EU MARKET UPDATE:

Potential market for exporters from developing countries.

According to a report published by the European Union in May 2005 (Developing Country Access to EU Markets, 1999-2003):

• The trade between the EU and developing countries has more than tripled since the 1980s. In 2003, one fifth of all developing country exports went to the EU.

• The EU is the most open market in the world by offering preferential market access for developing countries.

• Under the generalized system of preferences (GSP), the share of developing countries in total EU imports grew between 1999-2003, from 33 to 40 percent. However this growth was heavily concentrated in a few countries led by China, India, Thailand, Vietnam, Indonesia, Brazil, Pakistan, South Africa and Bangladesh.

• The EU is the world's most open market for LDCs (Least Developed Countries): 80 percent of their exports entered the EU duty free or at reduced rates of duty. Of all merchandise exported by the LDCs in 2003, around 63 percent were exported to the EU (over 70% for agricultural products).

• In 2003, ACP countries paid full duty on just 3 percent of their exports to the EU. The remaining 97 percent entered at zero duty or at reduced rates of duty.

The EU is the largest trading partner for LDCs and has an open regime towards ACP (African, Caribbean and Pacific) countries:

EU trade with Asia:

Asia is the largest trading partner for the EU, compared with other parts of the world. From Asia's point of view, around 17 percent of Asian exports, valued at 321 billion Euros, were destined for Europe.

Asia's total exports were - 1,837 billion in 2004, up 10 percent in value since 2000. Of these, manufactures represented 83.6 percent, fuel and mining products 7.7 percent and agricultural products 6 percent. The leading EU importers from Asia were Germany, the UK and The Netherlands, followed by France, Italy, Belgium and Spain. Hungary, Sweden and Poland were also significant importers.

Factors expected to influence EU furniture market in the future:

-         Smaller homes with changes in internal lay-out;

-         Less formal dining occasions, with occasional tables finding a new role, for instance for casual eating in the living room;

-         Higher demand for smaller furniture items by single households and the 45+ generation;

-         Higher demand for multi-purpose, space-saving combination units;

-         More variety in designs, material and color for consumers to create their own atmosphere.

Sources:  CBI News and Events, Export Manual 2006, pp. 11-13, CBI News Bulletin, November/December 2006, pp. 18-19.