CONTRIBUTION OF

EUROPEAN UNION TO
THE WORLD TRADE
BY AMALU IYER AND SHREYASI BOSE
What is European union?

The European Union (EU) is a political and economic union of 27 European

countries that have come together to promote peace, stability, and cooperation. It
has a single market, a common currency (the Euro in many member states), and a
range of policies covering areas like trade, security, and environmental protection.
The EU aims to foster closer integration among its members while respecting their
sovereignty.
History of European union

The European Union (EU) is a political and economic union of 27 European

countries, formed in the aftermath of World War II to promote peace, cooperation,
and economic integration. It began as the European Coal and Steel Community
(ECSC) in 1951 and evolved into the European Economic Community (EEC) in 1957.
The Maastricht Treaty in 1992 established the EU as we know it today, with a
common currency (the Euro) and shared policies in various areas. Since then, the
EU has expanded and deepened its integration, fostering political, economic, and
social ties among its member states.
 CONTRIBUTION OF EUROPEAN UNION
TOTAL CONTRIBUTION
WORLD EU BELGIUM GERMANY

YEAR WORLD EU BELGIUM GERMAN

68618348
Y

60404706

58852569

58272959
54839785

54672318
2016 49326055 32150968 1243917 4465763

49326055
2017 54839785 35320644 1339463 4845439

42393280
38693819

37658047
35320644

35319317
2018 60404706 38693819 1472351 5195727

32150968

28989569
2019 58852569 37658047 1426577 4936107
2020 54672318 35319317 1354645 4537734
2021 68618348 42393280 1747663 5351583

5351583
5195727

4936107
4845439

4537734
4465763

1747663

1657577
1472351

1426577

1354645
1339463
1243917
2022

635245
58272959 28989569 635245 1657577
2016 2017 2018 2019 2020 2021 2022
 BELGIUM’S CONTRIBUTION:
Merchandise exports by product group- annual
• Belgium is strategically located in the heart of Europe, making it a vital 600,000
player in world trade. 2021; 548,869
• The country has a well-developed infrastructure that supports its trade 500,000
2018; 468,213
activities. 2017; 429,645
2019; 446,910
2020; 421,842
400,000 2016; 398,134
• Belgium is a major exporter of machinery, chemicals, and automobiles.
• Its robust manufacturing sector and skilled workforce contribute to its 300,000
success in machinery and equipment exports.
• Belgium's chemical and pharmaceutical industries are well-established and 200,000
play a significant role in global trade.
• The nation is also involved in the automobile sector, manufacturing and 100,000

exporting a variety of vehicles and automotive components.

0
• Belgium's contributions to world trade span across various product groups, 2016 2017 2018 2019 2020 2021 2022
showcasing its global significance in merchandise exports.
 Merchandise export value chain indices-
annuaL 140
2021; 130.1
120
• Belgium's strategic location as a European gateway plays a 2018; 109
2017; 107.9
100 2016; 100.3
significant role in its global merchandise export prominence. 2019; 95.5
2020; 94.4
• The nation serves as a vital hub for distribution and transit, 80

especially for goods entering or leaving the European Union. 60

• Belgium boasts a well-developed and sophisticated
40
transportation network, encompassing ports, highways, and rail
lines, facilitating the smooth movement of goods across Europe. 20

• The country is recognized for its competitive export sectors, 0

2016 2017 2018 2019 2020 2021 2022
including machinery, processed foods, and chemicals.
• Belgium's commitment to global trade, excellent logistics, and a
highly skilled workforce contribute to its enduring position in the
export value chain, making it a crucial part of the global trade
system.
 Merchandise export value fixed base- annual
160

• Belgium plays a significant role in the Merchandise Export 140 2021; 138.3
Value Fixed Base index, measuring a country's contribution
120 2018; 118
to global trade. 2017; 108.3
2019; 112.6
2020; 106.3
• Its strategic location in the heart of Europe, with the busy 100 2016; 100.3
port of Antwerp, makes it a crucial international trade hub. 80
• The Port of Antwerp serves as a major gateway for the
60
import and export of goods, enhancing Belgium's role in
global trade. 40
• Belgium excels in various industries, including chemicals, 20
machinery, pharmaceuticals, and automobiles, which
significantly boost its global merchandise export value. 0
2016 2017 2018 2019 2020 2021 2022
• Its membership in the European Union and well-developed
infrastructure further enhance Belgium's capacity to engage
in the international trade network.
 Commercial services export by sector and
partner-annual
YEAR AMOUNT 6,000

2016
5,000
2022; 4,866
2017 2016; 4,591
2018; 4,432
2018 4,000 2017; 4,088 2021; 4,039
2019; 3,824
2020; 3,583
2019
3,000
2020
2021 2,000

2022
1,000

0
2016 2017 2018 2019 2020 2021 2022
 GERMANY’S CONTRIBUTION:
SI3_AGG - TO - Total 1,600,000
year merchandise 1,560,539
1,550,000
2016 13,34,355
1,500,000 1,489,412
2017 14,48,191
2018 15,60,539 1,450,000
1,448,191

2019 14,89,412 1,400,000

2020 13,82,533
1,350,000 1,334,355

2021 16,36,742 1,300,000

2022 16,57,577 1,250,000

1,200,000
2016 2017 2018 2019

SI3_AGG - TO - Total merchandise

 Merchandise export value chain indices – annual
SI3_AGG - TO - Total
110
year merchandise 108.5
107.8

2016 100.6
105
2017 108.5
100.6
2018 107.8 100

2019 95.4 95.4

95
2020 92.8
2021 118.4 90

2022 101.3
85
2016 2017 2018 2019

SI3_AGG - TO - Total merchandise

 Merchandise export value fixed base- annual
year SI3_AGG - TO - Total merchandise 120
117.7

2016 100.6 115

112.3
2017 109.2
110 109.2

2018 117.7
105
2019 112.3
100.6
100
2020 104.2
2021 123.4 95

2022 125
90
2016 2017 2018 2019

SI3_AGG - TO - Total merchandise

 Commercial services export by sector and
partner – annual
BOP6 - SA - Manufacturing services on physical 14,000
year inputs owned by others 11,689
12,000 11,187
2016 7,658
10,000 9,698
2017 9,698
8,000 7,658
2018 11,689
2019 11,187 6,000

2020 10,400 4,000

2021 12,709 2,000

2022 15,282
0
2016 2017 2018 2019

BOP6 - SA - Manufacturing services on physical inputs owned by others

CONCLUSION

The EU recognizes the need for an effective foreign trade and

investment policy to access growth markets and promote sustainable
development. Maintaining an open and rules-based global trade and
investment order is essential, and the EU has been a significant force
for change in the global commercial system. However, its traditional
partner, the US, is no longer a feasible collaborator in trade and
foreign policy. This presents a challenge, as trade is a significant aspect
of the EU's policy framework. To ensure stability in the trade and
investment order, the EU must forge partnerships with like-minded
nations. It's crucial for the EU to establish a robust trade-policy
framework that unifies its institutions and achieves its broad
objectives. This also requires a political agreement on trade and