Busi potential in eu


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Busi potential in eu

  1. 1. European Union
  2. 2. Introduction of European union <ul><li>The European Union ( EU ) is an intergovernmental and supranational union of 27 democratic member states </li></ul><ul><li>The European Union was established under that name in 1992 by the Treaty on European Union (the Maastricht Treaty) </li></ul><ul><li>The Union currently has a common single market consisting of a customs union </li></ul><ul><li>A single currency managed by the European Central Bank (so far adopted by 12 of the 25 member states), </li></ul><ul><li>A Common Agricultural Policy, a common trade policy, and a Common Fisheries Policy. A Common Foreign and Security Policy </li></ul>
  4. 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
  5. 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) <ul><li>Customs Union and Single market </li></ul><ul><li>Common Agricultural Policy </li></ul><ul><li>Common Fisheries Policy </li></ul><ul><li>EU competition law </li></ul><ul><li>Economic and monetary union </li></ul><ul><li>EU-Citizenship </li></ul><ul><li>Education and Culture </li></ul><ul><li>Trans-European Networks </li></ul><ul><li>Consumer protection </li></ul><ul><li>Healthcare </li></ul><ul><li>Research (e.g. Sixth Framework Programme) </li></ul><ul><li>Environmental law </li></ul><ul><li>Social policy </li></ul><ul><li>Asylum policy </li></ul><ul><li>Schengen treaty </li></ul><ul><li>Immigration policy </li></ul><ul><li>Foreign policy: </li></ul><ul><li>Human rights </li></ul><ul><li>Democracy </li></ul><ul><li>Foreign aid </li></ul><ul><li>Security policy: </li></ul><ul><li>European Security and Defense Policy </li></ul><ul><li>EU battle groups </li></ul><ul><li>European Rapid Reaction Force </li></ul><ul><li>Peacekeeping </li></ul><ul><li>Drug trafficking and weapons smuggling </li></ul><ul><li>Terrorism </li></ul><ul><li>Trafficking in human beings </li></ul><ul><li>Organized crime </li></ul><ul><li>Bribery and fraud </li></ul> 
  6. 7. OBJECTIVES OF EU <ul><ul><li>To promote social and economic progress </li></ul></ul><ul><ul><li>To establish an area of freedom, security </li></ul></ul><ul><ul><li>and justice </li></ul></ul><ul><ul><li>To enhance the environment of Europe and </li></ul></ul><ul><ul><li>the world </li></ul></ul><ul><ul><li>To secure and defend the Union </li></ul></ul>
  7. 8. Commercial policy <ul><li>Competition Policy </li></ul><ul><li>Free movement of the goods </li></ul><ul><li>Free movement of the persons </li></ul><ul><li>Services </li></ul><ul><li>Capital </li></ul><ul><li>Taxation </li></ul>
  8. 9. <ul><li>Once goods have been admitted into the </li></ul><ul><li>market they can not be subjected to customs </li></ul><ul><li>duties </li></ul><ul><li>Free Movement of Capital </li></ul><ul><li>Free Movement of People </li></ul><ul><li>Free Movement of Services </li></ul>
  9. 10. The currency- euro
  10. 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
  11. 12. <ul><li>Agriculture: </li></ul><ul><li>The Common Agricultural Policy (CAP) </li></ul><ul><li>Agriculture accounts for over 35% of the </li></ul><ul><li>European Community's annual budget </li></ul><ul><li>Energy: </li></ul><ul><li>Many EU members import oil and gas from </li></ul><ul><li>Russia </li></ul><ul><li>World’s leading importer of these fuels </li></ul>
  12. 13. Development trust areas: <ul><li>Infrastructure: </li></ul><ul><li>The EU is working to improve cross-border </li></ul><ul><li>infrastructure within the EU, for example through </li></ul><ul><li>the Trans-European Networks (TEN) </li></ul><ul><li>Projects under TEN include the Channel Tunnel, </li></ul><ul><li>LGV Est, the Fréjus Rail Tunnel, the Oresund </li></ul><ul><li>Bridge and the Brenner Base Tunnel </li></ul>
  13. 14. Risk involved in doing business with E U <ul><li>Foreign exchange risk </li></ul><ul><li>Cross country risk </li></ul><ul><li>Transactional risk </li></ul><ul><li>Socio-cultural risk </li></ul>
  14. 15. External trade: European union <ul><li>The European Union is the world’s </li></ul><ul><li>biggest trader, accounting for 20% of </li></ul><ul><li>global imports and exports </li></ul><ul><li>EU’s major trading partners among the </li></ul><ul><li>developed countries like united states and </li></ul><ul><li>Japan </li></ul><ul><li>The trade is handled through the WTO </li></ul><ul><li>mechanisms </li></ul>
  15. 16. Trade and development of European union <ul><li>The Union has granted duty-free or cut-rate access </li></ul><ul><li>to its market for imports from developing countries </li></ul><ul><li>under its generalized system of preferences(GSP) </li></ul><ul><li>New trade and development strategy with it’s 78 </li></ul><ul><li>partners in the Africa-Pacific-Caribbean(ACP) </li></ul><ul><li>Trade agreement with South Africa </li></ul><ul><li>Free trade deal with 6 members of Gulf Corporation </li></ul><ul><li>Council(GCC) </li></ul>
  16. 17. EU & INDIA <ul><li>The EU is India's largest trading partner accounting for a fifth of India’s trade </li></ul><ul><li>EU imports from India came to US $ 22,945 </li></ul><ul><li>million covering mainly textiles and clothing, agricultural products and chemicals </li></ul><ul><li>EU exports to India amounted to US $ 22,838 million , of which the majority was machinery, chemical products and gems and jewellery </li></ul><ul><li>Since 2001, bilateral trade between the two has grown by 11 % on average </li></ul>
  17. 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
  18. 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%
  19. 20. EU’S IMPORT <ul><li>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 </li></ul><ul><li>EU’s major items of imports from India consisted of optical, photograph, musical instruments, ammunition (19%), automotive (10%), and stones, ceramics & glass (13%) </li></ul>
  20. 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
  21. 22. Trade relation with India <ul><li>India is an important trade partner for EU and a </li></ul><ul><li>growing global economic power </li></ul><ul><li>Sizable and growing market of more than 1 </li></ul><ul><li>billion people with a growth rate of between 8 </li></ul><ul><li>and 10%. </li></ul><ul><li>Free Trade Agreement negotiations, launched </li></ul><ul><li>by India and EU in 2007. </li></ul>
  22. 23. Why EU interested in India <ul><li>Liberalization and modernization of Economy since 90 </li></ul><ul><li>and dynamic performance in various sectors </li></ul><ul><li>Enhanced world trade and investment flows meeting the </li></ul><ul><li>demands of WTO </li></ul><ul><li>Low labour cost, English speaking proficiencies, solid </li></ul><ul><li>educational system </li></ul><ul><li>Top IT sector with qualified professionals </li></ul><ul><li>Huge potential of food processing sector </li></ul><ul><li>Engineering with low production cost </li></ul><ul><li>High growth rate of telecom sector </li></ul><ul><li>Simplified licensing to encourage FDI </li></ul>
  23. 24. Trade relation with India <ul><li>Trade in goods </li></ul><ul><li>EU goods exports to India 2007 : €26.2 billion </li></ul><ul><li>EU goods imports from India 2007 : €29.4 billion </li></ul><ul><li>Trade in services </li></ul><ul><li>EU services exports to India 2007 : €6.7 billion </li></ul><ul><li>EU services imports from India 2007 : €5.5 billion </li></ul><ul><li>Foreign Direct Investment </li></ul><ul><li>EU outward investment to India 2007 : €2.5 billion </li></ul><ul><li>Indian inward investment to EU : €0.5billion </li></ul>
  24. 25. The E U India FTA <ul><ul><li>EU FTAs launched as part of the Global Europe Strategy in 2006 </li></ul></ul><ul><li>Negotiations for such FTA were launched in </li></ul><ul><li>June 2007 </li></ul><ul><li>Aim is to increase market access for goods, </li></ul><ul><li>services and investment by tackling not only </li></ul><ul><li>tariff barriers to trade but also non-tariff barriers </li></ul>
  25. 26. PRODUCTS THAT CAN BE EXPORTED TO EU <ul><li>Automobiles (light commercial vehicles), auto engines and components </li></ul><ul><li>Metals and metal based products </li></ul><ul><li>Leather products </li></ul><ul><li>Chemicals and pharmaceuticals </li></ul><ul><li>Handicrafts </li></ul><ul><li>Engineering goods like diesel engines </li></ul><ul><li>Textile yarns, Woolen and cotton fabrics </li></ul><ul><li>Agricultural products </li></ul><ul><li>IT products and services </li></ul><ul><li>Consumer durables </li></ul><ul><li>Biotech products </li></ul>
  26. 27. STRATEGIES TO ENTER INTO THE EU <ul><li>Setting up / establishing offices in these countries </li></ul><ul><li>Joining hands with Joint Venture partners for production and/or marketing </li></ul><ul><li>Appointing agents for introducing and familiarizing Indian products in these markets </li></ul><ul><li>Developing regular contacts through participation in buyer seller meets </li></ul><ul><li>Enlisting in the local trade directories and advertising in the local trade journals and media </li></ul><ul><li>Creating greater awareness about Indian products by participating in all their trade fairs. </li></ul>
  27. 28. FOCUS AREA <ul><li>Quality Certification (QC) </li></ul><ul><li>Service reliability (SR) </li></ul><ul><li>Competitive Pricing (CP) </li></ul><ul><li>Strategic alliances with local companies, collaborations/partnerships (SA) </li></ul><ul><li>Knowledge of local languages (LL) </li></ul>
  28. 29. STEPS NEEDED FOR INCREASING EXPORTS TO EU <ul><li>Organize buyer-seller meet </li></ul><ul><li>Participate in overseas trade fairs </li></ul><ul><li>Open local offices </li></ul><ul><li>Make an effort to identify reliable local partners </li></ul><ul><li>Must take initiatives to start dialogues with like minded Joint Venture partners on the other side to look at possibilities of business </li></ul><ul><li>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 </li></ul><ul><li>Create INDIA TRADE CENTRES in the EU countries on a self-supporting and cooperative basis. </li></ul>
  29. 30. SECTORS WHERE TECHNICAL / FINANCIAL COLLABORATION IS POSSIBLE <ul><li>Automobile sector </li></ul><ul><li>Steel </li></ul><ul><li>Information Technology </li></ul><ul><li>Food Processing </li></ul><ul><li>Banking </li></ul><ul><li>Heavy equipment and machinery </li></ul><ul><li>Defense Equipments </li></ul><ul><li>Metallurgy & Exploration activities in Hydrocarbon, Gas, Oil </li></ul><ul><li>Aviation sector </li></ul><ul><li>Power projects </li></ul><ul><li>Architectural & Engineering Services and Construction </li></ul>