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DE RUEHBM #1804/01 3380540
ZNR UUUUU ZZH(CCY PARA MARKING AD0550F02 MSI7872-536)
O 040540Z DEC 06 ZDS
FM AMEMBASSY BUCHAREST
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5656
INFO RUCPDOC/USDOC WASHDC
RUEHRC/USDA WASHDC
RUEATRS/TREASURY WASHDC

UNCLAS BUCHAREST 001804 
 
SIPDIS 
 
C O R R E C T E D  COPY//PARA MARKING// 
 
DEPT FOR EUR/NCE - AJENSON 
DEPT FOR EB/TPP/MTA - EKOCH 
STATE PASS USTR - LERRION 
USDOC FOR ITA/EUR/CEED/KNAJDI 
USDOC FOR TCC/4110/BVAUGHAN/MROLLIN 
USDA FOR ITP/FAS/CBERTSCH 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ETRD ECON EAGR PREL RO
SUBJECT: ROMANIA REQUESTS NEGOTIATIONS TO REPLACE BILATERAL TRADE 
AGREEMENT 
 
¶1. (U) This cable is an action request.  See paragraph four. 
 
¶2. (SBU) Ministry of Foreign Affairs officials met with Econoffs on 
November 27 to formally request negotiations on a replacement to the 
current bilateral Agreement on Trade Relations (BTA).  The MFA is 
proposing that the current BTA, signed in 1992, be replaced with an 
EU-compliant Agreement on Economic Cooperation, the terms of which 
would be established through bilateral discussion.  The text of the 
note verbal, as well as a proposed text of a new agreement, follows 
below. 
 
¶3. (SBU) Director of the MFA's Office of Community Law Ion Galea 
made clear that Romania was responding to European Commission (EC) 
demands to bring all agreements into compliance with the acquis.  He 
indicated that no specific components of the existing BTA were 
identified as problematic, but that trade relationships are now the 
purview of the European Commission.  The MFA, along with the 
Ministry of Economy, had sought to capture important elements of 
US-Romania trade relations in the new proposed text. Certain 
elements in Articles I, IV and V went beyond standard text, Galea 
claimed.  The MFA is open to suggestions for additional text, and 
hopes to conclude discussions in the first half of 2007.  Galea 
noted that the EC reviewed the proposed text (below) and will review 
a final text to ensure compliance with EU requirements. 
 
¶4. (U) ACTION REQUEST.  Post requests Washington entities review 
the attached proposal and provide a coordinated response. 
 
¶5. (U) BEGIN TEXT OF NOTE VERBAL: 
 
ROMANIA - THE MINISTRY OF FOREIGN AFFAIRS 
 
No. H2-1-1/1395 
 
The Ministry of Foreign Affairs of Romania presents its compliments 
to the Embassy the United States of America and has the honor to 
communicate the following: 
 
Taking into consideration that Romania shall accede to the European 
Union on 1 January 2007, and the fact that, in conformity with 
article 6.10 of the Act on the Conditions of Accession, annexed to 
the Treaty of Accession of Romania to the European Union, signed in 
Luxembourg, on 25 April 2005, Romania has to bring into conformity 
with European Community law the international treaties it is a party 
to, it shall be necessary that all bilateral treaties containing 
provisions on trade or commercial cooperation be made compatible 
with the Community legislation with effect from the date of 
accession of Romania to the European Union.  This harmonization is 
motivated by the fact that Romania shall transfer to the European 
Union, after the date of accession, the competence of regulating 
international aspects related to trade, within the framework of the 
European Union common commercial policy. 
 
Therefore, the Romanian side proposes to the American side to 
conclude a new Agreement on Economic Cooperation, which shall 
replace the Agreement between the Government of Romania and the 
United States of America on Commercial Relations, signed on 3 Apri1 
1992, in Bucharest. 
 
The Romanian side would appreciate if the American side agrees to 
commence negotiations on the basis of this proposal as soon as 
possible. 
 
The Ministry of Foreign Affairs of Romania takes this opportunity to 
renew the Embassy of the United States of America the assurances of 
its highest consideration. 
 
27 November 2006 
 
END TEXT OF NOTE VERBAL. 
 
¶6. (U) BEGIN TEXT OF PROPOSED ECONOMIC COOPERATION AGREEMENT: 
 
Agreement between the Government of Romania and the Government of 
the United States of America on the economic cooperation 
 
Preamble 
 
The Government of Romania and the Government of the United States of 
America, hereinafter referred to as the "Contracting Parties," 
 
Conscious of their traditional and strong economic ties as well as 
shared perceptions on various issues of joint interest that have 
developed through fruitful and mutually beneficial cooperation; 
 
Willing to establish an appropriate framework for a constant 
dialogue having in view the formulation of appropriate measures for 
enhancing the economic relations, in the benefit of both countries, 
 
Resolved to consolidate, deepen and diversify their economic 
relations to the full extent of their growing capacity on the basis 
of mutual benefit; 
 
Recognizing that the economic partnership would create a dynamic 
dialogue on various economic aspects of joint interest, sustaining 
the economic development of both countries, improving economic 
efficiency and consumer welfare; 
 
Convinced that stronger links between the Contracting Parties would 
provide greater opportunities and a regulated environment for 
economic collaboration; 
 
Have agreed upon the following: 
 
Chapter I 
 
General Provisions 
 
Article 1 
 
The Contracting Parties, in the light of their capabilities and 
long-term economic aspirations, shall encourage bilateral 
co-operation in all fields deemed suitable in the economic sector. 
 
Among the objectives of such co-operation shall be: 
 
a) the development and prosperity of their respective industries; 
 
b) the encouragement of economic cooperation between the companies 
and institutions from Romania and the United States of America; 
 
c) the protection and improvement of the environment; 
 
d) generally to contribute to the development of their respective 
economies and standards of living. 
 
Article 2 
 
The economic relations will be developed under this Agreement by 
promoting the activities related to sectors especially and without 
limitation as the following: 
 
energy, oil and gas, infrastructure, automotive, machinery, 
communications, IT, aviation. 
 
The cooperation in the above-mentioned areas will encourage the 
development of business contacts between companies of the two 
countries, the mutual information on the legislation in force or the 
identification of specific projects and sectors of potential 
interest for joint collaboration. 
 
The exchange of public and private sector experts, technicians, 
investors and business representatives will be facilitated as well 
as the transfer of materials, equipment and know-how necessary for 
the fulfillment of the activities falling within the scope of this 
Agreement. 
 
Chapter II 
 
Forms of economic cooperation 
 
Article 3 
 
The Parties shall cooperate at an inter-governmental level in order 
to promote and keep under review the various economic activities as 
well as to implement the present Agreement. 
 
Article 4 
 
In order to facilitate the implementation and to further the general 
aims of the present Agreement the Contracting Parties shall, among 
others: 
 
a) examine the evolution and prospects of the bilateral economic 
 
 
relations, 
 
b) encourage cooperation in areas of mutual interest through 
facilitating contacts between companies from the two countries, 
identifying specific projects and sectors of potential interest for 
joint cooperation, 
 
c) inform their respective business communities of investment 
opportunities in the state of other Contracting Party, 
 
d) inform each other on the laws and regulations in force which 
pertain to or affect the application of the present Agreement, 
 
e) promote and enhance private and public sectors' economic 
cooperation, in accordance with the Contracting Parties 
international obligations, in full respect of the intellectual 
property rights and in accordance with the Contracting Parties' 
economic and development policies and priorities, 
 
f) periodically evaluate the implementation of this Agreement. 
 
Article 5 
 
In order to identify and facilitate business opportunities and new 
forms of economic, scientific and technical cooperation, the 
Contracting Parties shall: 
 
a) assist the establishment and operation of new representation 
offices, branch offices, joint chambers of commerce and other 
economic entities in conformity with the legislation of the 
Contracting Parties; 
 
b) promote and support economic and investment missions, fairs, 
exhibitions, seminars, symposiums and other similar activities; 
 
c) support financial institutions and banks from the two Contracting 
Parties to establish contacts or strengthen their cooperation, 
promote the participation of small and medium enterprises to the 
fulfillment of the objectives of this Agreement, encourage 
investment activities, creation of joint enterprises and branches. 
 
Chapter III 
 
Consultations 
 
Article 6 
 
For the purpose of settling disputes, the concerned Contracting 
Party may submit a written request for consultation. 
 
The consultations shall take place within maximum thirty days after 
the receipt of the written request. 
 
Chapter IV 
 
Final Provisions 
 
Article 7 
 
This Agreement shall enter into force on the date on which the 
Government of Romania and he Government of the United States of 
America shll notify each other on the fulfillment of the intrnal 
procedures concerning its approval and enteing into force. 
 
This Agreement shall remain in orce for a period of five years and 
shall be automatically renewed for consecutive periods of five 
years, unless one Contracting Party notifies the other, in written 
form, of its intention not to renew the Agreement. 
 
Article 8 
 
Each Contracting Party may terminate the Agreement by giving a 
written notice of such intention to the other Contracting Party.  In 
such case, the Agreement shall be terminated upon the expiration of 
a six months period from the date of the receipt of the said notice. 
 
 
Termination of this Agreement before expiration of the validity 
period shall not cause termination of the projects agreed upon 
during its validity period. 
 
Article 9 
 
 
This Agreement may be amended by mutual consent of the Contracting 
Parties, expressed in written form. 
 
Article 10 
 
The provisions of the present Agreement are without prejudice to the 
international obligations of the Contracting Parties. It shall apply 
without prejudice to the obligations which will flow from the 
membership of Romania to the European Union. 
 
The Agreement cannot be interpreted or invoked in a way so as to 
rescind or otherwise affect the obligations arising from any 
agreements concluded between the EC or the EC and its Member States 
on the one part and the United States of America on the other. 
 
At the date of the accession of Romania to the European Union the 
Agreement on Commercial Relations between the Government of Romania 
and the Government of the United States of America, signed on April 
3, 1992 in Bucharest shall cease its validity. 
 
At the date of the entry into force of the present Agreement, the 
Long Term Industrial, Economic and Technical Cooperation Agreement 
between the Government of Romania and the Government of the United 
States of America, signed on November 21, 1976 in Bucharest shall 
cease its validity. 
 
Signed in.... on...in four originals, two in English and two in 
Romanian, all texts being equally authentic. 
 
For the Government of          For the Government of 
 
Romania                   the United States of America 
 
END TEXT OF ECONOMIC COOPERATION AGREEMENT. 
 
TAUBMAN