How does globalisation affect the EU? EU and Foreign Trade How does globalisation affect the EU?

GLOBALISATION IMPLICATIONS TECHNOLOGICAL TRADE DEVELOPMENTS OPENING IMPLICATIONS Opportunities for growth, but disruptive effects Need for global governance -> multilateral rules and institutions to ensure level playing field and better distribution of benefits Need to reinforce the competitive position of the EU economy

A few facts about world trade Bn € World PVD EU

Second largest importer The EU in world trade 19% of world trade, 17.5% world trade in goods, 26% world trade in services Second largest importer A MAJOR TRADING POWER First exporter Foreign direct investment: EU-25 a major source of the world’s FDI (€152.5 billion) and host of the world’s FDI (€ 69.8 billion) in 2005

SHARE IN WORLD TRADE IN SERVICES (2005) The EU in world trade A MAJOR TRADING POWER SHARE IN WORLD TRADE IN SERVICES (2005) Source: Eurostat

The EU in world trade EU-25 Trade in goods: Exports by region (2005, billion euro) EFTA 119 CIS 80.7 NAFTA 292 China & Hong Kong 72.2 Japan & Korea 63.7 MED10 101.7 SAARC 27.1 GCC6 50.4 ASEAN45 Andean 4.5 ACP 30.8 MERCOSUR 23.4 Australia & New Zealand 23.8

2. The EU in world trade EU Foreign Direct Investments by region in 2004

The EU in world trade % Source: World Bank

The EU in world trade Sources: Eurostat, World Bank

The EU in world trade EU Imports from Developing Countries (Billion euro) EU Imports from Least Developed Countries (Billion euro) 5 10 15 20 1999 2000 2001 2002 2003 2004 2005 Manuf. Products Agr. Prod. Energy Other Source: Eurostat

EU Trade policy - basic features Being the leading trade region Strong interest in: Open markets Clear regulatory frameworks Responsibility to: EU citizens Rest of the World Need to reinforce EU competitiveness on world markets