIONES 4) Acuerdos Comerciales i) Organización 
Mundial del Comercio 
1. México está interesado en saber cuál es la razón por la que Rumania aún no presenta su oferta 
inicial de compromisos ante la OMC. 
ANSWER 
 Romania's strategy concerning its future sp ecific commitments in the current round of 
services negotiations is still under consideration requiring further technical work.  
IV POLÍTICAS COMERCIALES, POR SECTORES 5) Servicios i) Introducción 
2. En el párrafo 65 se señala que los servicios no están contemplados en los acuerdos 
comerciales preferenciales que Rumania ha llevado  a cabo, excepto con la Unión Europea. México 
está interesado en saber cuál fue el criterio que se to mó en cuenta para excluir a los servicios en las 
negociaciones de los mencionados acuerdos.  
ANSWER  Indeed except the Association Agreement with  the EU the aim of the FTA concluded by 
Romania was to create a preferen tial area for trade in goods. How ever these agreements include an 
"evolutionary clause referring to th e possibility of the Parties "to develop and deepen the relations 
established by the Agreement by extending them to fields not covered thereby”. This clause has not 
yet been invoked by the Parties. WT/TPR/M/155/Add.1 
Page 20  
 
 IV POLÍTICAS COMERCIALES, POR SECTORES 5) Servicios ii) Servicios Financieros 
3. En el párrafo 70 se señala que la Ley Bancaria  fue modificada. México está interesado en 
conocer cuáles fueron las principales modificaciones realizadas a dicha ley que repercuten en la 
prestación de los servicios bancarios. 
ANSWER 
The Law no. 485/2003 for the amendment and completion of the banking Law no. 58/1998 
has, as the main purpose, the harmonization of the na tional Banking Law with the EU legislation. It 
has to be mentioned that all these provisions will enter into force st arting with the accession date. For 
further details regarding the majo r policy concerns of the NBR, pl ease see also answer to Question 1 
from Switzerland. 
IV POLÍTICAS COMERCIALES, POR SECTORES 7) Servicios iv) Servicios de transporte 
b) Ferrocarril 
4. El párrafo 93 señala que una entidad regulatoria fue establecida en 2004, no obstante, aún no 
empieza operaciones. Sería importante conocer  en qué momento el gobierno rumano tiene 
contemplado que esta entidad empiece sus ope raciones regulatorias de manera formal.  
ANSWER  According to the Government Ordinance no. 89/ 2003 regarding the allocation of the railway 
infrastructure capacities, establishing the tariffs fo r the railway infrastructure and certification of 
safety, approved, modified and comp leted by Law no. 8/2004, the G.D. 812/2005 approved the 
Regulation concerning the organiza tion and functioning, the tasks and financing mechanism of the 
Surveillance Council. The composition of this Coun cil was approved by Ord er of the Minister of 
Transport, Construction and Touris m no. 1516/2005. The Council started to work in September 2005. 
IV POLÍTICAS COMERCIALES, POR SECTORES 7) Servicios iv) Servicios de transporte 
d) Tranporte Aéreo 
5. El párrafo 97 señala que el gobierno emprendió una reestructuración de la empresa estatal de 
transporte aéreo, TAROM, a fin de privatizarla, d espués de un intento fallido de privatización en el 
año 2000. México está interesado en conocer que su cedió con la privatización de la mencionada 
empresa, debido a que el documento no menci ona si este segundo esfuerzo de privatización fue 
exitoso o no.  
ANSWER 
 The restructuring process of TAROM air company has not been finalized yet. A second 
attempt of privatizing the company will be considered  after this process of restructuring is finalized. 
QUESTIONS FROM TURKEY 
SECRETARIAT REPORT
 
II. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES (2) TRADE POLICY FORMULATION AND EVALUATION  WT/TPR/M/155/Add.1 
 Page 21 
 
 
  Paragraph 19 states that the Romanian authorities have recently been implementing measures 
including the establishment of both a “one-stop-o ffice” for the registration of companies, and the 
Romanian Agency for Foreign Investment” (ARIS) to  improve Romania's investment climate. turkey 
would appreciate if Romania could provide us inform ation about the early effects of these measures 
on the recent FDI flows into the country ?  
ANSWER  From the theoretical point of view, the est ablishment of an investment promotion agency has 
the role of a message sent by the state authoriti es to potential investors regarding the importance 
devoted to foreign capital as an indispensabl e element of economy development. Starting with 
June 2002 when the Romanian Agency for Foreign Investment was established as a specialized 
governmental body of the central public administr ation responsible for the implementing of the 
Government's policy of promoting and attracti ng foreign direct investments in economy, the FDI 
inflows rose constantly in Romania, from Euro 12 12 million in 2002 to Euro  1946 million in the next 
year and Euro 4209 in 2004.  At these FDI inflows ascending trend also contributed the establishment 
of the one-stop-office for companies' registration, as a part of the plan for the improvement of the 
Romanian business climate. 
QUESTIONS FROM UNITED STATES OF AMERICA Trade Policies and Practices by Measure 
Measures Directly Affecting Imports – Tariffs, Ot her Duties, and Taxes – Other Duties and Taxes
 
1. Referring to paragraph 29 on pa ge 36 of the Secretariat Report, please explain how the special 
0.5% ad valorem  customs commission assessed on MFN imports relates to the cost of the service 
provided. 
ANSWER 
 The customs commission was enforced ea rly in the 90's for the development and 
modernization of customs offices. This is in full compliance with Romania's commitments in its tariff 
schedule where as regards other duties and charges at  the border a rate of  0.5% was bound. As the 
process of development and modernization is un dergoing, the Romanian authorities analyze the 
possibility of eliminating, in time, this  'other duties and charges at the border'. 
Measures Directly Affecting Imports – Impor t Prohibitions, Restrictions, and Licensing  
2.   According to paragraph 38 on page 38 of the Secretariat Report, Romania changed its import 
(and export) licensing regime effective 1 January 20 04.  Footnote 38 indicates that Romania has not 
yet notified these changes to the WTO Co mmittee on Import Licensing Committee. 
 When does Romania anticipate submitti ng its notification of these changes? 
ANSWER 
 Romania has notified the changes concerning im port (and export) licensing regime to the 
WTO Committee on import licensing (G/LIC/N/2/ROU/ 4 dated 5 October 2005 – Notification under 
Article 5; the Notification under Articles 1.4(a) a nd 8.2(b) is to be circulated as WTO document 
G/LIC/N/1/ROU/3). WT/TPR/M/155/Add.1 
Page 22  
 
 Measures Directly Affecting Exports – Export S ubsidies, Finance, Assistance, and Promotion
 
3.   The Secretariat Report mentioned in paragr aphs 77 and 78 on page 48 that the Export-Import 
Bank of Romania subsidizes interest on domestic cred its in Romanian currency used for production of 
exports.  In paragraph 70 on page 47, the Secret ariat Report advised that exports require 50% 
Romanian content to qualify for the subsidy. 
 Please explain how the interest subsidy progr ams described in paragraphs 77 and 78 are 
consistent with the export subsidy disciplines c ontained in the WTO Agreement on Subsidies and 
Countervailing Measures. 
ANSWER 
For the sake of transparency and for purposes of updating factual information, in July 2005, 
the subsidization for interest on domestic credits used  for production of exports has been eliminated. 
 Nevertheless, in our underst anding, question 3 as well as qu estion 6 below overpass or are 
not consistent with the purpose of the TPR, which is to achieve greater transparency in and 
understanding of other Members policies. It is not in stated in order to serve as a "basis for the 
enforcement of specific obligations under the agreements" (TPRM Annex paragraph 1). 
Measures Directly Affecting Exports – Free Zones  
4.   In paragraphs 81-83 on page 49, the Secret ariat Report identified several incentive programs 
available to companies locating in Romania's free zones.    
 A) Please provide more detailed information on the benefits available to free zone investors, 
including qualification requirements and application procedures. 
 B) Has Romania notified these incentive programs to the WTO SCM Committee?  If not, 
when does it intend to do so? 
ANSWER 
 The main facilities in the free zone  are specified in the legislation 
Law no. 84/1992 regarding the regime inside th e free zones, with subsequent changes: 
•  Inside free zones there are admitted means of transportation and other goods, without 
restrictions, as to the country of origin or destination. There is no admission for 
goods prohibited at importation in Romania (b y law or international conventions in 
which Romania is a party); 
•  All the financial operations regarding activiti es inside the free zones are done in free 
convertible foreign currency accepted by  the National Bank, except those done 
during constructions, which are in RON;  
•  Renting or leasing activities in free z ones take place through public auctions;  
•  There are leased goods in private or public property, of the state or administrative 
and territorial units, also public activities/ services of local or national interest in  WT/TPR/M/155/Add.1 
 Page 23 
 
 
 property of the free zones administration. It is leased the right and the obligation of 
exploitation of a good, of an activity or of a public service for a period of max 49 years in exchange of a royalty;  
•  There are rent goods in private or public property of the state or administrative and 
territorial units. The right and the obligation of exploitation of a good are subject to 
rent, obtained after paying a rental fee; 
•  At the liquidation or diminution of activiti es carried out inside the free zone, natural 
or legal foreign persons can transfer th eir profit and capital abroad, after the 
payment of all the obligations towards the Romanian state and contractual partners; 
•  Goods from a free zone can be moved into  another free zone without paying customs 
duties. Also, these goods can be introduced in to the national territory of the country, 
subject to observing  all the conditions and formalities for an import or, as the case 
may be, temporary admission;  
•  Employees' income working inside a free z one can be in RON or in foreign currency, 
or a combination of these, according to th e collective or individual negotiations;  
•  In free zones, foreign employees can be  hired in management or specialized 
positions, according to law. 
Law no. 345/2005 regarding value added tax: 
•  The following operations are exempted fr om value added tax, if they do not conduct 
 to final use and/or consumption: 
a) Introduction of goods into the free z ones directly from abroad, only for 
 depositing them, without customs clearance; 
b) Introduction of goods into the f ree zones directly from abroad, and 
 commercial  operations of buying/selling those goods between various agents  inside free zones area, and, after t hose operations, exit th e free zones area 
 under the same state as at the entrance, with an external destination and 
 without issuing customs declarations;  
c) Providing services directly related to operations at para a  and b. 
Law no. 141/1997 regarding Romania's Customs Code 
• Inside the free zones, foreign merchandise is  considered, as regards the application 
 of import rights and import trade policy measures, as merchandise not situated on 
 the Romanian territory, as long as it is  not imported; 
• Romanian merchandise may be brought inside free zones, under the conditions 
 established for the export of goods; 
• Storing of goods inside free zones has no time limit; WT/TPR/M/155/Add.1 
Page 24  
 
 • Entering and exiting free zones are allowed only through official places set up by the 
 customs authorities; 
• Any construction operation inside free zones is allowed only subject to previous 
 approval of the customs authorities; 
• For the foreign merchandise brought inside free zones and Romanian or foreign 
 merchandise already inside the free zone , t hat is taken outside the country, it is not 
 required the submission of customs declaration; 
• While inside free zones, foreign goods ma y be placed under one of the following 
 customs regimes:  
i. Import for use or consumption  inside  the free zone; should this be the case, 
costs for storage and handling inside th e free zone are not included in the 
customs value; 
ii. Inward  processing; 
iii. Transformation under customs control; 
iv. Temporary admittance. 
 Concerning the notification to the WTO SC M Committee, the Romanian authorities are 
preparing a new notification whic h will include all programs. 
Measures Affecting Production and Trade – Public Enterprises and Privatization
 
5.  Privatization has been an important suc cess story during the period under review as over 8000 
companies passed out of government control.   Paragraph 94 on pages 52-53 of the Secretariat Report 
advised that Romania plans to privatize 473 of its remaining 1044 state-owned enterprises.  The Report implied that 544 companies will not be privatized. 
 A) Please explain why these 544 firms cannot be privatized.   B) Does the government intend to retain ownership/control of these firms 544 firms 
indefinitely? 
ANSWER 
“Non-privatizable” companies are considered by AVAS as being those companies under 
different form of reorganization, bankruptcy pro cedures, judicial or voluntary liquidation, 
dissolution, in brief those companies in which the state, through  AVAS, has no decision making power since they are either under the authority of the syndic judge or the liquidators.  Those 544 
companies mentioned in the questionnaire, are preci sely under this kind of procedures, and therefore 
their stake of shares can not be put for sale by AVAS. This kind of companies are devastated in the 
private sector not as a business, by sales of shares, but by sales of assets, which is basically achieved 
under the supervision of the liquidators or of the syndic judges. 
 C) Does Romania have a bankruptcy law a nd does it apply to state-owned enterprises?  WT/TPR/M/155/Add.1 
 Page 25 
 
 
 ANSWER 
 The Romanian legislation includes a bankruptcy law, the Law no. 64/1995 on judicial 
reorganization and bankruptcy. This law is obviously applicable to all the companies, irrespective of 
their ownership structure. Currently AVAS has a number of 329 companies from its portfolio, in 
bankruptcy procedures.  
Measures Affecting Production and Trade – Protectio n of Intellectual Property Rights – Other Areas  
6.   Paragraph 118 on page 59 of the Secretaria t Report noted that Romania does not have TRIPs-
consistent legislation for protec ting undisclosed information.   
Please inform us of the status of Romania's e fforts to comply with TRIPs Arts. 39.1-39.3, 
including any draft laws or implementing re gulations under consider ation and any proposed 
timeframe for implementation. 
ANSWER 
 The provisions of Art.39 from TRIPS have been transposed in Law no. 11/1991 regarding 
unloyal competition, as modifie d by Law no. 298/7 June 2001. 
According to Art. 11 b) of Law no. 298/2001, “a trade secret is the information which is 
generally not known and is not easily accessible to  people skilled in the trade, and which is more 
valuable because it is undisclosed, and whose owner has taken measures of keeping it a secret; trade 
secrets protection is valid as long as the above-mentioned conditions are accomplished”. 
 According to Art.4 b), it is a contraventi on to disclose, purchase or use a trade secret 
(referring to a trader or an employee) without the agreement of the legal owner of that secret and 
contrary to fair commercial practices. 
 According to Art.5 it is an offence: 
• For a third party to disclose, purchase or u se a trade secret without the consent of its 
legal owner, as the result of economic or industrial espionage; 
• For representatives of the public authorities to  disclose or use a trade secret, and also 
for the representatives of the legal ow ners in front of public authorities. 
7.   In paragraph 117 on page 58 of the Secr etariat's report, geographical indications are 
discussed.  Romania's Law no. 84/1998 established that grounds for oppositio n and cancellation of a 
trademark would exist if the trademark infringed upon earlier rights acquired in a protected 
geographical indication.  However, in the provis ions regarding geographical  indications, grounds for 
refusing protection to a geographical indication fail to mention the rights of earlier established 
trademarks.  In other words, it is unclear if ear lier established trademark rights would be protected. 
 How does Romania preserve the rights of trad emark owners consistent with Articles 16(1) 
and 24(5) of the TRIPs agreement, specifically protecting trademarks from confusingly similar and 
later in time geographical indications? 
  WT/TPR/M/155/Add.1 
Page 26  
 
 ANSWER 
According to Rule 39 of Government Ordinan ce no. 833/1998 for the application of Law 
no. 84/1998 on trademarks and geographical indica tions, an opposition at the registration of a 
trademark may be filed within 3 months from the publication, if a person has a legitimate interest 
based on an earlier IP right, which might be in conflict with the geographical indication. 
If there are enough grounds for the opposition, OSIM rejects the registration application and 
publishes the rejection decision in the IP Official Bulletin. 
Measures Affecting Production and Trade – Protection of Intellectual Property Rights - Enforcement
 
8.   According to paragraph 119 on page 59 of th e Secretariat Report, Romania indicated that it is 
working on an IPR enforcement Action Plan.  
 We would appreciate an update on Romania' s progress on its Action Plan to increase 
interagency cooperation for IPR enforcement.   
ANSWER 
 The Action Plan for implementing the Strategy was approved by Government Decision 
1174/29 September 2005, amending and completing GD 1424/2003 approving the National Strategy 
in the IP field (2003-2007). 
 This plan has objectives and measures for: 
• Improving the legal framework;  
• Strengthening the administrative capac ity of the institutions involved; 
• Improving the enforcement. 
QUESTIONS FROM THE GOVERNMENT OF CANADA Part II.  Trade and Investment Regimes, (5) Investment Framework, Paragraph 38: 
1. In 2002, the Romanian Agency for Foreign I nvestment (ARIS) was established to promote 
and attract FDI.  Could Romania state how ARIS proposes to address structural obstacles to 
investment, as set out in the Secretariat Report?  (Specific obstacles referred to in the Report are 
corruption, excessive bureaucracy and law enforcemen t issues.)  In Romania's view, are the actions 
being taken by ARIS to address these problems help ing Romania develop a more stable investment 
environment? 
ANSWER  
 The Romanian Agency for Foreign Investment  was established according to Law 
no. 390/2002 as a specialized governmental body of  the central public administration responsible for 
the implementing of the Government's policy of pr omoting and attracting foreign direct investments in 
economy.  WT/TPR/M/155/Add.1 
 Page 27 
 
 
  The Government and ARIS are fully aware of the importance of the above-mentioned 
structural difficulties, and the progress of the Rom anian legal framework proves that these issues are 
being addressed with maximum care and determination. 
 Furthermore, it should be mentioned t hat corruption, excessive bureaucracy and law 
enforcement issues are among the highest priorities stated in the Government Program for 2005 – 
2008.  
 Accordingly, all relevant authorities of the Romanian public system have been involved in 
activities meant to find the best applicable measur es, such as: modernization of the human resources 
management, development of strategic policies in the field, creating a viable partnership with the civil 
society etc. 
 Government Decision no. 504/2003 (Official J ournal no. 301/06.05.2003) approved the 
program of application of La w no. 161/2003 regarding some meas ures for ensuring transparency in 
the public system and in the business environment and for preventing and sanctioning corruption. 
 Through this program, the ministries and the local administrative authorities are obliged to 
ensure the application of the above mentioned law and also to gather the data regarding the stage of 
the law's application.  
 In the last years, Romani a's efforts towards private en trepreneurship development and FDI 
attraction focused on the identification and reduction of the administrative barriers for starting and 
operating a business, increasing the transparency of  the investment policy framework and improving 
the communication channels between the governme nt and the business community, notably foreign 
investors. These efforts ha ve been carried out in close co- operation with the Foreign Investment 
Advisory Council Service of the World Bank and th e OECD South-East Europe Compact for Reform, 
Investment, Integrity and Growth (the “Investment Compact”). A special co-ordinating unit - the 
Business Environment Unit (BEU) - has been crea ted to conduct business surveys, develop action 
plans for regulatory reform and monitor their implementation.  
 Until now, the most notable actions were: 
• Legislation on the Silent Approval  Procedure of 18 November 2003 (Law 
no. 486/2003 for approving G.E.O. No. 27/2003) which allows companies to undertake activities if the relevant governme nt authority has not responded within 
30 days;  
• G.D. no 396/2002 concerning draft legislation having an impact on the investment 
environment. This decision makes it compulsory that any new legislation be accompanied with a regulatory impact a ssessment, in line with OECD standards. 
Such assessment must involve all concerned parties;  
• Law on Transparency in Public Administration no. 52/2003 (the so-called “Sunshine 
Law”) which requires that public instituti ons conduct prior consultation on draft 
legislation with interested parties. The parties concerned have 30 days to express 
their views about the proposed legislation;  
• Bankruptcy Law and Judicial Reorganisa tion Law no. 149/11.05.2004 (Official 
Journal 424/12.06.2004) that facilit ates the exit of unprofitable business and 
improves creditors rights; WT/TPR/M/155/Add.1 
Page 28  
 
 • Law no. 637/2002 harmonising Romani an legislation with UNCITRAL and EC 
regulations in the field of internatio nal law practices in the insolvency area; 
• Law no. 390/2002 (O.J. No. 443/2002) on the creation of a Romanian Agency for 
Foreign Investment (ARIS) as the government  legal body for providing consultative 
services to foreign investors; 
• Various normative acts to improve the legislative and administrative frame for small 
and medium-sized enterprises; 
• The introduction of clear, fair and easily applicable rules to calculate the value of 
minority shares which allow minority shareholders to benefit quickly from the opportunity to realise their investments and which allows strategic investors to 
continue their investments, thus reducing uncertainty in the business environment.  
 The FDI inflows rose constantly in Ro mania, from Euro 1212 million in 2002 to 
Euro 1946 million in the next year and euro 4209 in 2004 as a result of the business climate 
improvements. 
 Looking ahead the Romanian authorities consid er consolidating business information into a 
single Internet site and continue to reduce the sca le and complexity of the documents required to 
establish new businesses. 
Part II.  Trade and Investment Regimes, (5) Investment Framework, Paragraph 39: 
2. Foreign investors wishing to become sharehol ders in a company must apply to ARIS for 
approval.  Could Romania explain this approval pr ocess?  Under the Government Urgency Ordinance 
on the Status of Foreigners in Romania (Law no. 375/2003) as stated in the Report by the Secretariat, 
foreign investors must fulfil “ certain conditions, ” i.e. have the necessary funding, and investments 
must  “ benefit the Romanian economy ” in terms of money, kind and job creation.  Could Romania 
clearly define what is encompassed by “certain  conditions” as well as “benefiting the Romanian 
economy” as conditions for approval?  
ANSWER 
Starting January 27, 2003, according to  the Governmental Ordinance no. 194/2001 
regarding alien's regime in Romania approved, modified and amended by Law no. 357/2003, 
Romanian Agency for Foreign Investment is gran ting an endorsement to the foreign citizens 
requesting the long term visa for developing commercial activities in Romania.  
The request for the endorsement for long term  visa for developing commercial activities in 
Romania consist in the submission of the all suppo rting documents in the application. Romanian 
Agency for Foreign Investment is requesting no fee for the issuing the endorsement for long term visa 
for developing commercial activities in Romania an d issues the endorsement in 30 days the latest. 
Visa applications, submitted to the Romanian diploma tic missions or consulates, and endorsed by the 
Authority for Aliens and the Directorate of Consular Relations within the Ministry of Foreign Affairs, 
will contain the following documents: ARIS endo rsement, criminal record certificate or other 
document with the same legal value, medica l insurance for the visa validity period.  
  WT/TPR/M/155/Add.1 
 Page 29 
 
 
 ARIS endorsement shall be given to aliens comply ing with the conditions of art. 43 of G.E.O. 
no. 194/2002, regarding the applicable regime of l ong-stay visa for commercial activities purposes. 
Law 357/2003, Law 482/2004 associated with  the provisions of ARIS and President 
Order 854/29 November 2004.  
In order to qualify for the endorsement i ssued by the Romanian Agency for Foreign 
Investment, the applicant must satis fy the following requirements: 
1. Request application for ARIS endorsement;  
2. Copy of the passport;  
3. Technical-economic documentation: 
• For shareholders and associates: 
i. Present the constitutive documents; ii. Present Certificate of registration issued by the Register of 
Commerce; 
iii. Present the proof of being administrator, associate/shareholder; iv. Present mention registration certificate; 
v. Present statutory certificates issu ed by the Register of Commerce. 
• For persons to become shareholders and associates: 
i. The notary document proving the applicant's quality of 
associate/shareholder with managerial and administrative 
attributions; 
ii. Proof of the documents submission to the Register of Commerce as to 
obtainment of the applicant's quality  of associate/shareholder with 
managerial and administrative attributions. 
a. All applicants must submit a business plan,  which should include information on the 
business purpose, nature, location, the intended dura tion of status of the relevant activity and the 
estimated number of employees.  
1. The nature of business: 
• Company profile and area of activity; 
• Mission, objectives and economic impact; 
• Market analysis, including: the targeted market segment; 
• Data as to services, trade, production process describing the economic 
process: WT/TPR/M/155/Add.1 
Page 30  
 
 o Raw material (if necessary); 
o Price analysis; 
o Distribution network; 
o Environment impact. 
• Projection of the financial activity: 
o Estimated income; 
o Estimated expenses; 
o Estimated gross profit; 
o Economic efficiency ratios; 
o Financing sources. 
• Fiscal effects on the investment: 
o Estimated amount;  
o Local taxes and fees; 
o Taxes and fees due to the state budget. 
• Subsequent investments related to the core activity: 
o Quantum; 
o Scheduling. 
2. Business location: 
• Location description; 
• Documents certifying the right of property or, as the case might be the right 
  of use. 
3. Anticipated activity duration: 
• Minimum one year. 
4. Estimated needs of labour force: 
• Number of employees; 
• Staff structure; 
• Organizational chart and department distribution;  WT/TPR/M/155/Add.1 
 Page 31 
 
 
 • Professional expenses and professional training expenses, as the case might 
  stand. 
b. The proof that the applicants possess the necessary funds to develop and operate a 
commercial activity, in amount of at least euro 7000 0 in case they are to become shareholders in a 
joint-stock company and euro 50000 in case they a re to become associates in a limited liability 
company. 
Compliance with this condition must be proven with the original copy of a nominal account 
statement issued by a Romanian bank or a foreign bank (in this case an authenticated translation is 
required). 
c. The activity must proof to be beneficial for the national economy and must bring significant 
capital gain, technology and should create new jobs:  
• Contribution with new technology (not older than one year at the date it was 
introduced in the country, and not used before); 
• Investment value amounting at least EUR 70000, for joint stock companies 
and EURO 50000 for limited liability compani es or to create at least 10 new 
jobs; 
• Employment of staff registered with the County Agencies for Labour Force 
Employment; 
• Not to infringe the environment protection regulations; 
• Not to impinge upon the national defence and security interests of Romania; 
• Not to harm public ethics, health and order; 
• To present the latest balance sheet registered with the Country Offices of 
Public Finances (in case of companies already functioning). 
Part II.  Trade and Investment Regimes, (5) Investment Framework, Paragraph 41: 
3. The Secretariat Report states that foreign ow nership approvals or licenses required for 
certain sectors must be granted from regulatory/supervising bodies. Could Romania identify these 
supervising bodies and indicate whether and how in formation relating to obtaining approvals/licenses 
is available to investors.  
ANSWER 
 For example: 
•  The establishment of a credit institution as  a Romanian legal entity or a branch of a 
foreign credit institution requires the approval of the National Bank of Romania; 
•  Securities and other non-banking financial companies operating on the capital 
market must be authorized by the National Securities Commission (NSC), an WT/TPR/M/155/Add.1 
Page 32  
 
 independent body reporting to Parliament. No distinction is made between local and 
foreign entities. Prior authorization by the NSC is also required for public issues; 
•  Romanian air carriers have to detain an ai r operating license granted by Ministry of 
Transport Construction and Tourism (MTCT) . The basic conditions for obtaining 
the operating license are that the com pany be established in Romania and be 
controlled by Romanian nationals or State; 
•  Licenses for mining activities are grant ed by the NATIONAL AGENCY FOR 
MINERAL RESOURCES (NAMR), the Competent Authority, responsible for the application of the provisions of Mining Law no. 85/2003. All information relating to obtaining the licenses (Mining Law, Norms for applying new Mining Law, etc) is available on the site www.namr.ro The principles of transparency and competition are applicable, irrespective of the origin of capital; 
•  To engage in radio, TV or publishi ng a license is required from National 
Audiovisual Council, but there is no discrimination between local and foreign entities; 
•  Investing in gaming, lotteries, lotto and casinos requires approval from the Ministry 
of Finance and certification of standard compliance. There is no discrimination 
between foreign and local investors. 
 The information relating to obtaining approv als/licenses is available to investors through 
internet sites of the regulatory bodies and promotio nal materials with economic character made by 
Romanian authorities.  
4. Regarding foreign ownership, the Secretariat Report states that " special measures may also 
apply, occasionally, on a case-by-case basis in some activities. "  Could Romania please clarify what 
is meant by "special measures" and which specifi c regulatory or supervis ing body would have the 
authority to grant special measures?  In addition,  could Romania outline the prescribed criteria that 
are used to determine if and when sp ecial measures apply to an investment?  
ANSWER 
 As exemplified by footnote 44 on page 24, the ref erence to  "special measures may also apply, 
occasionally, on a case-by-case basis in some activ ities" has to be understood as being applicable for 
privatization cases. 
Part III. Trade policies and practice by measure,  (4) Measures affecting Production and Trade, 
(iv) Intellectual property rights, Paragraph 112: 
5.  Canada notes that “a patent has a maximum term of 20 years but the term is ten years for an 
invention that improves other patented inventions  and cannot be worked without the previously 
patented inventions”. However, Article 33 of the TRIPs Agreement requires that patent terms be not 
less than twenty years.  When does Romania propo se to bring its patent term requirements into 
conformity with its obligations under the WTO Agreement?     
 
  WT/TPR/M/155/Add.1 
 Page 33 
 
 
 ANSWER  
It is true that Patent Law no. 64/1991, Art 33 stipulated that the 10 year term was only for the 
inventions that improved other inventions.  
This article has been abolished by Law no. 203/2002 for the amendment and completion of 
Law 64/1991. 
Thus, according to the present law into force, all patents have a term of 20 years, this 
provision being into c onformity with TRIPS.  
Part III. Trade policies and practice by measure, (4) Measures affecting Production and Trade, 
(iv) Intellectual property rights, Paragraph 113: 
6. Are non-registered trademarks used in Roma nia protected by Romania Trademark Law?  
ANSWER   Non-registered well-known trademarks are protected, according to Law 84/1998 on 
trademarks and geographical indications. 
 According to Art. 3 c) from Law 84/1998, a well-known trademark is that trademark that is 
widely known in Romania at the filing date of the application or priority date mentioned in the 
trademark application. In order to establish if a trademark is well-known, one has to verify its 
notoriety with the public interested in the products  or services to which the trademark relates, and it 
is not necessary to register or u se the trademark in Romania.  
7. Canada notes that "Romania's legislative framework on trade marks protects verbal, 
figurative, three-dimensional or combined signs."  Could Romania provide additional details on what 
constitutes each of the above-mentioned signs? 
ANSWER  
Verbal, figurative, 3D and combined trademarks are defined in Art.3 a) of the Romanian 
Trademark Law, and their significance is the same as in any other legislations.  
According to Art.3 a), a distinctive trademark ma y be constituted by distinctive signs such as: 
words, including personal names, designs, letters,  numerals, figurative elements, three-dimensional 
shapes and, particularly, the shape of goods or of packaging thereof, combinations of colours, 
together with any combination of such signs. 
 Still, according to Art.5 e) of Law 84/1998, trademarks which consist exclusively on the shape 
of the product which results from the nature of the goods themselves or which is necessary to obtain a 
technical result or which gives substantial value to the goods cannot be registered. WT/TPR/M/155/Add.1 
Page 34  
 
 Part III. Trade policies and practice, by measu re, (4) Measures affecting Production and Trade, 
(iv) Intellectual property rights, Paragraph 114: 
8. Canada notes that Romania Copyright Law provides “specific terms of protection (including) 
15 years for sui-generis rights”. Could Romania provide further details on what constitutes “sui-
generis rights”?  
ANSWER  The sui-generis rights provided under th e Romanian Copyright Law refers to the rights 
recognized in favour of the databases maker. The la w introduces this new category of right holders: 
the maker of a database which shows that there has been qualitatively a substantial investment in 
either the obtaining, verification or  presentation of the contents ha s the right to prevent extraction 
and/or re-utilization of the whole or of a s ubstantial part, evaluated qualitatively and/or 
quantitatively, of the contents of that database. These rights are subject to exceptions and limitations and their duration is 15 years from the year following the database completion. 
Part III. Trade policies and practice by measure,  (4) Measures affecting Production and Trade, 
(iv) Intellectual property rights, Paragraph 117: 
9. Canada notes that “Romania protects geogra phical indications that serve to confer a 
reputation, quality or characteristic on a product” . Could Romania please provide further details on 
whether those geographical indications are “indicati ons which identify a good  as originating in the 
territory of a (WTO Member), or a region or lo cality in that territory, where a given quality, 
reputation or other characteristic of the good is essen tially attributable to its geographical origin”, 
consistent with Article 22.1 of the TRIPS Agreement? 
ANSWER   According to Art. 3 f), a geographical indi cation means the name serving to identify a product 
that originates in a country, region or town/village of a State in those cases where a certain quality, reputation or other specific characteristic may be essentially attributed to that geographical origin.  
 According to Art.67 of Law 84/1998, Geographica l indications of products shall be protected 
in Romania by their registration with the Stat e Office for Inventions and Trademarks in accordance 
with this Law or with the international conventi ons to which Romania is party and may be used only 
by those persons who manufacture or market the products for which they have been registered.  
Part III. Trade policies and practice by measure,  (4) Measures affecting Production and Trade, 
(iv) Intellectual property rights, Paragraph 118: 
10. Canada understands that “Romania's legisla tion does not protect undisclosed information”. 
Does Romania intend to include protection of undisclosed information in its legislation? 
ANSWER 
Romania's legislation addresses the issue of the protection of undisclosed information. For 
more information please see answ er to question 6 of the US. 
Part IV. Trade Policies by Sector, (5) Service s, (iii) Telecommunications and postal services, 
Paragraph 84:  WT/TPR/M/155/Add.1 
 Page 35 
 
 
 11. The Secretariat Report states that “interconnection tariffs for the mobile telephony 
incumbents have been limited until cost-orienta tion computing methods are passed.” Could Romania 
please elaborate on its plans to ensure that th ese computing methods are developed and passed? 
ANSWER 
Related to the interconnection tariffs for the mobile public telephone networks, the National 
Regulatory Authority for Communications has just finalised the “bottom-up” long run incremental 
costs calculation model to establish the tariffs based  on costs. This first version of the model was 
presented to the incumbents and the NRAC r eceived some remarks which are analysed and the 
process will be finalised at the beginning of 2006. 
Part IV. Trade Policies by Sector, (5) Service s, (iii) Telecommunications and postal services, 
Paragraph 85: 
12. In the Secretariat Report, it is noted that  Romania has no general regulation on cross-
subsidization. Romania has fully subscrib ed to the WTO Reference Paper on basic 
telecommunications, which requires measures to prevent anti-competitive conduct, including cross-
subsidization.  Could Romania explain the me asures it uses to prevent anti-competitive cross-
subsidization? 
ANSWER 
Romania has no general regulation on cross-subs idization but the providers designated with 
significant market power (SMP) on the communicati ons market and for the postal services must keep 
separate accounting so that the cross-subsidization can be determined. For the same purpose, it was 
established a rebalancing plan for the retail tariffs for the fixed incumbent and there were performed 
three phases of tariffs rebalancing by now.  
Part IV. Trade Policies by Sector, (5) Services, (v) Tourism, Paragraph 108: 
13. The Report states that the National Authority for Tourism is in charge of hotel/restaurant 
classification and inspection. What are the criteri a used for classifying hotels and restaurants?  
ANSWER 
 The criteria for classification of the hot els and restaurants are foreseen in the Order 
no. 511/2002 of the Minister of Tourism. This Order was issued in order to approve the Methodological norms for the classification of the tourist units. 
14. According to the Report, one of Romania's main tourism policy goals is completing 
privatization of the sub sector, with the goal of a ttracting further foreign direct investment. Please 
clarify what tourism sub sector is being referred to.  
ANSWER   Through the entire chapter dedicated to tourism,  the notion of „tourism sub-sector” has been 
used as to cover a component of the tertiary economic sector.       
15. We would also be interested in knowing when full privatization is expected to be realized and 
what incentives, if any, are being provided to encourage privatization. WT/TPR/M/155/Add.1 
Page 36  
 
 ANSWER 
At present, 92% of the companies acting in touris m are private; as to the social capital of 
these companies, the private ones detain 88% of the entire social capital in tourism . 
The commercial companies from tourism where th e Ministry of Transportation, Constructions 
and Tourism, in the name of the State, owns cap ital shares, are faced with a difficult patrimonial 
situation, mainly as a result of claims from previous owners (done both through an administrative 
procedure and on a judicial way). When the own ership status of these companies is clarified, the 
privatization decision will be taken.  
Part IV. Trade Policies by Sector, (5) Services, (v) Tourism, Paragraph 109: 
16. The Report states that the Romanian Government  remains active in "defining zones with high 
tourism potential" and "elaborating plans for the deve lopment of the sub sector..." What sub sector of 
tourism is being referred to in this statement? On what bases are zones with high tourism potential defined? What is the status of plans for developing the tourism sub sector? 
ANSWER  
The Government of Romania through the Mini stry of Transports, Cons tructions and Tourism 
– National Authority for Tourism and General Depa rtment of Territory Arrangement, Urbanism and 
Living Policy has drafted legislation for the approval  the plan for the organizing of the  national territory – section VI TOURISM. This draft law propose the defining of the zones with complex 
tourism  potential and with  high value,  the zo nes with high tourism potential as well as the 
identification of these; the criteria to establishing th ese zones are stipulated in the draft law .The 
National Authority for Tourism has under going process of elaborating  the  general  strategy of 
development of tourism on medium term, the  t ourism configurations strategies and strategic 
guidelines on short and  medium term development.  Also for the 2007-2013 period, the tourism will 
be developed according to the strategy scheduled  in the National Plan of Development and of the 
sectorial and regional  operational programs with the EU structural founds and Romanian state budget  financing.     
Part IV. Trade Policies by Sector, (5) Services, (v) Tourism, Paragraph 110: 17. The Report states that foreign and domestic companies are allowed to set their own prices but 
must inform the MTCT of their maximum prices a nd prices must be cleared annually by the MTCT. 
Could Romania please clarify how companies can dete rmine their own prices and yet be required to 
obtain clearance for such pricing from the MTCT? How does the MTCT determine the clearing of 
such prices? What happens in cases where prices set by companies are not cleared by MTCT? 
ANSWER   According to the Government Decision no. 805/2001, the economic agents owning touristic 
hosting structures, fit for accommodation, have the obli gation to inform, until the date of June 30, the 
current  year, the maximal prices for th e next year.  This information is also used when issuing of the  
National Authority for Tourism's catalogue of  the touristic hosting structures, including 
accommodation structures.      WT/TPR/M/155/Add.1 
 Page 37 
 
 
  The prices are established by the economic agent s in accordance with their costs, the tariff 
and competition  policy and do not require the National  Authority for Tourism' approval; these prices 
are only informative. 
 In cases when the economic agent applies higher prices than those transmitted to the 
National Authority for Tourism, he  is penalized with contravention penalty in accordance with the 
Government Decision no. 805/2001.   
Part II. Economic Trends, (4) IT&C, Paragraph 30: 
18. In the Report by Romania, one of the Government's strategic objectives in the field of 
technologies and telecommunications is to increase the competitiveness of the Romanian economy by 
stimulating the use of the most innovative information technologies.  Could Romania elaborate on 
what measures it plans to take in order to achieve this objective? 
ANSWER 
 Economic competitiveness relies on the “Knowle dge-Based Society “ and a key element of the 
knowledge-based society is mastering Informatio n Society applications. To that matter, in full 
concordance with the lines of action of the Co mmission's proposal regarding the framework for 
Competitiveness and Innovation 2007 – 2013, the long- term measures within the framework of 
Sectoral Operational Programme for increasing economic competitiveness and the development of a 
knowledge-based economy are: 
• Support of information technology use by: support for SMEs's access to Internet and 
connected services; support for electronic communication networks suppliers in order 
to extend and modernize the infrastructu re in the market failu re areas, increasing 
Internet access through broadband connections , support for setting up Internet public 
access centres (telecenters) in the market failure areas, ensuri ng Internet access 
through broadband connections;  
• Development and increasing efficiency of modern public electronic services 
(Government, e-Education and e-Health) by : provision of financial and consultancy 
support for extending electronic public services, especially for the business environment (Government to  Business); promotion of inter-operability between 
national and Pan-European public services,  and exchange of best practices; support 
for developing e- Education programmes (app lications or infrastructures for distance 
learning); support for developing e-Health  programmes (support for ensuring online 
availability of health care information and services, preventive medicine and medical 
education; support for carrying out the Ex tranet network of medical units with 
broadband access;  
• Promoting a dynamic e-business environmen t and reducing security deficiencies in 
IT&C field by provision of technologi cal support and business consultancy for 
developing the highly secured e-business so lutions; support for taking up and 
adapting e-business solutions with e-government-type applications; support for developing e-commerce solutions and stim ulation of the demand for electronic 
commerce.  WT/TPR/M/155/Add.1 
Page 38  
 
  Within the long-term framework aiming to  increase the competitiveness of the Romanian 
economy, The Ministry of Communications and Info rmation Technology (MCIT) priorities for 2005-
2008 envisage the following issues: 
 1.  Implementation of IT&C in the public admin istration, in order to develop on line services, 
with a view to increasing the citizens comfort,  improve the flexibility of local and central 
administration structures, so that they could in itiate, support and develop IT&C projects for SME's, 
as well as the effective and coherent IT&C im plementation, given the open standards and 
interoperability requirement of the local and cen tral public administration; access to funding 
programs in collaboration with nati onal and international institutions. 
 2.  Enlargement of access to communi cation services throughout Romania, by setting up 
Public Access Points that should allow access to public telephone network (PSTN) and to the internet- 
in the localities with a low degree of access to  services, by encouraging alternative regional 
operators, with a view to devel oping local loop, as well as by the development of broadband 
communications. 
 3.  Privatisation of state shares  in order to complete the pr ivatisation process within the 
IT&C sector. 
 4.  Education and development of human resources for the Informational Society, a priority 
that supports the training and re-training of specia lists as Romania's competitive advantage, as well 
as the pursuit of digital alphabetisation, starting from early school years. 
QUESTIONS FROM THE GOVERNMENT OF BRAZIL  
WT/TPR/G/155, Paragraph 9 
1. Does the Romanian Government consider it vi able to keep the high rate of domestic 
consumption growth registered recently without je opardizing the main macroeconomic indicators, in 
particular the inflation rate? Is the increasing leve l of FDI sufficient to improve the current account 
deficit? 
ANSWER 
 As concerns inflation targeting policy, pl ease see answer to question 1 of Switzerland. 
 Balance of payments current account deficit rose to 7.6% of GDP, compared with 6% of GDP 
in the year 2003, although it should have been brought  down to 5.5% of GDP. Nevertheless, it should 
be pointed out that nearly half of the deficit worseni ng was attributed to the change in the calculation 
methodology based on the additional data referring to  reinvested profits by joint ventures doing 
business in Romania, the sub-adjacent ec onomic processes remaining unchanged.  
 The year 2004 witnessed robust FDI and privatiza tion proceeds which, in conjunction with 
capital transfers, ensured stable current account deficit financing. Although the current account 
deficit should conventionally be maintained at 6% of  GDP at most, the experience of some of the new 
EU entrants shows that strengthening external  credibility due to the progress towards economic 
integration is associated with the rise in FDIs and other capital streams, which provide significant 
funding for imports, resulting in burgeoning curren t account deficit. Even though in Romania the 
level of current account gap is largely financed from  FDI, that is expected to perform well further, 
closely correlated with the accession to the EU process, the relatively large deficit should no longer 
be left to widen by resorting to additional stimulan ts associated with the advance in public and 
private consumption.  WT/TPR/M/155/Add.1 
 Page 39 
 
 
 WT/TPR/G/155, Paragraph 22 
2. Does the agricultural and rural development po licy of the Program of the Government for 
2005-2008 provide the necessary means for an increase in productivity of the small farms mentioned in paragraph 18? If so, please comment on the specific measures designed to that end. 
ANSWER 
 MAFDR's structural reforms for period 2005-2008 consist in developing a middle class in the 
rural area through the creation of family farms, inte r alia, through the transformation of subsistence 
farms into market oriented farms and their c onsolidation. To this end we mention: 
a) Access to financial sources fo r investments, to building capacities and consultancy; 
b) Market measures for the better functioning and organization of agricultural markets 
 aiming to improve productivity and competitivity; 
c) Support for organizing the producers' groups in order to sell together all the 
 agricultural and forestry products; 
d) Support to diversify and develop the vegetal and animal productions. 
WT/TPR/S/155, Chapter I, Paragraph 10 
3. According to the Romanian authorities, an aver age external current account deficit of 5.5% 
GDP would be sustainable. Nevertheless, the cu rrent deficit stands at over 7.5%. How do the 
Romanian authorities intend to reduce the current account deficit to a sustainable level and when 
could this goal be achieved? 
ANSWER 
 See answer to question no.1. 
WT/TPR/S/155, Chapter I, Paragraph 19 4. Has the implementation of a "one-stop-office" for the registration of companies and the 
establishment of the Romanian Agen cy for Foreign Investment had so far any significant impact on 
the level of FDI attracted to Romania? 
ANSWER 
See answer to question by Turkey. 
WT/TPR/S/155, Chapter II, Paragraph 17 
5. Romania has trade agreements with various  countries in Europe, including Turkey, Moldova 
and Ukraine. How have these agreements affected Romania's trade with the rest of WTO members? 
Does Romania see any possibility for further diversifi cation of its trading partners, taking into account 
that European countries' markets are responsible for 86.7% of Romania's exports and 72.5% of its 
imports? WT/TPR/M/155/Add.1 
Page 40  
 
 ANSWER 
 Romania has established, through preferen tial trade agreements complying with the 
requirements of Article XXIV of GATT 1994, free trade areas with European Union,  EFTA member 
States, Bulgaria and Croatia (under the CEFTA) Moldova, Turkey, Israel and the countries in South Eastern Europe (Albania, Bosnia and Herzegovi na, Macedonia, Serbia and Montenegro.  The share 
of these partners represents 83.2% of Romani a's exports and 70.2% of its imports.  
 Romania has not a free trade agreement with Ukraine.   The preferential trade regime didn't affect the trade with other WTO members, which further 
registered diversification and high growth rates, thus demonstra ting an overall  trade creation effect 
of the free trade agreements. As an example, st atistical data for January-September 2005 clearly 
show that the trade growth with other regions wa s higher than the growth of the overall foreign trade 
of Romania. While the trade in both directions , exports and imports, grew  by 21.1%, the trade 
increased by 25.7% with African and Middle East countries, with 36.7% with Asian countries and with 34.2% North and South American countries. 
WT/TPR/S/155, Chapter III, Paragraph 6 
6. When does the Romanian Government estimat e that the adoption of specific regulations 
regarding the legal protection of creditors will be  adopted and what will be their main features? 
ANSWER 
 Both rights and obligation are settled by concl uded contracts, on the own responsibility of the 
contracting parties. 
 In case of disputes between contracting parti es, the provisions of Commercial Code, Civil 
Code and Fiscal Procedures C ode are to be applied. 
 In case of liquidation or bankruptcy, the cred itors have the first right to recover their credits. 
WT/TPR/S/155, Chapter III, Paragraph 39 
7. What does the Romanian Government unde rstand by import licenses applied to "goods 
subject to agricultural market organizations"? 
ANSWER  The Romania Government Decision no. 1526/2003 on the general export and import regime, 
establishes the basic principles and rules for exp ort and import from/into the Romanian custom 
territory (as reflected also in WTO document WT/TPR/S/155, Chapter II, Paragraph 7).  
 The Romanian export and import regime is ba sed on the premise that the export and import 
of goods are free, without being conditional on prior issuing of a license, except where specific 
products are subject to one of the measures, a dopted in accordance with the provisions of  
Government Decision no.1526/2003.  
  WT/TPR/M/155/Add.1 
 Page 41 
 
 
  The Government Decision No. 1526/2003 is notified in WTO document G/LIC/N/2/ROM/4, 
dated 5 October 2005 (under Article 5  of th e WTO Agreement on Import Licensing Procedures). 
Also, a notification under Articles 1.4(a) and 8.2(b), of  the same  WTO Agreement, is due at any  time 
by now. 
 Indeed, at Article 2(1).d) of  the Governm ent Decision No. 1526/2003, a new rule has been 
added, which did not exist before, concerning" meas ures stipulated by law for the objectives of the 
market organizations for agricultural products". An yhow, up to now, Romania did not apply this 
system of licensing. 
 Romania intends to implement an import licensi ng scheme for certain agricultural  products, 
which will be stipulated  by law, with statistic al purpose and based on automatic licensing system. It 
is intended to monitor imports trends and origin  and not to restrict the quantity of imports. 
WT/TPR/S/155, Chapter III, Paragraph 77 
8. Is the export promotion programme mana ged by the Export-Import Bank of Romania 
applicable only to Romanian companies or are foreign companies establishe d in the country also 
eligible? 
ANSWER  All companies established according to the Romanian law, irrespective of the capital 
ownership, are eligible under the export promotion programme manage d by the Export-Import Bank 
of Romania.  
WT/TPR/S/155, Chapter IV, Paragraph 8 
9.  What is the stage of implementation of the main provisions of the MAFRD's Strategy for the 
Sustainable Development of Agriculture and Food Industry for 2004-25? What remains to be done? 
ANSWER 
 The main objective of the Ministry of Ag riculture, Forests and Rural Development is the 
implementation of an agricultural policy able to  cope with the Common Agriculture Policy. 
 Achievement of these major political and econom ical objectives will be reached through the 
development of the agriculture and food industry sectors, in terms of quantity and quality. 
 The MAFDR's Strategy for the Sustainable De velopment of Agriculture and Food Industry for 
2004 – 2025  foresees the guidelines of agricultu re development main targ et: the level of the 
agriculture output and its sector orientation. 
 At the current  stage, the Government attention is concentrated on the structural reform, as a 
preliminary and fundamentally measure for increa sing the competitiveness. This suppose a farm 
restructuring process and progressive orientation to  the market requirements. In this context 
Romanian authorities focus on the improvement of trading process for agricul tural products, as well 
as on the development of processing process of agric ultural goods, and development of the alternative 
economical activities and improvement of  the rural area infrastructure. 
 WT/TPR/M/155/Add.1 
Page 42  
 
 WT/TPR/S/155, Chapter IV, Paragraph 23 
10. What is the current stage of implementati on of the National Strategy for Fishery as regards 
the modernization of vessels, fish farms and har bours and the diversification of cultivated species? 
ANSWER 
 Romania is currently drafting the National St rategic Plan for Fishery, for 2007 – 2013. The 
first draft will be ready in February 2006.  Th e National Strategic Plan for Fishery will cover: 
• Improving fishing activity in the Black Sea and inland waters; 
• Developing aquaculture; 
• Improving processing and fish market; 
• Modernization of vessels and fishing harbours. 
WT/TPR/S/155, Chapter IV, Paragraph 33 
11. What is the current stage of implementation of the Mining Industry Strategy for 2004-10 as 
regards the rehabilitation, upgrading and privatizati on of viable mines; encouragement of foreign 
investment; protection of the environment; and mitiga tion of the social consequences of the closure of 
non-viable mines? 
ANSWER 
 The Mining Sector Strategy for 2004 – 2010 aims to reform the sector and to eliminate all 
subsidies for metal and mineral mines by 2007 and fo r coal mines by 2010, as well as to close 
nonviable mines, mitigate environmental impacts and eventually attract private investments.  
 Since the decision of restructuring the mini ng sector has been taken, the Government has 
approved 8 Government Decrees for the closure of 408 mining units (mines, open pits, processing 
plants) and geological research sites. Till 2004, a number of 128 mines were completely closed and 
this trend will continue until the complete closure of all designed units. 
The Government is committed to phase out the subsidies to the mining sector. In accordance 
with the Mining Industry Strategy provisions, the subsidies from th e state budget decreased, in 2005, 
with 14,3% for hard coal and 25% for ore and lignite mines. Following this trend, the state subsidies 
for mining industry will be eliminated until 2007 for the mining units of the ore sector and underground lignite mines and in 2010 for the hard coal sector. 
 The mining sector restructuring process is asso ciated with measures for reducing the social 
impact, as follows: 
• A USD 5.5 million programme for creating ne w jobs by granting financial incentives 
 to the entrepreneurs who hire laid-off pers ons from the mining sector, was finalised, 
 the amount was entirely engaged and un til now 7000 new jobs were created;  WT/TPR/M/155/Add.1 
 Page 43 
 
 
 • A USD 6.8 million programme for starting ne w businesses in 10 area s available after 
 the closure of mining capacities, was, also, finalised, presently 10 business centres 
 are established; 
o The “Social Development Scheme for the mining communities in Romania” 
programme, amounting to USD 5.9 million, was finalized being focused on projects 
financing for 55 specific mining towns. C onsequently, 71 infras tructure projects, 
11 income providing projects and 12 community social services projects were financed.  The envisaged fields were health , education, water supply and locative 
fund redressed. 
In addressing the social impact, the mining sector restructuring was strongly supported and 
financed by the World Bank. The first loan agreement with the World Bank for the period 2000 – 2005 
as well as the 2
nd loan agreement spanning over the period 2 005 – 2009, signed  in January 2005, 
have also a strong component relating to social mitigation of mining sector restructuring.  
 Actions under the first loan agreement were de dicated to support entrepreneurs and business 
centres management, offer micro loans and financia l incentives for employment and training, develop 
business centres and schemes for social developmen t of mining communities. The second loan 
agreement will focus on the closure and the rehab ilitation of mines sites where production is 
terminated and thereby reduce environmental impacts ; a number of 20 sites have been identified to 
benefit from this project. A social and economic reco very component targeting the areas affected by 
mining-related personnel dismissals is included also in the new project. In this respect, the following 
actions are envisaged: enhance measures on se tting up new jobs; support activities for local 
development by developing local communities' ca pacity and financing the economic and social 
services; strengthen the capacity to implem ent socio-economic regeneration programs. 
 Regarding the privatisation process, we can mention the following: 
• There are under development the privatisa tion processes for the energy complexes 
 Turceni, Rovinari and Craiova; 
• Interest has been shown for the privatisation of a number of lignite open pits (Rosia 
 de Sud, Pesteana Nord si Sud, Lupoaia, Rosiuta); 
• Considering the evolution of cooper and gold on the international markets, a number 
 of open pits and mines may become profitable, with the support of foreign capital; 
• There is also interest for the privatisation of the salt mines (Ocna Dej, Cacica, 
 Tg. Ocna, Ocna Mures, Slanic Prahova). 
 Concerning the environment related issues,  very recently (November 2005) a project was 
started for the monitoring of the environmental risks  related to the mining sector. A feasibility study 
will be done, with US TDA support, to develop a m onitoring system covering operational mines, but 
also closed ones, in order to asses the environmental risks and to establish the necessary technologies 
to address them. 
 Also, there is under discussion the development of a project consisting in the environmental 
rehabilitation of tailing ponds and landfills, with the support of a Dutch consortium.  
 WT/TPR/M/155/Add.1 
Page 44  
 
 WT/TPR/S/155, Chapter IV, Paragraph 43 
12. What are the forecasts regarding the sources us ed for electricity production over the next few 
years? Are there signs of movement towards a more environmental-friendly energy system, 
considering that coal and hydrocarbons currently account for 61% of Romania's energy production? 
ANSWER 
 According to the National Energy Strategy prov isions, in order to en sure the security of 
supply, but also to cope with environmental need s the sources that will be used in the future for 
electricity generation will be the following:  first of  all, despite its polluting effects, coal will remain 
an important fuel to be used in power plants, due to the availability  of the domestic lignite reserves 
for the next 50 to 70 years, at a production rate of 30-35 million tons/year, in open pits. The mining 
strategy proves that the production of lignite is going to  be concentrated in the most cost efficient and 
favourable areas, which are the open pits, and the unviable mining operations (mainly underground) will be closed. Most of the lignite production is no more subsidized and represents a competitive and 
available source of energy. Hard coal will also be  used, given the availability of domestic hard coal 
resources, at a production rate of 3,5 million tons/year. 
 Is true that coal is an important source of  pollution and that is why we are committed to 
develop a significant process for improv ement of environmental conditions.  
 In the energy sector, any new unit that is going to be constructed will ha ve to comply with the 
requirements of EU regulation, in terms of l and, water and air quality, requirements which are  
transposed in our legislation. For the existing units  in operation, it is foreseen to achieve the required 
level of emission in a gradual way, by implementi ng very important investment programs, so that by 
the year 2012 to cope with the level of emission defined in the new legislation. 
 For the power plants from the energy sector, the total investment effort for the period 2005 – 
2015 is estimated at the level of 1 billion $; the most important investments are related to the instalment of desulphurisation equipments, whic h represents 86% of the total amount needed. Very 
recently, we started an important project for desu lphurization at the Turceni power plant with the 
support of the Japanese Government (instalment of FGD equipments) and we intend to continue the 
implementation of this type of projects and fulfil ou r commitments, with the financial support of the 
WB and EU. 
• On natural gas and oil, domestic producti ons will register a decrease due to limited 
 natural reserves, so the use of these res ources for electricity generation might 
 decrease, being influenced also by the evolution of the international prices; 
• We intend to increase the use of  hydropower reserves so that the annual hydro energy 
 production to increase with 1,5-2 GWh, by having installed additional power 
 capacities of about 500-900 MW. The country's hydropower potential can be  developed more by completing the generation capacities under various stages of  execution, retrofitting/upgrading the existing HPP, drawing private capital into  development and retrofitting projects and in the privatisation process, by selling the  micro-hydropower plants;  
• The nuclear energy program will be conti nued by putting into operation, at 
 Cernavoda Nuclear Power Plant, the second unit, in 2007 and, hopefully, at a later 
 date, unit nr.3. In 2007, nuclear energy will cover about 15% fr om the electricity  WT/TPR/M/155/Add.1 
 Page 45 
 
 
  demand of the market, supplying clean energy with minimum impact over the 
 environment and the population, at competitive rates; 
• The use of renewable energy sources will be  encouraged as stated in the national 
 program for renewable energy sources; this  represents a local source that can help 
 reduce reliance on imports and improves the security of energy supply, meeting the 
 environment protection criteria. Th e renewable energy sources represent an 
 important resource, but the high cost of the electricity generated represents a limiting 
 factor in their expansion. In order to overcome this obstacle, a special incentive 
 program should be enforced, including also a financial component. 
 The target established by the Romanian Govern ment for renewable use is that 33% of the 
domestic electricity consumption to  be obtained from these sources, until 2012. Besides the electricity 
obtained from sources like wind, solar energy, waves, bi omass, geothermal etc,  this includes also the 
electricity produced in big hydropower plants. 
 To promote generation based on renewable s ources, starting with 2005 Romania introduced 
a new mechanism according to which the supp liers are required to purchase a certain quota of 
renewable energy, with the purpose of selling it to th eir own consumers. In other words, all suppliers 
must buy a certain number of Green Certificates to fulfil the mandatory quota from renewable 
energies. 
 A Green Certificate attests the production of 1 MWh obtained from renewable sources. Green 
Certificates will be sold on either through bila teral contracts concluded between producers and 
suppliers or on the centralized market operated by Romanian Electricity Market Operator Opcom. 
The Green Certificates will be certified by the National  Authority for Regulation, according to the 
current legislation.  
 The quotas for renewable will increase gradually, from 0,7% in 2005 to 8,3% in 2010.  In September 2005 the Romanian Governme nt approved the Government Decision 
no. 958/2005 which increased the target of electri city produced from renewable sources from 30% to 
33% from the national electricity consumpti on in 2010. There were issued several government 
decisions and regulations in order to increase th e percentage of the electricity produced from 
renewable sources. A green certificates market with mandatory quotas for suppliers was developed as 
support mechanism for promoting renewable. The quotas for renewable will increase gradually, from 
0,7% in 2005 to 8,3% in 2010.  
 The nuclear energy program will be conti nued by putting into operation, at Cernavoda 
Nuclear Power plant, the second unit, in 2007 and, hopefully, at a later date, unit nr.3. In 2008, 
nuclear energy will cover about 15% from the el ectricity sector demand of the market, supplying 
clean energy with minimum impact over the envir onment and the population, at competitive rates. 
We intend to increase the use of hydropower reserves so that the annual hydro energy 
production will increase with 1,5 + 2 GWh, by havin g installed additional power capacities of about 
500+900 MW. The country's hydropower potential  can be developed more by completing the 
generation capacities under various stages of ex ecution, retrofitting the existing HPP, drawing 
private capital into development and upgrading project s and in the privatization process, by selling 
the micro-hydro power plants. WT/TPR/M/155/Add.1 
Page 46  
 
  Even if coal will continue to remain an important fuel used in the power plants, this will by 
done under conditions in accordance with EU requi rements for land, water and air quality. Any new 
unit that is going to be built will have to comply  with these requirements. For the existing units in 
operation, it is foreseen to achieve the required level of emission in a gradual way, so that by year 
2012 to cope with the level of emission defined in  the new legislation. To acquire this target, very 
recently an important project for desulphurization st arted at the Turceni power plant )installment of 
FGD equipments. 
WT/TPR/S/155, Chapter IV, Paragraph 46 
13. When can an equalization of Romania's ener gy prices with those practiced in the EC be 
expected to take place? 
ANSWER  Electricity price evolution  In the electricity sector, sustainable prog ress has been made towards the goal of market 
based tariffs. The cross-subsidies from industrial to residential consumers have been eliminated and 
the level of tariffs has increased stepwise in order to improve the viability of the Romanian electricity 
sector. A full cost recovery reform was implemented in this respect in order to cover the short run 
marginal costs and to provide a positive cash flo w. The collection rates were improved (96%), 
disconnections were applied and guarantees were asked from “bad” payers.  Further price increases 
are required to cover long run marginal costs. 
 The end-users electricity average price was increased from 35.1 USD/MWh at the beginning 
of year 2000 to 90, 9 USD/MWh in July 2005. The la st price increase was of about 5.2% as average 
increase of tariffs for all consumers and took pl ace, as mentioned before, in July 2005.  
 Excise duties have been introduced for electric ity during this year. The values for the excise 
duties are the following: 0.14 Euro/MWh for industrial and commercial consumers and 
0.30 Euro/MWh for residential consumers. The valu es of the excise duties will be increased gradually 
starting with July 1, 2006 until January 1, 2010, in  order to comply with the requirements of the 
Council Directive 2003/96/EC. 
 Today, according to Eurostat reports, the average  values for electricity prices in Romania are 
comparable to those existing in countries as Estonia, Lithuania, Latvia, Greece. 
For industrial consumers, the prices (without taxes) are similar or even higher to those 
existing in a number of countries like Poland, Denmark, Sweden, Lithuania, Estonia etc. 
 The main difference that exists at price level  is for residential consumers, and the difference 
comes from the fact that affordability is much  lower in Romania than in other EU countries. 
 We can consider that today electricity prices are close to those in practice in EU countries 
and, when externalities will be included in the tariffs (2006), our prices and tariffs will reach EU levels.  
  
  WT/TPR/M/155/Add.1 
 Page 47 
 
 
 Natural Gas Prices and Tariffs 
In 2001 the national regulatory authority for gas , ANRGN, has started the reform of prices 
and tariffs system in natural gas sector, within the c ontext of liberalization of natural gas internal 
market, to avoid cross subsidies between different categories of customers, for implementing a new 
tariffication system reflecting the effective costs of natural gas supply and to stimulate the investments 
in the sector.   
In agreement with the liberalisation process of the natural gas market, the price for the gas 
domestic production is gradually increased; therefo re, ANRGN has begun the gradual increase 
process of the final regulated prices for natural gas.  
During 2004 the authority operated 4 quarterly in creases of the final regulated price of gas; 
the level of average well-head price in 2004 was 60 USD/tcm.  
In 2005, ANRGN is ensuring a quarterly increase of the well-head price so that the annual 
average to be 90 USD/tcm. In this regard, AN RGN established the following quarterly prices for 
natural gas from domestic produc tion: first quarter - 70 USD/tcm, second quarter - 95 USD/tcm, 
third quarter - 105 USD/tcm and fourth quarter - 110 USD/tcm. 
 During our negotiation with EU, the commitmen t has been to reach import parity for the 
price of the domestic gas by 2007. In view of the rapid increase in international prices that occurred 
during the last year, this issu e have been discussed with EU a nd WB representatives, taking into 
consideration the effects that a very sharp increase would have at economic and social levels. We 
intend to continue to increase the well-head pri ce and consequently, the end-user tariffs, by 30-40 
USD/tcm on 2006, 2007 and 2008 (adjustments will be made quarterly or annually, depending on 
affordability issues). With such adjustments, we ll-head prices would exceed 200 USD/tcm in 2008.   
 It should be mentioned that there are differences in price levels between EU Member States. 
For example, in the case of industrial consumers, fo r the very large users, the pr ice range is relatively 
narrow, between €40-€55/MWh. The range for the m oderate electricity users group is €40-€80MWh 
and for the small commercial group the range is €60-€150/MWh. In the Romania case, on January 2005, the electricity prices for industr ial consumers were between €60-€140/MWh, relatively 
narrow with EU evolutions. Within the negotiati ons with the European Union regarding the Energy 
Chapter the recommendation was to ensure that ju stified cost of the generation, transmission, 
distribution and supply activities are covering the ju stified costs of the above mentioned activities. 
This requirement was accomplished and the future evolution of the el ectricity prices will follow the 
same principle.  
 A full cost recovery reform was implemented in this respect in order to cover the short run 
marginal costs and to provide a positive cash flow. Further price increases a re required to cover long 
run marginal costs. 
WT/TPR/S/155, Chapter IV, Paragraph 95 
14. Could the Romanian Government elaborate on the main provisions of its Road Transport 
Strategy until 2015 and on the opportunities this  strategy may present for foreign investors from 
outside the EC? 
 WT/TPR/M/155/Add.1 
Page 48  
 
 ANSWER 
 The Road Transport Strategy is under the process  of internal approval by the government, 
which means that modifications may be envisaged. That is why, for the moment, we do not have the 
text of the Strategy available. 
__________