EUROPEAN UNION

BY: KARISHMA GUPTA MOHD AAMIR KHAN NAKUL BAHIYA SHAIVYA BHADORIYA ANISH GUPTA NAMAN GOEL

HISTORY
EU began shortly after World War II France, West Germany, Belgium, Luxembourg, the Netherlands and Italy were the founding countries of EU forming ECSC in 1952. In 1973 Denmark, Ireland and UK joined followed by Greece in 1981, Spain with Portugal in 1986, East Germany as part of newly united Germany in 1990. In 1986 EU flag began to be used after the creation of open borders without passport in 1985. In 1995 Austria, Sweden, and Finland joined In 2002, euro notes and coins replaced national currencies in member states. In 2004, the EU saw its biggest enlargement to date when Malta, Cyprus, Slovenia, Estonia, Latvia, Lithuania, Poland, the Czech Republic, Slovakia, and Hungary joined the Union. On 1 January 2007, Romania and Bulgaria became the EU's newest members.

EUROPEAN UNION?
The European Union (EU) is an economic and political union of 27 member states, located primarily in Europe. The EU was established by the Treaty of Maastricht on 1 November 1993. The EU has developed a single market through a standardized system of laws which apply in all member states, ensuring the free movement of people, goods, services and people. It maintains common policies on trade and the member states have adopted a common currency, the EURO, constituting the Euro zone. Largest economic body in the world

EURO
The Euro is the official currency of the Euro zone: 17 of the 27 member states of the European Union. The euro is the second largest reserve currency as well as the second most traded currency in the world after the United States dollar. As of July 2011, with nearly 890 billion in circulation, the euro has the highest combined value of banknotes and coins in circulation in the world, having surpassed the U.S. dollar.

Measuring the EUs economy

With 12 new member countries joining since 2004, the EUs GDP output of goods and services is now bigger than that of the US: GDP (12,268,387 million 2010)

Trade
With just 7% of the worlds population, the EU's trade with the rest of the world accounts for around 20% of global exports and imports. The EU is the worlds biggest exporter and the second-biggest importer. Around two thirds of EU countries total trade is done with other EU countries. The United States is the EUs most important trading partner, followed by China. In 2005, the EU accounted for 18.1% of world exports and 18.9% of imports.

EUS INSTITUITIONS
1.European Commission 27 Commissioners, representing the European perspective, each responsible for a specific policy area.

EUs executive branch proposes legislation, manages Unions dayto-day business and budget, and enforces rules.
Negotiates trade agreements and manages Europes multilateral development cooperation.

2.Council of the European Union

EUs main decision-making body, comprised of ministers of 27 Member States, representing Member States point of view. Decides on foreign policy issues. Council presidency rotates among Member States every six months.

3.European Parliament Voice of European citizens members elected for five-year terms. With the Council, passes EU laws and adopts EU budgets. Approves EU Commissioners. 4.European Court of Justice Highest EU judicial authority. Ensures all EU laws are interpreted and applied correctly and uniformly. Can act as an independent policy maker but unlike the U.S. Supreme Court, the ECJ can only deal with matters covered by the Treaties

5.European Central Bank

The European Central Bank (ECB) is the central bank for Europe's single currency, the euro.
The ECBs main task is to maintain the euro's purchasing power and thus price stability in the euro area. The euro area comprises the 17 European Union countries that have introduced the euro since 1999. The ECB operates independently from Member State governments.

European Union India FTA

1. In 2004 India became one of the EU's "strategic partners". Since 2005, the EU-India Joint Action Plan, revised in 2008, aims at realizing the full potential of this partnership in key areas of interest to India and the EU. 2. The parameters for an ambitious FTA were set out in the report of the EU-India High Level Trade Group. 3. Negotiations for such FTA were launched in June 2007 and the next round will be in Brussels on 7-8 April

4.

To assist India in continuing its efforts to better integrate into the world economy with a view to further enhancing bilateral trade and investment ties, the EU is providing trade related technical assistance to India.

Source : http://trade.ec.europa.eu/doclib/docs/2007/june/tradoc_135101.pdf

Benefits
1.Relatively easy to negotiate 2. Potential for 30% increase in each way flows of bilateral FDI as a direct result of signing an FTA 3. Potential for economic gains for both sides from deep integration 4. Potential for Regulatory Convergence

Costs
1.Trade diversion 2. Structural and policy impediments in the Indian economy which may limit the gains from deep integration 3. Anti-dumping policy could undermine the benefits of FTA

Leading Exporters and Importers of Merchandise Trade in the World (2010) including EU27 Member States and intra-EU Trade

http://ec.europa.eu/trade/creating-opportunities/bilateral-relations/statistics/

ECONOMIC SECTORS
Industrial goods: Automotive- EU automotives exports in 2010: 132billion
EU automotive imports in 2010: 47 billion Biggest markets: USA, China, Switzerland, Russia, Turkey Share of global production:25%

Chemicals- EU chemicals exports in 2009: 118 billion

EU chemicals imports in 2009: 75 billion Biggest markets : US, Canada, Switzerland, Asia (China, India, Japan and ASEAN countries

SOURCE:http://ec.europa.eu/trade/creating-opportunities/economic-sectors/

Aviation- EU civil aviation exports in 2010: 408billion

EU civil aviation imports in 2010: 278billion

Pharmaceuticals- EU pharmaceutical exports in 2009: 77.5 billion

EU pharmaceutical imports in 2009: 42.5 billion Biggest markets: US, Switzerland, Russia, Canada, Japan

Steel- EU steel exports in 2010: 33.7 million tonnes (32 billion)

EU steel imports in 2010: 26.8 million tonnes (18 billion) ) EU share of global steel exports (top ten exporters) in 2010: 14 % Biggest markets for EU steel exports in 2010: Turkey, USA, Algeria, Switzerland, Russia, India.

Textile and footwear- EU textile exports in 2010: 33.8 billion

EU textile imports in 2010: 83.7billion EU share of global textile exports in 2010: around 3.6% Biggest markets : Switzerland, Russia, USA, Turkey and Tunisia, Japan

Agriculture- Total trade in agriculture amounted to

153 Billion

Fisheries- EU imported 16 billion worth of fish and fishery products and exported 2.7 billion worth of fisheries goods

Services- In 2007, services contributed 71.7 % of the gross value added within the EU, although the share of services in total trade (goods and services) has remained fairly stable at around 25 % to 27 % since 2001

EU & WTO
Through the WTO, the EU seeks to: Ensure new markets for European companies. Observe the rules and make sure others also play by the rules Promote sustainable development in trade

1. The Everything But Arms initiative where all imports to the EU from the world's poorest countries are duty- and quota-free, with the exception of armaments. 2. The special incentive arrangement for sustainable development and good governance, known as GSP+. This offers additional tariff reductions to support vulnerable developing countries in their ratification and implementation of specified international conventions in the fields of human rights, core labour standards, sustainable development and good governance. 3. The work of the Trade and Environment Committee

What does WTO do?

Multilateral negotiations Resolving differences between States Setting the legal ground-rules for trade in the form of Agreements; and Monitoring Member's trade policy

BILATERAL RELATIONS
The EU and the US enjoy the most integrated economic relationship in the world, illustrated by unrivalled levels of mutual investment stocks, reaching over 2.1 trillion Total US investment in the EU is three times higher than in all of Asia and EU investment in the US is around eight times Investments are thus the real driver of the transatlantic relationship illustrated with approximately 15 million jobs

Trade in goods
EU good exports to the US in 2010: 242.1 billion EU goods imports from the US in 2010: 169.5 billion

Trade in services
EU services exports to the US 2010: 125.2 billion EU services imports from the US in 2010: 131.0 billion Foreign Direct Investment EU investment flows to the US in 2009: 79.2 billion US investment flows to the EU in 2009: 97.3 billion

 The EU-China High Level Economic and Trade Dialogue was launched in Beijing in April 2008. It strengthens the dialogue between the European Commission and the State Council of China. It deals with issues of strategic importance to EUChina trade and economic relations and provides impetus to progress concretely in sectoral dialogues.

Trade in goods
EU goods exports to China 2010: 113.1 billion (+38% on 2009) EU goods imports from China 2010: 281.9 billion

Trade in services
EU services exports to China 2010: 20.2 billion EU services imports from China 2010: 16.3 billion

Foreign Direct Investment

EU inward investment to China 2010: 4.9 billion China inward investment to EU 2010: 0.9 billion

 South Africa's trade relations and development cooperation with the European Union (EU) are governed by the Trade, Development and Co-operation Agreement (TDCA) , which was signed in Pretoria on 11 October 1999. The TDCA aims to establish a free trade area over a 12 year period covering 90% of bilateral trade. The implementation of this agreement is overseen by the Joint Co-operation Council

Trade in goods
EU good exports to South Africa 2010: 21.507 million EU goods imports from South Africa 2010: 17.912 million

Trade in services
EU services exports to South Africa 2009: 5.3 million EU services imports from South Africa 2009: 3.8 million

Foreign Direct Investment

EU investment flows to South Africa 2009: 5.9 billion South Africa investment flows to EU 2009: 1.0 billion

 The PCA has been the framework of the EU-Russia relationship for more than a decade. It was signed in 1994 and entered into force on 1 December 1997. The agreement regulates the political and economic relations between the EU and Russia and is the legal basis for the EU's bilateral trade and investment relations with Russia. One of its main objectives is the promotion of trade and investment as well as the development of harmonious economic relations between the parties

Trade in goods
EU good exports to Russia 2010: 86.1 billion EU goods imports from Russia 2010: 158.6 billion

Trade in services
EU services exports to Russia 2010: 22.6 billion EU services imports from Russia 2010: 14.2 billion

Foreign Direct Investment

EU outward investment to Russia 2010: -0.4 billion Russian inward investment in the EU 2010: -0.4 billion

NEWS ARTICLES
EU and US boost economic partnership
http://trade.ec.europa.eu/doclib/press/index.cfm?id=757

Statement on the state of play of the EU-India FTA negotiations by EU Trade Spokesman John Clancy
http://trade.ec.europa.eu/doclib/press/index.cfm?id=755

September 2011 Euro area external trade surplus 2.9 bn euro - 10.5 bn euro deficit for EU27
http://trade.ec.europa.eu/doclib/press/index.cfm?id=753

THANK YOU