Europe: Still the World's Largest Market

Dear Friends and Clients,

In spite of the euro crisis, it may be useful for exporters to remember that Europe is still the world's largest single market.

The exchange rate for the euro is still high: around US $1.38 compared with a year ago when it was about $1.30. This was a low point following a fairly steady rise from around 90 cents in 2002.

Most comparisons of GDP show the figures for individual countries. For 2010, major listings show the first three as United States, China and Japan.

However, the IMF's figures show the European Union as a single entity. The comparative figures then become:

• European Union US $16.2 trillion
• United States US $14.5 trillion
• China US $ 5.9 trillion
• Japan US $ 5.5 trillion.

Adding the GDP of the EFTA countries which, with the EU, form the European Economic Area (EEA), we have a combined GDP of US $ 17.2 trillion.

The European Union is a true single market. It’s underlying principle is that if a product or service can be sold legally in any country of the Union, then it can be sold legally in all countries. This used not to be true in practice, but fifty years of increasing standardization across the continent has led to a situation where this is just as true, in fact more so, than between Canadian provinces.

If we include the EU’s candidate countries, the effective European market is even larger. Many of these countries have already adopted European product standards and have started to reduce their tariffs in preparation for entry to the market. The largest of these is Turkey, a very enthusiastic candidate, with a population of 79 million (almost as big as Germany), a low median age 28.1 years, and touted as one of Goldman Sachs’ “next eleven” emerging economies, with a GDP of three quarters of a trillion dollars.

Regardless of the outcome of the immediate crisis, if today you invest in building a market in any part of Europe, it will likely pay off in terms of your ability to expand across the whole continent in future decades.

Tony Baker
maww marketing
Tel: +1.416.500.7287
Toll-free: 1.855.222.MAWW (6299)
Email: tony.baker@maww.com Web: maww.com
marketing • management coaching • research • international business development

Trade Shows

Europe has a large population in a relatively small geographic area. The result is that European customers are more likely than many other people to value trade and consumer shows. For instance, Germany is probably the world’s leading country for major trade shows, and the visitors come from all over Europe and beyond. At most major trade shows, the English language is widely available and used.

Why not include a visit to a trade show for your industry as part of your research into your potential European market?

Call us to discuss relevant trade shows for your product or industry.

Call me at 416-500-7287 or 1-855-222-MAWW (6299).

UK Company Formation Offer

Need to incorporate in Europe?

Possibly the least expensive and least bureaucratic European country to incorporate in is the UK.

Our UK associates are providing a special offer to incorporate, including first year’s expenses, for around Cdn $750.

They are also happy to provide incorporation in many other European and offshore jurisdictions.

Company Information Research

Do you ever require information on companies outside Canada for due diligence, KYC or credit?

Need to obtain information on your potential customers, suppliers, alliance partners or acquisition targets in Europe and around the world?

Would you like access to financial information on virtually any company in the world?

If yes to any of the above, our research associates can help you!

Call us to discuss at 416-500-7287.

Upcoming Events in the GTA ....

I often know of upcoming events which may be of interest re Europe. Give me a call to see what’s in the pipeline.

THIS WEEK!
European Union Film Festival: European films will be on display at the European Union Film Festival, taking place in Toronto, November 17 - 30, 2011.

For full information, contact Thea Demetrakopoulos, Executive Director at 647 520 9195, or visit their website at www.eutorontofilmfest.ca

Other upcoming events:
• The Canadian Netherlands Chamber AGM takes plane on the Nov 24th. Information at: http://cnbpa.ca/
• The British Canadian Chamber Breakfast: Scotland in Canada, Nov 29th. Register at http://bcctc.ca
• European Union Chamber of Commerce: CETA Trade Negotiations Update Nov 29th. Register at http://eucocit.com/

If you encounter problems contacting these organizations, please call me at 416-500-7287.

If you know of any events I might be interested in attending, please let me know!