Romania - USA Bilateral Relations

March 2005 - Visit of H.E. Traian Basescu, President of Romania, to the United States

2003 - Visit of H.E. Ion Iliescu, President of Romania to the United States of America

2002 - Visit of H.E. George W. Bush, U.S. President to Bucharest

 

 

Mission Statement

 

One of the present priorities of Romanian foreign policy is to develop its relations with the United States of America . Romania aims both to strengthen the bilateral cooperation (political dialogue, economic or military relations, etc.), and also to intensify and expand the collaboration with the US regarding important topics of the current international context (countering terrorism, consolidating democracy, strengthening Europe 's stability and security).

The promotion of such objectives is sustained by several factors – Romania 's progress in political and economic reforms, the effective cooperation with the US military in Afghanistan and Iraq , Romania 's role as a stability factor in the region. Above all that, Romania status as a NATO member strengthens the premises for closer relations between Romania and the USA .

 

Diplomatic relations – brief history

Romania and the United States of America established diplomatic relations on June 14, 1880 , initially at diplomatic agency level and two months later at legation level. Interrupted for about than 4 years (December 12, 1941 – February 7, 1946), during World War II, the Romanian-American diplomatic relations remained at this level until June 1, 1964 , when the two countries agreed to upgrade their diplomatic missions in Washington and Bucharest to embassy level. Romania opened General Consulates in New York , Los Angeles , and Chicago . Romanian Honorary Consulates were also established in Boston , Las Vegas , Detroit , Cleveland , Norfolk , Atlanta , Dallas , San Francisco , Salt Lake City , Minneapolis and Indianapolis .

Mr. Sorin Ducaru, Ambassador of Romania to the United States of America , presented his credentials on June 20, 2001 .

 

Recent political dialogue - high level visits:

 

•  Visit of President Traian Basescu to the United States (March 9-10, 2005);

•  Visit of Deputy Secretary of State Robert Zoellick (March 30, 2005);

 

Political bilateral agenda:

 

•  US support for Romania's accession to NATO ( May 8 th , 2003 – ratification by the US Senate of the NATO Accession Protocols for the seven countries invited in 2002, March 29 th , 2004 - NATO accession ceremony, Washington, DC ).

•  Romania is commited to stand by the US in the fight against terrorism.

• Thousands of American troops, hundreds of American aircraft and military vehicles utilized Mihail Kogalniceanu Airbase near the Black Sea for “Iraqi Freedom” Operation.

•  Thousands of American troops under the US European Command (EUCOM) rotated in the KFOR Mission in the Western Balkans through the Romanian Black Sea port of Constanta (2002 and 2003).

•  Romania has granted over-flight rights, and made available air, land and maritime facilities to support US operations in Afghanistan and Iraq (based upon decision of the Romanian Parliament on September 19, 2001 ).

•  The Romanian-US cooperation in fighting unconventional threats (trafficking in persons and narcotics , money laundry, cyber crime, etc ) is becoming a significant component of the general framework of the bilateral relationship . The FBI Office was set up in Bucharest on May 20 th , 2001 . A key role in combating transborder crime has been played by the Bucharest based SECI Center

•  US authorities' granting Romania the status of “market economy” ( March 10 th , 2003 ) has significantly impact on the development of the Romanian-American economic relations.

 

 

Economic relations

 

•  In 2002, the bilateral trade exchanges arrived at 1133.1 million dollars (a 33,7% increase as compared to 2001), of which Romanian exports accounted for de 597,8 million dollars (a 67,4% increase as compared to 2001), and the imports accounted for 535,3 million dollars (a 9% increase as compared to 2001), which resulted in a trade surplus of 62,5 million dollars. The US share of Romania 's total trade flows was 4.3% for exports and 3,0% for imports.

•  On December 31 st , 2002, 3512 companies with US capital were registered in Romania, the total US investment (social capital) between 1989 and 2002 amounting to 721 million dollars; the USA ranks 3 rd in the Romanian top of investor countries, after Holland and Germany.

•  According to the total value of the investments, the most important US investors to Romania are:

• Qualcomm – with a total investment of 350 million, in order to create Romania 's first system for cellular telephony belonging to the third generation (Zapp);

• Timken Company - 58 million investment to buy the “Rulmenti Grei” Company from Ploieşti ;

• Mc Donald's System - 51 million invested in Mc Donald's România SRL;

• Trinity Industries: over 37 million invested in Astra Vagoane Arad, beginning with 1991, as well as other investments in railway infrastructure;

• Romanian American Entreprise Fund – by the agency of RAEF, over 43 million were inverted in 20 Romanian companies, among which Rolast SA, Policolor, Titan Mar, etc.

•  Citibank Overseas Investment Corporation - over 35 million USD;

•  Procter&Gamble Eastern Europe Inc USA - 38 USD;

•  Kraft Foods International - 17 million USD;

•  Tenneco - 16 million invested in timber industry (Romsilva);

•  MOBIFON - 11 million, investments to develop cellular telephony;

•  Wisconsin Machine – took over SARO Targoviste, the total investment surpassing 11,5 million USD;

•  Colgate Palmolive - 8 million invested in its Romanian distribution subsidiary;

•  Brewery Holdings Limited: 8 million .

•  US financial assistance for Romania : Beginning with 1990, through the agency of „Support for East European Democracies” (SEED) Program, administered by the US Agency for International Development (USAID), the United States have provided for Romania non-refundable development assistance amounting to 410 million USD. USAID programs have contributed to Romania 's progresses regarding the improvement of living standards, consolidation of its democratic governance and its functioning market economy.

The legal framework of the bilateral economic relations includes:

•  Agreement on trade relations between the Government of Romania and the Government of the United States of America , signed on April 3, 1992 , and ratified on October 21, 1993 ;

•  Investment incentive agreement between the Government of Romania and the Government of the United States of America (1992);

•  Agreement between Romania and the United States of America on investment promotion and mutual guarantee (signed in June, 1992, operational since January, 1994);

•  Various agreements in fields like air transportation, custom cooperation, scientific and technologic research, avoidance of double taxation and prevention of fiscal evasion;

•  Agreement between the Government of Romania and the Government of the United States of America concerning economic, technical, and related assistance, signed in Bucharest on October 24, 1995, and operational since November 1, 1996;

•  Bilateral agreement on civil transportation (signed on December 4, 1997 , and operational since January 1, 1998 );

•  “Most-Favored Nation” Treatment (or “ Normal Trade Status”) – since 1996;

•  Bilateral agreements in the fields of science and technology, customs cooperation, peaceful uses of nuclear energy, civil aviation, and the “Declaration concerning the establishment of a bilateral dialogue in the energy area between the US Department of Energy and the Ministry of Industry and Commerce of Romania” were all signed in 1998;

•  Since 1994, Romania benefits from custom facilities agreed under the Generalized System of Preferences (GSP). At the end of 2002, the Romanian part advanced to the US authorities a reviewed list of products to be introduced in GSP beginning with 2003.

 

Cultural relations

The US-Romanian cultural, scientific and academic relations are based on the Agreement on cooperation and cultural, academic, scientific and technological exchanges (signed on December 13, 1974), the Agreement on the establishment of an office for US-Romanian academic and scientific exchanges (concluded on July 30, 1992), and on the new Agreement on scientific and academic cooperation (concluded on July 16, 1998).

The Fulbright programs in Romania offer important opportunities for academic exchanges (teachers, students and researchers) from both countries and are extremely effective for training Romanian specialists and developing people-to-people activities. The new Fulbright agreement concerning educational exchanges was signed on October 26, 2000 .

In Summer 1999, Romania participated in the “Folklife Festival” in Washington as a special guest. Annually organized by the prestigious Smithsonian Institute for Educational Purposes, the Festival brings together every time about 1 million visitors. The year 1999 event was very successful in promoting the Romanian culture and history, as well as the economic and tourism opportunities in Romania .

Frequently, and often with the assistance of the Romanian American communities, various cultural events (concerts, exhibitions, etc) take place in the United States . These events, dedicated to the promotion of the Romanian traditional values and cultural personalities, have a genuine success with American audiences, and contribute greatly to make stronger the cultural ties between the two countries.

Military relations

The US-Romanian military relations are developing both within bilateral framework, pursuant to the MIL-TO-MIL and International Military Education and Training-IMET programs, within the multilateral framework, under the aegis of the Partnership for Peace, as well as through Romania 's preparation for joining NATO.

Set up in September 1992, the MIL-TO-MIL program has been operational for Romania since April 1993. The program consists in financial and logistic support, over 400 joint actions being carried on so far (exercises, visits, seminars, staff exchanges etc.). The MIL-TO-MIL program reached a new stage on October 1, 1995 , essentially relying upon the long-term plan covering 1996-1998. Currently, a new MIL-TO-MIL cooperation plan is being implemented.

The IMET program (800 million dollars in 1997) has also been very helpful in implementing the concept of “integration through education” within the Romanian military (113 officers and civilians attended courses in the United States, 6 laboratories for English learning were bought, mobile courses were organized in Romania, and so on).

The main documents guiding the military cooperation are:

•  Memorandum between the Ministry of National Defense of Romania and the US Department of Defense on cooperation in areas of defense and military relations (concluded in June, 1994);

•  Agreement between the Ministry of National Defense of Romania and the US Department of Defense on information exchange in research and development areas (concluded on February 26, 1996 );

•  Agreement between the Government of Romania and the Government of the United States of America on cooperation in counter-proliferation and promoting military and defense relations.

•  Status of Forces Agreement between Government of Romania and Government of the United States on station of US troops in Romania (signed on October 30, 2001 )

Among the important results of the bilateral military cooperation was the “Kievenaar Study”, a plan designed by American and Romanian military experts targeting the Romanian Armed Forces reform and interoperability with the NATO forces.

Visas regime

Visas required.

 

Evolution of the Romania-US Strategic Partnership

 

•  The Strategic Partnership was launched in 1997, as an advanced cooperation instrument focused to further consolidate the relations between Romania and the United States in fields of strategic interest to both countries (military cooperation, economy, regional security, new threats), an important mechanism to support peace and stability in Southeast Europe.

•  The cooperation within the Partnership led to a substantial development of the bilateral relations, against a background of intense political dialogue.

•  The interest to promote the Partnership continued and was amplified after the changes of Administration in Bucharest and Washington , in 2000. Relevant to this extent is the speech that President Bush delivered, with the occasion of the accreditation of the new Romanian Ambassador to Washington , in the beginning of 2001: “Our excellent relations with Romania represent one of the pillars of the US policy in Southeast Europe . We are looking forward to cooperate closely with your government within the framework of the Strategic Partnership between Romania and the USA ”.

•  The main elements of the Partnership's evolution, for its four components :

•  Military cooperation - major factor of support for Romania 's military reform:

•  Regular consultations on specific issues regarding the bilateral military relations;

•  American assistance for restructuring Romania 's armed forces (the Kievenaar Study –background for the Romanian military reform strategy) and for Romania 's preparations to join NATO (intensive cooperation to elaborate and implement the National Annual Plans for NATO Accession);

•  Prolific cooperation within SFOR and KFOR operations in former Yugoslavia , and within ISAF and "Enduring Freedom" in Afghanistan ;

•  Conclusion of the SOFA Agreement (Status of Forces Agreement) in 2001 and of the Bilateral Agreement regarding the International Criminal Court, setting the grounds for the endorsement of the military relations as the key dimension of the Partnership.

•  Cooperation on regional security issues

•  Stability in Southeast Europe – main subject of the political dialogue within the Partnership;

•  Romanian - American cooperation on the issues associated to the West Balkans region, including Romania 's assistance to the US-led international campaign in Kosovo, or supporting the international efforts to promote democratic development in the region;

•  Fighting unconventional threats

•  Countering cross-border crime, developing the judiciary system and the ability to implement laws, assuring efficient control instruments for strategic trade, are all important components of the Partnership;

•  An important role in promoting these objectives is played by the constructive cooperation between the competent authorities in the two countries, including US consultancy to generate laws and create new specific instruments, such as the Anti-Corruption National Prosecutor's Office, training courses for police officers, prosecutors and judges, financial assistance to develop specific projects, information exchanges, etc;

•  The establishment and performances of the SECI Centre for Fighting Cross-Border Criminality represent a major achievement of the Romanian-American cooperation, with visible results in countering the regional human and drug trafficking networks, with the assistance of the competent US institutions (FBI, Secret Service, Drug Enforcement Agency).

•  Developing the economic cooperation and increasing the volume of bilateral trade

•  On March 10 th ,2003 , the US Administration granted Romania the ”market economy” status, an important step in promoting the bilateral economic relations.

•  Romania's moving forward with economic reforms, restructuring the industry and the privatization process generated new opportunities to develop the economic dimension of the Strategic Partnership, which directly entailed an increase in trade and investments, and especially US capital inflows in top fields of the Romanian economy: Qualcomm (350 million USD invested in communication technology) General Electric (in a joint venture with Turbomecanica, invested in manufacturing airship components)

•  American Chamber of Commerce in Romania plays a major part in promoting the investment opportunities of the Romanian business environment, as well as in identifying the sources for financing the reform of the private sector and improvement of the business climate.

 

•  Once a structured dialogue of the US Administration with NATO candidate states was launched, the reform process and the implementation of MAP became the main topics of the Romanian-American agenda in 2002. To this extent, the Partnership turned out to be an efficient tool for intense and systematic dialogue on the important reform measures imperative for Romania 's accession to NATO.

•  The 9/11 terrorist attacks had an important impact on the Partnership. In consonance with the Partnership, Romania acted as a “de facto” ally of the USA and NATO in fighting against terrorism, which became a vital component of the Partnership.

•  Romania 's standpoint in the Iraq issue was highly appreciated in Washington , creating new premises to further develop the Strategic Partnership.

•  The current level of the Partnership reflects a mature, strong and substantial relationship between Romania and the United States . The international fight against terrorism and the strategic positioning of Romania , close to the West Balkans, Black Sea , Central Asia and Middle East , represent new opportunities to expand all the components of the Strategic Partnership.