PwC: Romania should improve infrastructure, change legislation to become trade entry gate to CEE

Romania has the potential to become, through the Constanţa harbour, Central and Eastern Europe’s main entry gate for goods coming from Eastern Asia and the Middle East, and thus to become one of the major trade routes of the future, according to Peter de Ruiter, Partner, Tax and Legal Services Leader, PwC Romania. However, in order to maximize its competitive geographical advantages, besides improving its infrastructure, the country needs to implement several essential legislative initiatives that would make it an ideal destination for European imports. “We are talking mainly about import VAT deferment regardless of the import’s value, the adoption of the Global Fiscal Representative system, and the offering of custom duty facilities such as the Authorised Economic Operators”, de Ruiter went on. World trade has bounced back following the global economic crisis, but in the coming years the trade landscape will undergo fundamental change, as the emerging economies begin to dominate the top sea and air freight routes by 2030, according to the latest PwC report on the future of world trade. Global trade suffered a sharp decline in 2009, but has bounced back robustly over the past year, and is estimated to have ended 2010 above its 2008 peak. Trade as a proportion of world GDP is expected to increase in the short term, as the world economy gains strength and confidence. But by 2030 the trade landscape will look quite different, with the emerging and developing economies making up a significant share of global output. Planning for the trends that will shape the trade landscape over the next 20 years will benefit a company in this highly globalised marketplace. “The ‘first mover’ advantage is likely to be important, and establishing a presence before your competitors on a route that becomes a significant global trade flow is crucial for the development of Romania,” added Peter de Ruiter. Get the full report on the future of world trade here. editor@romania-insider.com