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	EU WELCOMES TEN NEW MEMBERS: VIRGINIA FIRMS AMONG FIRST TO BENEFIT! A big bang —more commonly known as the European Union’s (EU) biggest-ever expansion in its half-century history —was recently heard ‘round the world. On May 1, 2004, ten new countries joined the existing fifteen member nations, to form the new European Union (EU). While the world waits to see how the expanded EU will affect world trade patterns, seven Virginia firms eager for fresh opportunities were among the first to visit the region and establish new business relationships. Virginia firms are smart to carve out their niche early. The original 15 EU members, with 375 million people and economies valued at $8.4 trillion, were already a formidable market. Now, the 25 newly combined EU economies create a giant market of 450 million people, estimated to be equal in size to the $10 trillion U.S. economy. And, this giant marketplace is slated to get even bigger! Romania and Bulgaria will join the EU in 2007, and before the decade ends, Croatia, Turkey, and the Balkan nations also hope to join. The original 15 EU member states include Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, The Netherlands, Portugal, Spain, Sweden and the United Kingdom. The new EU member states include Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia. The new member states have a combined population of 75 million people. Poland is the largest of the new members, with a population of 38 million, and GDP of $3.75 billion. Its GDP and population are as large as all nine other accession countries combined. Few could have predicted this massive re-unification of Europe just fifteen short years after the collapse of communism. For several years, the 10 countries have been preparing to join the EU. Hundreds of laws —covering food safety to water quality to working conditions to import/export taxes —will be standardized across the 25 countries. By the end of the decade, most will use the same currency, the euro, now used in a dozen nations. Despite this massive transition, the new EU members’economies are performing well. Economic growth in the EU has been estimated at just 0.7% in 2003, but it is estimated at more than four times (3.1%) that in the new member states (Source: Statistics in Focus, Eurostat, February 2004.) And, significant investments will be made in the new member countries to develop key infrastructure including telecommunications, energy, tourism, environment and transport. This presents opportunities for U.S. exporters. The larger EU brings with it more political clout, and has already influenced the steel tariff issue and publicly thumped Microsoft. U.S. poultry will be kept out of the new countries. But the majority of U.S. businesses see dollar signs when they look at Central Europe with its cheap labor, hungry consumers and standardized rules and tariffs. Either way, world maps, economists, bankers, and global businesses will now view Europe as one market —a huge one! Anyone that had success trading with the EU 15 will look to forge relationships with the new member countries. And the U.S. certainly has had success with the EU 15. The U.S. and the EU 15 represent the world’s largest commercial relationship with bilateral trade of nearly $400 billion. In 2003, the EU 15 bought $166 million worth of U.S. goods. The 10 newcomers purchased some $11 billion worth of U.S. goods, and that was before lower EU tariffs and streamlined standards and regulations. According to the U.S. Ambassador to the EU, Rockwell A. Schnabel, "U.S. businesses benefit from a larger single market, with more consistent regulation. U.S. travelers and exporters benefit from easier movement of goods and people across the continent." By all accounts, it looks like the world’s largest commercial relationship just got even bigger. Stats At a Glance: The EU 15 bought $166 billion worth of U.S. goods in 2002 —18% of total EU 15 imports. The U.S. bought $228 billion worth of EU 15 goods in 2002 —24% of total EU 15 exports. More Stats: http://www.eurunion.org/partner/usstates/usstates.htm#intro Help For Virginia Exporters Interested in Europe: Now more than ever, the EU is an important trade partner and we are ready to assist Virginia firms in developing sales there. The VEDP Division of International Trade has an office in Frankfurt, Germany, staffed by Guillermo Parodi. Guillermo is available to assist Virginia companies with preparation and execution of business all across Europe and the EU. Guillermo Parodi - Trade Representative Commonwealth of Virginia Untermainanlage 5 D-60329 Frankfurt am Main, Germany Phone: 011-49-69-273-9900 Fax: 011-49-69-273-99020 Email: GParodi@YesVirginia.org Guillermo and the VEDP Division of International Trade conduct Virginia trade missions to Europe every year. During these missions, Virginia companies visit various markets in Europe and meet one-on-one with pre-screened agents, distributors and buyers matching their unique market objectives. Virginia companies are also encouraged to meet with Guillermo Parodi as he tours the state during the annual fall Virginia Walkabout. Help For Virginia Exporters Interested in Central Europe: Seven (7) Virginia firms were among the first to visit the region during a recent trade mission to Poland and Romania May 10-14, 2004. This mission follows a successful mission to Hungary and Romania in June, 2003 where six companies joined us, and a mission to Poland in May, 2002 where five Virginia firms participated. Many expect to generate sales or secure distributors as a direct result of these missions. We highly recommend firms to join us on future missions. Part of the success of these missions is our resident expert Ms. Patricia Codescu, a VEDP Trade Manager in our Northern Virginia office. Patricia is a native of Romania with a broad array of experience in the region, and internationally. Virginia firms who are interested in expanding trade in the region will be pleased to learn that a mission to Turkey is planned for September 13-17, 2004 and a mission to Russia and Poland is slated for May, 2005. These Trade Missions are a great way to open the door and generate sales. If you are interested in joining Virginia’s upcoming Trade Missions to Turkey (Fall 2004) or Poland and Russia (Spring 2005), contact Patricia Codescu, International Trade Manager, PCodescu@YesVirginia.org Sources: World Trade Atlas, Virginia Exports to the World Annual 2003. April 2004. Available by subscription at www.gtis.com EU Business: US welcomes EU expansion, denies battle for newcomers' hearts April 29, 2004 http://www.eubusiness.com/afp/040429152932.ucrgmpj9 DISCLAIMER – The contents of this article are intended to provide pertinent inform-ation for Beyond Virginia subscribers interested or already involved in international trade. While every effort is made to convey accurate and timely information, the contents of this article are not intended as specific advice to its readers. Our intent is solely to convey information.