final - european union

8/7/2019 Final - European Union

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Submitted By:Akash AggarwalAnkit Gupta

Ankur Talwar

Submitted To:Prof. Alka Maurya

European Union


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ABOUT EUROPEAN UNION The European Union (EU) is an economic and political union of 27 member states,

located primarily in Europe. The EU was established by the Treaty of Maastricht on 1 November 1993.

The EU combined generates an estimated 28% share ( 11.955 trillion in 2010) of

the nominal gross world product and about 21% of the PPP gross world product.

The EU has developed a single market through a standardized system of laws which

apply in all member states, ensuring the free movement of people, goods, services,and capital.

It maintains common policies on trade and the member states have adopted a

common currency, the EURO, constituting the Eurozone.

Largest economic body in the world.

Worlds most successful model for advancing peace and democracy.


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GROSS DOMESTIC PRODUCT The gross domestic product (GDP) or gross domestic income (GDI) is a basic measure of a country's overall

economic performance. It is the market value of all final goods and services made within the borders of a country

in a year.

GDP (purchasing power parity):

11.052 trillion (2010)

10.851 trillion (2009)

11.3344 trillion (2008)

GDP (1 EUR = .74227 USD)

15.9 trillion

GDP - real growth rate:

1.7% (2010 )

GDP - per capita (PPP)

24420 (2010)

24050 (2009)

25162 (2008)

GDP - composition by sector

Agriculture : 1.8%

Industries : 25.2%

Services : 72.9%

Source : https://www.cia.gov/library/publications/the-world-factbook/geos/ee.html


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Evolution

EU began shortly after World War II France, West Germany, Belgium, Luxembourg, the Netherlands and Italy were the

founding countries of EU forming ECSC in 1952.

In 1973 Denmark, Ireland and UK joined followed by Greece in 1981, Spain with

Portugal in 1986, East Germany as part of newly united Germany in 1990.

In 1986 EU flag began to be used after the creation of open borders withoutpassport in 1985.

In 1995 Austria, Sweden, and Finland joined

In 2002, euro notes and coins replaced national currencies in member states.

In 2004, the EU saw its biggest enlargement to date when Malta, Cyprus, Slovenia,

Estonia, Latvia, Lithuania, Poland, the Czech Republic, Slovakia, and Hungary joinedthe Union.

On 1 January 2007, Romania and Bulgaria became the EU's newest members.

Source:- Europa (http://europa.eu/abc/history/1980-1989/index_en.htm)


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Important Institution

European Council

The European Commission

The European Parliament The Council of European Union

The Court Of Justice of European Union

European Court of Justice

European Central Bank


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Eurozone

The euro zone currently consists of Austria, Belgium,

Cyprus, Estonia, Finland, France, Germany, Greece,

Ireland, Italy, Luxemburg, Malta, The Netherland,

Portugal, Slovakia, Slovenia and Spain.

Seven State will Join when they fulfill the strict

entrance requirement. The countries are Bulgaria,

The Czech Republic, Hungary, Latvia, Lithuania,

Poland, Romania,

Three Member i.e. Sweden, Denmark and UK have

an opt out provision


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European Union India FTA

1. In 2004 India became one of the EU's "strategic partners". Since 2005, the EU-IndiaJoint Action Plan, revised in 2008, aims at realizing the full potential of thispartnership in key areas of interest to India and the EU.

2. The parameters for an ambitious FTA were set out in the report of the EU-India High

Level Trade Group.

3. Negotiations for such FTA were launched in June 2007 and the next round will be inBrussels on 7-8 April

4. To assist India in continuing its efforts to better integrate into the world economy with

a view to further enhancing bilateral trade and investment ties, the EU is providingtrade related technical assistance to India.

Source : http://trade.ec.europa.eu/doclib/docs/2007/june/tradoc_135101.pdf


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European Union India FTABenefits

1. Relatively easy to negotiate

2. Potential for 30% increase in each way flows of bilateral FDI as a directresult of signing an FTA

3. Potential for economic gains for both sides from deep integration

4. Potential for Regulatory Convergence



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European Union India FTACosts

1. Trade diversion

2. Structural and policy impediments in the Indian economy which may limitthe gains from deep integration

3. Anti-dumping policy could undermine the benefits of a FTA



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Leading Client and Supplier Countries of the EU27 in Merchandise Trade (value %)

(2010, excluding intra-EU trade)

The Major EU Import Partners The Major EU Export Partners The Major EU Trader Partners

Rank. EU Imports from Mio euro % world Rank. EU Exports to Mio euro % world Rank. Imports+Exports Mio euro % world

Extra EU27: 1,492,175 100.0 Extra EU27: 1,348,509 100.0 Extra EU27: 2,840,684 100.0

1 China 281,996 18.9 1 USA 242,353 18.0 1 USA 411,649 14.5

2 USA 169,297 11.3 2 China 113,111 8.4 2 China 395,106 13.9

3 Russia 154,909 10.4 3 Switzerland 105,432 7.8 3 Russia 241,424 8.5

4 Switzerland 84,123 5.6 4 Russia 86,515 6.4 4 Switzerland 189,556 6.7

5 Norway 79,084 5.3 5 Turkey 61,171 4.5 5 Norway 120,906 4.3

6 Japan 64,845 4.3 6 Japan 43,709 3.2 6 Japan 108,554 3.8

7 Turkey 42,014 2.8 7 Norway 41,822 3.1 7 Turkey 103,185 3.6

8 South Korea 38,602 2.6 8 India 34,793 2.6 8 India 67,784 2.4

9 India 32,991 2.2 9 Brazil 31,277 2.3 9 South Korea 66,584 2.3

10 Brazil 32,290 2.2 10 South Korea 27,981 2.1 10 Brazil 63,566 2.2


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Leading Exporters and Importers of Merchandise Trade in the World (2009)

including EU27 Member States and intra-EU Trade

The Major Importers The Major Exporters The Major Trader Partners

Rank. Imports billion % World Rank. Exports billion % World Rank. Imp.+Exp. billion % World

World 9,067 100.0 World 8,934 100.0 World 18,001 100.0

EU27 3,299 36.4 EU27 3,267 36.6 EU27 6,567 36.5

1 USA 1,128.6 12.45 1 China 885.4 9.91 1 USA 1,873.0 10.40

2 China 682.1 7.52 2 Germany 799.1 8.94 2 China 1,567.5 8.71

3 Germany 663.3 7.31 3 USA 744.4 8.33 3 Germany 1,462.4 8.12

4 France 400.0 4.41 4 Japan 390.2 4.37 4 Japan 772.7 4.29

5 Japan 382.5 4.22 5 Netherlands 356.1 3.99 5 France 745.9 4.14

6 Utd. Kingdom 342.9 3.78 6 France 345.9 3.87 6 Netherlands 672.9 3.74

7 Netherlands 316.8 3.49 7 Italy 288.2 3.23 7 Utd. Kingdom 594.8 3.30

8 Italy 292.1 3.22 8 Belgium 264.6 2.96 8 Italy 580.3 3.22

9 Belgium 251.7 2.78 9 Utd. Kingdom 251.9 2.82 9 Belgium 516.3 2.87

10 Canada 250.7 2.76 10 South Korea 235.2 2.63 10 South Korea 481.4 2.67


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Developing Countries Market Share

in EU Imports

58.3%

67.6%

75.2%

78.9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Total Agricultural products Fuels Textiles & Clothing

Source: Eurostat (Comext, Statistical regime 4)


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EU imports from developing

Countries

0

100

200

300

400

500

600

700

800

900

1,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Other Textiles & Clothing Fuels Agricultural products

Source: Eurostat (Comext, Statistical regime 4)


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Values in US$ Million

Import :: Region-wise all countries


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Export: Region-wise all countriesValues in US$ Million


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Eurostat - http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/6-08122010-AP/EN/6-08122010-AP-EN.PDF


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Eurostat - http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/6-08122010-AP/EN/6-08122010-AP-EN.PDF


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Trade with India

Source: European Commission (http://trade.ec.europa.eu/doclib/docs/2006/september/tradoc_113390.pdf)

Indian imports fromEU constitute 2.6%and export constitute1.8% of its total import

and export.

India currently accounts

for 1.2% of worldstrade.


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Trade with IndiaMerchandise


The Expected trade between India and European Union in Merchandise is expected toreach $251 Billion by 2015


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Trade with IndiaServices


The Expected trade between India and European Union in Services is expected to reach$321 Billion by 2015.


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International Trade

Agriculture:Total trade in agriculture amounted to 153 Billion

Services:In 2007, services contributed 71.7 % of the gross value

added within the EU, although the share of services in

total trade (goods and services) has remained fairly

stable at around 25 % to 27 % since 2001

Fisheries:EU imported 16 billion worth of fish and fishery

products and exported 2.7 billion worth of fisheries

goods


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International TradeIndustrial Goods

Automotive:EU automotives exports in 2009: 88 billion

EU automotive imports in 2009: 42 billion

Biggest markets: USA, China, Switzerland, Russia, Turkey

Aviation:EU civil aviation exports in 2009 (est): 45.7billion

EU civil aviation imports in 2009 (est): 32,2 billion

Biggest markets : USA, China, India, Brazil.

Chemicals:EU chemicals exports in 2009: 118 billion

EU chemicals imports in 2009: 75 billion

Biggest markets : US, Canada, Switzerland, Asia

(China, India, Japan and ASEAN countries)


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International TradeIndustrial Goods

Pharmaceuticals:EU pharmaceutical exports in 2009: 77.5 billion

EU pharmaceutical imports in 2009: 42.5 billion

Biggest markets: US, Switzerland, Russia, Canada, Japan

Textile and Footwear:EU textile exports in 2009: 35.1 billion

EU textile imports in 2009: 122.4 billion

Biggest markets : Switzerland, Russia, USA, Turkey and

Tunisia, Japan

Steel:EU steel exports in 2009: 28 billion

EU steel imports in 2009: 13 billion

Biggest markets :

Turkey, Algeria, USA, Switzerland, India.


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International Trade PartnersUSA

EU-US economic cooperation

The EU and the US enjoy the mostintegrated economic relationship in the

world, illustrated by unrivalled levels ofmutual investment stocks, reachingover2.1 trillion. Total US investmentin the EU is three times higher than inall of Asia and EU investment in the

US is around eight times the amount ofEU investment in India and Chinatogether. Investments are thus the realdriver of the transatlanticrelationship, contributing to growth andjobs on both sides of the Atlantic.

Trade in goods

1. EU good exports to the US in2009: 204.4 billion.

2. EU goods imports from the US in2009: 159.8 billion

Trade in services

1. EU services exports to the US2009: 119.4 billion

2. EU services imports from the USin 2009: 127.0 billion


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International Trade PartnersChina

High Level Economic and

Trade Dialogue

The EU-China High Level Economic

and Trade Dialogue was launched inBeijing in April 2008. The HEDstrengthens the dialogue between theEuropean Commission and the StateCouncil of China. It deals with issues

of strategic importance to EU-Chinatrade and economic relations andprovides impetus to progressconcretely in sectoral dialogues.

Trade in goods

1. EU goods exports to China2010: 113.1 billion which includesmachinery & transport equipment.

2. EU goods imports from China2010: 281.9 billion which includesmachinery & transport equipment

Trade in services

1. EU services exports to China2009: 18 billion

2. EU services imports from China2009: 13 billion


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International Trade PartnersRussia

The Partnership and

Cooperation Agreement

The PCA has been the framework of theEU-Russia relationship for more than adecade. It was signed in 1994 and enteredinto force on 1 December 1997. Theagreement regulates the political andeconomic relations between the EU andRussia and is the legal basis for the EU's

bilateral trade and investment relationswith Russia. One of its main objectives isthe promotion of trade and investment aswell as the development of harmoniouseconomic relations between the parties.

Trade in goods

1. EU good exports to Russia 2009:65.6 billion which includesmanufactured goodsand liveanimals

2. EU goods imports from Russia2009: 115 billion which includesenergy and mineral fuels products

Trade in services

1. EU services exports to Russia2009: 18.2 billion

2. EU services imports from Russia2009: 10.8 billion


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European Union and WTO

Through the WTO, the EU seeks to:

Ensure new markets for European companies. Observe the rules and make sure others also play by the rules Promote sustainable development in trade

1. The Everything But Arms initiative where all imports to the EU from the world'spoorest countries are duty- and quota-free, with the exception of armaments.

2. The special incentive arrangement for sustainable development and goodgovernance, known as GSP+. This offers additional tariff reductions to support

vulnerable developing countries in their ratification and implementation of specifiedinternational conventions in the fields of human rights, core labourstandards, sustainable development and good governance.

3. The work of the Trade and Environment Committee


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European Union and WTO

WTO does :

1. Multilateral negotiations

2. Resolving differences between States

3. Setting the legal ground-rules for trade in the form of Agreements

4. Monitoring Member's trade policy


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Regulations for Trade

1. Trade Barriers - In the last decade dozens of companies or industries haveused the TBR to tackle problems in export markets, as well as unfair foreigntrade practices that cause injury within the EU internal market.

2. IPR - Because European competitiveness builds on the innovation and valueadded to products by high levels of creativity, the protection andenforcement of intellectual property go to the heart of the EU's ability tocompete in the global economy.

3. Anti-dumping - The European Commission is responsible for investigatingallegations of dumping by exporting producers in non-EU countries. Itusually opens an investigation after receiving a complaint from theCommunity producers of the product concerned, but it can also do so on itsown initiative.


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THANK

YOU

final - european union

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