European Union facts
| Surface area: |
4,331,000 sq km |
| Population: |
490.5 million |
| Australian exports to EU: |
A$27,313 million |
| Australian imports from EU: |
A$48,920 million |
| EU's principal export destinations: |
USA, Switzerland, Russia |
| EU's principal import sources: |
China, USA, Russia (Australia 26th) | (Source: Department of Foreign Affairs and Trade - EU economic fact sheet)
Economic climate
While specific economic conditions vary across the EU’s 27 member countries, the generally stable and predictable business environment offered by the EU means trade with Australia will continue to grow.
Australian exporters should recognise that the EU member states participate in a fully integrated market allowing for the free movement of goods, services and factors of production (including labour).
The EU includes the third, fourth, fifth, sixth and ninth largest economies in the world: Germany, the United Kingdom, France, Italy and Spain. These mature and sophisticated markets, when combined with rapidly growing newer member states, create an enormous export and investor market.
To access summaries of trade related legislation for the EU: http://europa.eu/scadplus/leg/en/s05020.htm#REGTRADE
Trade relations and statistics
The EU market represents a sizeable opportunity for Australian exporters and investors. Australia’s robust economic conditions also provide a business environment for expanded trade and investment with the EU.
Australia’s two-way trade with the EU was valued at $75 billion in 2006.
Merchandise exports grew 36 per cent to $20.3 billion in 2006.
Manufactures exports increased by 8.7 per cent to $4.7 billion.
Services exports (particularly travel and ICT services) grew by four per cent to $8.3 billion in 2006.
Australia’s major exports to the EU have grown strongly over the last five years (with the exception of wool).
While the UK remains the most prominent EU destination for our exports, the newer EU member countries are emerging rapidly, though from a low base. In 2006:
- The UK accounted for 44 per cent of our total exports to the EU.
- Exports to EU10 (comprising the newer EU member countries) rose by around 40 per cent to $270 million.
Doing business
Business etiquette
Although the European Union represents a single market, it is certainly not homogenous. National characteristics, histories, cultures, languages, demographics and incomes differ between countries, and should be taken into account as part of the market selection process before doing business in the European Union.
Market entry strategy is highly important and differs depending on industry and country.
For more information, see individual country/industry pages.
Tariff and non-tariff barriers
Access to the EU market for industrial products is generally open. However, with few exceptions, access for agricultural products is severely limited. Tariff barriers vary widely, from an average of around four per cent for non-agricultural products (excluding petroleum) to an average of at least 16 per cent for agricultural products.
In some instances, tariffs (outside tariff quotas under preferential arrangements) are set at prohibitive levels, for example in the sugar sector. Tariff peaks apply to meat, dairy products, processed and unprocessed cereal products, processed fruits and vegetables. Access to high tariff items is mainly subject to tariff quotas. The EU’s Common Agricultural Policy (CAP) also impacts on global agricultural trade because of the use of production and export subsidies.
Australia’s market access priorities are under constant review. The latest information on priority areas for the EU can be accessed through the Department of Foreign Affairs & Trade’s TradeWatch online service.
Visiting the European Union
Citizens of the European Union may enter other states within the Union, take up residence and seek employment without hindrance from state authorities. Non-EU citizens will, however, normally be granted immediate rights of entry as tourists or for short-term business purposes.
Since 1985, many European Union countries signed the Schengen treaty to end internal border checkpoints and controls. Currently there are 15 countries in the Schengen zone: Austria, Belgium, Denmark, Finland, France, Germany, Iceland, Italy, Greece, Luxembourg, Netherlands, Norway, Portugal, Spain and Sweden. (Note Norway and Iceland are not EU members).
In late 2007, EU interior ministers agreed that a further nine member states may join the Schengen zone on 21st December 2007, with air borders to follow in March 2008. These countries are: Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovenia and Slovakia.
Currency
The Euro stands as one of the strongest symbols of European unification. The Euro is the currency of 13 EU countries: Belgium, Germany, Greece, Spain, France, Ireland, Italy, Luxembourg, the Netherlands, Austria, Portugal, Slovenia and Finland. Since 1st January 2008, the Euro is the currency of Cyprus and Malta also.
Austrade offices
A full list of Austrade offices (in alphabetical order of country) is also available.
For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au
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