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Halifax – 3 November, 2014
September 8, 2016
Succeeding in the EU: Opportunities for Atlantic Exporters
Presentation Outline
• Opportunities for Atlantic Firms
• Strategies to Succeed in the EU
• A Profile of the EU
Presentation Outline
• Opportunities for Atlantic Firms
• Strategies to Succeed in the EU
• A Profile of the EU
The EU Now Represents Much of Continental Europe
The EU is a LARGE Market
Source: Statistics Canada, Eurostat, IMF
2.4 35.5
507
0
100
200
300
400
500
600
ATL CA EU
Population, 2014 (millions)
0 5,000 10,000 15,000 20,000
Canada
India
Italy
Brazil
France
UK
Germany
Japan
China
US
EU
GDP, 2014 (US$ billions)
0
10
20
30
40
50
0 1 2 3 4 5 6 7 8 9
GD
P p
er p
erso
n, 2
013
(€ th
ousa
nds)
Real GDP, average annual growth rate, 2000-2007 (%)
Entry Date
Founding members
1970s
1980s
1990s
2000s onward
The EU is a DIVERSE Market
Founding members
are generally large,
high-income
economies but with
modest growth.
Recent entrants
are generally small,
low-income but
fast-growing
economies.
Source: Eurostat, IMF
Income per person & recent GDP growth by size of GDP, 2013 (€ billions)
Note: Size of the circle indicates size of GDP, 2013
0
10
20
30
40
50
0 1 2 3 4 5
GD
P p
er p
erso
n, 2
013
(€ th
ousa
nds)
Real GDP, average annual growth rate, 2016-2020 (%)
Entry Date
Founding members
1970s
1980s
1990s
2000s onward
Romania
A Variety of Large and Fast-Growing Markets in the EU
UK, Sweden &
Ireland were
projected to be
among fastest
growing advanced
economies.
Latvia, Poland and
Romania are
among the fastest
growing lower-
income markets.
Source: Eurostat, IMF (Fall 2015)
Income per person & forecast GDP growth by size of member GDP
Note: Size of the circle indicates size of GDP, 2013 (billions)
Poland
Ireland
Sweden
UK EU
average
Latvia
Germany
Language: 24 official languages
Currency: 9 national currencies plus the Euro
Countries: Currently, 28 member states
EU & national laws/regulations: National, shared or
EU jurisdiction depending upon the subject
The EU is a COMPLEX Market
Germany is the Manufacturing Centre of the EU
Germany accounts
for 30% of EU
manufacturing. Top 5
countries account for
70%.
Several small
manufacturing-
intensive economies
in central/eastern
Europe.
60% of EU trade
between EU states.
Source: Eurostat
[CELLRANGE]
[CELLRANGE] [CELLRANGE]
[CELLRANGE]
[CELLRANGE]
[CELLRANGE]
[CELLRANGE]
[CELLRANGE]
[CELLRANGE]
[CELLRANGE]
0
5
10
15
20
25
30
-6 -4 -2 0 2 4 6 8 10
Average annual growth rate, 2000-2013 (%)
Man
ufac
turin
g sh
are
of G
DP,
201
3 (%
)
Note: Size of circle indicates total manufacturing GDP
Presentation Outline
• Opportunities for Atlantic Firms
• Strategies to Succeed in the EU
• A Profile of the EU
• Tariff relief: Eliminates 98% of tariff lines on implementation
• Non-tariff barriers: Framework to recognize standards; ability to
comment on new regulations; ability for products to be approved
in Canada
• Labour mobility: Easier access to work in the EU
• Public procurement: Greater access to all levels of government
CETA Will Help Improve Access to the EU for Atlantic Firms
EU Opportunities – Seafood
CETA will eliminate tariffs of up to 20% on seafood
products, providing potential revenue gains of $30-40m
The EU is the largest seafood market by value in the
world with an increased dependence on imports and per
capita seafood consumption expected to increase
Large supermarkets are the key driver of product
requirements (such as food safety, eco-labelling)
EU Opportunities – Blueberries
Demand growth expected due to increased product
awareness & rising incomes in Eastern Europe. The
current 14% EU tariff has been suspended for years but
would be permanently eliminated.
The EU currently accounts for 40% of Atlantic Canada’s
frozen blueberry exports
Producers need to maintain their responsiveness to
changing European tastes and regulations
EU Opportunities – Refined Petroleum and Wood Products
Wood products: Limited demand growth and different
EU product standards make exporting uneconomic for
standardized products such as lumber. Opportunities
for specialty exporters and wood pellets.
Refined petroleum: Spot market opportunities in
competitive market as EU refineries close
EU Opportunities – Aerospace
The European passenger fleet is expected to grow 71%
by 2033, increasing demand for parts and maintenance,
repair and overhaul (MRO) services
Exports to the EU make up over 20% of Atlantic
Canada’s aerospace exports
An on-the-ground presence or a local partner may be
key to winning EU contracts
EU Opportunities – Pharmaceuticals and Diagnostics
Health care spending is rising with population aging but
fiscal restraint will likely keep demand growth to under
5% annually
Almost half of Atlantic Canada’s exports of
pharmaceuticals and diagnostic products are destined
for the EU
Working with local agents and distributors has been key
to navigating a complex and fragmented market
Presentation Outline
• Opportunities for Atlantic Firms
• Strategies to Succeed in the EU
• A Profile of the EU
• Choose your market
(based upon market
analysis or location of
prime customers)
• Meet client, national &
EU requirements
Entering the EU Market
• Make connections
• Work with a local partner
• Build and maintain relationships
• Establish a local presence
Strategies for Success
• Innovation focus
• Differentiated (unique, superior) products and services
• Continual innovation and improvement
• Niche (narrow or specialized) markets
• Supply chain management
• Rigorous cost control
• Closely manage suppliers
• Long-term relationships
• Build trust and reputation with clients
• Find reliable partners
Global Strategies Used by
Successful Atlantic Firms
Source: APEC (2011) Succeeding Globally
Visit www.apec-econ.ca/eu
For APEC’s business brochure, detailed
profile of the EU and analysis of select
business opportunities.
For More Information
Thank You for Participating
Learn more about APEC
and benefits of membership at
www.apec-econ.ca
Questions?
You may use the chat facility
to send in your questions