GEE ASSIGNMENT ON EUROPEAN UNION

Submitted to: Submitted by:

Dr. Abhishek Jha Group 3 (PGDM General- A)
Md. Abid zafar (035/2019)
rajat ganda (028/2019)
sarthak shrivastava (033/2019)
gurkaranveer singh (038/2019)
chirag gupta(032/2019)
shubham rai (054/2019)

Introduction
The European Union is a unified trade and monetary body of 27 member countries. It eliminates
all border controls between members. That allows the free flow of goods and people, except for
random spot checks for crime and drugs. The EU transmits state-of-the-art technologies to its
members. The areas that benefit are environmental protection, research and development, and
energy.

Public contracts are open to bidders from any member country. Any product manufactured in
one country can be sold to any other member without tariffs or duties. Taxes are all standardized.
Practitioners of most services, such as law, medicine, tourism, banking, and insurance, can
operate in all member countries. As a result, the cost of airfares, the internet, and phone calls
have fallen dramatically

Purpose of EUROPEAN UNION

Its purpose is to be highly competitive in the global marketplace. At the same time, it must
balance the needs of its members.
The EU's 27 member countries are: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech
Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia,
Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia,
Spain, Sweden, and the United Kingdom. Previously there were 28 members but it dropped to 27
after Brexit
EU is governed by Three bodies run the EU. They make sure all members act consistently in
regional, agricultural, and social policies
A common currency in which EU deals is the euro, it is the common currency for the EU area. It
is the second most commonly held currency in the world, after the U.S. dollar. The value of the
euro is free-floating instead of a fixed exchange rate. 19 out of 27 EU countries use euro. These
countries are collectively known as the Eurozone.

History
In the year of 1950, the concept of a European trade area was first established. The European
Coal and Steel Community had six founding members: Belgium, France, Germany, Italy,
Luxembourg, and the Netherlands. In 1957, the Treaty of Rome established a common market. It
eliminated customs duties in 1968. It put in place standard policies, particularly in trade and
agriculture.
 Members of European union in the order of induction in eu

Year of entry Countries

01/01/1958 Belgium

France
Germany
Italy
Luxembourg
Netherlands
01/01/1973 Denmark
Ireland
United Kingdom (left on 31 January 2020)
01/01/1981 Greece

01/01/1986 Portugal
Spain
01/01/1995 Austria
Finland
Sweden
01/05/2004 Cyprus
Czechia
Estonia
Hungary
Latvia
Lithuania
Malta
Poland
 Slovakia
Slovenia
01/01/2007 Bulgaria
Romania
01/07/2013 Croatia

One of the major advantage that EU countries enjoy because of EU is the Schengen Area is one
of the greatest achievements of the EU. It is an area without internal borders, an area within
which citizens, many non-EU nationals, business people and tourists can freely travel without
being subjected to border checks. Since 1985, it has gradually grown and today most of the EU
countries and a few associated non-EU countries are part of this Schengen area

List of countries in Schengen area are-

Austria, Belgium, Czech republic, Denmark, Estonia, Finland, France, Germany, Greece,
Hungary, Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands,
Norway, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, Switzerland.
Schengen now includes 21 EU countries and three non-EU nations
This Schengen area helps immensely in easy movement of goods and human capital which
immensely helps improvement of trade volume between countries.
The economy of countries in Schengen area is measured to be around in GDP= $15 trillion. It is
bigger than the economies of Canada, Russia, India, Brazil, Korea, Mexico, and Australia
combined, we can say that Schengen area is a one large country which follows shared common
rules like-:

 Freedom of movement
 No internal borders
 Strengthening of the common judicial system
 Police cooperation

Top 10 Products imported within EU

1. Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic
purposes. Its value in dollars is 49521899
 2. Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic
purposes. Its value in dollars is 41543735
3. Medium oils and preparations, of petroleum or bituminous minerals, not containing
biodiesel. Its value in dollars is 33141388
4. Parts and accessories, for tractors, motor vehicles for the transport of ten or more person.
Its value in dollars is 26230994.
5. Aeroplanes and other powered aircraft of an of an unladen weight > 15000 kg (excluding
helicopter. Its value in dollars is 25755463
6. Parts of aeroplanes or helicopters, (excluding those for gliders). Its value in dollars is
18831632.
7. Parts and accessories of bodies for tractors, motor vehicles for the transport of ten or
more. Its value in dollars is 17178369
8. Motor vehicles for the transport of goods, with compression-ignition internal combustion
piston. Its value in dollar is 15490592
9. Immunological products, put up in measured doses or in forms or packings for retail sale.
Its value in dollar is 14969198
10. Machines for the reception, conversion and transmission or regeneration of voice,
images. Its value in dollars is 11890502
Imports between between heavily contains of automotive parts as Europe is a hub of companies
which are leaders in Auto sector they are major exporters of automotive parts and also these
products are exported between each other.

Now we are taking MERCOSUR as anchor and seeing EU exports to MERCOSUR

1. Aeroplanes and other powered aircraft of an of an unladen weight > 15000 kg (excluding
helicopters and dirigibles). Its value in USD is 1,205,942
2. Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic
purposes (excluding medicaments containing antibiotics, medicaments containing
hormones or steroids used as hormones, but not containing antibiotics, medicaments
containing alkaloids or derivatives ). Its value in USD is 1,122,316
3. Light oils and preparations, of petroleum or bituminous minerals which >= 90% by
volume. Its value in USD is 643,733
4. Fungicides. Its value in USD is 553,676
5. Heterocyclic compounds with nitrogen hetero-atoms only, containing an unfused
pyrazole ring, whether or not hydrogenated, in the structure. Its value in USD 498,456
6. Parts of aeroplanes or helicopters, n.e.s. (excluding those for gliders. Its value in USD is
469,240
 7. Immunological products, put up in measured doses or in forms or packings for retail sale
its value in USD is 448,443
8. Parts and accessories, for tractors, motor vehicles for the transport of ten or more persons,
motor cars and other motor vehicles principally designed for the transport of persons,
motor vehicles for the transport of goods and special purpose motor vehicles its value in
USD is 432,041
9. Turbojets of a thrust > 25 kN its value USD is 387,714
10. Palladium, unwrought or in powder form its value in USD is 372,899
Eu is a leader in automotive parts hence it can provide easy cheap automotive to countries of
MERCOSUR as countries of MERCOSUR have lower per capita income so by providing cheap
parts and automotive parts to these countries they are increasing their trade balance.

Exports from MERCOSUR to EU

1. Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic
purposes. Its value in USD is 49521899
2. Motor cars and other motor vehicles principally designed for the transport of persons.
Its value is USD is 41543735
3. Medium oils and preparations, of petroleum or bituminous minerals, not containing
biodiesel its value in USD is 33141388
4. Parts and accessories, for tractors, motor vehicles for the transport of ten or more
persons its value in USD is 26230994
5. Aeroplanes and other powered aircraft of an of an unladen weight > 15000 kg its
value in USD is 25755463
6. Parts of aeroplanes or helicopters, (excluding those for gliders) its value in USD is
18831632
7. Parts and accessories of bodies for tractors, motor vehicles for the transport of ten or
more its value in USD in 17178369
8. Motor vehicles for the transport of goods, with compression-ignition internal
combustion piston its value in USD is 15490592
9. Immunological products, put up in measured doses or in forms or packings for retail
sale. its value in USD is 14969198
10. Motor cars and other motor vehicles principally designed for the transport of persons,
incl. its value in USD is 14776678

Mercosur countries mostly export oils and petroleum to EU countries because brazil
Argentina,Paraguay and Uruguay because they are rich in minerals like petroleum
and oils which EU requires heavily as large companies in eu have higher
consumption of energy.
 We are taking France as anchor and comparing its export to Germany which is another
EU country.
France export to Germany

PRODUCTS VALUE IN ANNUAL SHAR EIN

USD GROWYH FRANCE
RATE B/W EXPORTS
2014-18 IN
%
1.Aeroplanes 5277479 -25 13
and other
powered
aircraft of an
of an unladen
weight >
15000 kg
(excluding
helicopters
2.Turbojets 2958856 6 39
of a thrust >
25 kN
3. Electronic 1989628 6 55
integrated
circuits
(excluding
such as
processors,
controllers,
memories
and
amplifiers)
4. Parts of 1848466 2 29
aeroplanes or
helicopters,
n.e.s.
(excluding
those for
gliders)
5. 1432886 -6 9
Medicaments
consisting of
mixed or
unmixed
products for
therapeutic or
prophylactic
purposes, ...
6.Motor cars 1407268 9 15
and other
motor
vehicles
principally
designed for
the transport
of persons,
incl. ...
7. Motor 1403617 12 23
vehicles for
the transport
of goods,
with
compression-
ignition
internal
combustion
piston ...

Motor cars 1296633 29 20

and other
motor
vehicles
principally
designed for
the transport
of persons,
 incl. ...
Gear boxes 1088557 7 41
and parts
thereof, for
tractors,
motor
vehicles for
the transport
of ten or
more ...
Perfumes and 856710 1 16
toilet waters
(excluding
aftershave
lotions,
personal
deodorants
and hair
lotions)

From the above data we can see that France exports a huge amount of aeronautical products to
Germany which can be attributed to French companies like AIRBUS AND Avions Jean-Pierre
Marie.
France’s has had a foreign trade deficit since 2003 and the country’s share of the world export
market is continuing to drop.
The French aeronautical sector is an exception to this trend, the sector has prevented the balance
of trade deficit from plunging The aviation sector both civil and military and the space industry
have posted a foreign trade surplus in excess of €23 billion over the last few years, representing
the largest surpluses in the overall French balance of trade. France is the world’s second largest
exporter in the aeronautical field, with 22% of the worldwide market, after the United States (35
%). Germany is the third largest exporter with 14% of the worldwide market. France has seen its
market share increase by 8% in ten years, unlike the agri-food and automotive sectors.

France import from Germany

VALUE IN ANNUAL Share in

USD GROWYH France's
 RATE B/W imports, %
2014-18 IN %
1.Parts of 8129352 10 56
aeroplanes or
helicopters,
(excluding those
for gliders)
2. Motor cars and 3803721 -8 32
other motor
vehicles
principally
designed for the
transport of
persons, incl. ...
3.Natural gas in 2672608 -1 23
gaseous state
4. Aeroplanes 2612745 -32 65
and other
powered aircraft
of an of an
unladen weight >
15000 kg
(excluding
helicopters ...
5.Medicaments 1981800 -2 16
consisting of
mixed or
unmixed
products for
therapeutic or
prophylactic
purposes, ...
6. Motor cars and 1479584 17 16
other motor
vehicles
principally
designed for the
transport of
persons, incl. ...
7. Antisera and 1438351 11 24
other blood
 fractions and
immunological
products,
whether or not
modified or
obtained ...

Motor cars and 1393334 23 27

other motor
vehicles
principally
designed for the
transport of
persons, incl. ...
Parts and 1194684 6 25
accessories, for
tractors, motor
vehicles for the
transport of ten
or more persons,
...
Motor vehicles 936389 11 18
for the transport
of goods, with
compression-
ignition internal
combustion
piston ...

France also imports a large amount of aeronautical parts from Germany because Germany also
has a presence of large amount of companies who are vested in making aeronautical products as
well as France imports motor parts from Germany who has major companies who are expert and
pioneers of automotive sector and manufacture products which are top notch in quality. Germany
also imports parts of tractors from india at a very cheap price which it exports to France and
derive profit from there.
 EU trade agreements with the rest of the world

1. EU-MERCOSUR trade agreement

The European Union and Mercosur states - Argentina, Brazil Paraguay and Uruguay, reached on
June 28th a it is an ambitious, balanced and comprehensive trade agreement, this deal was being
negotiated for 20 years and they finally reached on an agreement.
The main reasons for this FTA are
MERCOSUR is a region of over 260 million consumers, The 5th largest economy outside the
EU with an annual GDP of $2.2 trillion. It can be a destination for EU goods worth €45 billion
(in 2018) and EU services worth €23 billion (2017). A market for 60,500 EU companies. It will
be a major destination for EU investments, with €381 billion in investment stocks
The benefits this deal will provide

 Cutting tariffs

→ The agreement will eliminate high customs duties in key EU export sectors:
‣ Cars and parts
‣ Machinery
‣ Chemicals
‣ Pharmaceuticals

 Easier customs and compliance procedures

The two sides will work on simplifying their customs procedures and work together more closely
on regulations and standards, so that any differences that may exist do not stop EU companies
from exporting to Mercosur

 Selling services and setting up a business presence

Mercosur countries have thus far given limited access to services providers from other World
Trade Organization (WTO) countries but EU companies are already involved in providing
Mercosur with telecommunications, financial, business and transport services, among other
sectors. The agreement will address many significant barriers they face. It will also help other
companies seeking to provide services or set up a service or manufacturing business in a country
of Mercosur.

 Getting access to public contracts

The EU-Mercosur trade agreement will allow EU firms to bid for public contracts on equal terms
with Mercosur companies. Till now this market was closed to EU companies.
The Comprehensive Economic And Trade Agreement (CETA) Implementation
CETA is a trade agreement between the EU and Canada. It cuts tariffs and makes it easier to
export goods and services, benefitting people and businesses in both the EU and Canada. CETA
entered into force provisionally on 21 September 2017, meaning most of the agreement now
applies. National parliaments in EU countries – and in some cases regional ones too – will then
need to approve CETA before it can take full effect
CETA provides various economic opportunities for Canadian and European businesses in the
following ways:

 lowers prices and widens choice for Canadian and European consumers

 reduces or eliminates customs duties for exporters and importers

 makes it easier for Canadian firms to sell services in Europe

 allows Canadian firms to bid for EU public contracts

 recognizes professional qualifications across economies

CETA helps Canadians trade with the EU through:

 clear rules of origin

 streamlined customs and trade facilitation

 access to EU government procurement

 enhanced labour mobility

EU-Japan Economic Partnership Agreement

The Economic Partnership Agreement (EPA) between the EU and Japan enters into force on 1
February 2019 this will help Businesses and consumers across Europe and in Japan to take
advantage of the largest open trade zone in the world. EU firms already export nearly €70bn in
goods and €28bn in services to Japan every year. In the past European firms faced trade barriers
when exporting to Japan, which makes it hard for them to compete and be competitive and
derive larger profits.
The deal between EU and JAPAN will help European companies to tap into Japan's large market.
It will help Europe in becoming a leader in setting global trade rules, and it would send a
powerful signal that cooperation, not protectionism, is the way to tackle global challenges.
The trade agreement with Japan removes tariffs and other trade barriers and creates a platform to
cooperate in order to prevent obstacles to trade helps us shape global trade rules
The deal will scrap duties on 97% and 99% of Japanese and European imports respectively.
Dairy products along with other food products are among the EU's biggest exports to Japan and
the progressive reduction of nearly €1bn ($1.1bn; £0.9bn) of tariffs - nearly 40% on beef, up to
30% on chocolate, 15% on wine and up to 40% on cheese - could boost exports and create jobs,
on the other side EU will reduce the 10% duties on car imports to zero by 2027. Japan's
government estimates it could increase GDP by 1%, however, the deal will also provide better
access to firms who are in services sector. It will allow them to bid for more public contracts.
European service exports to Japan are currently worth €28bn a year. The EU says firms selling
business, financial, telecoms, transport and distribution services stand to benefit most.

The key parts of the Economic Partnership Agreement

With regards to agricultural exports from the EU will, in

 scrap Japanese duties on many cheeses such as Cheddar (which currently are at 29.8%)
as well as on wine exports (currently at 15% on average);

 allow the EU to increase its beef exports to Japan substantially, while on pork there will
be duty-free trade in processed meat and almost duty-free trade for fresh meat;

 the deal will ensure the protection in Japan of 200 high-quality European agricultural
products, so called Geographical Indications (GIs), and the protection of a selection of
Japanese GIs in the EU.
The agreement is also a major boost services markets, in particular financial services, e-
commerce, telecommunications and transport.
The deal will help both EU and JAPAN in a way that

 It will facilitate the EU companies access to the procurement markets of 54 large

Japanese cities, and removes obstacles to procurement in the economically important
railway sector at national level.
SPS barriers imposed by countries on EU
USA

 Sanitary measures applied by the USA for imports of live bivalve molluscs.
It is applied in sector Agriculture and Fisheries. Negotiaton exercise between the US
(FDA) and the EU on each others food safety systems for the opening of trade of live
bivalve molluscs. For this exercise EU Member States and Federal States of the US are
involved. Both countries have different food safety approaches both EU and the USA are
going for same level of protection, and therefore should be regarded as equivalent, a
formal agreement on 'equivalence' is still pending. A constructive dialogue between the
EU and the USA is ongoing aiming at granting market access for the US Federal States
and EU Member States concerned.

 low procedures on applications to allow import of new types of plant products

It is a sps measure imposed by USA. US legislation requires formal import authorisation and pest
risk assessments for all food crops, including edible fruit and vegetables. For ornamental plants,
import may be allowed without pest risk assessment. However, so called NAPPRA products ('not
approved pending pest risk analysis') cannot be imported into USA before the phytosanitary
requirements are decided on by the USA plant health authorities and afterwards included in US
import legislation. The procedure may take several years. For some products the EU has been
confronted with procedures lasting more than 25 years before market access can be granted and
where there is no technical justification provided by the USA for not allowing access of the
products concerned to its market

CHINA

 Trade Barrier on the Export of Ash Lumber

This barrier was imposed by china on EU on 01 Sep 2019. It is in the sector of Wood,
Paper and Pulp.
China issued a total ban on Ash wood products (logs and lumber) from Europe due to the
increasing spreading of the ash dieback fungus in Europe.

In 2015, following requests from Chinese companies who needed supplies from Europe,
China allowed imports of lumber up to 30 mm thickness. However, the furniture industry
needs lumber of 50 mm thickness. This ban by china is hurting its furniture industry who
aren’t able to import low cost ash wood products from EU.
 Trade-restrictive food safety standards for soft cheeses
 This barrier was imposed by China on EU on 13 Nov 2017. It is in the Sector of
Agriculture and Fisheries. According to Chinese Food Safety Standard GB 5420 for
cheese – except veined cheese – sets a limit value of ≤ 50 cfy/g for yeasts. This
parameter is too restrictive for certain soft cheeses (mostly for mozzarella and Taleggio)
because yeasts growth naturally in these cheeses. The EU microbial standards
(Regulation 2073/2005) do not consider this parameter because it poses no risk for
consumers’ health. This barrier impacts Germany and Netherlands as both export heavily
cheese to the the world 14% and 12% respectively.

INDIA

 Restrictions on imports of plants and plant products relating to fumigation treatments -

Alternatives to methyl bromide

It was imposed by INDIA on EU on 31 aug 2004. It is in the Sector of Agriculture and

Fisheries. In its Plant Quarantine Order 2003, India requires, for most plants and plant
products, treatment with methyl bromide (MB) prior or upon arrival in India, and
provides already for a number of allows alternative treatments. The use of MB in the
European Union is forbidden. In 2017, India has suggested EU Member States to review
the pests and measures included in the Order 2003 for any given commodity, and to
provide evidence that the alternatives to mitigate the pests in the territory of the Member
States are at least as efficient as MB. Several Member States have made such proposals
and are now waiting the approval by India. MB is addressed in the Montreal Protocol as
the Substances that Deplete the Ozone Layer and by the International Plant Protection
Organisation IPPC, and should not be used

TBT imposed by other countries on EU and EU countries

CHINA

 TBT imposed by china on NETHERLAND. In here import products must be

accompanied by the official health certificate of the Netherlands, to prove that it is in line
with the EU and China's relevant health requirements, suitable for human consumption.
It is in force from 2003-06-13.it is in category of "Food of animal origin” its tbt code is
B83
 This TBT is imposed on EUROPEAN UNION in here When the product enters China,
the importer shall submit the phyto-sanitary certificate to the entry-exit inspection and
quarantine institution, the institute shall conduct inspection and quarantine according to
the relevant provisions. It is active from 28-06-2002

 This TBT is imposed by china on Germany. The state administrative organ in charge of
the import and export of endangered species shall perform the Convention on behalf of
the Chinese Government and shall produce, upon verification, a Certification on
Import/Export Permission for key wild fauna and flora as well as the products thereof
under state protection whose export has been approved by the administrative department
of endangered fauna and flora under the State Council as well as the endangered wild
fauna and flora as well as the products thereof whose import or export has been restricted
by the import/export convention yet approved by the administrative department of
endangered fauna and flora under the State Council. Article 6 It is prohibited to import or
export any endangered wild fauna and flora as well as the products thereof whose import
or export is prohibited by the Convention for any purpose of commercial trade. Where
any import or export is required for such special reasons as scientific research,
domestication and propagation, artificial cultivation and cultural exchange, it shall be
subject to the approval of the administrative department of endangered fauna and flora
under the State Council. Where any matter shall be subject to the approval of the State
Council according to the relevant provisions, it shall be reported to the State Council for
approval.
It is prohibited to export any wild fauna and flora or any product thereof whose name is
yet to be decided or which is newly found to be of important value or to export the
relevant wild fauna and flora whose export has been prohibited by the State Council or
the administrative department of endangered fauna and flora under the State Council.
The TBT code for this tariff is P33

USA
 This TBT is imposed by USA on Germany, Italy, Netherlands and spain. It is imposed on
Asparagus in where If green is visible, PROHIBIT ENTRY. Its TBT code is B7. And it
was imposed on 2013-09-20.
 This TBT is imposed by USA on France in where Only smooth-skinned lemon of
commerce are allowed otherwise all others variety are banned. It came into force on
2013-09-20.
 TBT imposed by EU on different countries
 This tbt is imposed by EU on China. It came into force on 01-01-2013. It is imposed Air
conditioners and comfort fans. Electric mains-operated air conditioners, with a rated
capacity of = 12 kW for cooling, or heating if the product has no cooling function. In here
Ecodesign requirements of Annex I to the Regulation sets out requirements on the
minimum energy efficiency, maximum sound power level and maximum power
consumption in standby and switched-off modes of the different categories of equipment
it leaves out air conditioners, except double duct and single duct air conditioners double
duct and single duct air conditioners comfort fans

There weren’t any TBT imposed by EU countries on other EU countries.

References.
http://www.intracen.org/
http://www.intracen.org/
https://trains.unctad.org/
https://trains.unctad.org/
https://tradingeconomics.com/