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

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