10 0227 CBI Export Manual Web

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Exporting to Europe, an introduction

Export Manual


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Exporting to Europe, an introduction

Updaed for CBI and SIPPO by:

E&M ExportManagement BVTove Anonissen

Monique Harmsen

Fred Janssen

2010


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Disclaimer

Alhough he conen of is marke informaion ools has been compiled wih he greaes care, CBI (he

Cenre for he Promoion of Impors from developing counries) and SIPPO (Swiss Impor Promoion

Programme) canno guaranee ha he informaion provided is accurae and/or exhausive, and i canno

be held liable for claims peraining o he use of he informaion.

In regard o he marke publicaions, neiher CBI and SIPPO nor he auhors of he publicaions accep

responsibiliy for he use which migh be made of he informaion. Furhermore, he informaion shall no

be consrued as legal advice. Original documens should, herefore, always be consuled where appropriae.

The informaion does no release he reader from he responsibiliy of complying wih any relevan

legislaion, regulaions, jurisdicion or changes/updaes of he same.

In he case of he Inerne ools, CBI and SIPPO aim o minimise he disrupion caused by echnical errors.

However, CBI and SIPPO canno guaranee ha is service will no be inerruped or oherwise aeced by

echnical problems. CBI and SIPPO accep no responsibiliy wih regard o problems incurred as a resul of

using his sie or any linked exernal sies.

The informaion provided is aimed a assising he CBI and SIPPO arge group, i.e. exporers and business

suppor organisaions (BSOs) in developing counries. I may, herefore, no be used for re-sale, he

provision of consulancy services, redisribuion or he building of daabases, on a commercial basis. For

he uilizaion of he CBI marke informaion ools by he CBI and SIPPO arge group on a non-commercial

basis, he condiion applies ha CBI and SIPPO are referred o as he source of he informaion. All oher

use is prohibied, unless explicily approved in wriing by CBI and SIPPO. See also Disclaimer CBI marke

informaion ools: htp://www.cbi.eu/disclaimer

Design: Corps Onwerpers

Phoo couresy: EU Audiovisual Service, Foalia, Gety Images, NL Agency (page 10, 24)
http://www.cbi.eu/disclaimerhttp://www.cbi.eu/disclaimer


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3

Table of contents

Introduction | 5

Module 1 | 6

Europe, A Social

Overview

Module 2 | 10Europe, A Technological Overview

Module 3 | 18

Europe, AnEconomic Overview

Module 5 | 28

Europe, A Political Overview

Module 6 | 36

Europe, Developments in

Business-to-Business Markets

Module 7 | 44

Europe, Developments

in Consumer Markets

Module 4 | 24

Europe, An

Environmental

Overview

Module 8 | 50Europe, Cultural

Aspects


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5

For over half a cenury, he European Union (EU) has

brough poliical sabiliy and economic prosperiy o is

ciizens. I has creaed a fronier-free single marke and

a single currency, he euro. I has reunied a fracuredconinen. Europe as a whole is a major economic and

commercial power and he worlds larges donor of

developmen aid o poorer counries. EU membership has

grown from six o 27 naions; combined wih he four EFTA

counries (Swizerland, Norway, Iceland and Liechensein)

his brings he oal populaion of Europe o over half a

billion.

If you are prepared and willing o explore new markes,

hen his should creae opporuniies for you as an exporer:

he EU alone is he major exporer in he world and he

second larges imporer. The European Union is also animporan rading parner for less developed counries,

mos of whose expors ener he EU duy-free or a reduced

raes of duy. This preferenial access o he EU marke is

aimed a boosing he economic growh of poorer counries

around he world.

This publicaion is an updae of he CBI manual Exporing

o he EU (2006). This manual is he rs join publicaion

abou he European Union and EFTA co-nanced by CBI

and SIPPO. I is mean o give you a quick overview of he

European (EU and EFTA) region, providing you wih he

basic knowledge you need o decide wheher or no i would

be ineresing for you o sar exploring expor possibiliies

o Europe for your specic secor.

This manual is jus one in a series published by CBI covering

cerain aspecs of exporing o Europe. More produc

specic informaion can be found in CBI marke surveys.

Oher issues such as carrying ou marke research, selecing

your arge marke, marke enry sraegy, websie

promoion, rade shows and corporae image are covered

in oher CBI expor manuals. You can nd he iles on he

CBI websie:www.cbi.eu/markeinfo.

How to use this manualThe manual consis of 8 modules ha can be read separaely

according o your specic ineress. To ge he mos ou of

his manual, however, you may nd i benecial o read inhe order given below for a more complee inroducion.

Module 1 Europe, A Social Overview

Module 2 Europe, A Technological Overview

Module 3 Europe, An Economic Overview

Module 4 Europe, An Environmenal Overview

Module 5 Europe, A Poliical Overview

Module 6 Europe, Developmens in Business-o-Business

Markes

Module 7 Europe, Developmens in Consumer Markes

Module 8 Europe, Culural Aspecs

A he beginning of each module you will nd a roue map

which will ell you exacly where you are in he manual:

1 2 3 4 5 6 7 8

The informaion provided has been analysed specically for

he following main secors:

Agriculural

Consumer

Indusrial

Services

or indicaing a cerain xed secion ha will help you o go

furher in your research:

Wha does his mean for you as an exporer?

Pracical nex seps

Read more

The manual has been srucured o highligh he mos

imporan opics for familiarising yourself wih Europe as

a poenial expor marke. You can use his manual and

is online CBI and SIPPO ools, addiions and links

(www.cbi.eu andwww.sippo.ch) o deermine wheher or

no Europe migh be an ineresing marke o invesigae

furher for you and your producs. In addiion o heinformaion provided here, you will need o do more

in-deph research. To help you wih his, each module

provides you wih useful sources and references o various

inerne sies.

Introduction
http://www.cbi.eu/marketinfohttp://www.cbi.eu/marketinfohttp://www.cbi.eu/http://www.sippo.ch/http://www.sippo.ch/http://www.cbi.eu/http://www.cbi.eu/marketinfo


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Social

1 2 3 4 5 6 7 8Module 1 Europe, A Social Overview

Why read his module?

If you read his module, you will acquire an overview concerning he

mos imporan social issues and developmens in Europe. This could

be very relevan o you in your capaciy as an exporer or BSO

(business suppor organisaion) from a developing counry. Togeher

wih he oher modules on Technology, Economy, Environmen and

Poliics, you will have access o he basic componens required for aSTEEP analysis. This analysis can help you deermine wheher Europe

migh possibly be an ineresing marke for you o explore furher.


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. (.%)Greece

. (.%)Slovakia

. (.%)Czech Republic

. (5.8%)Denmark

. (.%)Finland

. (.%)Sweden

8. (.%)Poland

. (.%)Hungary

. (.%)Austria

. (.%)Italy

.(8.7%)Germany

.Norway

. (.%)The Netherlands

. (.%)Switzerland

. (5.8%)France

. (NA)Belgium

. (.%)Spain

.6 (.%)Portugal

. (.%)Cyprus

. (.%)Slovenia

. .%)Bulgaria

. (.%)Iceland

. (%)Estonia

. (.%)Latvia

. (.%)Lithuania

. (.%)Malta

. (.%)Romania

. (.%)Luxembourg

. (.%)Ireland

. (NA)United Kingdom

. (NA)Liechtenstein

(.%)


IntroductionThis module covers several demographic indicaors and

changing life syles in Europe. Where appropriae, he

dierences beween he EU and EFTA counries arehighlighed. This module gives you basic informaion on

he relevan social developmens ha are aking place in

Europe. In order o help you discover more abou his

subjec, we have provided you wih several links o boh

CBI/SIPPO sources and exernal sources.

Demographic indicatorsTogeher, he EU and EFTA accoun for a populaion of

more han 510 million poenial cusomers. The populaion

is expeced o have risen by 5% by he year 2030 as a resulof wo main facors: migraion and longer life expecancy.

These wo developmens will have an inuence on

European demography.

Module 1

Europe, A Social Overview

Figure 1.1: Total population and number of foreign citizens (%) in European countries

Source: Eurostat 2010


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2.6 - 66.6

66.6 -104.8

104.8 - 184.5

184.5- 379.5

379.5- 9398.4

Data not available

8Expor Manual 2010

The number of foreign ciizens living in European counries

is increasing and his is he main driver behind he growing

populaion. In 2007, he EU included almos 29 million

foreign ciizens, whereas his gure had risen o almos

32 million in 2009.

The populaion in he EFTA counries Swizerland, Norway,

Iceland and Liechensein is expeced o rise from 12.6

million people in 2008 o 14.1 million people in 2030.

The populaion prole is expeced o age in basically all

of he European regions. Beween 1960 and 2008, he

proporion of older people (65 years and older) in he

EU-27 populaion has risen from 10 % o 17 %. Accordingo Eurosas projecions, his rend will coninue. The

proporion of people aged 65 and older in he oal

populaion is expeced o rise in he period leading up o

2060. In he EU-27 i is expeced o go up from 17 % in 2008

o 30 % in 2060, reecing an increase in he number of

elderly from 84.6 million in 2008 o 151.5 million in 2060.

The larges percenages of elderly people in 2060 are

expeced o be found in Poland (36.2 %), Slovakia (36.1 %),

Romania (35.0 %), Lihuania (34.7 %), Lavia (34.4 %) and

Bulgaria (34.2 %), and he lowes in Luxembourg (23.6 %),

he Unied Kingdom (24.7 %) and Denmark (25.0 %).

Changing life stylesHowever, i is no only he populaion prole ha is

changing. The number of households, women working

and educaion levels is also changing. To sar wih he

educaion level, he European-wide rend is ha he level

of educaion is becoming higher. More and more people

have a universiy degree or have graduaed from oherhigher educaion insiues. Women are well-represened in

higher educaion, wih more women enrolling han men.

In addiion, women are increasingly employed, hus

making hem more and more nancially independen.

Figure 1.2: Population density (people per square metre)

Source: Detail INTG


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9

The average household size in he EU has been decreasing

during he pas decade. In 2008, i was 2.4 people per

household. Wihin he EU, he dierences in he size of

households is no very grea. In Germany, Finland, Denmark

and he Neherlands households are relaively small wih an

average size of 2.2 people or fewer. In conras, households

are larger in Mala, Cyprus, Romania and Slovakia wih an

average size of 2.9 people or more.

The populaion of Europe is no very evenly disribued:

some counries are more densely populaed han ohers,

and all of he counries conain boh rural and urban areas.

This is parly deermined by geographical facors: in he far

norh i is very cold and dark in he winer, and access o hesea for ranspor is a a grea disance; likewise, many ciies

have grown in places where possibiliies for commerce are

geographically favourable. Figure 1.2 gives an overview of

he densiy of populaion in Europe. The pas y years

have winessed grea growh in he ciies (78% versus a

populaion growh of 33%). In general, he people who live

in ciies are exposed o new producs and rends, whereas

hose who live in rural areas are less exposed o hese

producs.

What does this mean for you as an exporter? Ageing populaion: he opporuniies for selling producsha oer comfor, ha have an ergonomic design and

ha can be used during leisure ime will increase. The

same is rue of producs designed o mee he demands

of he elderly. The ageing populaion will coninue o

enjoy an acive lifesyle and i is wealhier han he

previous generaions. Subsequenly, i represens an

ineresing segmen.

Immigrans: his segmen of he populaion can serve

as a gaeway for inroducing new avours, ases and

syles from dieren pars of he world. They are already

familiar wih wha is new o Europeans and hey can hus

ac as ambassadors. Moreover, as Europeans are

confroned wih new and dieren culures, heir ineres

and willingness o ry ou new hings will increase.

Rising number of small households: he demand for

one-person packages is on he rise and wha is generally

required for seting up a household.

Working women: as women become more nancially

independen, hey spend heir money on producs ha

appeal o hem (fashion, home design). A side eec of

his is ha ime ends o become scarcer, which in urn

gives rise o an increasing demand for convenience

producs.

Practical next steps

The demographic developments described above

can be interpreted as trends for various sectors. See

the module on consumer developments for more

information.

Read more

Eurostat Publication: The Social Situation in The

European Union 2009, the European Commission

- hp://epp.eurostat.ec.europa.eu

Eurostat - hp://epp.eurostat.ec.europa.euformore information about:

Population

Population projections

Study on regional population projections

Ageing population

Migration

Education (level & women)

The online version of this manual gives you access

to the direct links to these subjects and publications.

To download the online version, please go to

www.cbi.eu/marketinfo.

http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KE-AG-10-001/EN/KE-AG-10-001-EN.PDFhttp://epp.eurostat.ec.europa.eu/http://epp.eurostat.ec.europa.eu/tgm/mapToolClosed.do;jsessionid=9ea7974b30eae53c0125a43b491589d9802f038f98b6.e34SbxiOchiKc40LbNmLahiKb3mOe0?tab=map&init=1&plugin=1&language=en&pcode=tps00001&toolbox=typeshttp://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&init=1&language=en&pcode=tps00002&plugin=1http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-SF-10-001/EN/KS-SF-10-001-EN.PDFhttp://epp.eurostat.ec.europa.eu/tgm/mapToolClosed.do?tab=map&init=1&plugin=1&language=en&pcode=tps00028&toolbox=typeshttp://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&init=1&language=en&pcode=tps00157&plugin=1http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/978-92-9201-033-1/EN/978-92-9201-033-1-EN.PDFhttp://www.cbi.eu/marketinfohttp://www.cbi.eu/marketinfohttp://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/978-92-9201-033-1/EN/978-92-9201-033-1-EN.PDFhttp://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&init=1&language=en&pcode=tps00157&plugin=1http://epp.eurostat.ec.europa.eu/tgm/mapToolClosed.do?tab=map&init=1&plugin=1&language=en&pcode=tps00028&toolbox=typeshttp://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-SF-10-001/EN/KS-SF-10-001-EN.PDFhttp://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&init=1&language=en&pcode=tps00002&plugin=1http://epp.eurostat.ec.europa.eu/tgm/mapToolClosed.do;jsessionid=9ea7974b30eae53c0125a43b491589d9802f038f98b6.e34SbxiOchiKc40LbNmLahiKb3mOe0?tab=map&init=1&plugin=1&language=en&pcode=tps00001&toolbox=typeshttp://epp.eurostat.ec.europa.eu/http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KE-AG-10-001/EN/KE-AG-10-001-EN.PDF


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Techn

1 2 3 4 5 6 7 8Module 2 Europe, Technological Overview


This module will give you an overview of he mos imporan

echnological issues and developmens in Europe ha are relevan o

you as an exporer or BSO (business suppor organisaion) from a

developing counry. Togeher wih he modules on Social Issues,

Economy, Environmen and Poliics, i provides you wih he basic

inpus for a so-called STEEP analysis, by means of which you will beable o deermine if Europe would be an ineresing marke for you

o invesigae furher.


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logica


IntroductionThis module covers infrasrucure, use of inerne and he

presence of and invesmen in know-how in Europe. When

relevan, dierences beween EU and EFTA counries arehighlighed. The general idea is ha his module gives you

basic informaion on he various relevan echnological

developmens in Europe. We encourage you o nd ou

more abou his subjec by providing you wih several links

o boh CBI/SIPPO sources and exernal sources.

InfrastructureThe funcioning of he European inernal marke and he

close rade relaions beween he member saes are

suppored by a dense and diverse ranspor infrasrucure.

Road ranspor is he mos imporan means of

ransporaion for goods raded wihin Europe, accouningfor almos half of all ranspor. Mariime ranspor comes

second and railways hird. The EU disposes of 5.000.000 km

of paved roads, ou of which 61.600 km are moorways;

215.400 km of rail lines, ou of which 107.400 km elecried;

and 41.000 km of navigable inland waerways. Toal

invesmen on ranspor infrasrucure on he period

2000-2006 was 859 billion. As rac beween Member

Saes is expeced o double by 2020, he EU will coninue

o inves in a rans-European nework, paricularly in he

newer member saes as here are large dierences in

infrasrucure beween European regions, wesern and

norhern infrasrucure being more developed han in he

souh and, in paricular, in he eas and he new member

saes. Invesmens are se a 500 billion from 2007 o

2020.

There are several enry poins ino Europe. The single

marke and cusoms union mean ha enering goods will

follow he same procedure regardless of enry poin. For

more informaion, see he module on Poliical aspecs.

Sea ranspor is by far he larges mode of ranspor for

goods enering Europe. Europe has some 1200 pors, he

Por of Roterdam, he Neherlands, being he larges one,

followed by Anwerp, Belgium. The funcion of pors hasdeveloped hrough he years o become logisics cenres,

oering services such as sorage, cool-chain services and

processing of maerials and goods.

Air ranspor is he second mos imporan means of

ransporaion for exporing o Europe (in value). In rade

beween European counries, air ranspor is very small.

Frankfur (Main), Germany, is he larges European airporin erms of freigh rac, followed by Amserdam/Schiphol,

he Neherlands and London/Heahrow, he UK.

Module 2

Europe, Technological Overview


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Table . EU- External Trade by Mode of Transport 00. Source : EU energy and transport in gures (00)

Value (billion )

Total

Export Import Export + Import

Sea 621.1 47.5 % 836.1 53.4 % 1 457.2 50.7 %

Road 289.1 22.1 % 178.0 11.4 % 467.1 16.3 %

Rail 24.3 1.9 % 21.8 1.4 % 46.1 1.6 %

Inland waterway 5.0 0.4 % 3.1 0.2 % 8.2 0.3 %

Pipeline 4.6 0.4 % 123.0 7.9 % 127.6 4.4 %

Air 320.4 24.5 % 255.6 16.3 % 576.0 20.1 %

Self propulsion 31.9 2.4 % 14.4 0.9 % 46.4 1.6 %

Post 1.5 0.1 % 2.7 0.2 % 4.2 0.1 %

Unknown 8.6 0.7 % 130.3 8.3 % 138.9 4.8 %

Total 1 306.6 100.0 % 1 565.0 100.0 % 2 871.6 100.0 %

Weight (million tonnes)

Total

Export Import Export + Import

Sea 396.4 74.8 % 1 288.3 71.7 % 1 684.7 72.4 %

Road 82.9 15.6 % 59.1 3.3 % 142.0 6.1 %

Rail 24.6 4.6 % 73.5 4.1 % 98.0 4.2 %

Inland waterway 8.4 1.6 % 13.0 0.7 % 21.4 0.9 %

Pipeline 3.7 0.7 % 275.5 15.3 % 279.2 12.0 %

Air 9.8 1.8 % 3.5 0.2 % 13.3 0.6 %

Self propulsion 3.2 0.6 % 2.2 0.1 % 5.5 0.2 %

Post 0.0 0.0 % 0.1 0.0 % 0.1 0.0 %

Unknown 1.2 0.2 % 82.2 4.6 % 83.4 3.6 %

Total 530.2 100.0 % 1 797.4 100.0 % 2 327.6 100.0 %

12Expor Manual 2010


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.Amsterdam ()

.Wilhelmshaven ()

.Gen0a ()

.Hamburg ()

.Bremen ()

.Roerdam ()

.Le Havre ()

.Marseilles ()

.Antwerp ()

.London ()

.Valencia ()

.Algeciras ()

.Zeeland Seaports ()

.St. Petersburg ()

.Primorsk ()

.Novorossiysk ()

.Constantza ()

.Zeebrugge ()

.Dunkirk ()

gure 2.1: op 20 uropean por s

Unit: Gross weight x 1 million tons

Caspian pipe-line

Consortium Marine Terminal

.Barcelona ()


Figure 2.1: Top 20 European ports (Unit: Gross weight x 1 million tons)

Source: www.portofroerdam.com


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Greece

Slovakia Czech Republic

Denmark

Finland Sweden

39 Poland

Hungary Austria

Italy

Germany

Norway

The Netherlands

France

Belgium

United Kingdom

Spain

Portugal

34 Cyprus

Slovenia

Bulgaria

Iceland

EstoniaLatvia

Lithuania

Malta

Romania

Luxembourg

Ireland

EU (27 countries) 48

EU (25 countries) 49EU (15 countries) 51

Euro area 48

Croatia

Turkey

14Expor Manual 2010

InternetNex o he radiional infrasrucure of roads, railroad and

airfreigh, he digial infrasrucure is becoming an

imporan facor in he inernaional rade environmen.

Half of European produciviy growh over he pas 15 years

has been driven by informaion and communicaions

echnologies. The EU has se up a Digial Agenda o increase

cooperaion beween Member Saes in he digial marke;

hus far his has mainly been he case in he marke for

physical goods, and o encourage he use of inerne among

all is ciizens. The Digial Agenda was launched in 2010 and

ses he following goals for 2020:

To become a single digial marke; a presen he digial

marke is sill fragmened, hampering cross-borderdigial rade.

Teaching all Europeans, regardless of age and social

background, o use he inerne. Whereas half of he

Europeans use inerne daily, 30% has never used i. The

Digial Agenda ses he goal o make online services

accessible o everyone.

Increased access o fas and ulra-fas inerne.

Enhance rus and securiy by srenghening he rules on

personal daa proecion.

Unleash social benes, by making online medical

records available o paiens wherever hey are in he EU

by 2015.

Half of he Europeans use inerne daily, and 60% use he

inerne a leas once a week (Swizerland: 75.3%)

(Sources: Eurosa and he Inernaional

Telecommunicaion Union ITU).

Europeans are also increasingly using mobile phones, as

Figure 2.2 shows. In 2008 (he laes daa available), henumber of mobile phone subscripions in he EU was 122

per 100 inhabians, compared o 87 in 2004. This srong

increase is seen in pracically all European counries. There

are, however, dierences beween he counries, wih

Greece, Ialy and Lihuania being in he op, whereas

Ausria, France, Mala and Lavia have he fewes mobile

phone subscripions.

Figure 2.2: Europeans frequently using the internet (%)



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Greece

Slovakia Czech Republic

Denmark

Finland Sweden

Poland

Hungary Austria

Italy

Germany

Norway

The Netherlands

France

Belgium

United Kingdom

Spain

Portugal

Cyprus

Slovenia

Bulgaria

Iceland

Estonia Latvia

Lithuania

Malta

Romania

Luxembourg Ireland

Switzerland

15

Know-howThe EU has se ou many sraegies o inves in research and

developmen, R&D. The EU aims o become he mos

compeiive and dynamic knowledge-based economy in he

world, and he member saes have reached agreemens o

spend a leas 3% of GDP on research, of which wo hirds

should be nanced by he business secor. Key invesmen

areas should be knowledge and growh, according o

agreemens reached in 2006 and 2007.

Despie EU invesmens in R&D, several secors, for various

reasons, face a lack of skilled labour. These include

engineers, accounans, IT professionals and echnical

specialiss. Invesmens in R&D are no expeced o meedomesic demand, meaning here will be a gap in

knowledge which mus be lled by suppliers from ouside

he EU.


Figure 2.3: Mobile phone subscriptions per 100 inhabitants



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16Expor Manual 2010

What does it mean for you as an exporter? New echnology/ICT oers new means for reaching EU

consumers; see he modules on developmens in

consumer markes & developmens in he B2B markes.

In addiion, he use of new echnology oers increasing

opporuniies for (IT-based) services, including cusomer

service and digiisaion.

Know-how: shorage of know-how will need o be lled

from abroad, e.g. by ousourcing more han jus

labour-inensive work; see he module on developmens

in he B2B markes.

Transpor: ranspor by sea is he mos common mode of

ranspor and he mos imporan one for exporers from

developing counries. In some cases air ranspor may bemore relevan, e.g. in case of fresh produce. The poin

of enry may no be your nal desinaion, in mos cases

addiional means of ransporaion will be needed for

inra-European ransporaion o he nal desinaion.

Invesmen in infrasrucure: in addiion o ensuring

smooh ranspor beween he European counries,

invesmens in infrasrucure will mean increased

demand from he consrucion secor. Also see he

relevan CBI marke survey awww.cbi.eu/markeinfo.


Find out industry practices for your sector: how are

goods transported? In which quantities? How are

they packaged? When would you choose air freight

above transport by sea? CBI market surveys, at

www.cbi.eu/marketinfo, may oer a good starting

point. In addition, your branch organisation may be

able to answer these questions.

Read more

EU transport infrastructure -hp://ec.europa.eu/transport/infrastructure

Eurostat information on ICT -

hp://epp.eurostat.ec.europa.eu

EU publication: EU energy and transport in

gures (2010); the second half of the report

concerns intra- and extra-EU transport -

hp://ec.europa.eu/energy

Eurostat publication: Science, Technology and

Innovation in Europe (2010) -


BSF publication: Switzerland Mobility and

Transport Pocket Statistics 2010 -www.bfs.admin.ch

Port of Roerdam -

www.portofroerdam.com




http://www.cbi.eu/marketinfohttp://ec.europa.eu/transport/infrastructure/index_en.htmhttp://epp.eurostat.ec.europa.eu/portal/page/portal/information_society/data/main_tableshttp://ec.europa.eu/energy/publications/statistics/doc/2010_energy_transport_figures.pdfhttp://epp.eurostat.ec.europa.eu/portal/page/portal/product_details/publication?p_product_code=KS-32-10-225http://www.bfs.admin.ch/bfs/portal/en/index/news/publikationen.Document.132198.pdfhttp://www.portofrotterdam.com/en/Pages/default.aspxhttp://www.cbi.eu/marketinfohttp://www.cbi.eu/marketinfohttp://www.portofrotterdam.com/en/Pages/default.aspxhttp://www.bfs.admin.ch/bfs/portal/en/index/news/publikationen.Document.132198.pdfhttp://epp.eurostat.ec.europa.eu/portal/page/portal/product_details/publication?p_product_code=KS-32-10-225http://ec.europa.eu/energy/publications/statistics/doc/2010_energy_transport_figures.pdfhttp://epp.eurostat.ec.europa.eu/portal/page/portal/information_society/data/main_tableshttp://ec.europa.eu/transport/infrastructure/index_en.htmhttp://www.cbi.eu/marketinfo


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Econo

Module 3 Europe, An Economic Overview 1 2 3 4 5 6 7 8



economic issues and developmens in Europe ha are relevan o

you as an exporer or BSO (business suppor organisaion) from a


Technology, and Environmen and Poliics, i provides you wih he

basic inpu for a so-called STEEP analysis, by means of which youwill be able o deermine if Europe would be an ineresing marke

for you o invesigae furher.


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icTable .: European currencies in euro and US dollars, high-low, October 009-October 00. Source: www.oanda.com

Country Currency Euro

Low-high

Oct 009 - Oct 00

US dollar

Low-high

Oct 009 Oct 00

Euro-zone 00: Austria, Belgium, Cyprus, Finland, France,

Germany, Greece, Ireland, Italy, Luxembourg, Malta,

The Netherlands, Portugal, Slovakia, Slovenia and Spain

Euro .9-.

Bulgaria Lev 0.51-0.52 0.61-0.77

Czech Republic Koruna 0.04-0.04 0.05-0.06

Denmark Krone 0.13-0.13 0.16-0.20

Estonia Kroon 0.06-0.06 0.08-0.10

Hungary Forint 0.003-0.004 0.004-0.006

Latvia Lats 1.41-1.44 1.67-2.14

Lithuania Litas 0.29-0.30 0.34-0.44

Norway Krone 0.12-0.13 0.15-0.18

Poland Zloty 0.23-0.26 0.28-0.37

Romania Leu 0.00002-0.00002 0.00003-0.00004

Sweden Krona 0.09-0.11 0.12-0.15Switzerland Franc 0.66-0.78 0.85-1.03

United Kingdom Pound sterling 1.06-1.24 1.42-1.69

191 2 3 4 5 6 7 8Module 3 Europe, An Economic Overview

IntroductionThis module covers he European Moneary Union, he

Euro, European economic performance and inernaional

rade. When appropriae, he dierences beween he EUand EFTA counries have been highlighed. This module

gives you basic informaion on he relevan economic

developmens in Europe. We encourage you o nd ou

more abou his subjec by providing you wih several links

o boh CBI/SIPPO sources and exernal sources.

The European Monetary Union & the EuroThe European Cenral Bank (ECB) was esablished in 1998 o

guide he moneary and scal aciviies of he paricipaing

Member Saes. These EU Member Saes have gone furher

in heir cooperaion han he Cusoms Union and single

marke (see he module: A Poliical Overview) andparicipae in he European Moneary Union, or EMU. In

1999, he paricipaing Member Saes xed he exchange

raes of heir currencies o he Euro, giving birh o he

Euro-zone. The euro () is probably he EUs mos visible

achievemen. I is he single currency, now shared by

16 Member Saes, represening over wo hirds of he EUpopulaion. These 16 counries make up he Euro-zone,

where he euro is used as common currency.

New EU members are all due o adop he euro when hey

are able o mee he crieria. Slovenia was he rs of

counries from he 2004 enlargemen o do so, and i joined

he euro area in 2007, followed by Cyprus and Mala in 2008

and Slovakia in 2009.

Economic performanceThe EU and EFTA counries experienced years of coninued

economic growh, unil he nancial crisis brough an endo i in 2009. The economy is expeced o begin o recover

wih growh forecased already for 2010.

Module 3

Europe, An Economic Overview


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2003 2004 2005 2006 2007 2008 2009 2010* 2011*

* forecast

.

.

.

..

.

-.

.

.

EU(27countries)

Belgium

Bulgaria

CzechRepublic

Denmark

Germany

Estonia

Ireland

Greece

Spain

France

Italy

Cyprus

Latvia

Lithuania

Luxembourg

Hungary

Malta

Netherlands

Austria

Poland

Portugal

Romania

Slovenia

Slovakia

Finland

Sweden

UnitedKingdom

Norway

Switzerland

275

250

225

200

175

150

125

100

75

50

25

0

20Expor Manual 2010

Figure 3.1: Real GDP growth rate in the EU 27 2003-2011


Figure 3.2: GDP per capita in Purchasing Power Standards compared to EU-27 (=100)



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Table .: Extra EU- trade by main partners, 000-009 - value in billion euro. Source: Eurostat Statistics in Focus /00

Exports Imports Trade balance

000 00 009 Growth

00-

009

Share of

extra-EU-

exports

009

000 00 009 Growth

00-

009

Share of

extra-EU-

imports

009

000 00 009

Extra EU- 849.7 1 306.5 1 094.4 -16.2% 100.0% 992.7 1 565.0 1 199.7 -23.3% 100.0% -143.0 -258.5 -105.3

United States 238.2 249.9 204.5 -18.2% 18.7% 206.3 186.8 160.0 -14.3% 13.3% 31.9 63.2 44.5

China 25.9 78.4 81.6 4.1% 7.5% 74.6 247.9 214.7 -13.4% 17.9% -48.8 -169.5 -133.1

Russia 22.7 105.2 65.7 -37.6% 6.0% 63.8 177.9 115.4 -35.1% 9.6% -41.0 -72.7 -49.7

Switzerland 72.5 97.7 88.6 -9.3% 8.1% 62.6 80.3 73.8 -8.2% 6.1% 10.0 17.3 14.8

Norway 26.4 43.7 37.6 -14.0% 3.4% 47.2 95.9 68.7 -28.3% 5.7% -20.8 -52.2 -31.1

Japan 45.5 42.4 36.0 -15.1% 3.3% 92.1 75.2 55.8 -25.7% 4.7% -46.6 -32.8 -19.8

Turkey 31.9 54.3 43.9 -19.2% 4.0% 18.7 46.0 36.1 -21.5% 3.0% 13.2 8.3 7.8

South Korea 16.7 25.6 21.5 -15.8% 2.0% 27.0 39.6 32.0 -19.0% 2.7% -10.2 -14.0 -10.5

India 13.7 31.5 27.5 -12.7% 2.5% 12.8 29.5 25.4 -13.9% 2.1% 0.8 2.0 2.1

Brazil 16.9 26.3 21.6 -18.0% 2.0% 18.7 35.9 25.6 -28.6% 2.1% -1.8 -9.5 -4.0

Others 339.3 551.6 466.0 -15.5% 42.6% 369.0 550.2 392.2 -28.7% 32.7% -29.6 1.4 73.8

21

International tradeThe EU is he major player in world rade, and i is ahead of

he Unied Saes and China. The mos imporan radingparners are he Unied Saes, China and Russia. Aer years

of growh, boh impors and expors saw a decrease in 2009

as a resul of he nancial crisis. In Sepember 2010, he EU

repored ha he European economy was recovering faser

han expeced.

The EFTA saes, wih Swizerland and Norway as main

markes, show similar developmens.

There are large dierence beween he counries, however,

which can be seen in Figure 3.2, showing he variaions in

GDP per capia beween he counries. Noneheless, he gapends o decrease.

For example, he regions beween he souh of England,

hrough he Benelux counries, France, Wesern Germany

and he norh of Ialy are he wealhies areas. On he

oher hand, Easern Germany, he souh of Ialy, Spain,

Porugal and Greece lag behind economically. As well as

lower income levels, hese areas end o have higher

unemploymen, a less educaed/skilled labour force, lower

populaion densiy and a migraing populaion.



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export importThousand USD

700,00,000

600,00,000

500,00,000

400,00,000

300,00,000

200,00,000

100,00,000

0

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Year

22Expor Manual 2010

The EU is he larges rading parner for LDCs (Leas

Developed Counries) and has an open regime owards ACP

(African, Caribbean and Pacic) counries; see he module

A Poliical Overview. EU impors from developing counries

also saw a seady increase up unil 2008, when he nancial

crisis led o a drop in mos of he impors from developing

counries o he EU area. For gures on your secor, please

refer o he CBI marke surveys which you can nd on

www.cbi.eu/markeinfo.

Figure 3.3: Evolution of EFTA States trade with the world, 1998-2009

Source: EFTA 2010
http://www.cbi.eu/marketinfohttp://www.cbi.eu/marketinfo


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23

What does it mean for you as an exporter?Economic growh leads o an overall increase in demand.

A he same ime, exchange raes will have an inuence on

rade: a srong currency means ha impors will become

atracive as hese are relaively cheap, whereas a weak

currency will make impored goods relaively expensive.

Exchange raes also give rise for uncerainies in

inernaional rade. The Euro-zone helps o eliminae hese

uncerainies among he paricipaing counries.


Practical next steps Find out how your sector is performing in the EU.

Read the relevant CBI market survey which you

can nd in the CBI Market Information Database:

www.cbi.eu/marketinfo. Choose your sector and

the EU. Choose Sector surveys and download

the relevant survey.

Have a look at EFTA trade statistics:

www.ea.int/free-trade/trade-statistics

Take it a step further, and nd out about the trade

for your product:

EU Export Helpdesk: hp://exporthelp.europa.eu.Choose Trade statistics and Input Form.

Norway: Consult the Norwegian statistics oce -

www.ssb.no/english/

Switzerland: Consult the Swiss statistics oce -

www.bfs.admin.ch/bfs/portal/en/index.html

Read more

Actual exchange rates - www.oanda.com

Eurostat information on the nancial crisis; all

statistical information gathered at European

level in view of the nancial crisis -


EU trade in the world up to 2009, including

imports from DCs & LDCs -

hp://trade.ec.europa.eu

Eurostat publication: External trade (Eurostat

2010) - hp://epp.eurostat.ec.europa.eu




http://www.cbi.eu/marketinfohttp://www.efta.int/free-trade/trade-statisticshttp://exporthelp.europa.eu/http://www.ssb.no/english/http://www.bfs.admin.ch/bfs/portal/en/index.htmlhttp://www.oanda.com/http://epp.eurostat.ec.europa.eu/portal/page/portal/financial_crisis/introductionhttp://trade.ec.europa.eu/doclib/html/122532.htmhttp://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-SF-10-028/EN/KS-SF-10-028-EN.PDFhttp://www.cbi.eu/marketinfohttp://www.cbi.eu/marketinfohttp://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-SF-10-028/EN/KS-SF-10-028-EN.PDFhttp://trade.ec.europa.eu/doclib/html/122532.htmhttp://epp.eurostat.ec.europa.eu/portal/page/portal/financial_crisis/introductionhttp://www.oanda.com/http://www.bfs.admin.ch/bfs/portal/en/index.htmlhttp://www.ssb.no/english/http://exporthelp.europa.eu/http://www.efta.int/free-trade/trade-statisticshttp://www.cbi.eu/marketinfo


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Enviro

Module 4 Europe, An Environmental Overview 1 2 3 4 5 6 7 8



environmenal issues and developmens in Europe ha are relevan

o you as an exporer or BSO (business suppor organisaion) from

a developing counry. Togeher wih he modules on Social issues,

Technology, Economy and Poliics, i provides you wih he basic

inpu ha is necessary o make a so-called STEEP analysis. This willenable you o deermine wheher Europe migh be an ineresing

marke for you o invesigae furher.


26/69

nment

251 2 3 4 5 6 7 8Module 4 Europe, An Environmental Overview

IntroductionThis module describes key areas in European environmenal

policy ha aec inernaional rade. When relevan,

dierences beween he EU and EFTA counries have beenhighlighed. This module provides you wih basic

informaion concerning he relevan environmenal

developmens in Europe. We would like o encourage

you o nd ou more abou his subjec by oering several

links o boh CBI/SIPPO sources and exernal sources.

Priority areas & international cooperationThe EU and EFTA counries have signed many inernaional

agreemens and hey paricipae in making a global eor o

deal wih key environmenal issues, such as climae change,

naure and biodiversiy, environmen and healh and

naural resources. Below, some key areas are described hahave a direc link o inernaional rade. For more

informaion on mulilaeral agreemens, please refer o he

Read More secion.

Biodiversity

The mos imporan ac on biodiversiy in view of

inernaional rade, is he Convenion on Inernaional

Trade in Endangered Species (CITES). Signaories o CITES

have agreed o sricly regulae rade in endangered species.

The EU and EFTA Member Saes have signed CITES. In

addiion, he EU has inroduced CITES in EU-wide legislaion.

This means ha endangered plans and animals, or producs

made from hem, are sricly resriced in Europe.

Chemicals

Chemicals and heir possible negaive healh eecs were

placed high on he agenda in he EU as i soon became clear

ha he legislaion a he ime was no adequae for

proecing consumer healh. Tha is why in he mid-nineies

a lenghy process ook place o reform he EU legislaion on

chemicals, which in urn led o he inroducion of he

much-discussed REACH legislaion. Under REACH, indusry

is required o provide informaion on he chemicals used,

and hose chemicals which are found o be harmful will be

disbanded wih. Alhough his ruling forms par ofEU-legislaion, he EFTA Member Saes will also need o

amend heir legal requiremens so ha hey are in keeping

wih he REACH legislaion. In his way he rade barriers

can be abolished.

Waste

As Europe has grown wealhier, he amoun of wase ha i

produces has increased as well! To ackle his, he EU has

inroduced a policy wih hree key areas: 1) waseprevenion, 2) recycling and re-use and 3) improved nal

disposal and handling.

When i comes o rade, he rs area, wase prevenion, is

he mos imporan, as he bes way o preven wase is o

use as litle unnecessary maerial o begin wih! In suppor

of his view, legislaion on packaging has been esablished.

In addiion, legislaion on wha should be done wih he

wase produced by elecric and elecronic equipmen (WEEE)

has been drawn up, which obliges he imporer o

paricipae in produc ake-back schemes. The imporer is

likely o pass on some of his obligaions o his suppliers!Swizerland and Norway have inroduced corresponding

measures.

Buying greenBesides he areas menioned above which resul mainly in

resricions, acors in he EU go furher han ha in order

o simulae environmenally-friendly producs. Cerain

indusries go beyond legal requiremens in heir secor-

wide agreemens, whereas auhoriies are also pledging o

buy green under so-called Green Public Procuremen

(GPP). Under GPP, crieria are oulined for produc groups,

Module 4

Europe, An EnvironmentalOverview


27/69

26Expor Manual 2010

and public auhoriies pledge o buy according o hese

crieria. EU consumers are also paying more atenion o

environmenal issues when making a purchasing decision.

In addiion o he environmenal hemes menioned above,

issues such as energy use and green energy play a role, in

which one more recen rend is o look a CO2 performance,

wih he aim o be CO2 neural. Good environmenal

performance migh enhance your chances of success in

he European marke! We would like o refer you o he

modules Developmens in Business-o-Business Markes

and Developmens in he Consumer Markes for more

informaion.

What does it mean for you as an exporter? Biodiversiy: make sure no maerials or (pars of)

producs you work wih are resriced under CITES.

Chemicals: REACH goes beyond he legal requiremens

ha were se in place before when i comes o resricing

and banning hazardous chemicals. These subsances will

also be phased ou when used in producs, and i is

herefore imporan o nd ou wheher your producs

are aeced or no.

Wase: everyhing ha makes up a produc evenually

ends up as wase. Wih his in mind, chemicals and oher

subsances are resriced as early as he producion sage.

You need o be aware of legal requiremens, as well asindusrial pracices in suppor of his view.

Buying green: Taking advanage of he rend o search for

environmenally-friendly alernaives could creae more

opporuniies. By rs nding ou wha are he crieria

hese are eiher se in indusrial iniiaives or in GPP, or as

a preference shown by consumers you migh even be

able o bene.


Biodiversity: Check out the restrictions in

CITES & EU legislation. A good starting point is the

CBI information guide which outlines CITES & EU

legislation in a step-by-step plan:

www.cbi.eu/marketinfo

Chemicals: Find out whether your products fall

within the scope of REACH! A good starting point

is the CBI information guide, which explains the

legislation and which contains more than

400 pages. See: www.cbi.eu/marketinfo

Waste: Legal requirements on packaging and theWEEE legislation are good starting points, check

out the information in CBIs Market Information

Database:

WEEE: www.cbi.eu/marketinfo, search word:

WEEE

Packaging: www.cbi.eu/marketinfo, search

word: packaging

Buying green: nd out about public criteria and

industrial initiatives in the CBI Market Information

Database. Go to www.cbi.eu/marketinfo. Select

your sector and choose Non-legislation in the

lter that appears. Also take a look athp://ec.europa.eu/environment/gppwhere you

can nd more information about GPP, including

criteria for product groups.

Read more

EU Environment - hp://ec.europa.eu/environment

EU Multilateral environmental agreements -

hp://ec.europa.eu/environment

Trade & environment - hp://ec.europa.eu/trade

EU Wildlife trade; outlining EU legislation and

CITES - www.eu-wildlifetrade.org

CITES - www.cites.org

REACH - hp://ec.europa.eu/enterprise

GPP - hp://ec.europa.eu/environment/gpp




http://www.cbi.eu/marketinfohttp://www.cbi.eu/marketinfo/cbi/docs/eu_legislation_take_back_electronics_weeehttp://www.cbi.eu/marketinfo/cbi/docs/eu_legislation_packaging_and_packaging_wastehttp://www.cbi.eu/marketinfohttp://ec.europa.eu/environment/gpphttp://ec.europa.eu/environmenthttp://ec.europa.eu/environment/international_issues/agreements_en.htmhttp://ec.europa.eu/trade/wider-agenda/environment/http://www.eu-wildlifetrade.org/html/en/wildlife_trade.asphttp://www.cites.org/http://ec.europa.eu/enterprise/sectors/chemicals/reach/index_en.htmhttp://ec.europa.eu/environment/gpphttp://www.cbi.eu/marketinfohttp://www.cbi.eu/marketinfohttp://ec.europa.eu/environment/gpphttp://ec.europa.eu/enterprise/sectors/chemicals/reach/index_en.htmhttp://www.cites.org/http://www.eu-wildlifetrade.org/html/en/wildlife_trade.asphttp://ec.europa.eu/trade/wider-agenda/environment/http://ec.europa.eu/environment/international_issues/agreements_en.htmhttp://ec.europa.eu/environmenthttp://ec.europa.eu/environment/gpphttp://www.cbi.eu/marketinfohttp://www.cbi.eu/marketinfo/cbi/docs/eu_legislation_packaging_and_packaging_wastehttp://www.cbi.eu/marketinfo/cbi/docs/eu_legislation_take_back_electronics_weeehttp://www.cbi.eu/marketinfo


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271 2 3 4 5 6 7 8Module 4 Europe, An Environmental Overview


29/69

Politic

1 2 3 4 5 6 7 8Module 5 Europe, A Political Overview



poliical issues and developmens in Europe ha are relevan o you

as an exporer or BSO (business suppor organisaion) from a


Technology, Economy and Environmen, i provides you wih he

basic inpu required for making a so-called STEEP analysis.In his way you can decide wheher Europe would be an ineresing

marke for you o invesigae furher.


30/69

al


IntroductionThis module covers an inroducion ino he EU and EFTA, he

single marke and cusoms union, rade rules & agreemens,

legislaion and informaion on how goods ener hemarke. When relevan, he dierences beween he EU and

he EFTA counries have been highlighed. This module

gives you basic informaion on he poliical developmens

aking place in Europe. We would like o encourage you o

nd ou more abou his subjec and we have herefore

suggesed several links o boh CBI/SIPPO sources and

exernal sources.

The EU & EFTA: an introductionThe EU and EFTA ogeher consis of 31 European counries,

which subsequenly form a marke of more han 510 million

poenial consumers.

EUThe European Union (EU) is a group of European counries,

commited o working ogeher. Is Member Saes have se

up common insiuions in which hey share some of heir

decision-making so ha specic maters of join ineres

can be made a European level. The idea for a European

Union was conceived in 1950 wih a co-operaion beween

six Member Saes, which was mainly concerned wih rade

and he economy. Nowadays, in 2010, he EU embraces

27 Member Saes and almos half a billion people, and i

covers a wide range of issues ha are signicanly imporan

in everyday life.

Alhough dierences exis in many of he radiions and

languages ha can be found in he Member Saes, he

EU fosers cooperaion among he peoples of Europe,

promoing uniy while preserving diversiy. However,

remain aware of he key dierences (social, echnological,

economic, poliical and culural, see respecive modules)

wihin he EU as hey may aec your expor developmen

planning. Despie heir dierences, he EU has been

operaing as a single marke for quie some ime.

This has been advanageous o he Member Saes of he EU

in erms of:

Trade beween EU counries

Removing echnical barriers o rade Opening new markes for public conracs, ec.

Eliminaing queues a border crossings.

Since is founding nearly 60 years ago, he EU has been like

a magne, atracing a consan sream of new members,

achieving is hisoric and successful expansion from 15 o

25 Member Saes in May 2004. The las wo Member Saes

joined in 2007, making he curren number of Member

Saes 27.

These are:

Belgium, France, Germany, Ialy, Luxembourg,The Neherlands (joined 1952)

Denmark, Ireland, Unied Kingdom (joined 1973)

Greece (joined 1981)

Porugal, Spain (joined 1986)

Ausria, Finland, Sweden (joined 1995)

Cyprus, Czech Republic, Esonia, Hungary, Lavia,

Lihuania, Mala, Poland, Slovakia, Slovenia (joined

2004).

Bulgaria, Romania (joined 2007)

Further enlargement

Any European counry can join he EU, provided i has a

sable democracy ha guaranees he rule of law, human

righs and he proecion of minoriies. I mus also have a

funcioning marke economy and a civil service capable of

applying EU laws. The EU has sared negoiaions wih

Croaia and Turkey, while he Former Yugoslav Republic of

Macedonia has been recognized as a candidae counry.

Module 5

Europe, A Political Overview


31/69

Greece

SlovakiaCzech Republic

Denmark

FinlandSweden

Poland

HungaryAustria

Italy

Germany

Norway

The Netherlands

Switzerland

France

Belgium

United Kingdom

Spain

Portugal

Cyprus

Slovenia

Bulgaria

Iceland

EstoniaLatvia

Lithuania

Malta

Romania

Luxembourg

Ireland

Liechtenstein

30Expor Manual 2010

EFTAThe European Free Trade Associaion (EFTA) is an

inergovernmenal organisaion se up for he promoion

of free rade and economic inegraion o he bene of

is four Member Saes. EFTA was formed in 1960 as a

response o he formaion of wha we oday know as he EU.

Some counries which did no paricipae in he EU formed

EFTA and ook similar seps owards a beter rade climae

beween he Member Saes. EFTA has seen several changes

in is members, wih several counries joining o laer leave

o join he EU.

EFTA oday consiss of four Member Saes:

Norway and Swizerland (joined 1960) Iceland (joined 1970)

Liechensein (joined 1991)

Single Market & Customs UnionThe EEA, European Economic Area, combines he 27

EU Member Saes and he EFTA saes (excep for

Swizerland) in an inernal, or single, marke, where he

paricipaing counries follow he same basic rules. This

enails he free movemen of goods, services, people and

capial. In oher words: producs acceped on one EEA

marke are also graned access o he oher EEA markes.

The Cusoms Union is an imporan aspec of he single

marke. I means ha here is a general applicaion of

common rules a he exernal borders of he single marke.

Cusom duies and aris are he same in all counries when

a produc eners from ouside he area.

Swizerland does no belong o he EEA, bu i does have a

number of bilaeral agreemens wih he EU. Swizerland

largely follows EU legislaion wih impac on inernaional

rade, including produc legislaion.

Figure 5.1: EU and EFTA Member States

Source: hp://europa.eu/abc/12lessons and www.ea.int


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31

Read more

EU in 12 lessons - hp://europa.eu/abc/12lessons

- provides an overview of the EUs history, its

goals, areas of cooperation, the euro, member

states, etc.

EFTA -www.ea.int

EEA -www.ea.int/eea.aspx

EU enlargement - hp://ec.europa.eu

Single market - hp://europa.eu/pol/singl

European Customs Information Portal -

hp://ec.europa.eu/ecip

Switzerland and EU cooperation -hp://eeas.europa.eu/switzerland

Find out about the dierent VAT levels in various

countries.

You can nd a list of applicable VAT rates in the

dierent Member States here:

hp://ec.europa.eu/taxation_customs

Alternatively go to the EU export helpdesk:

hp://exporthelp.europa.eu/index_en.html.

Choose Requirements and Taxes and Input

Form.

See also module 8 Europe - Cultural aspects.





Trade rules & agreementsWTO - Trade rules and agreements

The EU and EFTA are par of he global rade environmen,

and rade pracices inroduced and handled by he EU and

EFTA mus be in line wih inernaional pracices. The World

Trade Organisaion (WTO) is he main organisaion ha

deals wih inernaional rade rules. These rules include

WTO rade agreemens such as he GATT, GATS, TRIPS, SPS

and TBT as well as individual counries commimens

o lower cusoms aris. The WTO is composed of

governmens and poliical eniies (such as he EU). Today,

in 2010, he WTO includes 153 members. A vas majoriy of

hese members are developing counries.

TaxesThe EU ax sysem is no harmonized beween he Member

Saes (meaning each EU counry has is own ax sysem),

bu here are cerain common rules ha mus be respeced.

VAT (Value Added Tax) raes have been parially aligned, bu

here are sill dierences beween Member Saes.

What do the EU & EFTA mean for you as anexporter?The objecives for having a single marke ha faciliaes

rade beween counries: he same impor duy raes for

producs from ouside he area are applicable in all

counries, and goods acceped in one counry are also

acceped in oher counries. Candidae counries will needo adjus heir rade environmen o be in line wih he res

of he EU. Bu i also means ha he single marke is made

up of several dieren counries alhough much has been

done o faciliae he echnical aspecs of rade, you sill do

business wih people. Europe is a diverse marke in erms of

languages, culures, business pracices, consumer ineress

and needs. You need o know when he single marke idea

applies, and when you are beter o adjusing your

approach according o regional or naional dierences.

http://europa.eu/abc/12lessonshttp://www.efta.int/http://www.efta.int/http://www.efta.int/eea.aspxhttp://www.efta.int/eea.aspxhttp://ec.europa.eu/taxation_customs/common/international_affairs/enlargement/index_en.htmhttp://europa.eu/pol/singlhttp://ec.europa.eu/eciphttp://eeas.europa.eu/switzerlandhttp://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/how_vat_works/rates/vat_rates_en.pdfhttp://exporthelp.europa.eu/index_en.htmlhttp://www.cbi.eu/marketinfohttp://www.cbi.eu/marketinfohttp://exporthelp.europa.eu/index_en.htmlhttp://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/how_vat_works/rates/vat_rates_en.pdfhttp://eeas.europa.eu/switzerlandhttp://ec.europa.eu/eciphttp://europa.eu/pol/singlhttp://ec.europa.eu/taxation_customs/common/international_affairs/enlargement/index_en.htmhttp://www.efta.int/eea.aspxhttp://www.efta.int/http://europa.eu/abc/12lessons


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32Expor Manual 2010

What does it mean for you as an exporter?Preferenial rade agreemens beween your counry and he

European counries will give you a compeiive advanage

compared o exporers from counries where here is no

such an agreemen.


Find out about trade agreements between the EU,

EFTA and your country:

Find out about bilateral agreements between your

country/region and the EU: EU information: hp://ec.europa.eu/trade/

creating-opportunities/bilateral-relations

EU export Helpdesk, choose Preferential

arrangements: hp://exporthelp.europa.eu

Find out about bilateral agreements between your

country/region and EFTA:

Free Trade Agreements:

www.ea.int/free-trade/free-trade-

agreements.aspx

EFTA & WTO:

www.ea.int/free-trade/a-and-wto.aspx

WTO Regional Trade Agreements InformationSystem: hp://rtais.wto.org

Find out about taris:

EU Export Helpdesk, choose Taris:

hp://exporthelp.europa.eu

EU customs taris data base TARIC -


EFTA:

. Swiss Federal Customs Association:

hp://xtares.admin.ch

. Norway: www.toll.no

As an alternative, you can check at the customs

oce in your target country!

The Doha Developmen Agenda sared in 2001, and i

provides a plaform where global rade can be discussed

beween he members, and where developing counry needs

are given special atenion. Tari cus and farm reform have

been par of he negoiaions, bu so far he paries have no

managed o reach an agreemen and he fuure of Doha is

uncerain a he momen.

Internationally accepted standards

Codex Alimenarius: his is he mos imporan inernaional

organisaion which esablishes inernaionally recognized

sandards relaed o food safey. Alhough he Codex

sandards are no mandaory, he EU uses hem as a basis

for he developmen of is own food policy and sandards.EU legislaion frequenly refers o he Codex as he basis for

he esablished requiremens.

ISO: he ISO, Inernaional Organisaion for Sandardisaion,

has se up echnical regulaions for a number of produc

groups. These are widely used and oen requesed by

(European) buyers. Also read he module on developmens

in business o business for more informaion on his opic.

Other relevant trade agreements - EU and other countries

A number of addiional rade agreemens exis wih

dieren groupings of developing counries. The EU hasEconomic Parnership Agreemens (EPAs) wih seven

regions in ACP counries: ve African regions, one in he

Caribbean and one in he Pacic.The EPAs include echnical

suppor and raining for he counries o comply wih

sandards se by he EU. Anoher EU insrumen is Aid for

rade, which is nancial assisance for developing

counries specically argeed a helping hem develop heir

capaciy o rade.

Under he Generalised Sysem of Preferences (GPS),

176 developing counries have reduced aris for heir

goods when enering he EU marke. The EUs GSP is

implemened following a cycle of en years. The presen

cycle lass from 2006 o 2015.

Everyhing Bu Arms (EBA) provides he mos favourable

regime available. The EBA gives he 49 leas developed

counries duy free access o he EU for all producs, excep

arms and ammuniion.
http://ec.europa.eu/trade/creating-opportunities/bilateral-relationshttp://ec.europa.eu/trade/creating-opportunities/bilateral-relationshttp://exporthelp.europa.eu/http://www.efta.int/free-trade/free-trade-agreements.aspxhttp://www.efta.int/free-trade/free-trade-agreements.aspxhttp://www.efta.int/free-trade/fta-and-wto.aspxhttp://rtais.wto.org/UI/PublicMaintainRTAHome.aspxhttp://exporthelp.europa.eu/http://ec.europa.eu/taxation_customs/dds2/taric/taric_consultation.jsp?Taric=&Lang=en&Screen=0&Description=&Area=&redirectionDate=20100906&Level=&LangDescr=en&Expand=false&SimDate=20100906http://xtares.admin.ch/http://www.toll.no/default.aspx?id=3&epslanguage=enhttp://www.toll.no/default.aspx?id=3&epslanguage=enhttp://xtares.admin.ch/http://ec.europa.eu/taxation_customs/dds2/taric/taric_consultation.jsp?Taric=&Lang=en&Screen=0&Description=&Area=&redirectionDate=20100906&Level=&LangDescr=en&Expand=false&SimDate=20100906http://exporthelp.europa.eu/http://rtais.wto.org/UI/PublicMaintainRTAHome.aspxhttp://www.efta.int/free-trade/fta-and-wto.aspxhttp://www.efta.int/free-trade/free-trade-agreements.aspxhttp://www.efta.int/free-trade/free-trade-agreements.aspxhttp://exporthelp.europa.eu/http://ec.europa.eu/trade/creating-opportunities/bilateral-relationshttp://ec.europa.eu/trade/creating-opportunities/bilateral-relations


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33

legal produc requiremens mus be harmonized. This is

also wha he EU/EEA is aiming a, and he counries have

come a long way in erms of harmonisaion. Swizerland,

hough no a Member of he EU/EEA, has also aken seps o

keep in line wih EU/EEA legal requiremens.

This is how he legal sysem works:

1. The scope of legal requiremens

The EU/EEA/EFTA or any rading parner ouside your

own counry can only se legal requiremens relaed o

he produc ha has been placed on he marke.

Producion processes which do no direcly inuence

he qualiy/safey of he produc canno be conrolled by

legal measures. In pracice, his means ha EU legalrequiremens have he following general characerisics

for he four main secors:

Agriculture: General food safey has been oulined in

he framework General Food Legislaion, and in

accordance, all food mus be safe. To guaranee his,

he general principle of only checking he produc

enering he EU/EFTA region has in pracice been

exended o include hygiene and raceabiliy measures

hroughou he chain. Norway and he oher EFTA

counries paricipaing in he EEA are in line wih EU

food legislaion. In Swizerland, dieren legal acs

form a legal environmen which corresponds o ha ofhe EU, and producs acceped in he EU or one of he

EFTA Member Saes have access in all of he EU/EFTA

counries.

For non-food agriculural producs, he focus is on he

produc enering he marke, which in pracice oen

means ha he presence of cerain subsances has been

resriced in he manufacuring of he produc.

Consumer goods: Safey aspecs are esablished in a

framework agreemen, he General Produc Safey

Direcive, and in addiion requiremens are se for he

presence of hazardous subsances. CE-marking also

applies o some consumer goods, for insance oys.

Indusrial producs: Limis have been se for hazardous

subsances presen in he nal produc. In addiion,

safey requiremens have been se for many indusrial

producs in legislaion which have esablished he

so-called CE-marking.

Services: As services are no physically raded, legal

requiremens are generally no applicable. Be aware

hough ha your European rading parner may have

oher requiremens!

Noe of warning! In addiion o legal requiremens, he

privae secor - your (poenial) buyers - may have se heir

own ses of requiremens. Read more abou hese in heCBI marke informaion daabase: . Look up your secor &

counry (e.g. EU). Choose Non-legislaion in he ler ha

appears.

Read more

WTO - www.wto.org

Doha Development Agenda -www.wto.org

ACP EPAs - hp://ec.europa.eu/trade

Codex Alimentarius -www.codexalimentarius.net

See the CBI Market Information Database:

www.cbi.eu/marketinfo. Type codex

alimentarius in the keyword search option.

ISO - www.iso.org

See the CBI Market Information Database:

www.cbi.eu/marketinfo. Type ISO in the

keyword search option. Aid for trade - hp://ec.europa.eu/trade

EBA -hp://ec.europa.eu/trade

Other relevant international organisations are:

UNCTAD (UN Conference on Trade & Development):

www.unctad.org

OECD (Organisation for Economic Cooperation &

Development): www.oecd.org

FAO (Food & Agriculture Organisation of the UN):

www.fao.org

ITC (International Trade Centre):

www.intracen.org ICTSD (International Centre for Trade &

Sustainable Development): www.ictsd.org

ILO (International Labour Organisation):

www.ilo.org

CEN (European Commiee for Standardisation):

www.cenorm.be

Taxes in Europe database -


EU bilateral relations - hp://ec.europa.eu/trade

- look up EU trade relations per country or region.





LegislationConsumer safey is he main driver behind legal produc

requiremens. In addiion, reducing he negaive impac

producs migh have on he environmen has increasingly

become an imporan facor when seting produc

legislaion.

One of he aspecs of he single marke is he freedom of

movemen for goods. This means ha a produc acceped in

one counry, is also graned access o anoher counry

wihin he single marke. For his o funcion opimally,

http://www.wto.org/http://www.wto.org/english/tratop_e/dda_e/dda_e.htmhttp://www.wto.org/english/tratop_e/dda_e/dda_e.htmhttp://ec.europa.eu/trade/creating-opportunities/bilateral-relations/regions/africa-caribbean-pacific/http://ec.europa.eu/trade/creating-opportunities/bilateral-relations/regions/africa-caribbean-pacific/http://www.codexalimentarius.net/http://www.codexalimentarius.net/http://www.cbi.eu/marketinfohttp://www.iso.org/http://www.cbi.eu/marketinfohttp://ec.europa.eu/trade/wider-agenda/development/aid-for-trade/http://ec.europa.eu/trade/wider-agenda/development/generalised-system-of-preferences/everything-but-arms/http://ec.europa.eu/trade/wider-agenda/development/generalised-system-of-preferences/everything-but-arms/http://www.unctad.org/http://www.oecd.org/http://www.oecd.org/http://www.fao.org/http://www.intracen.org/http://www.ictsd.org/http://www.ilo.org/http://www.cenorm.be/http://ec.europa.eu/taxation_customs/taxinv/welcome.dohttp://ec.europa.eu/trade/creating-opportunities/bilateral-relations/http://www.cbi.eu/marketinfohttp://www.cbi.eu/marketinfohttp://ec.europa.eu/trade/creating-opportunities/bilateral-relations/http://ec.europa.eu/taxation_customs/taxinv/welcome.dohttp://www.cenorm.be/http://www.ilo.org/http://www.ictsd.org/http://www.intracen.org/http://www.fao.org/http://www.oecd.org/http://www.unctad.org/http://ec.europa.eu/trade/wider-agenda/development/generalised-system-of-preferences/everything-but-arms/http://ec.europa.eu/trade/wider-agenda/development/aid-for-trade/http://www.cbi.eu/marketinfohttp://www.iso.org/http://www.cbi.eu/marketinfohttp://www.codexalimentarius.net/http://ec.europa.eu/trade/creating-opportunities/bilateral-relations/regions/africa-caribbean-pacific/http://www.wto.org/english/tratop_e/dda_e/dda_e.htmhttp://www.wto.org/


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34Expor Manual 2010

2. How are legal requiremens se?

Legal requiremens are no se for specic producs.

Insead, legal requiremens are included in:

Framework legislaion, seting he basis for a secor,

such as he General Food Law and he General Produc

Safey Direcive for consumer goods.

In addiion, subsances, chemicals, conaminans and

similar maerials found in producs may be resriced.

These have no been se for specic producs as

resricions may apply for all or several producs and

you will have o remain under he limi se.

Finally, here are a few cases regarding produc-specic

legislaion. These do no exclude he rs wo poins

menioned above; however, hey should insead beseen as add-ons, specifying cerain requiremens for

specic producs.

Figure 5.2: Scope of legal requirements for any given product

Framework agreement

Substances

Chemicals

Contaminants

Etc.

Productsp

ecic

3. Finding ou dierences for specic counries:

The EU ses legal requiremens in a) regulaions and

b) direcives. In emporary cases c) decisions can be used,

addressing specic issues and specic Member Saes.

Regulaions apply auomaically in all EU Member Saes;

he oher EEA saes mus implemen he requiremens in

heir naional legislaion. Direcives are harmonized in

erms of he goals hey should achieve, bu hey do no

auomaically apply in he Member Saes and herefore

mus be implemened in naional legislaion o become

applicable.

What does this mean for you as an exporter?Legal requiremens form he minimum se of requiremens

for all producs enering he marke. Producs which fail o

mee hese requiremens are no allowed marke enry!


Find out which legal requirements are applicable

to your product: f ramework, substances and

product-specic.

Search the CBI Market Information Database:


the EU. Choose Legislation in the lter that

appears. The documents displayed are all relevantlegal requirements for your sector. Screen them in

order to determine which requirements are

relevant for your specic product. The end result

will provide you with an overview of legal

requirements for your product.

Alternatively, go to the EU export helpdesk:

hp://exporthelp.europa.eu. Choose

Requirements and Taxes and Input Form.

Find out if your target country has additional

requirements:

Search the CBI Market Information Database:


your destination country. Choose Legislation in

the lter that appears. Note that EU legislation

sets the basis! EU regulations apply in all Member

States and are therefore binding in your EU target

country as well as in Norway. Additional

requirements for your destination country are

indicated as such in the CBI database.

For Norway and other EFTA countries participating

in the EEA, have a look to see if the EU legal

requirements have been implemented in national

legislation. To nd out, go to www.easurv.int

Switzerland does not participate in the EEA. Swisslegislation can be found at: www.swisslex.ch

Alternatively, see the Federal Authorities of the

Swiss Confederation: www.admin.ch
http://www.cbi.eu/marketinfohttp://exporthelp.europa.eu/http://www.cbi.eu/marketinfohttp://www.eftasurv.int/internal-market-affairs/implementation-status-/https://www.swisslex.ch/cms_swisslex/slx/Index.aspxhttp://www.admin.ch/index.html?lang=enhttp://www.admin.ch/index.html?lang=enhttps://www.swisslex.ch/cms_swisslex/slx/Index.aspxhttp://www.eftasurv.int/internal-market-affairs/implementation-status-/http://www.cbi.eu/marketinfohttp://exporthelp.europa.eu/http://www.cbi.eu/marketinfo


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Read more

All EU legal texts can be found in the EURlex

database: hp://eur-lex.europa.eu/

For legislation in the making, turn to Prelex which

monitors the decision-making process between

the EU institutions:hp://ec.europa.eu/prelex

EEA decision-making process: www.ea.int/eea

Switzerland, EFTA and the EU: have a look at

SIPPO publications: www.sippo.ch


to the direct links to these subjects and publications.To download the online version, please go to



Find out border rejections and product recalls for

your type of products!

Non-food: search the RAPEX database -

hp://ec.europa.eu/consumers/dyna/rapex

Food: search the RASFF database -

hp://ec.europa.eu/food/food/rapidalert

Read more

RAPEX Annual Report 2008:

hp://ec.europa.eu/consumers/safety

RAFFS Annual Report 2008:

hp://ec.europa.eu/food





How are goods entering the EU market controlledin practice?In order o ener he EU marke, he legal requiremens

mus serve as a basis. The principle of a single marke goes

furher han graning access o all counries for producs

ha have enered one of he counries; i also includes

cooperaion beween he Member Saes when i comes orecalling or rejecing producs.

Producs enering he EU cusoms are checked. You can

follow he process by waching his video:

htp://ec.europa.eu/food/food/rapidaler/ras_video_en.hm

Member Saes keep each oher informed on produc recalls

and border rejecions hrough wo daabases:

RAPEX is he EU rapid aler sysem for all dangerous

consumer producs, wih he excepion of food,

pharmaceuical and medical devices.

The Rapid Aler Sysem for Food and Feed (RASFF) was pu

in place o provide food and feed conrol auhoriies wih

an eecive ool for exchanging informaion abou

measures aken when responding o serious risks

deeced in regard o food or feed. This exchange of

informaion helps he Member Saes o ac more rapidly

and in a coordinaed manner in response o a healh

hrea caused by food or feed.

What does it mean for you as an exporter?Knowing how he EU borders work and how producs are

checked even which producs are checked gives you

insigh ino which areas he EU prioriises. Have a look a

he annual repor published by RAPEX and RASFF (see links

below) o nd ou which producs have been wihdrawn

from he marke and which issues have been pu on he

agenda in he reporing years. For insance, in 2008 several

member saes repored consumer complains as resuls of

reacions o DMF, dimehyl fumarae, in leaher furniure

and foowear. The biocide is used o proec agains moulds,

bu as a resul of member sae noicaions, he EU ook

measures o prohibi DMF in all consumer goods as of May

2009.
http://eur-lex.europa.eu/http://ec.europa.eu/prelex/apcnet.cfm?CL=enhttp://ec.europa.eu/prelex/apcnet.cfm?CL=enhttp://www.efta.int/eea/eea-institutions/eea-decision-making.aspxhttp://www.sippo.ch/internet/osec/en/home/import/publications.htmlhttp://www.cbi.eu/marketinfohttp://ec.europa.eu/consumers/dyna/rapex/rapex_archives_en.cfmhttp://ec.europa.eu/food/food/rapidalerthttp://ec.europa.eu/consumers/safety/rapex/docs/rapex_annualreport2009_en.pdfhttp://ec.europa.eu/food/food/rapidalert/report2008_en.pdfhttp://www.cbi.eu/marketinfohttp://ec.europa.eu/food/food/rapidalert/rasff_video_en.htmhttp://ec.europa.eu/food/food/rapidalert/rasff_video_en.htmhttp://www.cbi.eu/marketinfohttp://ec.europa.eu/food/food/rapidalert/report2008_en.pdfhttp://ec.europa.eu/consumers/safety/rapex/docs/rapex_annualreport2009_en.pdfhttp://ec.europa.eu/food/food/rapidalerthttp://ec.europa.eu/consumers/dyna/rapex/rapex_archives_en.cfmhttp://www.cbi.eu/marketinfohttp://www.sippo.ch/internet/osec/en/home/import/publications.htmlhttp://www.efta.int/eea/eea-institutions/eea-decision-making.aspxhttp://ec.europa.eu/prelex/apcnet.cfm?CL=enhttp://eur-lex.europa.eu/


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Busin

Module 6 Europe, Developments in Business-to-Business Markets 1 2 3 4 5 6 7 8


This module will give you an overview of the most important

developments that are taking place in the European

Business-to-Business markets and which are relevant to you as

an exporter or BSO (business support organisation) from a

developing counry. By knowing which developmens are currenly

prevalen, you can anicipae wha your poenial buyers arelooking for and beter prepare yourself for he European marke.


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ssw

371 2 3 4 5 6 7 8Module 6 Europe, Developments in Business-to-Business Markets

IntroductionThis module covers he mos recen developmens in

inernaional rade channels, he role of he inerne and

supplier requiremens in B2B. When relevan, hedierences beween he EU and EFTA counries have been

highlighed. The general idea is ha his module can

provide you wih basic informaion on he developmens

in he European Business-o-Business Marke. We would

like o encourage you o nd ou more abou his subjec

and herefore we have included several links o boh

CBI/SIPPO sources and exernal sources in his module.

Developments in international trade channelsOnce you have decided o expor your producs o he EU,

you have a number of opions, varying from direc expors o

he reailer or OEM-er (Original Equipmen Manufacurer),o a rade channel wih various middlemen such as agens,

imporers, wholesalers and reailers. Which rade channel

you decide o use and which operaors you choose o deal

wih depends mainly on your place and srengh in he

value chain.

Closer cooperation in value chains

Inernaional rade is gradually moving away from he

radiional concep of expor-impor o closer cooperaion

in he value chain. This means ha long-erm relaionships

beween suppliers and European parners, or (co-)ownerships

and co-makership, are becoming increasingly imporan.

Supplier-imporer relaionships are exended o joinly

developing producs, wih more value added for he

supplier and possibly even cooperaion in disribuing he

producs. As a resul of closer cooperaion in he value

chain, more demands are placed on suppliers (for insance

in erms of delivery imes and qualiy), who eam up in

order o mee he expecaions of heir European parner.

Suppliers hus become larger, and as he relaionships

become closer wih heir European parners, i will become

more dicul for newcomers o ener he marke.

Due o he complexiy of regulaion, qualiy issues and

exibiliy in he logisic value chain of he Europeanparners, we can see ha a conglomeraion rend is

appearing in commodiy producs. Suppliers are aking over

smaller suppliers in order o creae synergies in heir

company (logisics, producion, purchasing, ec). This also

helps o creae a large obsacle agains he growing buying

power of heir cusomers (=European reailers).

Subcontracting and outsourcing: increasing complexitySubconracing is he radiional form of parnership where

a company specialises in a paricular produc, process or

service and uses a supplier o provide hem wih pars,

subassemblies, capaciy or services. Nowadays he erm

ousourcing is more commonly used for ransferring he

producion from one company o anoher, someimes even

o a dieren counry. Oshoring can refer o a companys

own aciviies when manufacuring or when services are

ransferred o anoher counry bu he owner remains he

same.

Many European companies seek cos benes by (parly)ousourcing heir producion. The general rule is ha

labour-inensive work is ousourced o bes-cos counries

(BCCs), whereas European companies ake care of assembly,

packaging, branding and markeing. However, as European

companies seek more benes from ousourcing, he asks

ha are ousourced end o become more complex. This

rend can be seen in many secors, for insance in fashion

where design elemens are increasingly being ousourced as

well, bu also in he service secor where, for insance,

business process suppliers now oer a whole package of

services insead of only one specic ask.

Private labels on the rise

Privae labels or own-brands are gaining ground in he EU,

wih marke shares growing in mos European counries.

Originally esablished in he food marke, privae labels

exis in many consumer and indusrial markes now, such as

cosmeics, shoes and clohing, over-he-couner drugs,

household and laundry producs, DIY, lawn and garden,

pains, hardware, car pars and accessories.

A privae label is a brand which belongs o he reailer, in

order o enhance and reinforce he loyaly of he consumer

o he sore. This means ha he reailer is he owner of

he brand, bu is also responsible for he markeingaciviies of he brand. This could include focusing on a

niche marke such as fair rade and organic. For more

informaion, we refer you o he module on Developmens

in Consumer Markes.

Module 6

Europe, Developments inBusiness-to-Business Markets


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%Finland

%Sweden

%Norway

%Denmark

%The Netherlands

%Greece

%Hungary

%Italy

%Switzerland

%France

%Belgium

%United Kingdom

%Spain

%Portugal

%Slovakia

%Czech Republic

%Poland

%Austria

%Germany

38Expor Manual 2010

Large reailers and imporers are increasingly enering ino

direc conrac wih manufacurers o produce under he

reailers brands. There are large dierences beween

regions, wih Wesern European counries being more

maure, bu Easern European counries are gaining a

marke share a a rapid pace. Swizerland has he larges

marke share for privae labels: 53%, followed by he UK

wih 47%. Spain, Slovakia and Germany all have marke

shares above 40%, whereas he Scandinavian counries

accoun for around 25% .

Privae labels saw a growh of 3% in 2009, whereas A-brands

have been decreasing in urnover and margins. Privae

labels are becoming more and more professional and heyare manifesing hemselves as if hey were real brands

(e.g. Tesco Finestin he UK,AH Excellentin The Neherlands,

Migros in Swizerland).

What does this mean for you as an exporter? Added value & a closer relaionship: overall, your chances

on he EU marke will improve if you can oer more value

addiions o cliens. Trade channels become shorer as

he producs and services become more complex and

supplier-buyer relaionships ge closer. In his view,

exporer communicaion, relaionship managemen and

a pro-acive atiude will become even more crucial for

conducing business successfully. Cliens will become

more dependen on he performance of heir suppliers

and he supplier will need o visi his or her cliens more

frequenly.

Communicaion: his becomes increasingly imporan

and he suppliers PSU (Problem Solving Uni) will needo communicae more (boh in frequency and in number

of opics) wih heir cusomers DMU (Decision Making

Uni). The deparmens from boh parners ha could be

involved are sales, logisics, R&D, engineering and

qualiy.

Figure 6.1: Private label share by country (Volume)

Source: Private Label Manufacturers Association, 2010 yearbook


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39

Read more

For more information on distribution strategies

and trade structures, we refer you to CBIs sector

surveys: www.cbi.eu/marketinfo. Select your

sector and the EU and choose Sector surveys in

the lter that appears.

For more information on private labels see the

Private Label Manufacturers Association:

www.plma.org

10 0227 CBI Export Manual Web

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