Wait for perks from bigger EU

18 January 2007
More news

18 January 2007 | Paul Snell

The accession of Bulgaria and Romania to the EU may have significant advantages for buyers looking for low-cost country sourcing locations.

Yet they have been warned that information about the countries' productivity, capacity and infrastructure is still relatively unknown.

According to Robin Jackson, chairman of procurement consultancy ADR International, there are two major benefits to the countries' inclusion in the EU.

"The initial advantage is access to cheap labour as each country will have an area where they are particularly excellent," he said.

Traditionally strong Bulgarian and Romanian exports include textiles, footwear and machinery.

"The second plus point is they are now part of the EU, so EU rules apply," Jackson added. "There are no tariffs at all. Goods produced there have to adhere to quality standards and there is a level of political stability."

But he advised that purchasers might have to wait before setting up in those countries: "You have to identify the particular skill sets and consider ethical aspects of supply. Sourcing from these countries is not yet 100 per cent guaranteed."

Although the countries now create a land link to Greece, Jackson said infrastructure was still "relatively underdeveloped".

He added: "The EU has an important role to play in structural development."

SMjan2007

LATEST
JOBS
Hounslow, Heathrow /Richmond upon Thames
Competitive salary depending on experience plus generous share award
Tails.com
London
GBP60000 - GBP70000 per annum + Excellent Package
Bramwith Consulting
SEARCH JOBS
CIPS Knowledge
Find out more with CIPS Knowledge:
  • best practice insights
  • guidance
  • tools and templates
GO TO CIPS KNOWLEDGE