Trade with Romania continues to grow despite the ins and outs of the EU.
In 2007, Romania joined the EU. Nine years later, the UK voted to leave it. But through it all, British exports to Romania continue their upward trend.
Since becoming a Democratic Republic in 1989, Romania’s economy has rapidly evolved from being almost entirely agriculture-based, and known as “the bread basket of Europe” to today’s predominantly service-based market economy.
With imports from the UK also showing an upward trend over the past five years and rising to an all-time high of £1.3 Billion in 2015, UK exporters need to make the right choice when it comes to parcel delivery to Romania to control costs and remain competitive in this growing market.
A turbulent history
After achieving independence from the Ottoman Empire in 1877, the first hundred years of Romania’s existence saw many changes. The country was affected by two world wars after which it spent more than 40 years as a communist dictatorship.
Following the 1989 revolution, however, Romania embarked on a period of transition into the capitalist market economy that we see today.
Romania in the 21st century
Its population of around 20 million makes Romania the seventh most populous country in the EU. Around 10% of the country’s population lives in the capital, Bucharest, which is in itself the sixth largest city in the EU.
Over the past five years, Romania has seen a steady increase in GDP and foreign trade, while its foreign debt has steadily reduced and the national currency has remained stable against the Euro.
Imports to the nation surged in 2007 when it joined the European Union, and although these saw a dip in 2009 when all of Europe was affected by the global economic crisis, there has otherwise been a steady increase year on year, climbing to €60 billion (around £55 billion) in 2015.
While the majority of imports are from Germany, there are an increasing number of British exporters shipping their goods to Romania. The value of UK exports to Romania in 2015 was €1.57 billion, or £1.36 billion. This was 17.5% higher than in 2014. As such, the UK ranks 14th in Romania`s overall import partners and 11th among the EU states.
According to data from the British Romanian Consultancy, the main British exports to Romania in 2015 were as follows:
- Machinery, electric appliances and equipment (26.7%)
- Textiles, clothes and footwear (24.0%)
- Chemical products (17.6%)
- Means of transport, vehicles, aircraft and related transport equipment (7.3%)
- Plastic, rubber and rubber products (5.5%)
- Common metals and products (4.7%)
Exporting to Romania
Romania has weathered a number of political and economic storms. It is predicted that it will continue to grow in economic strength and will become a real force in the coming years. Having said that, the country’s development is still very much in its infancy and the infrastructure for trade and logistics can appear daunting, particularly for trading partners based on the opposite side of Europe.
It is easy for UK exporters to end up paying too much if they fail to shop around for the best freight service. It is essential to choose well in order to minimise transport costs while delivering a reliable and effective service to this growing market.