1. A QUICK REVIEW EU AS A TRADE POWER ITPC Export Forum 2014 12 September 2014

2. 2 The EU as a key global player in international economic relations Economic block (open economic space and social market economies) with a strong “passive” impact on neighbourhood; enlargement A Single Market without internal borders - free circulation of goods, services, people, and capital A “eurozone” i.e. common currency shared by 17 (18) out of 28 Member-States

3. 3 The EU - international economic relations A set of common economic policies: (trade, agriculture, environment, internal market, competition, transports) Common actions (RD, energy) and harmonisation of norms and standards A common budget (1% of GDP)

4. 4 Europe as a Political Entity (Hybrid: Intergovernmentalism & federalism) Principles strictly enforced: market economy, democracy, human rights (freedom, non- discrimination) Strong institutions based on: Subsidiarity –Supranational competences (EU) –Shared competences (EU/Member States) –National competences (Member States)

5. 5 Europe as a political entity Institutional triangle representing different interests:  Council of the European Union (States)  European Parliament (citizens)  European Commission (EU as a whole)  Control by a Constitutional Court (European Court of Justice)

6. 6 Key figures of EU as a Trade Power (EU, US, China, Japan) a)As a block Trade Foreign Direct Investment b)Breakdown by Member-States c)Trade composition (X-M, goods, services) Product-wise Country-wise

7. 7 Merchandise and commercial services trade EUUSChinaJapan Merchandise exports (mln USD)2,170,0241,480,4321,898,381823,184 Merchandise imports (mln USD)2,396,5362,265,8941,743,484855,380 Share in world merchandise exports (%)15.088.0910.384.5 Share in world merchandise imports (%)16.4312.269.434.63 Commercial services exports (mln USD)829,590588,621182,087142,551 Commercial services imports (mln USD)662,764394,847237,003165,727 Share in world commercial services exports (%)25.6513.764.263.33 Share in world commercial services imports (%)21.569.815.894.12

8. 8 Extra-EU trade by sector

9. 9 EU trade composition, product-wise and country-wise

10. 10 EU trade composition, product-wise and country-wise

11. 11 EU trade composition, product-wise and country-wise

12. 12 Extra-EU trade by main trading partner

13. 13 Key figures of Europe as a Trade Power d)FDI composition: Member-States Partner countries e)Some key Member-States/partners bilateral relations: Germany France United Kingdom Belgium

14. 14 EU FDI by partner (bn EUR)

15. 15 Extra-EU FDI stocks by economic activity (bn EUR)

16. FDI inflows (mln USD)GermanyFranceUKFDI outflows (mln USD)GermanyFranceUK Agriculture and fishing025.1-14.4Agriculture and fishing36.64.2NA Mining and Quarrying-417.8-43.29163.5Mining and Quarrying1440.110410.914177.9 Manufacturing8697.82461-4242Manufacturing-5068.2-2229.813012.8 Electricity, gas and water1122.66176.911294.9Electricity, gas and water2880.24419.214480.8 Construction330.1-228.4-1020.8Construction-48.7176.9-636.2 Total services23307.832594.734883Total services13132.377547.464461.5 Trade and repairs-713.14653.28663.5Trade and repairs-589.11713.14935.9 Hotels and restaurants192.2-2781.3-2459.9Hotels and restaurants-11.1139.32963.1 Transports, storage and communications 1367.7-253.52177.9 Transports, storage and communications 3933.11391.417149 Financial intermediation385.85700.616517.6Financial intermediation5721.415979.130097.8 Real estate, renting and business activities 22008.425763.212756.4 Real estate, renting and business activities 1665.757945.7-6572.1 Other services66.9-486.11120.2Other services2412.3377.41503.2 16 FDI composition by member state

17. EUUSChinaJapan FDI inflows (bn USD)323.8174.7253.42.1 FDI outflows (bn USD)418351.462.4122.5 17 FDI inflows and outflaws in 2012

18. EU – Vietnam relations

19. The EU is Vietnam’s second biggest trade partner Total value of trade in goods in 2013: EUR 24.2 billion FDI: 1,810 projects in 2013 Conclusion of the EU-Vietnam Partnership and Cooperation Agreement in June 2012 EU-Vietnam FTA negotiated since 2012. Last round of negotiations foreseen in Sept. 2014 EU – Vietnam relations

20. Trade policy = exclusive competence of the EU FTA negotiated by the European Commission following Council’s mandate. European Parliament to ratify the agreement when it is concluded (necessary for it to enter into force) EU – Vietnam FTA

21. Potential impact: –VN GDP could rise by 15% –Exports to the EU could rise by 35% –Trade facilitation –Better consistency between quality and safety standards, leading to rise in exports Main issues at stake: –EU: high tech products, vehicles, pharmaceuticals –VN: textile, footwear, rice, coffee, aqua-products… – But also: Intellectual Property Rights, Services, Investment… EU-Vietnam FTA

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