The year 2004 is seen as the dawning of a new era in heightened trade and investment activities between the Philippines and Eastern Europe, specifically Romania pursuant to President Gloria Macapagal-Arroyo’s policy of economic diplomacy.

In a statement, the Department of Trade and Industry (DTI) said the two countries have agreed to strengthen bilateral trade relations through closer interaction among their respective chambers of commerce and other business groups.

"This is a welcome development for our country and our trade relations, not just with Romania, but with Eastern Europe. Forging partnerships lays the foundation for more trade with this region," said Trade Undersecretary Adrian Cristobal Jr. who is also officer-in-charge of the DTI.

The Philippines and Romania forged earlier a package of bilateral agreements for economic cooperation during their Joint Economic Commission (JEC) held recently in Manila. Concluded were: a Memorandum of Understanding (MOU) on cooperation in the fields of agriculture science and technology and the promotion of agricultural trade; another MOU on trade promotion; and a Framework Cooperation Agreement between PhilExim and Eximbank Romania to increase trade in goods and services through insurance and guarantee support to exporters of both countries.

"The JEC is an important venue for regular dialogue between the Philippines and Romania. Our dynamic and pioneering private sector plays a critical role in promoting bilateral and economic relations," DTI Undersecretary Thomas Aquino said.

The Philippines is eyeing Romania-made irrigation equipment for small landowners. Trade officials said the country may also tap Romania’s technology and expertise in dairy production, and for the conduct of a joint research in the genetic improvement of the carabao as a source of milk, meat and hide.

On the other hand, Romania is looking for Filipino partners to promote their products in the Philippines, such as petrochemicals, machinery and electrical equipment for oil, gas, energy exploration and railway system. Other products include metallurgical and chemical items, agricultural equipment, irrigation pumps, lorries and car diesel engines, glass and porcelain wares, cosmetics and pharmaceuticals and furniture.

For its part, the Philippines plans to export to Romania information technology products and services, ready-to-wear garments, goods and beverages, tobacco, carageenan and coconut products and tropical fruits like papayas, bananas and mangoes.

The PhilExim and Eximbank Romania have also agreed to broaden cooperation in mass transport and energy projects.

The DTI said Romania was one of the first countries in Central and Eastern Europe to establish diplomatic relations with the Philippines. It ranks 63^rd in Manila’s list of trading partners.

"Although Philippine trade with Romania increased at an average rate of 8.69 percent between 1998 and 2002, the balance of trade has perennially been in favor of Romania. From January to August this year, however, the trade gap considerably narrowed with the Philippines selling goods worth $1.49 million to Romania, compared to imports valued at $1.72 million," the DTI statement said.