European Union

The European Union (EU) is comprised of 25 Member States: Austria, Belgium, Cyprus, Czech republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, The Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden and the United Kingdom. In 2003, U.S. exports of goods and services to the EU-15 were valued at $252 billion, while U.S. imports from the EU-15 were valued at $341 billion.

On May 1, 2004, the European Union (EU) formally accepted ten new countries into its fold, thus increasing the grand total of Member States to 25. Enlargement increased the EU’s population from 380 million to 455 million people. Population is concentrated largely in Germany (82.5 million), Italy, the United Kingdom, and France (each with some 57-60 million people). While the EU’s population is about 1.4 5 times that of the United States, it is squeezed into an area about one-third half its size.

Germany remains the largest economy in the EU, with €2.2 trillion of GDP in 2003. The United Kingdom and France each accounted for €1.5 trillion and Italy 1.2 3 trillion. Per capita Average nominal GDP per capita for the 25 Member States as a whole was about $23,000 24,200. GDP per capita adjusted for purchasing power parity ranged from $43,40055,100 for Luxembourg, to $17,90010,100 in Lithuania. Like the United States, the EU economy is heavily weighted toward the service sector, which in 2000 provided 72 percent of the EU-15’s GDP. Industry (including construction) contributed another 26 percent, leaving agriculture, forestry and fishery products at about 2 percent.

U.S. firms doing business in Europe should be aware of the business facilitating activities of the Transatlantic Business Dialogue (TABD). The TABD is a forum for U.S. and European businesses that provides voluntary input to the U.S. Government and the European Commission on impediments to transatlantic business. For more information on TABD initiatives visit the TABD website: www.tabd.com. Similar transatlantic dialogues are also held between governments and labor, environmental and consumer constituencies.

In general US companies find their best prospects in this market at the upper end of the technology scale. US goods are well regarded and demand is driven much more by quality and performance than by price. Goods and services in the following sectors offer particularly good opportunities:

Aerospace and Defense
Automotive
Energy
Environmental
Information and Communications Technologies
Medical and Pharmaceutical
Travel and Tourism

Source: US Foreign Commercial Service

A full copy of the Country Commercial Guide to the EU can be obtained through the Market Research resource at: http://www.export.gov