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  • 1. European Union
  • 2. Introduction of European union
    • The European Union ( EU ) is an intergovernmental and supranational union of 27 democratic member states
    • The European Union was established under that name in 1992 by the Treaty on European Union (the Maastricht Treaty)
    • The Union currently has a common single market consisting of a customs union
    • A single currency managed by the European Central Bank (so far adopted by 12 of the 25 member states),
    • A Common Agricultural Policy, a common trade policy, and a Common Fisheries Policy. A Common Foreign and Security Policy
  • 3.  
  • 4. EUROPEAN UNION
  • 5. History of the EU Date History of Country's Membership 25 March 1957 Belgium, France, West Germany, Italy, Luxembourg, Netherlands, founding members 1 January 1973 Denmark, Ireland, United Kingdom 1 January 1981 Greece 1 January 1986 Portugal, Spain 3 October 1990 (The territory of the former German Democratic Republic as part of unified Germany also becomes part of the European Community) 1 January 1995 Austria, Finland, Sweden 1 May 2004 Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia 1 January 2007 Bulgaria and Romania
  • 6. Stages towards European Union European Union   First Stage   Second Stage   Third Stage   European Communities (EC) Common Foreign and Security Policy (CFSP) Police and Judicial Co-operation in Criminal Matters (PJCC)
    • Customs Union and Single market
    • Common Agricultural Policy
    • Common Fisheries Policy
    • EU competition law
    • Economic and monetary union
    • EU-Citizenship
    • Education and Culture
    • Trans-European Networks
    • Consumer protection
    • Healthcare
    • Research (e.g. Sixth Framework Programme)
    • Environmental law
    • Social policy
    • Asylum policy
    • Schengen treaty
    • Immigration policy
    • Foreign policy:
    • Human rights
    • Democracy
    • Foreign aid
    • Security policy:
    • European Security and Defense Policy
    • EU battle groups
    • European Rapid Reaction Force
    • Peacekeeping
    • Drug trafficking and weapons smuggling
    • Terrorism
    • Trafficking in human beings
    • Organized crime
    • Bribery and fraud
     
  • 7. OBJECTIVES OF EU
      • To promote social and economic progress
      • To establish an area of freedom, security
      • and justice
      • To enhance the environment of Europe and
      • the world
      • To secure and defend the Union
  • 8. Commercial policy
    • Competition Policy
    • Free movement of the goods
    • Free movement of the persons
    • Services
    • Capital
    • Taxation
  • 9.
    • Once goods have been admitted into the
    • market they can not be subjected to customs
    • duties
    • Free Movement of Capital
    • Free Movement of People
    • Free Movement of Services
  • 10. The currency- euro
  • 11. The currency- euro The European Central Bank governs the Euro zone monetary policy 1 January 1999 on this date the euro was duly launched by member states of EU
  • 12.
    • Agriculture:
    • The Common Agricultural Policy (CAP)
    • Agriculture accounts for over 35% of the
    • European Community's annual budget
    • Energy:
    • Many EU members import oil and gas from
    • Russia
    • World’s leading importer of these fuels
  • 13. Development trust areas:
    • Infrastructure:
    • The EU is working to improve cross-border
    • infrastructure within the EU, for example through
    • the Trans-European Networks (TEN)
    • Projects under TEN include the Channel Tunnel,
    • LGV Est, the Fréjus Rail Tunnel, the Oresund
    • Bridge and the Brenner Base Tunnel
  • 14. Risk involved in doing business with E U
    • Foreign exchange risk
    • Cross country risk
    • Transactional risk
    • Socio-cultural risk
  • 15. External trade: European union
    • The European Union is the world’s
    • biggest trader, accounting for 20% of
    • global imports and exports
    • EU’s major trading partners among the
    • developed countries like united states and
    • Japan
    • The trade is handled through the WTO
    • mechanisms
  • 16. Trade and development of European union
    • The Union has granted duty-free or cut-rate access
    • to its market for imports from developing countries
    • under its generalized system of preferences(GSP)
    • New trade and development strategy with it’s 78
    • partners in the Africa-Pacific-Caribbean(ACP)
    • Trade agreement with South Africa
    • Free trade deal with 6 members of Gulf Corporation
    • Council(GCC)
  • 17. EU & INDIA
    • The EU is India's largest trading partner accounting for a fifth of India’s trade
    • EU imports from India came to US $ 22,945
    • million covering mainly textiles and clothing, agricultural products and chemicals
    • EU exports to India amounted to US $ 22,838 million , of which the majority was machinery, chemical products and gems and jewellery
    • Since 2001, bilateral trade between the two has grown by 11 % on average
  • 18. EU’s Export & Import US $ Million Source:- CMIE Years 2001-02 2002-03 2003-04 2004-05 2005-06 Export 10615.82 12805.64 15002.02 19107.81 22838.09 Import 10166.56 11871.24 14453.43 18110.84 22945.02
  • 19. EU’S EXPORT SECTORS Total from April to June 2006 (in Euro) Percentage increase over last yr in the same period Agro & Food 4,12,24,940 21% Chemicals/ Pharma /Plastic 73,13,75,097 24% Leather / Wood & Paper 18,46,44,796 5% Textiles/ Garments etc 7,85,64,577 -3% Stones/ Ceramics / Glass 3,28,29,48,269 4% Automotive 1,05,88,63,514 20% Optical/photograph/ Musical /Ammunition 26,83,98,723 33% Other Products 3,98,57,955 20% Total 5,76,89,41,543 11%
  • 20. EU’S IMPORT
    • The total imports from India in the 2007 between April to June 2007 have increased to 9% over the last year in the same period
    • EU’s major items of imports from India consisted of optical, photograph, musical instruments, ammunition (19%), automotive (10%), and stones, ceramics & glass (13%)
  • 21. EU’S IMPORT SECTORS Total from April to June 2007 (in Euro) Percentage increase over last yr in the same period       Agro & Food 45,49,92,823 7 Chemicals/ Pharma /Plastic 93,08,97,208 5 Leather / Wood & Paper 23,66,52,057 6 Textiles/ Garments etc 1,67,57,98,382 7 Stones/ Ceramics / Glass 1,24,74,83,691 13 Automotive 47,14,47,494 10 Optical/photograph/ Musical /Ammunition 4,85,79,119 19 Other Products 14,30,64,707 8 Total 5,20,89,15,481 9
  • 22. Trade relation with India
    • India is an important trade partner for EU and a
    • growing global economic power
    • Sizable and growing market of more than 1
    • billion people with a growth rate of between 8
    • and 10%.
    • Free Trade Agreement negotiations, launched
    • by India and EU in 2007.
  • 23. Why EU interested in India
    • Liberalization and modernization of Economy since 90
    • and dynamic performance in various sectors
    • Enhanced world trade and investment flows meeting the
    • demands of WTO
    • Low labour cost, English speaking proficiencies, solid
    • educational system
    • Top IT sector with qualified professionals
    • Huge potential of food processing sector
    • Engineering with low production cost
    • High growth rate of telecom sector
    • Simplified licensing to encourage FDI
  • 24. Trade relation with India
    • Trade in goods
    • EU goods exports to India 2007 : €26.2 billion
    • EU goods imports from India 2007 : €29.4 billion
    • Trade in services
    • EU services exports to India 2007 : €6.7 billion
    • EU services imports from India 2007 : €5.5 billion
    • Foreign Direct Investment
    • EU outward investment to India 2007 : €2.5 billion
    • Indian inward investment to EU : €0.5billion
  • 25. The E U India FTA
      • EU FTAs launched as part of the Global Europe Strategy in 2006
    • Negotiations for such FTA were launched in
    • June 2007
    • Aim is to increase market access for goods,
    • services and investment by tackling not only
    • tariff barriers to trade but also non-tariff barriers
  • 26. PRODUCTS THAT CAN BE EXPORTED TO EU
    • Automobiles (light commercial vehicles), auto engines and components
    • Metals and metal based products
    • Leather products
    • Chemicals and pharmaceuticals
    • Handicrafts
    • Engineering goods like diesel engines
    • Textile yarns, Woolen and cotton fabrics
    • Agricultural products
    • IT products and services
    • Consumer durables
    • Biotech products
  • 27. STRATEGIES TO ENTER INTO THE EU
    • Setting up / establishing offices in these countries
    • Joining hands with Joint Venture partners for production and/or marketing
    • Appointing agents for introducing and familiarizing Indian products in these markets
    • Developing regular contacts through participation in buyer seller meets
    • Enlisting in the local trade directories and advertising in the local trade journals and media
    • Creating greater awareness about Indian products by participating in all their trade fairs.
  • 28. FOCUS AREA
    • Quality Certification (QC)
    • Service reliability (SR)
    • Competitive Pricing (CP)
    • Strategic alliances with local companies, collaborations/partnerships (SA)
    • Knowledge of local languages (LL)
  • 29. STEPS NEEDED FOR INCREASING EXPORTS TO EU
    • Organize buyer-seller meet
    • Participate in overseas trade fairs
    • Open local offices
    • Make an effort to identify reliable local partners
    • Must take initiatives to start dialogues with like minded Joint Venture partners on the other side to look at possibilities of business
    • Must develop a compendium of information relating to Indian industry’s capabilities and export potential and circulate the same amongst businessmen in the EU countries to establish and further business connectivity
    • Create INDIA TRADE CENTRES in the EU countries on a self-supporting and cooperative basis.
  • 30. SECTORS WHERE TECHNICAL / FINANCIAL COLLABORATION IS POSSIBLE
    • Automobile sector
    • Steel
    • Information Technology
    • Food Processing
    • Banking
    • Heavy equipment and machinery
    • Defense Equipments
    • Metallurgy & Exploration activities in Hydrocarbon, Gas, Oil
    • Aviation sector
    • Power projects
    • Architectural & Engineering Services and Construction