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

2. 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

3. A few facts about world trade
Bn €
World
PVD EU

4. 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

5. 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

6. 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
MED
SAARC
27.1
GCC6
50.4
ASEAN45
Andean
4.5
ACP 30.8
MERCOSUR
23.4
Australia & New Zealand 23.8

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

8. The EU in world trade %
Source: World Bank

9. The EU in world trade
Sources: Eurostat, World Bank

10. 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

11. 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