Trade Effects of EU Membership: Study Case onto the Romanian External Trade

Abstract

In the past decade, Romania has been undergoing a unique change. As a result, in most cases, it is extremely difficultor impossible to separate the effects of EU integration from other components of the process. There are effects thatwould have appeared, even if accession to the EU was not a priority task. Accession to the EU does dramaticallychange the trade balance of Romania. Protective measures on EU imports were abolished, while some additionalprotection grows in the area of imports from third countries. However, the overall importance of tariffs and otherrestrictive measures further declines. Our economy becomes even more open, putting additional pressure ondomestic enterprises, and also affects the state budget and certain policies of the state. It is important to create amotivating business environment, which enhances domestic production and raises the competitiveness of Romanianexports, through according not only direct support to exporters in form of loans and credits, but also a wide range ofmeasures aimed at improving the business environment. In conclusion, a higher openness of the Romanian economy(expected now, after EU accession) may worsen the trade deficit, if it is not balanced by exports.