Israel, Romania signed an improved trade accord

Minister of Industry Trade and Labor Ehud Olmert signed last week a new and improved protocol in the countries' bilateral trade agreement which enables Israel and Romania to participate in pan-European accumulation agreements with the EU.
 
The newly signed upgraded trade agreement, will enable companies from both countries to jointly export goods to the EU, duty free.
 
Israel and Romania have a free-trade agreement, however, Romania is due to join the EU in 2007, and will have to cancel all its existing agreements with third countries, including Israel.
The present agreement allows Israeli and Romanian companies to jointly produce goods under the pan-European accumulation agreements.
 
EU policy is to allow member states and neighboring countries to jointly produce goods which can enter the EU duty-free. The EU decided last year to expand its pan-European accumulation agreements, which currently cover 32 European countries, to the Mediterranean basin.
 
Minister of Industry Trade and Labor Ehud Olmert said at the signing ceremony that he plans to amend on the same lines Israel's agreement with Bulgaria, which is also due to join the EU in two years.
 
Bilateral trade reached $200 millions in 2004, 40% higher compared to 2003. More than 500 Israeli exporters are active in the Romanian market, selling mostly metals, machinery and jewelry.