Belgium & Luxembourg

COUNTRY PROFILE - BELGIUM & LUXEMBOURG
ABOUT BELGIUM
Background: Belgium became independent from the Netherlands in 1830 and was occupied by Germany during World Wars I and II. It has prospered in the past half century as a modern technologically ad!anced "uropean state and member of N#$% and the "&. $ensions between the 'utch(spea)ing *lemings of the north and the *rench( spea)ing Walloons of the south ha!e led in recent years to constitutional amendments granting these regions formal recognition and autonomy. Geography Location: Western "urope between *rance and the Netherlands Geographic coordinates: ,0 ,0 N - 00 " Europe Area: $otal. 30 ,10 s/ )m land. 30 030 s/ )m water. 080 s/ )m #rea ( comparati!e about the si1e of 2aryland Land boundaries: $otal. 1 38, )m bordering the North +ea
Border countries: *rance 300)m Germany 134)m 5u6embourg 1-8)m Netherlands -,07m Coastline: 33 )m Mariti e clai s: continental shelf. median line with neighbours Territorial sea: 10 N2 E!clusi"e #ishing $one: median line with neighbors 8e6tends about 38 )m from coast9 Cli ate % te perate: mild winters cloudy cool summers: rainy humid
Terrain: *lat coastal plains in northwest central rolling hills rugged mountains of #rdennes *orest in southeast
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Ele"ation e!tre es: 5owest point. North +ea 0 m highest point. +ignal de Botrange 3;- m (atural resources: coal natural gas Land use: 0,< permanent crops. 0< note. includes 5u6embourg 81;;8 est.9 %ther. 4,< Irrigated land: -0 s/ )m 8includes 5u6embourg9 81;;8 est.9 (atural ha$ards: *looding is a threat in areas of reclaimed coastal land protected from the sea by concrete di)es En"iron ent % current issues: $he en!ironment is e6posed to intense pressures from human acti!ities. urbani1ation dense transportation networ) industry intense animal breeding and crop culti!ation: air and water pollution also ha!e repercussions for neighbouring countries: uncertainties regarding federal and regional responsibilities 8now resol!ed9 ha!e slowed progress in tac)ling en!ironmental challenges En"iron ent % international agree ents: =arty to. #ir =ollution #ir =ollution(Nitrogen %6ides #ir =ollution(+ulphur ;- #ir =ollution( >olatile %rganic ?ompounds #ir =ollution(+ulphur 8, #ntarctic( "n!ironmental =rotocol #ntarctic(2arine 5i!ing @esources #ntarctic +eals #ntarctic $reaty Biodi!ersity ?limate ?hange 'esertification "ndangered +pecies "n!ironmental 2odification Aa1ardous Wastes 5aw of the +ea 2arine 'umping 2arine 5ife ?onser!ation Nuclear $est Ban %1one 5ayer =rotection +hip =ollution $ropical $imber 83 $ropical $imber ;- Wetlands signed but not ratified. #ir =ollution( =ersistent %rganic =ollutants ?limate ?hange(7yoto =rotocol Geography%note: crossroads of Western "urope: maBority of West "uropean capitals within 1 000 )m of Brussels the seat of both the "uropean &nion and N#$% ,eople ,opulation: 10 04- ,;, 8Culy 0000 est.9 Age structure: 0(1- years. 14.3< 8male ;11 40;: female 841 -409
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-.%/0 years: 3,.3< 8male 3 3;, 88,: female 3 3-1 ,339 /. years and o"er: 14.1< 8male 413 343: female 1 034 3009 80000 est.9 ,opulation gro1th rate: 0.1,< 80000 est.9
Birth rate: 10.,8 birthsD1 000 population 80000 est.9 *eath rate: (et 10.08 deathsD1 000 population 80000 est.9 0.;4 migrant8s9D1 000 population 80000 est.9
igration rate:
2e! ratio: at birth. 1.0, male8s9Dfemale under -. years: 1.0, male8s9Dfemale -.%/0 years: 1.00 male8s9Dfemale /. years and o"er: 0.3; male8s9Dfemale total population: 0.;3 male8s9Dfemale 80000 est.9 In#ant ortality rate . -.3- deathsD1 000 li!e births 80000 est.9
total population: 48.13 years #e ale: 81.30 years 80000 est.9 ale: 4-.8 years Total #ertility rate: 1.31 children bornDwoman 80000 est.9
+I34AI*2 % adult pre"alence rate: 0.1,< 81;;; est.9 +I34AI*2 % people li"ing 1ith +I34AI*2: 4 400 81;;; est.9 +I34AI*2 % deaths: less than 100 81;;; est.9 (ationality: noun. Belgian8s9 adBecti!e. Belgian *leming ,8< Walloon 31< mi6ed or other 11<
Ethnic groups: 5eligions:
@oman ?atholic 4,< =rotestant or other 0,<
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Languages: 'utch 30< *rench -0< German less than 1< legally bilingual 8'utch and *rench9 Literacy: definition. age 1, and o!er can read and write total population. ;8< Country na e: con!entional long form. 7ingdom of Belgium con"entional short #or : Belgium local short #or : Belgi/ueDBelgie Go"ern ent type: federal constitutional monarch Capital: Brussels Ad inistrati"e di"isions: 10 pro!inces 8*rench. pro!inces singular ( pro!ince: 'utch. pro!incien singular ( pro!incie9 and 1 regionE 8*rench. region: 'utch. gewest9: #ntwerpen Brabant Wallon BrusselsE 8Bru6elles9 Aainaut 5iege 5imburg 5u6embourg Namur %ost(>laanderen >laams( Brabant West(>laanderen Independence: - %ctober 1830 a pro!isional go!ernment declared independence from the Netherlands: 01 Culy 1831 the ascension of 7ing 5eopold I to the throne (ational holiday: Independence 'ay 01 Culy 818319 parliamentary democracy under a
Constitution: 4 *ebruary 1831 last re!ised 1- Culy 1;;3: parliament appro!ed a constitutional pac)age creating a federal state Legal syste : ci!il law system influenced by "nglish constitutional theory: Budicial re!iew of legislati!e acts: accepts compulsory I?C Burisdiction with reser!ations 2u##rage: 18 years of age: uni!ersal and compulsory
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E!ecuti"e branch: chief of state. 7ing #5B"@$ II 8since ; #ugust 1;;39: Aeir #pparent =rince =AI5I==" son of the monarch head of go!ernment. =rime 2inister Guy >"@A%*+$#'$ 8since 13 Culy 1;;;9 Cabinet: ?ouncil of 2inisters appointed by the monarch and appro!ed by =arliament Elections: none: the monarchy is hereditary: prime minister appointed by the monarch and then appro!ed by =arliament &lag description: $hree e/ual !ertical bands of blac) 8hoist side9 yellow and red: the design was based on the flag of *rance Econo y % o"er"ie1: $his modern pri!ate enterprise economy has capitali1ed on its central geographic location highly de!eloped transport networ) and di!ersified industrial and commercial base. Industry is concentrated mainly in the populous *lemish area in the north. With few natural resources Belgium must import substantial /uantities of raw materials and e6port a large !olume of manufactures ma)ing its economy unusually dependent on the state of world mar)ets. #bout three( /uarters of its trade is with other "& countries. BelgiumFs public debt is e6pected to fall to about 100< of G'= in 0000 and the go!ernment has succeeded in balancing its budget. Belgium together with 11 of its "& partners began circulating euro currency in Canuary 0000. "conomic growth in 0001 dropped sharply due to the global economic slowdown. =rospects for 0000 depend largely on reco!ery in the "& and the &+. G'=. purchasing power parity ( G034.4 billion 80001 est.9
G'= ( real growth rate.1.1< 80001 est.9 G'= ( per capita. =urchasing power parity ( G03 100 80001 est.9 G'= ( composition by sector. +er!ices. 4-.3< 800009
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#griculture. 1.-<
Industry. 0-<
Labour #orce % by occupation: agriculture 0< 81;;; est.9 Une ploy ent rate:
+er!ices 43<
industry 0,<
3.8< 80001 est.9
5e"enues: G113.-- billion E!penditures: G103 billion including capital e6penditures of G4.14 billion 800009 Industries: engineering and metal products motor !ehicle assembly processed food and be!erages chemicals basic metals te6tiles glass petroleum coal Currency: euro 8"&@9: Belgian franc 8B"*9 note. on 1 Canuary 1;;; the "uropean 2onetary &nion introduced the euro as a common currency to be used by financial institutions of member countries: on 1 Canuary 0000 the euro became the sole currency for e!eryday transactions within the member countries Currency code: E!change rates: "uros per &+ dollar ( 1.130- 8Canuary 00009 1.114, 800019 1.08,800009 0.;383 81;;;9: Belgian francs per &+ dollar ( 3-.44 8Canuary 1;;;9 33.00; 81;;89 3,.44- 81;;49 &iscal year: ?alendar year #rmy Na!y #ir ?omponents National "&@: B"*
Military branches: Gendarmerie Military est.9
anpo1er % a"ailability: males age 1,(-;. 0 ,08 ,,4 80000
Military anpo1er % #it #or 0 040 013 80000 est.9
ilitary ser"ice: 2ales age 1,(-;.
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Military anpo1er % reaching 80000 est.9
ilitary age annually: males. 33 0-4
Military e!penditures % dollar #igure:
G3 043 ,00 000 8*H01D009 1.-< 8*H01D009
Military e!penditures % percent o# G*,: *isputes % international: none
Illicit drugs: Growing producer of synthetic drugs: transit point for &+(bound ecstasy: source of precursor chemicals for +outh #merican cocaine processors: transshipment point for cocaine heroin hashish and mariBuana entering Western "urope ,olitical structure Constitution In a maBor se!en(party constitutional deal in 2ay 1;;3 Belgium de!ol!ed national so!ereignty to the regions ma)ing it one of the most completely federalised states in the "&. $he central go!ernment retains control of foreign policy and defence Bustice ta6ation and social security. %ther matters including the en!ironment education and trade are the responsibility of the three regional e6ecuti!es )nown as prime ministers and their directly elected parliaments. &nder this structure the three regional e6ecuti!es represent *rench 'utchD*lemish and German spea)ers and three regions *landers Wallonia and Brussels. Both main linguistic communities and regions ha!e a council and e6ecuti!e. $he *lemish ?ommunity and *lemish @egion were able to combine their councils and e6ecuti!es from the start. $he *rancophone ?ommunity howe!er has authority in Brussels as well as Wallonia with the result that streamlining its administration 8and therefore costs9 with that of the @egion has pro!ed more difficult.
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The e!ecuti"e "6ecuti!e responsibilities reside with the federal prime minister and cabinet and with the regional prime ministers and cabinets. $he monarch has a largely ceremonial role. (ational legislature 5egislati!e power is !ested in a bicameral parliament consisting of the +enate and the ?hamber of @epresentati!es. $he +enate has 41 members and the ?hamber of @epresentati!es has 1,0 members 8deputies9. Both chambers can propose and !eto legislation. Legal syste $he constitution guarantees the independence of the Budiciary from the e6ecuti!e and legislati!e branches. ?ourt hearings are public and trials of a serious nature are heard before a Bury of ci!ilians. $he highest court in Belgium is the ?our de ?assation 8+upreme ?ourt9 composed of Budges appointed by the ?rown. # ?our dF#rbitration rules on conflicts of authority between the many layers of federal and national go!ernment and their legal instruments. # ?onsultation ?ommittee made up of regional and national representati!es including the prime minister is the final recourse for conflicts of interest arising from de!olution. *ormed with e/ual numbers of *rench and 'utchD*lemish spea)ers it ma)es its decisions by consensus. Last elections : 13 Cune 1;;; 8parliamentary9. (e!t elections: Cune 0003 8parliamentary9. ,opulation $he total population was 10.0- million in Canuary 0000. $his represented an increase of 0, 000 from Canuary 1;;; of which 13 000 was accounted for by net immigration and ; 000 by natural population growth. $he population growth rate was 0.0 per cent per
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annum between 1;80(;4 and the proBected growth rate is (0.1 per cent per annum between 1;;4(001,. #ppro6imately ;4.0 per cent of the population li!es in urban areas. 5ife e6pectancy at birth is 44 years and the infant mortality rate is si6 per 1 000 li!e births. Ethnic ake%up
#round ,4.0 per cent of the population li!e in 'utch(spea)ing *landers 30.0 per cent in *rench(spea)ing Wallonia 10.0 per cent in bilingual Brussels and 1.0 per cent in the German(spea)ing border region. $here are also some 830 000 foreign e6patriates and immigrants. $he largest e6patriate communities are Italian *rench 2oroccan 'utch $ur)ish and +panish. *oreigners comprise about 04.0 per cent of the population of Brussels. 5eligions =redominantly @oman ?atholic 84,.0 per cent9. #lso =rotestant Cewish and 2uslim. Main cities Brussels capital 8population 1 million in 00009 #ntwerp 8;30 0009 5iIge 8,;0 0009 ?harleroi 8-03 0009 Ghent 8030 0009 Bruges and 2ons. Languages spoken $he northern part of Belgium *landers is 'utch(spea)ing and the southern part Wallonia is *rench(spea)ing. Brussels is officially bilingual but o!er 80.0 per cent of its population are *rench(spea)ers. $here is also a small German(spea)ing area in eastern Wallonia which became part of Belgium after the *irst World War. O##icial language 'utchD*lemish *rench and German.
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Media $he press is free of go!ernment control and there is no formal censorship. Aowe!er press freedoms are not codified in any legislation and the media sometimes does not co!er anti(go!ernment or anti(police e!ents. ,ress $here are o!er ,30 newspapers and 400 maga1ines reaching ,8.0 per cent of the adult population. *ailies: $here are o!er 30 dailies in both *rench and 'utch languages. Important dailies include a broadsheet (si1ed newspaper 5ibre Belgi/ue Ga1ette de 5iege Nieuwsblad Aet >ol) 8popular in *lemish part of Belgium9 5e +oir >ers lF#!enir 'e +tandaard Aet 5aatste Nieuws and Ga1et !an #natwerpen. )eeklies: 5es Nou!elles du 'imanche 2atin is a +unday newspaper. 5e 4e +oir is a national wee)ly. %ther wee)ly publications include 7nac) and 5e >ifD5F"6press. Business: =rincipal business papersDmaga1ines include dailies li)e 5F"cho 'e *inancieel ")onomische $iBd wee)lies li)e Intermediair and $rendsD$endances Belgian "conomic Cournal and Industrie 2aga1ine 8monthly9. 5e ?ourrier de la Bourse et de la Ban/ue is a national daily for pri!ate in!estors and stoc)bro)ers. ,eriodicals: =eriodicals include bi(monthly publication Ban)ing @e!iew co!ering all aspects of finance and ban)ing and $he ?orporate $ra!eller. Aet BedriBf Industrial 'igest is a business Bournal in 'utch. ?onscience "uropJenne co!ers "uropean political and current affairs. Broadcasting 5adio: $here are around 300 radio stations commercial. of which 000 are
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Tele"ision: Belgium has 11 tele!ision stations nine of which are commercial. In the north >$2 has a greater mar)et share than the non(commercial $>1. In the south @$5D$>1 retains the lead. $he attitude of the regional go!ernments towards tele!ision has been to increasingly allow ad!ertising and the formation of new commercial channels. Ad"ertising Nationwide ad!ertising is complicated by language problems. Aowe!er information about regional ad!ertising is a!ailable from the 2inistry of "conomic #ffairs. Besides ad!ertising carried by commercial tele!ision and radio channels 8-3.0 per cent of total ad!ertising by e6penditure9 other popular forms of ad!ertising include telemar)eting catalogues direct mail the Internet department stores and shops. Econo y @is) assessment "conomic =olitical @egional stability +toc) mar)et ( ( ( ( Good Good Good +atisfactory
Belgium e6perienced strong economic growth in 0000 and the -.0 per cent e6pansion of G'= represents the best economic results seen in Belgium for a decade. $his positi!e result is primarily attributed to the countryFs dynamic e6ternal sector which was helped by the wea)ness of the "uro and the o!erall good health of the world economy during most of 0000. Inflation also e6panded appreciably in 0000 due principally to the rise in oil prices. $he fact that imported fuel is a significant element of the basic consumption bas)et ma)es the inflation rate !ulnerable to e6ternal pressures. Cob growth benefited from the o!erall strength of
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the economy and 0000 Bob creation was the best e!er recorded up 1.8 per cent from 1;;;. 'uring the same period unemployment fell by 0., per cent to 8.3 per cent. Go!ernment finances also impro!ed dramatically during 0000. #mbitions to balance go!ernment accounts which were set out in the 1;;; +tability =rogramme were realised two years ahead of schedule and Belgium enBoyed its first year of balanced go!ernment accounts for ,0 years. It is proBected that the accounts will go into a surplus of 0.0 per cent of G'= in 0001 and rise to 0.4 per cent by 000,. *urthermore the go!ernment has pledged to set aside any future budgetary windfalls to build up further surpluses rather than spending them. BelgiumFs domestic economy is characterised by a broad industrial base with hea!y dependence on e6ternal trade. Imports and e6ports account for nearly 30.0 per cent of G'= with ser!ices accounting for 38.0 per cent of annual G'=. *or the fi!e years in which the 'ehaene administration was in office 81;;,(1;;;9 economic policy was designed to meet the criteria for entry into economic and monetary union 8"mu9. $hose criteria set out in the 2aastricht $reaty were. Gross go!ernment debt at a ma6imum of 30.0 per cent of G'= 8or falling towards this le!el at an appropriate pace9. General go!ernment financial deficit 8budget deficit9 at a ma6imum of 3.0 per cent of G'= 8or falling towards this le!el at an appropriate pace9. Inflation must not be more than 1., per cent abo!e the a!erage of the three "& countries with the lowest rates. Go!ernment bond yields at a ma6imum of 0.0 per cent abo!e the a!erage of the three "& countries with the lowest inflation rates. # minimum of two years of prior stability in the e6change rate 8within plus or minus 1,.0 per cent9.
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*or Belgium which in 1;;3 had a go!ernment debt e/ui!alent to almost 134 per cent of G'= and a budget deficit of 4., per cent of G'= meeting the criteria meant a significant period of financial austerity which analysts estimate to ha!e cost the country the e/ui!alent of o!er 3.0 per cent of G'= annually between 1;;3(;4. Aowe!er the fiscal and monetary tightening pro!ed to be successful and Belgium became one of the 11 founding members of "& on 1 Canuary 1;;;.
In 1;;8 BelgiumFs focus on trade with other "& countries mostly insulated the economy from the financial crises in #sia and @ussia while the industrial production of intermediate goods meant that the countryFs growth ran ahead of the "& a!erage. E!ternal trade Belgium and 5u6embourg operate a customs union )nown as the Belgo(5u6embourg "conomic &nion 8B5"&9. Aowe!er Belgium has been accumulating large current account surpluses in its own right without being dependent on 5u6embourgFs substantial ser!ices income. $he countryFs e6ternal trade sector was dynamic in 0000 with imports growing by 00.0 per cent and e6ports increasing by 1;.0 per cent. #lthough Belgium has a trade deficit of &+G3.03 billion with non("& countries its &+G18.; billion surplus with its "& trading partners gi!es the country an o!erall trade surplus of &+G10.4 billion. E!ports BelgiumFs e6ports totaled &+G144.8 billion in 0000 of which 4-.0 per cent went to other "uropean &nion countries. 2any companies e6port more than 80.0 per cent of their production. 2ain e6ports include carpets diamonds iron and steel copper products glass chemicals and motor !ehicles. Main destinations: *rance 814., of 0000 total9
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Germany 813.4 per cent9 Netherlands 810., per cent9 &7 810.0 per cent9 &+# 8,.; per cent9 Italy 8,., per cent9 +pain 833., per cent9. I ports Belgian imports were worth &+G133.4 billion in 0000 38 per cent of which originated from "& countries. #round 40 per cent of imports consist of producer goods of which metal products and petroleum predominate. Main sources: Netherlands 814.0 per cent of 0000 total9 Germany 813.- per cent9 *rance 810.4 per cent9 &7 88., per cent9 &+# 84., per cent9 Italy 83.; per cent9 Capan 80.; per cent9 #ustralia 80.; per cent9 Ireland 80.0 per cent9 +weden 80.1 per cent9.
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Agriculture $he agricultural sector accounts for appro6imately 0.0 per cent of annual G'= and employs around 0., per cent of the wor)force. #lthough small(scale culti!ation is intensi!e especially in *landers. Belgium is self(sufficient in sugar eggs butter and meat and an e6porter of !egetables and horticultural produce. $he amount of land under culti!ation is falling 8appro6imately 0,.0 per cent of total land area9. &ishing *ishing is less important and only for the domestic mar)et. Industry and anu#acturing
$he large(scale e6port(based industrial sector accounted for 01.4 per cent of G'= in 1;;; and employed appro6imately 08.0 per cent of the labour force. BelgiumFs industrial sector is strongly regional. *landers accounts for some 30.0 per cent of G'= and has a modern industrial base. It is also more integrated into international mar)ets than other regions with around 8,.0 per cent of its output going abroad and accounting for some 40.0 per cent of total Belgian e6ports. $he region of Wallonia on the other hand accounts for 0,.0 per cent of G'= and is burdened with declining hea!y industry. $he go!ernment has made considerable efforts to restructure the industrial base in Wallonia with substantial in!estment incenti!es a!ailable. Aowe!er by mid(0000 the fruits of such restructuring had yet to be seen. $he central go!ernmentFs policy is aimed at facilitating the renewal and restructuring of industry so that it can adapt to new technologies and maintain its competiti!e position internationally. $his includes encouraging domestic and foreign in!estment in industry with ta6 incenti!es particularly in ad!anced technology fields. Mining $he mining sector accounts for appro6imately 0.3 per cent of G'= and employs 0.- per cent of the wor)force. %nly coal clay and sand are mined on any substantial scale.
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&inancial
arkets% 2tock e!change
$he Brussels stoc) e6change is part of "urone6t an integrated cross( border single currency stoc) deri!ati!es and commodities mar)et composed of the Brussels =aris and #msterdam e6changes. $his arrangement gi!es the relati!ely small Belgian stoc) e6change important e6ternal !isibility. $he Brussels inde6 contracted by 3.; per cent in 0000. $here were 03, companies listed on the e6change at the end of 0000 a drop of -.4 per cent compared to the pre!ious year. Banking $he ban)ing sector is di!ided into three main groups ( commercial ban)s public credit institutions and pri!ate sa!ings ban)s. BelgiumFs efforts to meet the conditions for "uropean "conomic and 2onetary &nion in!ol!ed maBor restructuring of the financial sector. Central bank +ince the launch of the single currency in Canuary 1;;; the "uropean ?entral Ban) 8"?B9 has become BelgiumFs central ban). $he Ban/ue Nationale de Belgi/ue retains regulatory functions and continues to super!ise foreign e6change flows but interest rates and inflation targets are set by the "?B.
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&ACT2 ABOUT LU6EMBOU5G

Background: *ounded in ;33 5u6embourg became a grand duchy in 181, and an independent state under the Netherlands. It lost more than half of its territory to Belgium in 183; but gained a larger measure of autonomy. *ull independence was attained in 1834. %!errun by Germany in both World Wars it ended its neutrality in 1;-8 when it entered into the Benelu6 ?ustoms &nion and when it Boined N#$% the following year. In 1;,4 5u6embourg became one of the si6 founding countries of the "uropean "conomic ?ommunity 8later the "uropean &nion9 and in 1;;; it Boined the euro currency area. Location: Western "urope between *rance and Germany Geographic coordinates: -; -, N 3 10 " Map re#erences: "urope Area: total. 0 ,83 s/ )m 1ater: 0 s/ )m land: 0 ,83 s/ )m Area % co parati"e: slightly smaller than @hode Island Land boundaries: total. 3,; )m Border countries: Belgium 1-8 )m *rance 43 )m Germany 138 )m Coastline: 0 )m 8landloc)ed9 Mariti e clai s: none 8landloc)ed9 Cli ate: modified continental with mild winters cool summers Terrain: mostly gently rolling uplands with broad shallow !alleys: uplands to slightly mountainous in the north: steep slope down to 2oselle flood plain in the southeast
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Ele"ation e!tre es: lowest point. 2oselle @i!er 133 m highest point. Buurgplaat1 ,,; m Natural resources. iron ore 8no longer e6ploited9 arable land Land use: arable land. 0,< permanent crops. 0< other. 4,< 8includes Belgium9 81;;8 est.9 Irrigated land: -0 s/ )m 8includes Belgium9 81;;8 est.9
(atural ha$ards: N# En"iron ent % current issues: air and water pollution in urban areas soil pollution of farmland En"iron ent % international agree ents: party to. #ir =ollution #ir =ollution(Nitrogen %6ides #ir =ollution(=ersistent %rganic =ollutants #ir =ollution(+ulphur 8, #ir =ollution(+ulphur ;- #ir =ollution( >olatile %rganic ?ompounds Biodi!ersity ?limate ?hange 'esertification "ndangered +pecies Aa1ardous Wastes 5aw of the +ea 2arine 'umping Nuclear $est Ban %1one 5ayer =rotection +hip =ollution $ropical $imber 83 $ropical $imber ;- Wetlands signed but not ratified. ?limate ?hange(7yoto =rotocol "n!ironmental 2odification Geography % note: landloc)ed: the only Grand 'uchy in the world it is the smallest of the "uropean &nion member states ,opulation: #ge structure. --8 ,3; 8Culy 0000 est.9 0(1- years. 18.;< 8male -3 33-: female -1 13-9
1,(3- years. 34< 8male 1,1 33-: female 1-; 1,39 3, years and o!er. 1-.1< 8male 0, -83: female 34 43,9 80000 est.9 ,opulation gro1th rate: Birth rate: 1.0,< 80000 est.9
10.03 birthsD1 000 population 80000 est.9
*eath rate: 8.83 deathsD1 000 population 80000 est.9
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(et
igration rate: ;.03 migrant8s9D1 000 population 80000 est.9 at birth: 1.04 male8s9Dfemale
2e! ratio:
under 1, years. 1.03 male8s9Dfemale 1,(3- years. 1.01 male8s9Dfemale 3, years and o!er. 0.34 male8s9Dfemale total population: 0.;4 male8s9Dfemale 80000 est.9 In#ant ortality rate: -.41 deathsD1 000 li!e births 80000 est.9
Li#e e!pectancy at birth: total population. 44.-8 years female. 80.;4 years 80000 est.9 male. 4-.0 years $otal fertility rate. 1.4 children bornDwoman 80000 est.9 AI>D#I'+ ( adult pre!alence rate. 0.13< 81;;; est.9 AI>D#I'+ ( people li!ing with AI>D#I'+. N# AI>D#I'+ ( deaths. (ationality: less than 100 81;;; est.9
noun. 5u6embourger8s9 adBecti!e. 5u6embourg
Ethnic groups: ?eltic base 8with *rench and German blend9 =ortuguese Italian +la!s 8from 2ontenegro #lbania and 7osos!o9 and "uropean 8guest and resident wor)ers9 5eligions . the greatest preponderance of the population is @oman ?atholic with a !ery few =rotestants Cews and 2uslims Languages: 5u6embourgish 8national language9 German language9 *rench 8administrati!e language9
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8administrati!e
5iteracy. definition. age 1, and o!er can read and write total population. 100< male. 100< female. 100< 80000 est.9 Country na e: con!entional long form. Grand 'uchy of 5u6embourg ?on!entional short form. 5u6embourg 5ocal short form. 5u6embourg 5ocal long form. Grand 'uche de 5u6embourg Go!ernment type. constitutional monarchy Capital: 5u6embourg #dministrati!e 5u6embourg Independence: di!isions. 3 districts: 'ie)irch Gre!enmacher
183; 8from the Netherlands9 National 'ay 8Birthday of Grand 'uchess
(ational holiday: ?harlotte9 03 Cune
Constitution: 14 %ctober 1838 occasional re!isions 5egal system. based on ci!il law system: accepts compulsory I?C Burisdiction 2u##rage: 18 years of age: uni!ersal and compulsory
E!ecuti"e branch: ?hief of state. Grand 'u)e A"N@I 8since 4 %ctober 00009: Aeir #pparent =rince G&I55#&2" 8son of the monarch born 11 No!ember 1;819 Aead of go!ernment. =rime 2inister Cean(?laude C&N?7"@ 8since 1 Canuary 1;;,9 and >ice =rime 2inister 5ydie =%5*"@ 8since 4 #ugust 1;;;9
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?abinet. ?ouncil of 2inisters recommended by the prime minister and appointed by the monarch "lections. none: the monarch is hereditary: prime minister and !ice prime minister appointed by the monarch following popular election to the ?hamber of 'eputies: they are responsible to the ?hamber of 'eputies Legislati"e branch: &nicameral ?hamber of 'eputies or ?hambre des 'eputes 830 seats: members are elected by direct popular !ote to ser!e fi!e(year terms9 "lections. last held 13 Cune 1;;; 8ne6t to be held by Cune 000-9 Note. there is also a ?ouncil of +tate that ser!es as an ad!isory body to the ?hamber of 'eputies: the ?ouncil of +tate has 01 members appointed by the Grand 'u)e on the ad!ice of the prime minister "lection results. percent of !ote by party ( ?+> 0;.4;< '= 01.,8< 5+#= 03.4,< #'@ 10.33< Green =arty ;.0;< the 5eft 3.44<: seats by party ( ?+> 1; '= 1, 5+#= 13 #'@ 3 Green =arty , the 5eft 0 7udicial branch: Cudicial courts and tribunals 83 Custices of the =eace 0 district courts and 1 +upreme ?ourt of #ppeals9: administrati!e courts and tribunals 8+tate =rosecutorFs %ffice administrati!e courts and tribunals and the ?onstitutional ?ourt9: Budges for all courts are appointed for life by the monarch &lag description: three e/ual hori1ontal bands of red 8top9 white and light blue: similar to the flag of the Netherlands which uses a dar)er blue and is shorter: design was based on the flag of *rance Econo y % o"er"ie1: $his stable high(income economy features solid growth low inflation and low unemployment. $he industrial sector initially dominated by
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steel has become increasingly di!ersified to include chemicals rubber and other products. Growth in the financial sector has more than compensated for the decline in steel. +er!ices especially ban)ing account for a substantial proportion of the economy. #griculture is based on small family(owned farms. $he economy depends on foreign and trans(border wor)ers for 30< of its labor force. #lthough 5u6embourg li)e all "& members has suffered from the global economic slump the country has maintained a fairly robust growth rate. %n 1 Canuary 0000 5u6embourg ( together with 11 of its "& partners ( began to replace its circulating national currency with the euro. G'=. purchasing power parity ( G1;.0 billion 80001 est.9 -< 80001 est.9
G'= ( real growth rate.
G'= ( per capita. urchasing power parity ( G-3 -00 80001 est.9 G'= ( composition by sector. ser!ices. 3;< 80000 est.9 =opulation below po!erty line. agriculture. 1< industry. 30<
N#<
+ousehold inco e or consu ption by percentage share: 5owest 10<. N#< Aighest 10<. N#< In#lation rate 8consu er prices9: 0.-< 80001 est.9 Labor #orce: 030 300 8of whom 84 -00 are foreign cross(border wor)ers primarily from *rance Belgium and Germany9 800009 Labor #orce % by occupation: agriculture 1.;< 81;;; est.9 ser!ices ;0.1< industry 8<
Une ploy ent rate . 0.-< 80001 est.9 Budget: re!enues. G-.-- billion
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E!penditures . G-.-- billion 80000 est.9
including capital e6penditures of GN#
Industries . ban)ing iron and steel food processing chemicals metal products engineering tires glass aluminum Industrial production gro1th rate: 1.;< 80001 est.9 Electricity % production: -34.4 million )Wh 800009 Electricity % production by source: fossil fuel. ,4.,0< 0,.33< other. 13.80< 800009 nuclear. 0< Electricity % consu ption: 3.1,8 billion )Wh 800009 Electricity % e!ports: 43, million )Wh 800009 Electricity % i ports: 3.-,8 billion )Wh 800009 hydro.
Agriculture % products: barley oats potatoes wheat fruits wine grapes: li!estoc) products E!ports: G4.8, billion 8f.o.b. 00009 steel products
E!ports % co odities: machinery and e/uipment chemicals rubber products glass
E!ports % partners: "& 8,< 8Germany 0-< *rance 01< Belgium 13<9 &+ -< 800009 I ports: G10.0, billion 8c.i.f. 00009 odities: minerals metals foodstuffs /uality
I ports % co consumer goods
I ports % partners: "& 88< 8Belgium 34< Germany 0,< *rance 13<9 &+ -< 800009 *ebt % e!ternal: GN# Econo ic aid % donor: %'# G130 million 81;;;9
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Currency:
euro 8"&@9: 5u6embourg franc 85&*9
Note. on 1 Canuary 1;;; the "uropean 2onetary &nion introduced the euro as a common currency to be used by financial institutions of member countries: on 1 Canuary 0000 the euro became the sole currency for e!eryday transactions within the member countries Currency code: "&@: 5&*
E!change rates: euros per &+ dollar ( 1.130- 8Canuary 00009 1.114, 800019 1.08,- 800009 0.;383 81;;;9: 5u6embourg francs per &+ dollar ( 3-.44 8Canuary 1;;;9 33.0;; 81;;89 3,.44- 81;;49 &iscal year: Telephones % Telephones % calendar year ain lines in use . 31- 400 81;;;9 obile cellular: 01, 4-1 800009
Telephone syste : general assessment. highly de!eloped completely automated and efficient system mainly buried cables *o estic: nationwide cellular telephone system: buried cable International: 3 channels leased on $#$(3 coa6ial submarine cable 8"urope to North #merica9 5adio broadcast stations: #2 0 *2 ; shortwa!e 0 81;;;9 5adios: 08, 000 81;;49 . 81;;;9
Tele"ision broadcast stations: $ele!isions. 08, 000 81;;8 est.9 .lu
Internet country code.
Internet +er!ice =ro!iders 8I+=s9. Internet users. 5ail1ays: 100 000 800019
8 800009
total. 04- )m
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+tandard gauge. 04- )m 1.-3,(m gauge 80-0 )m electrified9 800019 Aighways. total. , 133 )m =a!ed. , 133 )m 8including 118 )m of e6pressways9 &npa!ed. 0 )m 81;;;9 Waterways.34 )m 8on the 2oselle9 ,ipelines: petroleum products -8 )m
,orts and harbours: 2ertert Merchant arine: total. 30 ships 81 000 G@$ or o!er9 totaling 1 -84 4,0 G@$D0 103 ,4; 'W$ +hips by type. bul) 0 chemical tan)er 13 container 8 li/uefied gas 1; passenger - petroleum tan)er 8 roll onDroll off 3 includes some foreign(owned ships registered here as a flag of con!enience. Belgium 01 *inland 3 *rance 8 Germany 10 2onaco 1 Netherlands 3 Norway 1 &nited 7ingdom ; &nited +tates 3 80000 est.9 Airports: 0 800019
Airports % 1ith pa"ed run1ays: total. 1 o!er 3 0-4 m. 1 800019 Airports % 1ith unpa"ed run1ays: total. 1 under ;1- m. 1 800019 +eliports: 1 800019 #rmy Grand 'ucal =olice ilitary age: 1; years of age 80000 est.9 males age 1,(-;. 113 ,,4 80000
Military branches: Military Military est.9 anpo1er %
anpo1er % a"ailability:
Military anpo1er % #it #or ;3 -0; 80000 est.9
ilitary ser"ice: males age 1,(-;.
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Military anpo1er % reaching 80000 est.9
ilitary age annually . males. 0 ,3,
Military e!penditures % dollar #igure:
G1-4.8 million 8*H01D009
Military e!penditures % percent o# G*,: 0.8< 8*H01D009 *isputes % international: none
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ABOUT EU5O,EA( U(IO( % &A:2

:uestion; )hat is the European Union< Ans1er; "uropean &nion 8"&9 is the group of 1, west "uropean countries that act Bointly in some areas such as agriculture commerce foreign policy Bustice the en!ironment social policy and economic and monetary policy in the common interest. $he "uropean integration process was launched with the setting up of the "uropean ?oal and +teel ?ommunity 8"?+?9 in 1;,1 by si6 west "uropean countries. In 1;,4 these si6 countries enlarged the scope of their co(operation to form the "uropean "conomic ?ommunity 8""?9. +ince then the number of members has grown to 1, countries and the ""? is now )nown as the "uropean &nion. $here is now a single "uropean mar)et of 340 million people spread across the 1, countries. "le!en of these countries ha!e now adopted a single currency the euro from the 1st of Canuary 1;;;. $en of these countries ha!e now a single !isa system. $he "& has a common agricultural policy and spea)s with one !oice at the World $rade %rganisation and other international organisations. :uestion; )hich countries are e bers o# the European Union<
Ans1er; #ustria Belgium 'enmar) *inland *rance Germany Greece Ireland Italy 5u6embourg Netherlands =ortugal +pain +weden &nited 7ingdom. :uestion; )hat is the di##erence bet1een the European Union' the European Co unity' and the European Co ission< )asn=t there so ething called the EEC also< The European Econo ic Co unity< Ans1er; $he "uropean "conomic ?ommunity 8""?9 was first created by the coming together of si6 west "uropean countries 8Belgium Netherlands 5u6embourg *rance Germany and Italy9 in 1;,4 to form a common mar)et. "uropean ?ommission was one of the first institutions set up to run the affairs of the ?ommunity. #fter the $reaty
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of 2aastricht in 1;;0 the term "uropean ?ommunity was used in place of the "uropean "conomic ?ommunity. "uropean ?ommunity refers to the 1, 2ember +tates wor)ing Bointly through common institutions 8i.e. the "uropean ?ommission the "uropean =arliament the ?ouncil of 2inisters the ?ourt of Custice etc.9 Aowe!er the term "uropean &nion which was simultaneously used in the 2aastricht $reaty is an all encompassing term to denote not only the "uropean ?ommunity but also the other two pillars of "uropean integration process namely the ?ommon *oreign and +ecurity =olicy 8?*+=9 and the Custice and Aome #ffairs =olicy 8CA#=9. :uestion; There are t1o ore na es I ha"e heard; Econo ic Co ission #or Europe and the Council o# Europe; +a"e they anything to do 1ith the European Union< Ans1er; Not directly. "conomic ?ommission for "urope is an organ of the &nited Nations. $his is one of the regional commissions under the "conomic and +ocial ?ommittee of the &N 8Bust li)e "+?#= for e6ample9. $he ?ouncil of "urope is a different organi1ation that was set up in 1;-; to achie!e greater unity among its members to facilitate their social progress and to uphold the principles of parliamentary democracy respect for human rights and the rule of law. $he number of members of the ?ouncil of "urope has grown from 10 to -0 "uropean countries today including all 1, members of the "& as well as countries of the ?entral and "astern "urope. :uestion; )hat is the role o# the European ,arlia ent< +o1 is it di##erent #ro the national parlia ents< Ans1er; $he largest multinational parliament in the world the "uropean =arliament performs the same role as any other parliament ( to pass good laws and to scrutini1e and control the use of e6ecuti!e power. Aowe!er the tas)s of the "uropean =arliament cannot be e6actly compared with those of national assemblies or parliaments in 2ember +tates since the "& has no Go!ernment for =arliament to form and o!ersee: moreo!er =arliament has only a limited say in the framing of legislation. But the important thing is that the =arliament is directly elected by the people once e!ery fi!e years since 1;4;.
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:uestion; )hat is this talk about the single currency #or Europe' the euro' all about< +o1 can di##erent countries ha"e the sa e currency< Ans1er; $wel!e of the 1, member states 8i.e. all e6cept &7 'enmar) and +weden9 ha!e Boined together to launch the single currency the euro on Canuary 1 1;;;. $his is the result of the economic integration process begun in "urope since the 1;,0s a process accelerated by the +ingle "uropean #ct of 1;83 and the 2aastricht $reaty in 1;;0. +ince the early 1;;0s "& countries ha!e enBoyed the benefits of a single mar)et 8e.g. free mo!ement of people goods ser!ices and capital across national borders9. But the single mar)et would wor) best with a single currency. :uestion; )hat 1ill these countries gain by ha"ing a single currency< Ans1er; "uropeFs economy is now built on a single mar)et that will wor) better with the single currency. $han)s to the single currency tra!ellers across the "& will no longer ha!e to change 8and loseK9 money. "6change margins paid to ban)s will simply disappear. *or businesses and consumers the single currency will also ta)e away the uncertainty about the price for which goods are sold. #s we all )now sudden e6change rate mo!ements can wipe out profit margins in a matter of hours. If goods and ser!ices are priced in the same currency the competiti!e effect of the single mar)et will be strengthened considerably. $his will stimulate growth and employment. By itself the euro cannot sol!e all the problems but as a stable currency it will help to create a stronger economy capable of growing at a faster rate. *aster growth is needed to put more people bac) to wor) and to achie!e a rising standard of li!ing for people. :uestion; But ho1 does the EU atter to India<
Ans1er; In many important ways. $he "& is IndiaFs biggest trade partner accounting for one fourth of her total imports and e6ports. It is the largest source of *oreign 'irect In!estment. $he "& and India share common traditions and !alues. democracy the rule of law and
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respect for human rights. $he "& and India are important partners in international organi1ations such as the &N and W$%. +ome of the 2ember +tates such as the &7 *rance and =ortugal ha!e historic lin)s with India. $he "& is an important partner in IndiaFs de!elopment efforts accounting for the largest amount of grant aid to India. $he "& and India ha!e signed a ?o(operation #greement on =artnership and 'e!elopment which forms the basis for the de!elopment of bilateral relations between the two regions. $he "uropean ?ommission has launched a maBor programme the "&( India "conomic ?ross(?ultural =rogramme 8"I"?=9 in order to promote people(to(people lin)s through collaboration of Indian and "uropean organi1ations and institutions. :uestion; )hat is the role o# the *elegation o# the European Co ission in India< Ans1er; $he 'elegation is the ?ommissionFs representation in New 'elhi with responsibilities for "& acti!ities and programmes in India Nepal and Bhutan. $he 'elegationFs mission is to strengthen bilateral relations and enhance mutual understanding between India and the "&. %ne of the 'elegationFs primary tas)s is to prepare organi1e and monitor the !arious proBects funded and supported in India by the "& as part of the 'e!elopment ?o(operation and $rade and "conomic ?o(operation =rogramme. :uestion; But aren=t all the Me ber 2tates o# the European Union already present in India through their e bassies< )hy then do you need to ha"e a *elegation o# the European Co ission< )hat is the role o# the *elegation o# the European Co ission in India co pared to that o# the e bassies o# the Me ber 2tates o# the European Union< Ans1er; Good /uestion. $he 2ember +tates missions perform all the functions of a diplomatic mission representing the national interests of their home country in India. $his ranges from international political and economic relations to trade promotion and immigration issues 8!isas9. $he 'elegation on the other hand has no direct role in these
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areas. $he 'elegationFs role is to perform the tas)s of the "uropean ?ommission. $his in!ol!es loo)ing after the !arious proBects funded or supported by the ?ommission in India. $his also in!ol!es wor)ing on those subBects on which the ?ommission has a mandate such as W$% matters for e6ample. :uestion; I ha"e heard t1o ter s: *e"elop ent Co%operation and Econo ic Co%operation' 1hat=s the di##erence< Ans1er; $he aim of the 'e!elopment ?o(operation =rogramme is to help impro!e the li!ing standards of the poorest and most disad!antaged sections of society. 'e!elopment ?o(operation proBects address the needs of de!elopment in the social sector 8primary education health #I'+ awareness9 and protection of natural resources 8afforestation irrigation al)aline land de!elopment9. $he "&Fs de!elopment assistance to India has crossed the figure of 1., billion euros since its start in 1;43. $he aim of the "conomic ?o(operation programme on the other hand is to help promote "&(India trade and in!estment. $hree primary goals ha!e been identified. impro!ing the general framewor) for business 8energy efficiency $ourism A@' municipalities co(operation 9 strengthening the institutional structures 8moderni1ation of laboratories I=@s Luality training and education9 and trade facilitation 8?ouncil of "& ?hamber of ?ommerce "uropean Business Information ?entre etc.9 :uestion; )hat is the organi$ational structure o# the *elegation< Ans1er; $he Aead of the 'elegation 2r. 2ichel ?aillouet is accredited to the Indian Go!ernment as an #mbassador. $here are four sections in the 'elegation. 'e!elopment "conomic =ress and Information and #dministration. $here are 10 "uropean and 30(odd Indian members of staff.
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:uestion; )hat help can the *elegation gi"e an European or Indian business an looking #or e!panding business in the other region< Ans1er; $he 'elegation supports a number of programmes and proBects to promote "&(India trade and in!estment. Whether "uropean or Indian any businessmanFs first tas) in international trade and in!estment is finding the business information about the prospects in the destination region. *or this the "uropean Business Information ?entre 8"BI?9 has been set up in 2umbai with an antenna in New 'elhi. Ne6t the businessman may be interested in carrying out a feasibility study for a Boint !enture with an IndianD"uropean partner. Aere the ?ommissionFs "uropean ?ommunity In!estment =artners 8"?I=9 scheme can help. $he "?I= has four financing facilities to finance different stages of a Boint !enture creation from feasibility studies or pilot proBects to Boint !enture capital re/uirements training technical or management assistance. $he "?I= financing is also a!ailable to chambers of commerce for identification of potential Boint !enture proBects and partners and to go!ernments and public agencies for pri!ate infrastructure utilities or en!ironmental ser!ices. +mall and medium si1ed enterprises 8+2"s9 play an increasingly important role in the Indian as well as "uropean economies. In order to help +2"s find business partners in the other region the "uropean ?ommission organised a maBor trade e!ent in New 'elhi on 1, and 13 2arch 1;;; the "&(India =artenariat. $his was organi1ed under an #sia(wide "& programme called #sia(In!est. 2oreo!er the ?ommission has supported a number of proBects to impro!e the general economic climate in India as well as the institutional framewor) to promote "&(India trade and in!estment.
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:uestion; )hat help can the *elegation gi"e a >ournalist or an acade ic researching or 1riting on the EU< Ans1er; $he 'elegation has an e6cellent collection of information material on "& including the %fficial Cournal of the "uropean ?ommunities 85 M ? series ?%2 documents9 "urostat statistics and other official publications. #part from pro!iding access to the abo!e information sources the 'elegation publishes a newsletter which is circulated widely. $he Information ?entre in the 'elegation is open to the general public and wor)s 2onday through *riday ;.00 am to 1.00 pm and 0.00 pm to ,.00 pm. :uestion; )hat help can the *elegation gi"e an (GO 1orking in de"elop ent area< Ans1er; $he ?ommission has a small budget line for supporting the de!elopment acti!ities carried out by NG%s. *or this an Indian NG% must first find a "uropean NG% as a partner and the two should together ma)e an application for funding. :uestion; Is there a single "isa #or tra"elling to the EU countries< Can the *elegation pro"ide a "isa< Ans1er; $here is a single !isa for all the "& countries e6cept &7 and Ireland called the +chengen !isa. No the 'elegation has no responsibility for issuing !isas. $he 2ember +tate embassies continue to pro!ide this ser!ice. *or +chengen !isa the application must be made to the embassy of the principal destination country.
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ECO(OMIC A(* COMME5CIAL 5E,O5T

Econo ic and ,olitical *e"elop ents: (ATO: Belgian Go!ernment has concluded an agreement with N#$% on , th %ctober 0000 for ma)ing a!ailable additional 10 hectares of land for the planned e6pansion of NatoNs head/uarters in Brussels. $he wor) might cost about B* 10bn and would start in 0000. $he Belgian go!ernment has also agreed to impro!e transport infrastructure towards N#$%. Lu!e bourg has a ne1 Grand *uke . %n 4 th %ctober $he ?rown =rince Aenri of 5u6embourg was officially enthroned as the Grand 'u)e of 5u6embourg on his father Grand 'u)e CeanNs abdication after 33 years of reign. Belgian Co unal 8Municipal9 Elections: $he ruling coalition 85iberals(+ocialists(Greens9 came out reinforced from the local municipal elections that too) place on 8 th %ctober. $he far(right >laams Blco) has scored an all(time record of 33< in #ntwerp and has impro!ed its share in *landers while in Brussels and Wallonia its *rench partner *ront National has polled !ery poorly. $he Greens ha!e particularly done well in Brussels and Wallonia. $he big losers were the two ?hristian parties and the moderate *lemish nationalist >ol)sunie. ,olicy announce ents' trade agree ents' and trade delegations: Go"ern ent?s ,olicy *eclaration: =rime 2inister Guy >erhofstadt presented his go!ernmentNs policy declaration to the ?hamber of 'eputies on 14 th %ctober. $he central theme of the declaration was that Belgium is doing well. $he budget for 0001 will ha!e a surplus for the first time since almost half a century. $he ta6payers will start feeling the positi!e effects of ta6 reform in 0000 and the full fruits in 0003. $he Go!ernment also confirmed its plans to consider more cuts in employersN social contributions in 0000 after it began to cut the burden by nearly B* 0,bn this year through state transfers to social security.
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'espite record growth e6pectations of a balanced budget in 0000 and the first surplus e6pected in 0001 economists say the real test will be whether Belgium can reduce its public debt. National debt is about 110< of G'= which is among the highest in the "&. $he budget plans to reduce it to 10,.8< in 0001 and 88.4< in 000,. =oliticians across the political spectrum commended 2r. >erhofstadt for bro)ering a landmar) deal with the federal go!ernment that awarded the 'utch(spea)ing north and *rench(spea)ing south greater autonomy o!er ta6ations. $he deal is an important !ictory for the *lemish north which has demanded greater independence from its poorer southern neighbours for more than two decades. (ational Bank: =eter =raet the Belgian economic guru of the former Genrale Ban) will be lea!ing his present post ?hef de ?abinet of *inance 2inister 'idier @eynders since 1- months for Belgian National Ban) on 0; th %ctober. $he immediate reason for his mo!e is the forthcoming Belgian presidency of the "& and that of the 11 euro( 1one countries. 2abena: Belgian flag(carrier +abena is cutting routes and plans to sell assets including wide(body aircraft in a bid to reduce anticipated net losses for the current year of B* 4.4bn 8G13,m9. $he measures see) to address what +abena ?"% ?hristoph 2uller describes as a OthreateningP financial situation. 'irect long(haul ser!ices to Cohannesburg and New Hor) Newar) ha!e been cancelled so that the airline can sell two aircraft probably #irbus #3-0s or #330s. $wo other #3-0s are already up for sale. +abena will restructure with up to ,00 Bob losses many acti!ities being outsourced. +abena said it did not foresee any compulsory lay(offs and would try to find alternati!e employment within the group. #lso under scrutiny is +abenaNs wet(lease of two ?ity Bird Boeing 2'(11s. 2uller hopes the changes will sa!e B* 1-.-bn by ne6t year. +abena attributes its situation to high fuel price the wea)ness of the euro against the dollar strong competition and the change of &+ airline partner from 'elta #ir 5ines to #merican. In further de!elopment +abena announced on 03 rd %ctober that it has decided to confide on(
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board sale to Nuance a subsidiary of +#irGroup. Nuance is already responsible for +abenaNs selection of products merchandising and mar)eting. $his will also help +abenaNs speedy integration into +#irGroup. +#irGroup has also reportedly approached the Belgian Go!ernment for help in co!ering the sharply higher losses at +abena BelgiumNs national airline which it has agreed to ac/uire but in which Belgian Go!ernment still has a maBority sta)e. Global Trade o# Belgiu U2 @ in billion ,eriod Can(Cul 1;;; Can(Cul 0000 < ?hange E!port 100.,-0 108.,83 ,.8; I port ;3.131 ;8.;-3 3.0Balance ;.-11 ;.3-0 0.-3
5egion "urope #sia #merica #frica %ceania %thers India
E!port 84.001 10.0;0 8.034 0.008 0.,31 0.,01 0.140
A 80.31 ;.-8 4.-0 1.8, 0.-; 0.-8 0.00 01.10
I port 43.1-8 11.4-4 10.043 3.03, 0.,0; 0.00; 0.;80 0.;80
A 43.;3 11.84 10.38 3.04 0.,3 0.01 0.;; 8.33
India=s share in 0.140 Asia Source : Sia New Letter
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Bilateral Trade: India%Belgiu U2 @ in Trade IndiaFs e6ports IndiaFs imports $otal trade illion 7an% 7ul=BB 804.18 1;0-.1, 0431.33 7an%7ul=CC ;80.03 0141.80 31,-.03 A Change 18.4, 1-.03 1,.-8 A 2hare 0.;; 0.00 1.,0 Trade
Source : Sia New Letter Ma>or Ite s o# Indian E!ports ,roduct =recious +tones M 2etals $e6tiles and #rticles "ngg. =roducts ?hemicals *ood and 5i!e #nimals =lastics and @ubber 7an% 7ul=BB ,00.4140.,3 -3.03 04.38 33.-3 10.,3 7an%7ul=CC 313.08 183.0, 31.01 -4.0; 33.-; ;.;4 A Change 01.;, 3.1; -0.0, 40.40 (8.1, (,.30 A 2hare 30.;0 18.33 3.03 -.81 3.-1 1.01
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Ma>or Ite s o# Indian I ports ,roduct 7an% 7ul=BB =recious +tones M 2etals "ngg. =roducts ?hemicals =lastics and @ubber $e6tiles 8.3, ;.13 ;.40 0.-0 ;-.08 3-.-4 1-.01 108.;0 3,.34 18.3, 1,.44 1.-0 33.10 ,.01 3.01 0.83 13;8.03 1;-3.03 1-.,; 8;.30 7an%7ul=CC A Change A 2hare
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ECO(OMIC ,OLICIE2: BELGIUM%EU

Euro; $he adoption of the "uro by the 11 member countries of the "uropean &nion in1;;; was a maBor historical e!ent and a crucial stage in the building of "uro with an end to bring about price stability and harmonisation of fiscal policies within the &nion besides ser!ing as an important alternati!e currency to dollar. #lthough it is too early to ma)e an assessment of its effects in the monetary union it was largely responsible for the price stability achie!ed in 1;;;. Aowe!er there ha!e been temporary !ariations in prices due to rise in prices of energy products and the flow of capital from "& to &+# resulting in changes in interest rates in #pril and No!ember. #s the Belgian currency was one of the foremost to be integrated into "uro its !alue had a gradual decline during the year from 3, to 3; by the end of the year. 5i)ewise the Belgian ban)s associated themsel!es with the "2& followed the fiscal policies of the "?= thus adopting to the changes in interest rates as introduced from time to time. It must be admitted that the national considerations are henceforth no longer rele!ant and commitments in the budgetary sphere are to be based on "+?B guidelines for monetary policy.
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Global and Bilateral Trade: Global Trade o# Belgiu U2 @ in billion ,eriod Can('ec 1;;8 Can('ec 1;;; < ?hange 5egion "urope #sia #merica #frica %ceania %thers India India=s share in Asia Source : Sia New Letter Analysis o# E!port ,er#or ances o# co peting countries: Belgiu ?s Trade 1ith a>or Asian Countries In @ billion Country India ?hina Aong 7ong $hailand +outh 7orea $aiwan 2alaysia "6ports 3.03 1.00 1.01 0.-4 0.-4 0.,3 0.04 I ports 1.-1 3.13 0.-0.83 0.44 0.34 0.31 Total -.34 -.13 1.3, 1.30 1.00.00 0.88 A 2hare 1.3; 1.03 0.-; 0.3; 0.34 0.33 0.03 E!port 180.03 143.18 (0.13 E!port 1-3.40 1,.40 11.;8 3.3, 0.81 0.3, 3.03 3.03 A 81.,3 8.;1 3.80 1.;0 0.-3 0.34 1.8, 00.43 I port 13,.,, 130.48 (0.88 I port 101.113.;0 13.,8 ,.04 1.0, 0.0, 1.-1 1.-1 Balance 1-.,0 1,.-0 3.03 A 4,.310.,0 10.31 3.1, 0.3, 0.03 0.88 8.33
Source : Sia New Letter
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Bilateral trade ; $he Indo(Belgium bilateral trade during the year was &+ G -.34 bn. It is the highest amongst the #sian countries 8e6cluding Capan followed by ?hina Aong 7ong and $hailand9. $he bilateral trade mar)s an increase of 1.3;< o!er the pre!ious year in dollar terms. 5i)e in pre!ious years gems and Bewellery continued to dominate the trade constituting 80< of the total trade and it must be noted that the composition of gems and Bewellery in items of IndiaNs e6ports to Belgium has been gradually declining which by end 1;;; was at 31< at &+ G 831 mn. $e6tiles engineering products agriculture marine products chemicals and plastics and rubber are the other maBor important items of e6ports from India. $he table below can be seen. %n the other hand Belgium e6ports to India for the same period &+ G 3.3bn mar)s an increase of 1.8,< o!er the pre!ious year. Gems and Bewellery e6ports to India from Belgium constitutes nearly 8;< of the total e6ports to India which is an increase of 0,< o!er the pre!ious year. "ngineering products chemicals plastics and rubber and te6tiles are the other maBor items of e6ports from Belgium to India. +ee table below for details. India%Belgiu Trade U2 @ in Trade 7an%*ec =BD 1,03.-0 7an%*ec =BB A Change (3.,, A 2hare illion
IndiaFs e6ports IndiaFs imports $otal trade
1-04.80
0.88
038,.,3
3031.83
01.-3
1.8,
-1;1.;,
-33;.33
11.-0
1.3;
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Ma>or Ite s o# Indian E!ports ,roduct 7an%*ec =BD ;-0.3, 7an%*ec =BB 831.0A Change A 2hare
=recious +tones M 2etals $e6tiles and #rticles "ngg. =roducts *ood and 5i!e #nimals ?hemicals =lastics and @ubber
(8.--
31.18
0;1.4;
0;3.0-
0.,0
00.83
;4.13 -;.;0
41.33 30.08
(03.,, 00.3,
,.04 -.04
-4.83 14.,3
-,.;1 18.30
(-.01 -.33
3.03 1.30
Source : Sia New Letter Ma>or Ite s o# Indian I ports ,roduct 7an%*ec =BD 7an%*ec =BB 08;,.-; A Change A 2hare
=recious +tones M 0303.;3 2etals "ngg. =roducts ?hemicals =lastics and @ubber $e6tiles 18,.00 11,.1, 03.8;
0,.,1
88.44
141.,; 108.-1 03.43
(4.03 (,.8, 10.01
,.03 3.30 0.80
13.1,
1,.1-
1,.13
0.-3
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Bilateral cooperation in other sectors: #nother important trend in the bilateral economic relation is the growing potential of the Indian software companies in Belgium such: $?+ $ata Infotech A?5 and Infosys ha!e set up offices in Brussels and doing business with Belgian companies. Besides there are se!eral Indian I$ professionals who are employed by the Belgian companies e6ecuting on(sight I$ proBects from time to time. Infosys shortly after setting up its operation in 1;;; secured an I$ contract from BelgacomNs mobile ser!ices Q=ro6imusN. With shrin)age of professionals in Belgium the sector offers !ast opportunities for Indian I$ companies. Belgian and 5u6embourg companies are belie!ed to be outsourcing the I$ wor) from India on a regular basis prominent among them are. #lcatel Bell Barco +mith 7line Beecham Biologicals of Belgium and +abena 8subsidiary of +wiss #ir9. #lthough there has been considerable impro!ement on the issue of business !isa wor) permit and family re(union !isas delays in issues of !isas continue to impede our progress in this field. Bilateral cooperation in +cience and $echnology though small has been encouraging. ?ooperation in biotechnology =hoto !oltaic cells and space progressed during the year. # Belgian company >erhaert telecommunication signed a contract with I+@% for launching of low orbit 100 )g remote satellites using =+5>Ns in the year 0000. It is the first time that a "uropean country has entered into a commercial contract with India for launching a satellite through Indian 5aunch >ehicle. In multilateral trade issues Belgium generally toes "& line. $heir policy emanates from the fact that Belgium as a trading company deri!es strength being part of the larger entity such as the "&. 5iberalisation and harmonisation of "& regulations on trade and economic issues are in effect conduci!e principally to countries li)e Belgium. BelgiumNs position on the ?ommissionNs anti(dumping and anti(subsidy issues is generally in line with "&. $he 2ission in Brussels has been acti!ely in!ol!ed through out the year in sensitising
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the local go!ernment on the irrele!ance of restricted trade practices at a time when the world was mo!ing in the direction of free trade. Industrial and In"est ent Cooperation47oint 3entures: Belgium continues to show interests in India both for trade and the in!estment. +e!eral high le!el !isits ha!e ta)en place from Belgium in the last four years that included the !isit of Belgian =rime 2inister in No!ember 1;;4 and the Belgian ?rown =rince =hilippe led economic missions twice one in #pril 1;;, and second in No!ember 1;;8. $he !isit generated in!estments into India resulting in se!eral maBor Belgian companies setting up Boint !enture collaborations in India. 2aBor companies such as $ractebel Besi6 Be)aert 'redging International besides three Belgian ban)s BB5 7B? and *ortis Ban) ha!e offices in India. #ccording to the +ecretariat for Industrial #ppro!als BelgiumNs total in!estment appro!al between 1;;1(1;;; was @s. 3; 183.80 million with 1,, collaborations. #lthough the in!estments in 1;;8 touched a record figure of @s. 30 884.4- million the situation in 1;;; was rather disappointing with total in!estment amounting to only @s. 13;.;3 million with 00 Boint !entures. $he unstable political situation in India owing to mid(term elections and the 7argil crisis beginning from %ctober 1;;; are said to ha!e deterred the potential Belgian in!estors maintaining a cautious approach. +ee table below for details on in!estment. 7oint 3entures in India ,eriod *rom. 1D1D1;;1 $o. 31D10D0000 Type *inancial $echnical Total (os 103 ,3 -FB 3alue85s Million9 EFFD-;CC -E-BC;-GBBF-;--
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Indian 7oint 3entures Abroad

,eriod *rom. 1D1D0000 $o. 31D10D0000 Type (os 3alue85s Million9 0.0 C;E WA%55H %WN"' +&B+I'I#@H IN 3 B"5GI&2 Total G
Source : Sia New Letter I(*IA%BELGIUM COLLABO5ATIO(2 *U5I(G -BB-%BB

Hear 1;;1 1;;0 1;;3 1;;1;;, 1;;3 1;;4 1;;8 1;;; -BB-%BB &inancial 0 3 , 3 10 1; 013 14 -C0 Technical , , 3 3 10 3 3 .Total 4 11 ; 10 18 31 30 14 00 -.. A ount in 5s 13.10 034.00 30.00 43.30 13,;.00 1;-4.10133.04 30884.413;.;3 GB-D/;DC illion
8+ource . +I# Newsletter9
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Belgiu ?s stand on ultilateral econo ic #oru s and its stand "is%I%"is India?s position: )TO: Belgian +ecretary of +tate 8Cunior 2inister9 for *oreign $rade 2r. =ierre ?he!alier recalled in his speech at W$% ?onference in +eattle on 1 st 'ecember the e6ceptional importance of trade and international in!estments for Belgium. Ae pleaded for new initiati!es aimed at eliminating trade barriers 8customs duties and others9. 2r. ?he!alier ad!ocated the idea of granting access to mar)ets to the poorest countries of the world 8about -09 by e6empting them from ?ustoms duties. $he Belgian 2inister wished that sustainable de!elopment be better integrated into W$% action and wor)ersN basic rights be ta)en into consideration. *inally 2r. ?he!alier insisted on the importance of safeguarding cultural di!ersity. In an inter!iew on his return from +eattle 2r. ?he!alier s/uarely blamed the &+N intransigence for the failure. #s the differences of opinions between the "& the &+ and the de!eloping countries could not be o!ercome he ad!ocated inclusion of bilateral contacts with de!eloping countries as e6tremely important. )orld trade and Belgiu #ccording to the WTO's annual report for the year 2000 published by its +ecretariat on 03 2ay 0001 the growth of world trade in 0000 was the highest for o!er ten years all regions benefiting from e6pansion of the world economy. With a growth rate of 10.,< in 0000 twice the a!erage of the past decade 1orld trade in goods 1as 1orth U2* /'-DC billion . #s for 1orld trade in ser"ices it totalled U2* -'0-. billion up by ,< year on year the highest annual growth rate since 1;;4. *or the second consecuti!e year the growth of trade in ser!ices in !alue terms was lower than that of trade in goods but o!er the entire 1;;0(0000 period the annual growth rate was 3< which was comparable with that of trade in goods.
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)orld E!ports o# Goods and o# Co
ercial 2er"ices -BBB % ECCC
3alue in U2* billions 0000 Goods ?ommercial ser!ices Source: WTO 3 180 1 -1, 1;;;(0000 3.0 3.0
A "ariation 1;;; -.0 1., 0000 10., ,.0
#s far as the de"elop ent o# the "olu e 8e!aluated at constant prices and e6change rates9 of trade in goods is concerned the WTO Secretariat estimates it at 10< in 0000 the highest rate for more than ten years. It was 8 percentage points higher than growth in production which is one of the largest gaps recorded during the 1;;0s. $he main obser!ations resulting from e6amination of the world trade statistics for 0000 are as follows. 'uring 0000 there was !ery sharp growth in trade and production at world le!el. $he world economyFs remar)able e6pansion was boosted by the steady growth of production in North #merica and in the de!eloping countries in #sia by the restarting of production and by the reco!ery in economic acti!ity in the other regions. In North #merica and Western "urope which account for around 30< of world production and international trade G'= recorded its highest annual growth rate since the early 1;;0s. Not only was world growth !ery strong but the gap between regions was !ery small meaning that all regions benefited from
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the world economyFs e6pansion e!en though signs of a slowdown began to appear in late 0000. While the growth in trade was faster in all regions the e6ports and imports of de!eloping countries rose by o!er 00< which brought their share of world trade up to the highest le!el e!er reached. >arious factors contributed to this situation including the economic reco!ery in 5atin #merica and "astern #sia the sharp rise in oil prices and increased demand for imports in de!eloped countries. Increase in the "alue o# 1orld trade in goods by region' -BBD%ECCC E6,O5T2 8&OB9 Annual percentage "ariation
-BBD % -;. ( 0.4 ( 1.3 3.( 3.1 3., -.0 ( 0.3 ( -.0 ;.3 ( 1,.0 ( 13.0 ( ;.0 -BBB 0;C -.0 3.13.1 ( 0., 0.3 0.1 ( 1.8 ( 0.0 1.1 1.1 10.0 1.3 ECCC -E;. 13.00.8 00.0 1;.4 0.1.; 4.3 03.0 1-.1 3;.0 04.0 10.3
IM,O5T2 8CI&9 Annual percentage "ariation

-BBD % -;C -.3 ,.0 1-.0 0.1 ,.3 3.0 -.8 ( 0.1 10.8 ( 01.0 0.; ( ;.-BBB 0;. 11.0 ( 3.0 13., ( 13.3 1.3 0.0 3.3 ( 11.8 ( 1.1 ( 31.4 ( 0.( 8.4 ECCC -E;. 14.8 13.0 00.; 10., -.-.0 10.8 13.; 13.0 11.3 , 11.0
3alue
3alue
ECCC )O5L* (orth A Latin A ( 2e6ico erica erica /-DC 1030 330 133
ECCC /0D. 1,08 38; 183 003 0,,0 0.3-4 ;,; 0-1 1-4 -133 30
( %ther 5at. #m. countries 1;)estern Europe ( "uropean &nion 81,9 ( Not trade Econo including intra("& 0-04 003; 8,, 041 113 10, 1-3 30
ies in transition
( ?entralD"astern "urope ( @ussian *ederation A#rica ( +outh #frica
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( 2ain fuel 8a9 countries Middle East Asia ( Capan ( ?hina ( #sia 8,9 8b9
e6porting
,; 033 1.3-; -4; 0-; --0
( 30.0 ( 01.3 ( 3.1 (4.8 0.( 3.,
0;., 0,.4 4., 8.1 3.3 10.0
30.1 ,1.18.1-.3 04.4 18.,
33 143 1.-80 380 00, 343
( 1., 0.0 ( 14.8 ( 14.0 ( 1.3 ( 30.;
( 0.0.0 10.0 11.0 18.0 1,.1
00.; 1-.3 03., 01.; 3,.; 04.;
+ource. W$% It was in Asia that the growth of imports was highest 803.,<9 and for the second consecuti!e year it was higher than that of e6ports 818.-<9. $he W$% considers these results to be somewhat surprising gi!en that the increase in production in the region was below a!erage. #dditionally the growth in Capanese and ?hinese imports was !ery substantial up by 01.;< and 8< respecti!ely. $hese two countriesF e6ports also reached high le!els. $he growth in imports of goods into (orth A erica 814.8<9 was Bust behind that of #sia and was higher than the e6pansion of e6ports 813.-<9. ?onse/uently North #mericaFs share of world imports went up to 03< a le!el ne!er pre!iously reached. $he rise in the dollar !alue of )estern Europe Fs e6ports 80.-<9 and imports 8-.-<9 was far lower than in the other regions as a result in particular of the fall in the !alue of the euro and of the other "uropean currencies in relation to the dollar. $he growth rates for the "uropean &nion were e!en lower reaching only 1.;< for e6ports and -.0< for imports. With reference to e6change rates it should be noted that the !ariations between the three main currencies ( dollar euro and yen ( had an impact on the regional and sectoral pattern of trade. While the
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yen gained 3< in !alue in relation to the dollar in 0000 the euro lost 13< in !alue. In Latin A erica the increase in trade in 0000 800.8< for e6ports and 13.0< for imports9 is attributable to the sustained dynamism of 2e6ican trade and the reco!ery in trade in ?entral and +outh #merica. In the Middle East where fuels accounted for more than two thirds of e6ports these rose by ,1.-< in 0000. $he 03.0< rise in e6ports of goods from the economies in transition can also be attributed to the regionFs fuel e6porting countries ( @ussia 7a1a)hstan and $ur)menistan whose e6ports rose by 3;.0< 3-.0< and 100< respecti!ely. In A#rica the main oil e6porters saw their e6ports rise by 30.1< resulting in an increase of o!er 0,< in the regionFs e6port re!enues. $here were differing trends in the prices o# internationally traded goods . %n the one hand oil prices reached their highest le!el since 1;8, and according to the estimates made fuelsF share of world trade has risen to Bust o!er 10< almost returning to its 1;;0 le!el. %n the other hand the prices of manufactured products went down for the fifth consecuti!e year falling to their lowest le!el for ten years. #s already mentioned for regions where fuels account for a large proportion of e6ports 82iddle "ast #frica and economies in transition9 the growth in e6ports was considerable reaching between 0,< and ,0< in 0000. &ro the sectoral "ie1point it was the information and telecommunications sector which was the most dynamic with the e6plosion of world demand for semi(conductors and mobile telephones. $he W$% points out howe!er that the rapid e6pansion in this Fnew economyF slowed down in the last /uarter of 0000.
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It should also be noted that the oil price hi)e of almost 30< resulted as already mentioned in this chapter in a spectacular increase in the !alue of world trade in fuels. It should be noted too that trade in the automoti!e industryFs products recorded steady growth despite the slowdown in car production worldwide.
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Belgiu =s place in 1orld trade in goods In the league table of top world e6porters and importers Belgium ran)s --th as an e!porter with 0.;< of world e6ports and -Eth as an i porter with 0.3< of world imports. In relation to the 1;;; league table despite its good foreign trade performance Belgium has thus slipped bac) by one place as an e6porter and by two places as an importer. It has been pushed bac) into 11th position as an e6porter by Aong 7ong while ?hina and 2e6ico which were on its tail in 1;;; ha!e Bumped two places as importers. It should howe!er be borne in mind that the league table is based on !alue in dollars and that on that basis the e6ports of certain West "uropean countries rose only slightly or e!en fell. With 10.3< of e6ports and 18.;< of imports the &+# remains the worldFs top trading power. Ne6t come Germany Capan *rance the &7 and ?anada. In relation to 1;;; ?hina has Bumped from ;th to 4th position as a world e6porter relegating Italy to 8th position. $he Netherlands remains in ;th position and Aong 7ong has become the worldFs 10th largest e6porter mo!ing ahead of Belgium. In the league table of the worldFs top importers the &7 has slipped from 3rd to -th position in relation to 1;;; with Capan becoming the worldFs 3rd largest importer. #nother notable decline is that of the Netherlands which has fallen two places in the league table now ran)ing 10th behind ?hina and Aong 7ong.
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)O5L* T5A*E in GOO*2 % Top E!porters and I porters in ECCC

E6,O5TE5 Annual IM,O5TE 5ank 3alue 2hare 3alue 2hare 2 "ariation 8A9 52
1;;; 1 0 3 , 3 4 8 ; 10 11 10 13 11, 13 14 18 1; 00 01 00 03 00, &+# Germany Capan *rance &7 ?anada ?hina Italy Netherlands A 7 8?hina9 Belgium 7orea @ep. 2e6ico $aiwan +ingapore +pain @uss. *ed. 2alaysia +weden +audi #rabia +wit1erland Ireland $hailand #ustria #ustralia 480.,,1.3 -4;.3 0;8.1 080.1 044.0 0-;.0 03-.3 011.4 000.18-.1 140.3 133.1-8.138.0 113.4 10,.0 ;8.0 83.4 8-.1 80., 44.1 38.; 3-.; 33.; 10.3 8.4 4., -.4 -.-.3.; 3.4 3.3 3.0 0.; 0.4 0.3 0.3 0.0 1.8 1.4 1., 1.1.3 1.3 1.0 1.1 1.0 1.0 0 0 8 (1 ( 1 11 3 ( 0 0 ( 1 1; 13 10 3 1 1, 0 31 0 11 4 3 0 0000 10 1 1( 1 13 08 ( 1 , 13 3 1; 00 00 00 0 3; 13 0 33 0 8 18 1 1&+# Germany Capan &7 *rance ?anada Italy ?hina 10,8.0 ,00.1 34;., 331.4 30,.0-;.1 033.3 00,.1 18.; 4., ,.4 ,.0 -.3 3.4 3., 3.3.0 3.0 0.4 0.3 0.0.3 0.1 0.0 1.0 1.0 1.1 1.1 1.0 0.; 0.; 0.8 0.8
Annual "ariation 8A9

1;;; 10 1 11 0 1 4 1 18 ( 3 0 10 08 10 3 ; 0 11 0 4 0 14 ( 1, ( 11 , 0000 1; , 00 13 3 33 1; 3 03 33 03 01 3 04 3 3 ( 1 03 13 33 4
A 7 8?hina9 01-.0 Netherlands 1;4.0 2e6ico Belgium 180.3 141.0
7orea @ep. 130., +pain $aiwan +ingapore +wit1erland 2alaysia +weden #ustralia #ustria $hailand Bra1il $ur)ey Ireland 1,3., 1-0.0 13-.4 80., 80.0 40.3 41.3 38.8 30.0 ,8.3 ,-.0 ,0.0
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03 04 08 0; 30
Indonesia Norway Bra1il 'enmar) *inland
30.0 ,8.1 ,,.1 -;.0 -,.,
1.0 0.; 0.; 0.8 0.4
0 13 ( 3 3 ( 3
04 0; 1, ( 1 ;
India =oland 'enmar) @uss. *ed. Israel
-;.8 -;.3 --.3 --.0 38.1
0.4 0.4 0.4 0.4 0.3
( 0 ( 3 ( 30 13
11 4 0 10 1,
+ource. W$%
)orld trade in co
ercial ser"ices
Boosted by the dynamism of the world economy trade in commercial ser!ices was worth &+' 1 -1, billion in 0000 up by ,< which is the fastest annual growth rate since 1;;4. $his rate is howe!er lower than that of trade in goods. "6ports and imports of ser!ices rose in almost all regions with the e6ception of Western "urope where their decline is attributable largely to the depreciation of the euro. In dollars they were down slightly. But e6pressed in euros Western "uropeFs trade in ser!ices increased by appro6imately 1-<. In total Western "urope accounts for --< of world e6ports of ser!ices. North #merica and 5atin #merica recorded double(digit growth in e6ports and imports of ser!ices. In #sia e6ports of ser!ices rose by 13< boosted by the mar)ed acceleration of the sectorFs growth in the regionFs three main e6porting countries namely Capan Aong 7ong and ?hina. $he regionFs imports on the other hand increased only slightly mainly because of their !irtual stagnation in Capan which accounts for a third of regional imports. In terms of the categories of ser!ices traded e6ports of transport ser!ices rose at the same rate as those of tra!el and other
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commercial ser!ices which include financial ser!ices communication and construction ser!ices computer ser!ices and licence rights. #s in the case of trade in goods the &+# is the worldFs top trading nation for ser!ices with 1;.3< of e6ports and 1-.0< of imports. Belgium and 5u6embourg are grouped together in the world league table of trade in ser!ices. $he two countries are in 10th position as e6porters with 0.8< of world e6ports of ser!ices and ran) in ;th place as importers with 0.8< of world imports in 0000. In relation to the pre!ious year 81;;;9 they thus fell bac) by one place as e6porters since they were in ;th position that year. $he same comment regarding classification on the basis of !alues e6pressed in dollars can be made here. The EU=s share o# 1orld trade $he table below gi!es a list of the top 00 e6porters and importers of goods intra("& trade being e6cluded from the statistics on the "& and world trade and the "& being considered as a single trading entity. %n that basis the "& is the worldFs top e6porter with 14.0< of world e6ports ahead of the &+# Capan ?anada and ?hina.
$he "& is the second largest importer with 18.0< of world imports behind the &+# and ahead of Capan ?anada and ?hina
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)O5L* T5A*E in GOO*2 8not including intra%European Union trade9 % Top e!porters in ECCC
5ank E6,O5T2 3alue 2hare Annual "ariation Annual "ariation 8A9 8A9 1;;; 1 0 3 , 3 4 8 ; 10 11 10 13 11, 13 14 18 1; 00 ".&. 81,9 &+# Capan ?anada ?hina Aong 7ong 7orea @ep. of 2e6ico $aiwan +ingapore @ussian *ed. 2alaysia +audi #rabia +wit1erland $hailand #ustralia Indonesia Norway Bra1il India 8,,.480.-4;.3 044.0 0-;.0 000.140.3 133.1-8.138.0 10,.0 ;8.0 8-.1 80., 38.; 33.; 30.0 ,8.1 ,,.1 -0.14.0 1,.4 ;.3 ,.3 ,.0 -.1 3., 3.3 3.0 0.8 0.1 0.0 1.4 1.3 1.1.3 1.0 1.0 1.1 0.; ( 0 0 8 11 3 0 ; 13 10 1 1, 31 0 4 0 0 13 ( 3 ; 0000 8 10 113 08 13 1; 00 00 00 3; 13 33 0 18 104 0; 1, 14
)O5L* T5A*E in GOO*2 8not including intra%European Union trade9 % Top i porters in ECCC 5ank IM,O5T2 3alue 2hare Annual Annual "ariation 8A9 "ariation 8A9 1;;; 1 0 3 , 3 4 8 ; 10 &+# 10,8.0 ".&. 81,9 ;,;.0 Capan 34;., ?anada 0-;.1 ?hina 00,.1 Aong 7ong 01-.0 2e6ico 180.3 7orea @ep. 130., of 1-0.0 $aiwan 13-.4 +ingapore 03.; 18.0 4.0 -.4 -.3 -.1 3., 3.0 0.4 0.3 10 11 4 18 (3 108 3 ; 0000 1; 13 00 13 33 1; 03 303 01
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11 10 13 11, 13 14 18 1; 00
+wit1erland 2alaysia #ustralia $hailand Bra1il $ur)ey India =oland @ussian *ed. Israel
80., 80.0 41.3 30.0 ,8.3 ,-.0 -;.8 -;.3 --.0 38.1
1.3 1.3 1.1.0 1.1 1.0 0.; 0.; 0.8 0.4
0 11 4 14 ( 1, ( 11 (0 ( 30 13
3 04 3 03 13 33 11 4 10 1,
+ource . W$% &orecasts #or the year ECC#ccording to the W$% after the spectacular 10< growth in !olume achie!ed in 0000 trade is e6pected to be ad!ersely affected in 0001 by the downturn in economic acti!ity in the &+#. $he slowdown in &+ growth is spreading and is e6pected to ma)e its effects felt on some 00 countries more than a third of whose e6ports of goods go to the &+#. #ccording to the W$% this means that the !olume of world trade in goods is li)ely to rise by only 4< in 0001 down sharply therefore on 0000. North #merica the economies in transition and the de!eloping countries in "astern #sia other than ?hina are e6pected to see their growth fall sharply. ?anada and 2e6ico are particularly concerned as more than 8,< of their e6ports of goods go to the &+# but many other countries in ?entral #merica the ?aribbean and #sia are also !ery dependent on the &+ mar)et.
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Nor is Capan li)ely to see a reco!ery adds the W$% also drawing attention to the uncertainty regarding the forecasts in Western "urope. If the region which accounts for appro6imately -0< of world trade withstands the effects of the economic slowdown in the &+# better than e6pected the growth in world trade in 0001 might be higher than 4<. $he ris)s of falls are associated mainly with the repercussions which the sharp corrections in the prices of stoc)s and shares will ha!e on in!estment and consumer e6penditure in the ad!anced economies.
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CU2TOM 2H2TEM
O3E53IE) $he ?ustoms system within Belgium is based on a mi6ture of frontier controls and release to local clearance under simplified procedures. $he criteria for this are a ris) assessment of the indi!idual trader. Within Belgium are large proportion of goods are submitted by "'I submission from the port or indi!idual trader. # high proportion of shipments are released under the simplified schemes for later ustoms declaration at a local le!el. Aowe!er the simplified clearance systems are slower than port entry through the +#'B"5 system and are most fre/uently used for out of hours clearances. *inal entry under +implified schemes also !ia "'. 2ost cargo is in!entory controlled against the #WB or bill of lading. ,5OCE22 ,ort Clearance -; ?reation by carrier of in!entory record. E; 'ocuments to agentDbro)er. G; =reparation of ?ustoms entry. 0; +ubmission !ia "'I. .; ?ustoms calculate duty and ta6. ?ollection against ban) guaranteed account with ?ustoms RNational 'eferment GuaranteeS ( *ew importers ha!e their own deferment for duty most use agents A%W">"@ I2=%@$ >#$ I+ =%+$=%N"'. /; @elease of goods.
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Local Clearance -; #s stages 1(- and , but with reduced data element in the ?ustoms entry. E; Goods to importers premises. G; *ull ?ustoms entry at end of wee) or months trading 8by arrangement with ?ustoms9. TIMI(G @elease times differ from port to port but typically.

#ir *reight. from submission of entry. +urface *reight. 1(0 hours from submission of entry.
NB. ?ustoms do not offer full 0-(hour co!erage. AUT+O5ITH 5E:UI5E* BH B5OJE5: +imple instruction e!en by telephone to a +tate 5icensed ?ustoms Bro)erage company to enter is considered acceptable. Aowe!er if importer has own deferment a fa6ed or written letter of instruction re/uired %N?". $his then lodged with ?ustoms. TA5I&&

?lassification is based on the Aarmonised $ariff. ?ustoms is arbiter of the correct classification of goods but appeal mechanisms e6ist up to and including the "uropean &nion ?ommission.
?ustoms can upon re/uest of a domiciled trader issue formal instructions as to tariff liability. $his is accomplished by issue of a Binding $ariff Instruction. $his is binding on the trader and ?ustoms. # B$I has full "& status and can be used in any country of the "uropean &nion. $here is a similar mechanism for origin status.
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If there is a dispute as to classification the higher amount can be paid and rights reser!ed to see) refund when the dispute is settled.
3ALUATIO(

Is based on the open mar)et !alue of the goods. *or the purposes of !aluation the open mar)et !alue is the ?I* price to unrelated traders. #ny TassistsT must be declared to ?ustoms.
?ustoms will accept a !alue based on a pre!ious sale. Aowe!er the sale must be directly related to the import.
@oyalties or license fees if not included in the ?I* price are to be declared. *inancial charges and buying commission ( is specifically declared ( are e6cept from duty but liable to ta6.
*UTH
5e!ied on landed !ale generally as a < of that !alue.
OT+E5 TA6E2

"6cise due on alcohol and tobacco products. Belasting o!er de $oege!oegde Waarde 8B$W9 R*lemishS or $a6e sur la >aleur #Boute 8$>#9 are the Belgium names for >#$ in *lemish and *rench respecti!ely. 5e!ied on ?I* U duty U post landing charges to destination. =ostponed accounting for >#$ registered traders. $his means that >#$ is accounted for as part of the general ta6 return and is not collected at import.
#ll goods fall into general $a6 groups. 5owest @ate R'iamonds Gold and waste processingS V 1< 5ow @ate RfoodS V 3< 2edium @ate RAousingS V 10<
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+tandard @ate R"!ery thing elseS V 01<
2,ECIAL (OTE:
*rit1 Belgium ha!e a long established practice of supplying fiscal representation to Toff shore companiesT to ta)e full ad!antage of ?ustoms rules on >#$ and duty.
$o operate this ser!ice formal appointment with power of attorney is re/uired.
,5O+IBITE* 4 5E2T5ICTE* IM,O5T2 Import 5icense D Luota and >isa.
In general normal commercial goods are subBect to import license most are co!ered by an T%pen General 5icenseT. %nly if specifically remo!ed from the %G5 are import licenses re/uired.
With a few e6ceptions "& import licenses are controlled from the point of origin.
$he "& issues at the start of each year an allowance for import from each country by tariff or ?#$ No. $he e6porting country then issues amounts to traders. $his means that the rd country trader can be assured that goods being manufactured will be admitted to the "uropean &nion.
#$ e6port from the 3rd country an "6port 5icense is endorsed by the e6porting country. =ossession of a !alid e6port license guarantees issue of an import license.
"W"=$I%N. # few goods are controlled by /uota Rleather shoes and hatsS. &nder the "uropean Luota system licenses are issued to importers against e6pected orders. $hese are apportioned to the trade in the year proceeding import. $he method of allocation is by proportion of re/uested amounts against the total permitted import. "6isting traders are fa!ored.
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OT+E5 5E2T5ICTIO(2

Narcotics. $otal prohibition. Guns and weapons ( strictly controlled license. 2edicines ( ?ontrolled by product type appro!al. $his can be Belgium specific or "& wide registration of the drug.
Wildlife ( ?ontrolled by ?I$"+ and health restrictions. *oods ( 2eat and animal products controlled by issue of authori1ed e6porter status to specified premises. #dditional health and !eterinary restrictions in force. Import 8?#=9 licenses may apply.
?ontrolled admission of many plant products including import license 8?#=9 re/uirement for specified goods.
MA5JI(G:
2any standards in(force most in!ol!ing point of sale mar)ing that 2&+$ be present. +pecific "n/uirer recommended for each product type.
*UTH CO(CE22IO(2

'uty free mo!ement among "& member states. 'uty free admission of "uropean &nion %riginating industrial goods to countries. RNorway and +wit1erlandS. @eciprocal agreement allowing free admission for industrial goods from these countries to the "&.
'uty free admission of many goods from North #frica 82agreb9 2iddle "ast 82ashra)9 #frican and ?aribbean and =acific states 8#?= and %?$ agreements9.
#greements with most "astern "uropean states for duty free or reduced duty admission.
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G+= free or reduced duty rates.
5E&U(*24*EMA(*2
?ustoms "ntries may re(e!aluate up to three years after original submission.
OT+E5 IM,O5T 2C+EME2 $his lists principle schemes only.
?ustoms warehouse. #llows storage of goods in a ?ustoms bonded warehouse. >ery minor processing allowed under this system. $his includes pic) and pac) type operations.
?ustoms *ree Xone. "ffecti!ely creates the 1one as a duty and ta6(free area within the country. 5ittle used within Belgium as most benefits of a free 1one are a!ailable under other schemes.
Inward
=rocessing
@elief.
Goods
imported
for
further
manufacture and re e6port can be relie!ed of all import duty. E6,O5T CO(CE22IO(2
#pply to agricultural sector only.
E6,O5T CO(T5OL
?ontrol of arms and technology in line with "uropean and &N recommendations. Where applicable an indi!idual e6port license will be re/uired.
$he "& also monitors goods in transit and applies the same criteria. Aigh tech T'uel &seT goods can be a problem transiting the "& please chec) for $ransshipment 5icense. if
2,ECIAL (OTE
Belgium is an acti!e participant within the +"# scheme.
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I(3E2TME(T % )+H BELGIUM<

+trategic location centrally situated in the heart of "urope. +er!ing as residence to the "uropean &nion and the North #tlantic $reaty %rgani1ation 8N#$%9 Belgium is at the forefront of political and economic acti!ity. +tate(of(the(art telecommunications systems access the entire world in seconds. Internationali1ed and leading the world in per capita e6ports and supported by a committed labour force reputed for high producti!ity Belgium is a stronghold for "uropean trade. 2ulti(lingual in e!ery sector and rich in culture and cuisine Belgium is di!erse in its facilities for body mind and spirit. $echnologically ad!anced and financially stimulated with e6pansi!e support systems readily a!ailable Belgium is poised for new in!estment. #s the "conomic &nion de!eloped Belgium has seen its mar)ets grow to some 34, million customers ma)ing it one of the most dynamic economic mar)ets in the world. In"est ent opportunities +trategically located in the center of "urope Belgium contains a powerful infrastructure and ser!es as residence to the main decisional bodies of the "uropean &nion. "/uipped with these outstanding features Belgium offers prime opportunities for companies see)ing optimal locations for distribution acti!ities or a "uropean head/uarters. 2oreo!er it should be stressed that companies see)ing locations for high technology manufacturing or assembly can count on a
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multilingual s)illed labor force and access to mar)ets !ia e6cellent transportation lin)s. BelgiumFs numerous highly de!eloped research par)s form a natural en!ironment for the establishment of high(tech companies. *or companies see)ing a greenfield site Belgium also offers the critical components of a!ailable labor incenti!es pro6imity to "uropean mar)ets and a /uality infrastructure.
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CU2TOM2 A(* I(TE5(ATIO(AL T5A*E

%nce you are established in Belgium you are not only right in the middle of the "&(mar)et but also in a country specialised in international trade relations. $hat means that not only business is de!oted to trade but also that the customs administration is recepti!e to international trade issues. Custo duties
Belgium and the fourteen other countries of the "conomic &nion all but =ortugal and +pain apply the same rates of customs duties to goods imported from outside countries. $his is the Tcommon customs tariff of the "&T. No customs duties are applied to trade between those countries as long as the goods concerned contain no components imported from e6ternal sources: contain components from e6ternal sources but on which customs duties ha!e already been paid in accordance with the common customs tariff: are goods from outside countries in respect of which customs duties ha!e already been paid under common e6ternal tariff. Goods in these three classes are said to be in Tfree circulationT and are )nown as T&nion goodsT. ,re#erential agree ent $he "& is also lin)ed by agreement to a number of countries of which the so(called #?= countries 8the 5omJ #greement ( states in #frica the ?aribbean and the =acific9 and ?hina are the most important. $he non(reciprocal reduction in customs duties is granted in respect of goods of types specified in the agreement and which are conform to the definition of origin contained in the agreement. 3alue added ta! $he "& countries apply the >#$ system according to the same basic principles but are free within certain limits to fi6 the applicable rates. #s a result rates !ary from one country to another.
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But this is of no importance from the competiti!e point of !iew within the +ingle 2ar)et since for e6ample a product manufactured in Germany and sold in Germany will pay >#$ at the German rate while the same product manufactured in Belgium and sold in Germany will not ha!e paid >#$ in Belgium but will pay the ta6 in Germany at the German rate. $he >#$ is paid by means of a monthly declaration. #t the same time this >#$ is reco!erable under the payment deduction formula pro!ided for in the >#$ system. Goods imported into Belgium from a country outside the "& are subBect to >#$ e6cept when they are .

in transit: consigned to a customs warehouse: imported temporarily 8in general9.
E!cise duties +ome domestic and imported consumer products are subBect to e6cise duties. $hese include tobacco spirits beer coffee non(alcoholic be!erages and mineral oils 8such as petroleum and gas9. Custo #acilities
$o simplify documentation to facilitate trade and to computerise the communications of customs data the "& has issued the +ingle #dministrati!e 'ocument 8+#'9 which is used as e6port transit and import declaration. $he document contains the necessary information which is standardised and e6pressed in ?ommunity ?odes. It can be data(processed in almost all the Belgian ?ustoms offices 8# !ery important aspect of the system is that the declaration information passes directly from the declarantsF premises into the customs computer.
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*or rail transport the ?I2 8international con!ention on rail transport of goods9 document can be used instead of the +#' 8simplifying the paperwor) e!en further9. $he $I@ 8$ransport International @outier9 ?on!ention facilitates transport by road to countries outside the "& through the use of the T$I@ carnetT. 2ost "uropean and some 2iddle "ast countries ha!e adhered to this con!ention. Belgian ?ustoms also apply simplified procedures for goods imported from countries outside the "& which can be transported directly to the premises of the firm in order to be cleared. $he same facilities also apply to e6ported goods which can be cleared for e6port outside the "& on the firmFs premises. In some cases an in!oice or dispatch note can be substituted for official ?ustoms documents. It is then necessary to establish a monthly listing of all import and e6port mo!ements. Custo 1arehouses
"6pertise as a trading nation means also that Belgium is e6tremely suitable for the temporary storage of goods brought from all o!er the world and for their world(wide distribution on the customers order afterwards. $he numerous distribution companies established in Belgium ha!e access to simplified procedures which are fle6ible and cost reducing. If goods are consigned to a pri!ate customs warehouse neither customs duties e6cise duties nor >#$ are charged such warehouses may be set up in any Belgian locality for any type of goods and whate!er their !alue origin or final destination. ?ustoms officers are not present e6cept for periodic controls which in no way interfere with the normal operation of the warehouse. $he so(called pri!ate warehouse type ' is by far the most interesting type of all pri!ate warehouses. Goods are stored in warehouses or demarcated open spaces appro!ed by ?ustoms. $he commodity code and the !alue of the goods at the moment of storage ha!e to be mentioned in the declaration.
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*or the potential ta6es a global guarantee is re/uired which is limited to one tenth of the amount of these ta6es on the a!erage stoc) of the warehoused goods. $his results in an important cost economising effect. +ince the data are declared and chec)ed at the moment of storage goods can be remo!ed for free circulation or for consumption at any moment without ?ustoms inter!ention. #ll those remo!als are periodically regularised by means of a global declaration. $here is another important ad!antage. import duties can be calculated on the lowest !alue of the goods i.e. the !alue of the goods at the moment of storage or at the moment of remo!al from the warehouse. By doing so the declarant can declare the most ad!antageous dutiable !alue. In1ard processing relie# If a firm wants to go beyond mere storage and actually manufacture goods inward processing relief 8I=@9 is a most important tool for sa!ing customs duty. It gi!es duty and >#$ relief on goods coming from outside the "& 8called Timport goodsT9 if they are e6ported outside the ?ommunity after being processed. $he same can apply if the goods are sold to or bought from another I=@ operator. # processing operation can be anything from repac)aging or sorting goods to the most complicated manufacturing. $wo methods of applying I=@. suspension and drawbac). With suspension no duties nor >#$ are paid at importation as long as either the import goods or the products made from them 8called Tcompensating productsT9 are e6ported within a gi!en time. With drawbac) duties and >#$ are paid at importation. $he duties can be claimed bac) if the compensating products are e6ported within a gi!en time and the >#$ is automatically reco!ered through the payment( deduction system. $he arrangement applied to a particular firm can be wor)ed out Bointly by the ?ustoms #dministration and representati!es of the firm itself.
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#s finally adopted it is in some degree tailor(made and can if necessary be amended in the light of e6perience. $he import and e6port declarations under the arrangement are simplified to the greatest possible e6tent. ?ustoms control o!er the processing operation and the discharge of the system can be based on the companyFs accounting records: to this end the holder of the authorisation must supply ?ustoms with a bill of discharge e!ery /uarter.
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I(*IA=2 &O5EIG( ,OLICH: )E2TE5( EU5O,E

IndiaFs relations with the countries of Western "urope ha!e continued to be close and producti!e. $he end of the ?old War era the increasing political and economic integration of West "uropean nations into the "uropean &nion and IndiaFs de(regulation and opening up of the economy created the basis for further de!elopment of bilateral relations based on a complementarity of interests and mutual benefit. With the e6pansion of the "uropean &nion 8"&9 and its mo!e towards a common foreign and security policy IndiaFs political dialogue with the countries of the "& has assumed added significance. +ustained efforts ha!e been made to strengthen the "&Fs under(standing on issues of !ital concern to India both regional and global. $rade and in!estment ties with the "uropean &nion 8"&9 continued to grow at a satisfactory pace. $he decision of the "uropean ?ommission 8"?9 to bring out a T?ommunicationT on India 8special study on long(term relations9 was a positi!e de!elopment and enabled focus on the means of fully tapping the potential for cooperation with India. # 2emorandum of &nderstanding on the Indo("? "conomic cross(cultural =rogram a scheme funded by the "? to de!elop a greater under(standing of the "& in India and !ice(!ersa was signed. "? ?ommissioner "mma Bonino !isited India from 4(10 #ugust 1;;3. $he =rime 2inister !isited 'a!os 8+wit1erland9 and addressed the World "conomic *orum in *ebruary 1;;4. Ae informed the participating corporate leaders and others of the economic reforms initiated in India and called upon the captains of industry and finance to play a !aluable and mutually beneficial role in the economy to accelerate economic growth. Indo(British relations based on complementarity of interests continued to de!elop satisfactorily. $hese ties were reinforced by high(le!el !isits. =rime 2inister Cohn 2aBor !isited India on ; and 10 Canuary 1;;4. Ae attended the ?onfederation of Indian Industry ?onference in ?alcutta. %ther important !isitors from the British side were the
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*oreign +ecretary =arliamentary &nder +ecretary of +tate for *oreign and ?ommonwealth #ffairs and =arliamentary &nder +ecretary of +tate for $rade and Industry and the +hadow *oreign +ecretary. # delegation of 2embers of =arliament from the Aouse of ?ommons +elect ?ommittee of $rade and Industry !isited India in 2ay 1;;3. $here were many important !isits from the Indian side too. #t the in!itation of the &7 branch of the ?ommonwealth #ssociation a parliamentary delegation led by the +pea)er 5o) +abha !isited the &7 from 1(18 No!ember 1;;3. @egular *oreign %ffice consultations and specialist le!el tal)s with the &7 on &nited Nations and arms control issues continued and contributed to a better understanding of each otherFs positions. Indo(German relations continued to ma)e rapid strides buttressed by high le!el !isits and progress in economic relations between the two countries. German 'efense 2inister !isited India from 03(0, %ctober 1;;3. $he 2inister of "conomics came on the occasion of the #sia( =acific ?onference of German industries in New 'elhi for which a !ery large number of German industrialists !isited India. $he >ice ?hancellor and *oreign 2inister of Germany !isited India from 03(0, Canuary 1;;4. $his was his second !isit to India as *oreign 2inister. 'uring his stay he ga!e an address at the @aBi! Gandhi *oundation on *oreign #ffairs and +ecurity issues. *rom the Indian side ?hief 2inister of 7erala !isited Germany from 1,(1; No!ember 1;;3 to attract in!estments and to promote 7erala as a tourist destination. $he ,th 2eeting of the Indo(German ?onsultati!e Group too) place in Berlin in #ugust(+eptember 1;;3. $he recommendations of the Group were submitted to the two Aeads of Go!ernment. @elations with *rance continued to de!elop satisfactorily. +pecial "n!oy of the *rench =resident 801(0, 2ay 1;;39 +pecial "n!oy of the *rench *oreign 2inister 811(1- No!ember 1;;39 and *rench 2inister for @esearch 831 Canuary(3 *ebruary 1;;49 !isited India. @elations with Italy recei!ed a boost with the !isit of the =resident to that country from 13(13 %ctober 1;;3. $he =rime 2inister !isited Italy to attend the World *ood +ummit from 1,(14 No!ember 1;;3. Italian
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2inister of *oreign $rade !isited India from -(4 'ecember 1;;3 to attend the Indo(Italian Coint ?ommission 2eeting. # number of high(le!el !isits from #ustria to India contributed to the accelera(tion of bilateral ties. #ustrian 2inister of *inance 8-(4 #ugust 1;;39 +tate +ecretary 813(00 %ctober 1;;39 and =resident of the *ederal "conomic ?hamber of #ustria and accompanying #ustrian Businessmen 813(00 No!ember 1;;39 !isited India. With Ireland assuming the =residency of the "uropean &nion for the second half of 1;;3 the process of dialogue and consultations with the country increased. 'uring the !isit of 2inister of *oreign #ffairs of =ortugal to India from 3(11 *ebruary 1;;4 an #ir +er!ices agreement was signed between the two countries. # delegation of the Walloon =arliament 8Belgium9 and the 2inister of *oreign #ffairs of Belgium !isited India from 14(0, +eptember 1;;3 and 13(1; *ebruary 1;;4 respecti!ely. $he 'utch 2inisters for 'e!elopment ?ooperation and 2inister for *oreign $rade !isited India from 8(1- #ugust 1;;3 and 10(1; %ctober 1;;3 respecti!ely. #n economic pac)age worth @s 100 crore for promoting in!estments e6ports and transfer of technology was announced during this !isit of 2inister for *oreign $rade. @elations with 5u6embourg recei!ed impetus with the !isit of 'eputy =rime 2inister of 5u6embourg to India from ;(13 +eptember 1;;3. +tate +ecretary of 5u6embourg also !isited India from 0; #pril(1 2ay 1;;3. 2inister for +urface $ransport !isited Greece from 0,(04 Cune 1;;3 to attend the funeral ser!ice of former =rime 2inister of Greece #ndreas =apandreou. =resident of ?yprus Glafcos ?lerides paid a +tate !isit to India from 10(1, *ebruary 1;;4. $he =resident held wide(ranging discussions with the Indian leaders focusing on the resolution of the ?yprus issue
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and other multilateral regional and bilateral issues. #n #greement on 2erchant +hipping was signed during the !isit. Indo(*inland relations were gi!en specific orientation and direction when =resi(dent of *inland 2artti #htisari !isited India in No!ember 1;;3. 'anish 2inister for 'e!elopment ?ooperation !isited India from 0, No!ember- 'ecember 1;;3. 'uring his !isit to India from 14(1; *ebruary 1;;4 the *oreign 2inister of 'enmar) briefed the 2inister of "6ternal #ffairs on N#$% e6pansion and the #+"2 *oreign 2inister meeting in +ingapore where he was returning from. $he *oreign #ffairs ?ommittee of the Norwegian =arliament led by the +pea)er of Norwegian parliament !isited India from 8(1- Canuary 1;;4.
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IM& :UOTA A(* I(*IA

2erely e6ploding a few nuclear de!ices is not sufficient to establish a nationFs power. It has to pro!e its economic strength in terms of the si1e of its G'= the uni!ersal acceptability of its currency as a store of !alue and the si1e of its international trade measured. WI$A the submission of the @eport of the Luota *ormula @e!iew Group 8L*@G9 to the "6ecuti!e Board and its recent publication by the I2* it is time the *inance 2inister 2r Hashwant +inha and his mandarins de!oted some serious time on how to safeguard IndiaFs position in this foremost monetary institution. India was a founding member of both the Bretton Woods institutions with a place in the "6ecuti!e Board since it was set up. Its position has since eroded from an independent ?hair to that of an elected one. $hat too is in danger if the new /uota formula is implemented and if New 'elhi does not e6pedite the completion of the re!ision of G'= estimates (( a process initiated as far bac) as +eptember 1;;4. $he L*@G has recommended a formula LVaHUb> where LVLuota HVG'= a!eraged o!er three years a b relati!e weights aV0b >Vmeasure of e6ternal !ulnerability and L H and > are e6pressed in terms of countriesF shares in global totals. $here was some minor dissent to the !ariables in the algorithm suggested. $here was a !iew that purchasing power parity(based G'= be used instead of the G'= at mar)et rates of e6change. $he committee pointed out that this would put India and ?hina abo!e *rance and Capan respecti!ely for contributions and that mar)et prices reflected the actual cost of mo!ing goods. Aowe!er the L*@G has settled for using a three(year a!erage of G'=. 2r 2onte) +ingh #hluwalia 2ember =lanning ?ommission was part of this group. If a de!eloping countryFs G'= had grown at a high rate in the last two years but its e6change rate had fluctuated its more rapid growth than the industrialised countries will be of no conse/uence for its importance in the I2*. $he use of the linear formula suggested may gi!e greater importance to economic si1e but the initial ad!antage
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secured by the industrialised countries will not be diminished. It has to be howe!er ac)nowledged that the /uota formula has to recognise the ability to finance the *und and the currencies also can be used freely. In this conte6t there may not be any great obBection to the formulaFs use. # countryFs strength in the "6ecuti!e Board is measured in terms of its !otes and there is one additional !ote for each part of its /uota e/ui!alent of 100 000 +'@s. India has been consistently losing its share in total /uotas and conse/uently its !oting power with e!ery /uota re!iew. Its share which was -.;8 per cent at the time of the first /uin/uennial re!iew of /uotas was down to 1.;3 per cent at the end of the 11th re!iew in 1;;4 which along with its constituents (( +ri 5an)a Bangladesh and Bhutan (( rises to a bare 0.-1 per cent. $he eligible !otes of India being only 3.;3 per cent it is short of the minimum four per cent re/uired to be in the board. It is there by grace and not by right. It will be a great calumny for this country which represents around 18 per cent of the worldFs population to be out of the I2* board which it has approached se!eral times for a bail(out during e6change crises. $he initial /uotas of the first -- members including India were fi6ed by negotiations and subse/uently fitted into what is )nown as the Bretton Woods formula. It related /uotas to national income gold and foreign e6change reser!es a!erage annual e6ports and imports with a multiplicati!e factor of 1U e6portsDnational income 8NI9. #n assessment made by the fund staff indicated that it ga!e the highest weight to NI but also related significantly to imports and e6ports. $he original formula are re!ised once in 1;33 and again 1;83 reducing the weight attached to G'=. But with fi!e different formulae and the modified BW formula there is hardly any transparency. $he re!isions in /uotas ha!e o!er the years reduced the share of de!eloping countries in as much as the industrialised countries benefited under the e/uiproportional increase and under the selecti!e increases calculated on the formulaFs basis. $he idea was to con!erge /uota shares of countries to those arri!ed at on the basis of formula. "!en this had left many rapidly growing
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de!eloping countries dissatisfied as the share of the de!eloping countries as a whole had declined. $he setting up of the L*@G was to de!elop a formula for /uotas that would address the twin considerations of ade/uate usable resources for the fund and a due recognition of the de!elopments in the world economy. India has been losing its !oting strength because its calculated share has gone down from re!iew to re!iew. $he reasonsY IndiaFs G'= measured in +'@ terms has not shown commensurate increase with the real growth of the economy in rupee terms: its share in international trade showing hardly any increase as its economy is relati!ely closed e!en now and its e6treme reluctance to update statistics relating to NI and trade figures on a realistic basis. $he fall in the rupeeFs !alue since 1;;, can be e6plained but its conse/uences on IndiaFs economic image has been more underlying. IndiaFs wealth in dollar terms has not shown any perceptible increase in spite of the more than 3., per cent growth in the economy in the last se!en years. Its total trade e!en at the end of 0001 will not cross G100 billion. If the new /uota formula is used as recommended India may still be on the board at the !ery end with a further reduction in !otes. But if the weight assigned to G'= is reduced and increased for the !ariability factor its position could be in Beopardy. $he L*@G has suggested the inclusion of net inflows of long(term capital. In terms of total G'= India is at No. 10 and 7orea at 13 with only a difference of G33 billion. But 7oreaFs e6ternal account is at least twice as large as IndiaFs. "!en by the proposed formula 7orea could edge out India. $hough +weden Belgium and +wit1erland ha!e much smaller G'= than India they ha!e by and large been creditors of the I2# unli)e India which has always been a borrower. Its currency has ne!er been used for regular fund transactions while currencies of other smaller countries ha!e been used. 'epending on the interest the Indian e6ecuti!e director has shown in the affairs of the I2* its !oice has been gi!en weight. But at the go!ernment le!el the interest ta)en has been marginal e6cept when the 'epartment of "conomic #ffairs 8'"#9 and the @BI go to Washington '? for the spring and annual meetings.
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# whole lot of issues are discussed by the board including that of indi!idual countries sometimes ha!ing political economic and commercial implications for India. With hardly any information bac) up and ad!ice from 2inistries on matters that impinge on them the "' either )eeps /uiet or if he is interested tries to s/uee1e information from whate!er source possible to ma)e an impact on the board. $he '"# does not allow the "' to get information directly from the 2inistries and rarely is able to supply anything worthwhile to him. But the important player that India wants to be in the global arena is to be a reality it has to ma)e its !oice felt in the I2* which whether anybody li)es it or not is going to lay down the rules for the globally integrating mar)ets. In!estors and go!ernments will rely only on the economic data of countries disseminated through its electronic bulletin board. $he communi/ue of the International 2onetary and *inancial ?ommittee of the Board of Go!ernors of the I2* of +eptember 0- reiterated that /uotas should reflect de!elopments in the international economy. 2r Hashwant +inha is a member of this ?ommittee. It is therefore time serious attention was paid to strengthen IndiaFs position on the board. It is ac)nowledged by e!eryone that its G'= is grossly underestimated e!en after the *ebruary 1;;; re!ision. $he areas of underestimation are too well )nown to be reemphasised. But !ested interests both in the go!ernment and in academia for some un)nown reasons ha!e been stalling the efforts initiated by the then +ecretary of +tatistics. $he +tatistical ?ommission to re!iew the status of statistics is yet to submit its report. $he trade data also lea!e much to be desired as there is no clear accounting of the cross border trade with the neighbouring countries particularly =a)istan and Bangladesh. $he !alue and !olume of shuttle trade between India and the ?I+ has not been accounted for correctly. $here are thousands of Indians wor)ing abroad or who ha!e come bac) but continue to maintain their sa!ings abroad because of the interminable hassles in using the money in a @*? account. India may be losing billions of dollars in remittances owing to the anti/uated rules in this regard. $he correctness of its e6ternal account is also wea). If these remo!able
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deficiencies in the G'= and trade statistics are not attended to immediately India may pay for it dearly in terms of the !oting power in the I2* board. 2erely e6ploding a few nuclear de!ices is not sufficient to establish a nationFs power. It has to pro!e its economic strength in terms of the si1e of its G'= the uni!ersal acceptability of its currency as a store of !alue and the si1e of its international trade measured in +'@s or dollars. +trangely when the rupee is openly traded in many countries the @BI belie!es the rupee is not tradable outside. Without ta)ing steps to ma)e the rupee tradable it is simply shutting its eyes to reality. $he issue of the thousand rupee note will ma)e it easier for people to smuggle rupees out of India. #n @BI Go!ernor was e!en shy to loo) at the rupeeFs !alue displayed on the screen of a ban) in an international airport. India has to wa)e up to the emerging situation on the global economic front amend its anti/uated rules relating to maintenance of foreign Ban) accounts and put the statistics in order before it is too late.
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I(*IA TO BEE& U, T5A*E TIE2 )IT+ BELGIUM' LU6EMBOU5G

$A" two(day tenth session of the "conomic Coint +ession between India and the Belgium(5u6embourg "conomic &nion wound up on $uesday with calls by both sides to boost trade relations and increased di!ersification in the pattern of trade. $he inaugural session was addressed by 2r 2urasoli 2aran &nion ?ommerce and Industry 2inister 2s 5ydie =olfer >ice(=rime 2inister 5u6embourg and 2s #nnemie Neyts(&tytebroec) +tate +ecretary for *oreign #ffairs of Belgium. $he Indian side was led by the ?ommerce +ecretary 2r =rabir +engupta and the Belgium(5u6embourg side by 2r Can Grauls #mbassador 'irector(General for *oreign "conomic and Bilateral @elations 2inistry of *oreign #ffairs of Belgium. $he Indian side made a presentation on the liberalised regime for in!estment and the in!estment opportunities in the country in the infrastructure sector especially ports power telecom and highways and suggested that mutually(producti!e relationships could be established. New 'elhi also suggested that Belgium and 5u6embourg companies could Boin hands with Indian companies to set up Boint !entures and manufacturing units in the territory of either country in the respecti!e areas of their strengths. $he Belgian side presented an o!er!iew of fi!e specific sectors in Belgium !i1. construction industry information and communications aerospace and handed o!er position papers on the respecti!e fields. $he 5u6embourg side indicated that possibilities of cooperation e6isted in the realms of iron and steel financial sector media and communications and logistics. $he 5u6embourg side also referred to its in!ol!ement in the power sector in India and hoped that the rele!ant proBect in ?hennai would be e6pedited.
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%n financial cooperation the 5u6embourg side mentioned that a proposal had already been made by them for a double ta6ation a!oidance agreement with India and underlined the need for early negotiations at e6pert le!el for conclusion of the #greement. $he Indian side stated that the matter was under consideration. $he Belgian +tate +ecretary also e6changed instruments for ratification for #greement on Bilateral In!estment =rotection and =romotion between India and the Belgium(5u6embourg "conomic &nion with the 2inister of +tate for *inance. Both sides appreciated that the negotiations for an #ir +er!ices #greement between India and 5u6embourg had been successfully wrapped up and signed here on 2onday. 5ater tal)ing to a group of newspersons at the #mbassadorFs residence here the +tate +ecretary 2inistry of *oreign #ffairs of Belgium 2s #nnemie Neyts said that outside bilateral issues the broader issue of ne6t summit of India("uropean &nion 8"&9 was also discussed following the 5isbon +ummit between the two in Cune last year. +he said that the "& was )een on launching a new round in the ne6t ministerial of the W$% encompassing important issues li)e trade in agriculture ser!ices and in!estment. +he said that when attracting foreign in!estment was the order of day among all countries the "&Fs position on trade and in!estment for the new round would only help de!eloping countries. +he did concede that there were areas of di!ergence such as on core labour standards and en!ironment. But these could be addressed as the "& was willing to discuss all difficult issues with an open mind in the framewor) of a new multilateral round of trade negotiations following a broad(based agenda. $he Belgium #mbassador 'irector(General 2r Can Grauls was of the !iew following the failure at +eattle many lessons were learnt by all members of the W$%. Ae said the most important one is that when and what time the new trade round is to be launched is !ery important as many contentious issues need to be thrashed out to maintain the world trade growth and ensure free and fair trade.
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&O5EIG( *I5ECT I(3E2TME(T

# recent *oreign 'irect In!estment 8*'I9 ?onfidence Inde6 concluded that India is one of the most attracti!e foreign direct in!estment destinations. $he report found that IndiaNs attracti!eness increases dramatically when in!estors lengthen their time hori1ons because they e6pect deregulation pri!atisation and application of World $rade %rganisation guidelines to fuel in!estment competition and mar)et e6pansion. %f the e6ecuti!es sur!eyed for the report those in the non(financial ser!ices sector belie!ed India would be 40< more attracti!e in 10 years than it is now and that those in the financial sector thought that this attracti!eness would increase by nearly -0< o!er the same period. $he Indian economy is largely self(contained with foreign trade accounting for only around 0.,< of a GN= of G--0 billion. But with a population of o!er a billion it presents a huge domestic mar)et and it has a s)illed pool of e6perienced labour that spea)s "nglish. #nnual growth has recently been at least ,(3< although this is e6pected to slow down. Bilateral trade India is BelgiumNs second largest trading partner in #sia after Capan accounting for some 1-.3< of Belgian trade with #sia. Belgium is IndiaNs se!enth largest trading partner in the world and third largest amongst "& countries. But bilateral trade between the two countries is mostly in diamonds and Bewellery. %f the nearly G-.34 billion in bilateral trade between India and Belgium only G,-4 million is not in gems and Bewellery. #part from precious stones and metals the two countries trade mainly te6tiles engineering products chemicals and plastics and rubber. India also e6ports te6tile products and food products to Belgium. India opened up to foreign in!estment in the early 1;;0s. %!er 30< of foreign in!estment in the country is in engineering electronics and electrical e/uipment food and dairy products chemical and allied products ser!ices and computers according to #.$. 7earney. #nd
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nearly 80< of this in!estment comes from se!en countries. 2auritius which channels in!estment from other countries Capan Italy Germany +outh 7orea the &+# and the Netherlands. Belgian in!estment in the Indian economy is mainly in infrastructure such as energy ports and construction as well as in ban)ing and finance electronics and software chemicals and pharmaceuticals solar energy space technology and biotechnology. Nathalie ?assiers of the India 'es) at the Belgian 2inistry of *oreign #ffairs said that with o!er ;0< of Belgian trade with India is in the diamond sector there is a need to di!ersify bilateral trade between the two countries. $here are many opportunities for growth in bilateral trade between Belgium and India. 7.2. ?handrase)har 'eputy ?hief of 2ission at the Indian "mbassy in Brussels identifies as promising sectors drugs and pharmaceuticals tourism light engineering electrical components automobile spare parts dredging and port de!elopment the power sector and food processing. ?assiers pointed out that the I$ sector is doing !ery well in India adding that there are also re/uirements in the infrastructure biotechnology and telecom sectors. 'redging wor)s ha!e already attracted Belgian companies which ha!e e6perienced great success according to ?assiers. New in!estments are also being made in the electronics sector. ,ro oting trade Belgium and India ha!e ta)en important steps to impro!e their bilateral trade relations. $he two countries ha!e signed double ta6ation a!oidance and to bilateral in!estment promotion and protection agreements. A@A ?rown =rince =hilippe has !isited India three times since 1;;, to promote Belgian in!estment in the country. $he latest !isit was in 1;;8 when he led a 40(member economic mission which resulted in se!eral Boint !entures and technology tie(ups. $he Belgo India ?hamber of ?ommerce and Industry 8www.bic( belgium.org9 founded in 1;,- supports Belgian business with India
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through its networ) and information channels in India and by organising e!ents. $he Indian "mbassy in Brussels 8www.missionindia(belgium.org9 has a staff of ,0 diplomats wor)ing mainly on trade issues with the "uropean &nion Belgium and 5u6embourg. It has been organising a series of O2illenium 2eetingsP to raise the awareness of "uropean &nion and national go!ernment agencies chambers of commerce and industry and entrepreneurs primarily in Belgium and 5u6embourg on trade and in!estment in India. $he inaugural meeting held on 3 *ebruary 0000 ga!e an o!er!iew of the Indian economic en!ironment and liberalisation policy and included a presentation by the 2inister of +tate of ?ommerce %mar #bdullah. +ubse/uent meetings focused on specific sectors. tourism and hospitality ser!ices the biotechnology and pharmaceutical industry precious stones I$ te6tiles agriculture and food processing and engineering. Une!pected e##ects ?handrase)har said that India was Ototally unaffectedP by the #sian crisis although Ooil prices affect us.P ?assiers e6plained that Indian financial regulations offered relati!e protection against sudden inflows or outflows of capital. $he slowdown in the &+ economy is affecting the Indian economy but sometimes in une6pected ways. $he &+# represents only about 10< of IndiaFs foreign trade compared to 0,< for the "uropean &nion so India is feeling less of the effects of the slowdown in the &+ economy according to ?assiers. +he said that commentators are e!en speculating that because of the downturn in the &+ economy more &+ companies might loo) towards India for outsourcing of their software de!elopment which is a sector in which Indian engineers e6cel as it would cut their costs. %n the other hand Indian software engineers who mo!ed to the &+ on special !isa arrangements ha!e lost their Bobs and will ha!e to go bac) to India if they cannot find another one in time ?assiers pointed out.
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I perati"e action ?handrase)har listed as ad!antages offered by India transparency rule of law and democratic institutions ma)ing it easier to do business there. But gi!en the largely self(contained internal mar)et in India imports are not always the most effecti!e way of doing business he said. Instead he belie!es it ma)es sense to set up local production and to use local collaborators and affiliates.
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I(*IA?2 T5A*E ,A5T(E52

KI(*IA=s e6ports are mo!ing away from @esource based products to $echnology based products in the post(liberalisation periodT so is spelt out IndiaFs countryFs 2idterm "6port =olicy 80000(049 un!eiled on 2arch 31 0000 and based on this strategic policy shift India aims to ha!e at least 1 percent share in total global e6ports. *oreign trade in India is growing steadily assuming a significant role in countryFs gross domestic product 8G'=9. In the first phase 81;;0(;1 to 0000(019 of economic reforms 8lifting of /uantitati!e restrictions on imports and e6ports9 countryFs foreign trade as percentage of G'= increased to 01.8 percent in 0000(01 from 13.30 percent in 1;;0(;1. In eight years 81;;0(;3 to 0000(019 IndiaFs share in total global e6ports increased by 0.03 percent (( from 0.-1 percent in fiscal 1;;0(;3 to 0.34 percent in 0000(01. In ne6t fi!e years beginning fiscal 0000(03 India aims to raise the share further by 0.33 percent by 00003(04 to ha!e 1 percent share of total world e6ports. $his means the country has to achie!e a compound annual growth rate in e6ports of 11.; percent in &+G terms. In absolute terms this means increase in e6ports of about &+G 33 billion (( from &+G --.,3 bn to &+G 80.-8 bn. $hrough 1;;0s while world trade !alue has increased 1.; times IndiaFs e6ports in &+G terms were up 0., times. #merica 8&+# and ?anada9 Capan and "& are IndiaFs three maBor trade destinations. Besides India is gi!ing special emphasis on 5atin #merican and #frican countries. $hese two hitherto neglected regions offer !ast scope for Indian e6ports. It is to be noted in last one decade while Indian e6ports to #sia M %ceania: #merica and #frica ha!e gone up e6ports to "ast "uropean countries nosedi!ed to a negligible 0.;, percent in 0000 from 14.84 percent in 1;;0. 'uring the ten(year period 81;;0(;1 to 0000(019 IndiaFs e6ports to #sia M %ceania were up by 4., percent to 34., percent: to #merica by ; percent to 0, percent including &+#Fs 00.- percent 81,.3 percent in 1;;0(;19 and to #frica by 0.4 percent to ,.3 percent. "6ports to West "urope dipped 8 percent to 0,.3, percent in 0000(01.
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IndiaFs e6ports as a percentage of imports has gradually increased from 4,.33 percent in 1;;0(;1 to 88.14 percent in 0000(01. *i!e maBor product groups led by petroleum crude and products account for 33 percent of countryFs total imports. %ther product groups include pearls machinery gold and sil!er electronic goods and organic M inorganic chemicals. In si6 years 81;;-(;, to 0000(019 share of petroleum and other petro products in IndiaFs total imports increased by 10.8- percent: pearls by 3.;4 percent: and electronic goods by 3.-3 percent. +hare of gold and sil!er in countryFs total imports during this period dropped by 3.4; percent at 8.0- percent and organic M inorganic chemicals by 0.,, percent at -.;1 percent. It is significant to note in this si6(year period IndiaFs e6port growth was always higher than the world a!erage. "!en when the growth was negati!e 81;;89 IndiaFs a!erage was higher than worldFs. #ccording to World $rade %rganisationFs statistics IndiaFs e6port growth in 0000 was 13.-3 percent against world e6port growth of 10.- percent. #s it happened in all other countries global downturn impacted IndiaFs foreign trade in 0001. Indian federal go!ernment identified four maBors causes behind countryFs slow growth in international trade. $hese are . the downturn in the economy has been formally declared as a recession: Capan is li)ely to e6perience its fourth economic recession of the last decade: in "uro areas economic acti!ities ha!e considerably dampened: and signs of re!i!al absent in G(3 nations.
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India=s &oreign Trade 8ECCE%CG9 8In &+G million9 April%2epte ber' ECCE "W=%@$+ 0001(00E 0000(03 Hear(on change o!er 0001(00 I2=%@$+ 0001(00E 0000(03 Hear(on change o!er 0001(00 $@#'" B#5#N?" 0001(00 0000(03 E*inal figures as gi!en by 'G?IM+ +ource. *ederal ministry of ?ommerce India (-;-1.30 (-303.11 0303,.-4 08044.-1 8.-; 01103.8, 03;4-.30 13.-;
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India=s e!ports to 8In U2@ illion9 HEA5 COU(T5H &+# Aong 7ong &7 Capan Germany &#" Belgium Italy @ussia Netherlands Bangladesh *rance +ingapore 2alaysia #ustralia $hailand $otal others9 8Incl. -BBF%-BBD 3801.03 1;31.8; 01-0.41 18;8.-3 1;0,.30 13;0.-101,.,3 111,.1;,0.;4 803.43 ;;0.40 4,;.33 44;.40 -8;.;0 -38.04 3--.-; 3,003.00
a>or trade partners
-BBD%-BBB -BBB%ECCC 41;;.31880.30 18,,.-0 13,1.84 18,0.00 180;.40 1834.,; 1084.88 10,-.;; 40;.-0 433.,3 ;;,.,; 80;.40 ,14.-, 301.40 384.-1 33018.38 8,33.88 0,,1.,; 00-3.30 1400.;1 1800.04 01-8.03 1380.;1133.8;,1.-883.-4 3-3.33 ;1;.,4 3;1.14 -3-.;; -03.33 -,3.41 34,;8.30
ECCC% ECC;30,.10 03-0.83 00;8.41 14;-.-8 1;04.,4 0,;4.,0 1-40.,3 1308.4, 88;.01 880.0; ;3,.01000.01 844.11 308.1, -0,.8; ,30.10
ECC-% ECCE 8,13.38 0333.33 0130.88 1,10.-1488.33 0-;1.80 13;0.33 1003.,3 4;8.1; 833.88 1000.8 ;-,.00 ;40.31 443.40 -18.03 333.1-
--,30.0; -3803.;3
+ource. *ederal ministry of ?ommerce India
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India=s i ports #ro
a>or trade partners 8In U2@ illion9
HEA5 COU(T5H &+# Belgium &7 +wit1erland Capan Germany &#" #ustralia +ingapore Nigeria Italy 7orea 8@ep.9 *rance @ussia Netherlands $otal others9 8Incl. -BBF%-BBD -BBD%-BBB -BBB%ECCC 3413.88 0338.10 0--3.,3 03-0.-3 01--.;0 0,08.81480.00 1-8,.,3 11;4.88 111,.-8 ;01.40 1001.48 4;4.4348.00 --,.1; -1-8-.,0 33-0.1; 0843.80 0301.33 0;-0.34 0-3,.40 01-0.38 1401.01--,.01 138-.13 1143.43 1088.03 13;-.-3 41;.,8 ,-,.,-3-.1; -0480.,3 330;.,0 3-4-.8; 0404.83 0300.43 03,,.30 1833.33 0138.8104;.33 1,03.-0;31.0, 4--.0, 1010.10 434.0314.-4 --,.-, -4010.04 ECCC% ECC301,.00 0840.0, 3134.;0 3130.118-0.1; 14,;.,; 3,8.;8 1030.43 1-33.;1 33.48 403.,8 8;3.43 3-0.81 ,13.33 -34.,3 ECC-%ECCE 31-;.33 0433.01 0,33.01 0840.43 01-3.-, 0008.11 ;1,.0; 1330.10 130-.0; 84.10 40-.4; 11-1.34 8--.03 ,3,.,1 -33.-4
,0,33.-3 ,1-13.4;
+ource. *ederal ministry of ?ommerce India
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,roduct Group%1ise India=s E!port ,ro>ections 8In U2 @ Actual ,ro>ected E!ports E!ports 8ECC/% 8ECCC%C-9 CF9 3;0 383; 13;11,; M 1;,1 43838 480 ,180 1;13 1,,0 0311-308 48 11--3 ;,31343 33 18311 133-illion9
COMMO*ITIE2 =lantations #griculture M allied 2arine =roducts %res M 2inerals 5eather 2anufactures Gems and Cewellery +ports Goods
CAG5 8ECCE% CF9 0.00E 3.00E ,.-1 ,.00E -.;;E 11.34 0.00E 10.80 8.;3 3.;3 ,.00E 4.03 3;.3;
?hemicals and allied 303, products "ngineering goods "lectronic goods =roBect goods $e6tiles ,83, 11-1 04 10030
=etroleum products M 1803 others
+ource . IndiaFs mid(term e6port policy 8 0000(049
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Indian #ederal go"ern ent has categorised e!port products in #our broad seg ents: 2TEA*H G5O)T+ ITEM2 2arine products : spices: cashew: Basmati rice: pulses seasame and niger seeds: meat preparations: sugar and molasses: electronic goods: machinery and instruments: dyes intermediates and coal tar: chemicals and transport e/uipment. +IG+ G5O)T+' +IG+ 3ALUE ITEM2 Gems and Bewellery: manufactures of metals: drugs pharmaceuticals: chemicals and te6tiles. (E) +IG+ G5O)T+ ITEM2 Non(Basmati rice: castor oil: processed fruits and Buices: floriculture products: meat and meat preparations. &A2T G5O)I(G' LO)E5 3ALUE ITEM2 Inorganic chemicals handmade carpets. and agro chemicals: handicrafts including
#mong agro commodities tea used to figure as a significant foreign e6change earner for the country. But mainly from early ;0s in the face of the international mar)et being flooded with highly price competiti!e but cheaper /uality teas India has been losing its ground in the international mar)et and today ran)s only after +ri 5an)a and ?hina. $he /uality aspect apart +ri 5an)an teas are highly price competiti!e !is(a(!is India. #fter tea yet another product that is registering lower e6port growth is leather and leather goods
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I(*IA % BELGIUM 5ELATIO(2

@elations between India and Belgium ha!e traditionally been friendly with no maBor outstanding bilateral problems. Aowe!er until recently our political relations were not ade/uately broad(based and high le!el bilateral contacts ha!e been infre/uent although there ha!e been interactions between the go!ernments and leaderships of both countries at multilateral fora. $he "uropean &nion with its capital in Brussels o!ershadows our relations with Belgium. Aowe!er "&( related !isits of Indian 2inisters to Brussels ha!e pro!ided opportunities for bilateral contacts with Belgium. Belgiu ?s Internal ,olity: Belgium is a hereditary constitutional monarchy. $he present 7ing #lbert II the si6th )ing of the Belgians ascended to the throne in 1;;3 after the death of his brother 7ing Baudoin ended a -0(year reign. $he eldest of his three children =rince =hilippe is the ?rown =rince. *ollowing general elections on Cune 13 1;;; a new coalition go!ernment of 5iberal +ocialist and Green =arties was sworn in on Culy 10 1;;; with 2r. Guy >erhofstadt as =rime 2inister and 2r. 5ouis 2ichel as 'eputy =rime 2inister and *oreign 2inister. $he 5iberal =arty the +ocialist =arty and the Green =arty ha!e Boined forces to form the new go!ernment. $his go!ernment is a watershed in Belgian politics since it is the first time in -0 years that the ?hristian 'emocratic =arty is out of power the first time e!er that Greens party is in power and the first time that a member of the 5iberal =arty is becoming =rime 2inister since 188-. Belgium was one of the ele!en countries which adopted the "uro on Canuary 1 1;;;. It has capitali1ed on its central geographic location highly de!eloped transport networ) and di!ersified industrial and commercial base. =ro6imity to 5ondon =aris and to the mouths of the ri!ers @hine and 2euse has made Belgium a natural trading centre. Brussels the seat of the "uropean &nion ran)s as the eighth largest financial centre in the world. $he Belgian chemical industry generates nearly 10< of total "uropean turno!er in this sector. #ntwerp has a maBor concentration of chemical plants. $he city a maBor "uropean port
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is also the largest diamond centre in the world with 1,00 diamond firms and four diamond e6changes. Belgium is among the leading glass ma)ers in "urope. Belgian companies are partners in !arious aerospace programmes in "urope. $he Belgian food industry offers a wide range of products. Econo ic 5elations: $he 10 th session of Indo(BelgiumD5u6embourg "conomic Coint ?ommission was held in New 'elhi on Canuary 8(; 0001. $he Indian side was led by the ?ommerce M Industry 2inister +hri 2urosali 2aran and the BelgiumD5u6embourg delegation was led by 2s. 5ydie =olfer 'y. =2 and *2 of 5u6embourg and by 2s. #nnemie Neyts &yttebroec) +ecretary of +tate for *oreign #ffairs of Belgium. #n #ir +er!ices #greement between India and 5u6embourg was also signed during this !isit. $he main issues ta)en up at the meeting include an e!aluation of economic and trade relations infrastructure science M technology financial co(operation consular matters India("& and multilateral trade issues diamond trade and transport sector etc. Belgium is IndiaNs 4 th largest trading partner and 3 rd in the "&. BelgiumNs trade with India is the third highest amongst all #sian countries and accounted for 10.,< of BelgiumNs o!erall trade with #sia. $he Indo( Belgian total trade in 0001 amounted at G -.1;3 billion. $he maBor #sian trading partners of Belgium are Capan with G4.000 bn followed by ?hina at G ,.3,3 bn. Indo(Belgium total trade in 0001 mar)ed an decrease of 12.38% o!er the pre!ious year in dollar terms. #s in pre!ious years gems and Bewellery continued to dominate bilateral trade constituting 43.-,< of total trade which continues to be the single largest item of bilateral trade. If one were to e6clude gems and Bewellery from the bilateral trade total trade would be at G ;83.3, million. In 0001 BelgiumNs e6ports to India were !alued at G0.3;0 bn a decrease in dollar terms of Z1,.34< o!er the pre!ious year and India e6ported G1.,00 bn worth of goods mar)ing a decrease of Z,.8< compared to 0000. $he diamondsN share in Indian e6ports was ,4.80< !alued at G838.-;million. %n 00 nd %ctober 0001 in a significant de!elopment IndiaNs =+5> Z ?3 put into orbit the Belgian satellite =@%B# 8=roBect for %nboard #utonomy9 into a 300 )ms elliptical polar orbit along with two other
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satellites from +rihari)ota India. =@%B# is a tiny satellite of 100 )gs with high(resolution cameras to ta)e images of the earth and other data for e6periments by students who would access them through a web ser!er located at "+# ground station in @edu Belgium. $oday Belgium is the ;th ran)ing in!estor nation in India. BelgiumNs cumulati!e in!estment appro!als into India since 1;;1 touched a record figure of @s. 3;100 million. In 1;;8 alone it amounted to @s. 30888. Aowe!er the in!estment flow in 1;;; declined sharply. $here are about 1,3 Coint >entures mostly small and medium scale. In 1;;; alone 18 Boint !entures were established in India. $here is considerable interest in Belgium for in!estment in the energy ports software and biotechnology sectors. $he institutional framewor) for economic commercial and technological cooperation is well(established with the entry into force of the 'ouble $a6ation #!oidance #greement and the Bilateral In!estment =romotion #greement in 1;;4 and of the #greement on "conomic Industrial +cientific and $echnological ?ooperation in 1;;0. *e"elop ent Co%operation: Belgium has made a!ailable to India a credit line of B* 0,0 million 8appro6. &+G 3.3 million9 for e6ecution of specific de!elopment proBects. =art of the fund was utilised for setting up electronic postal system in 2umbai in 1;;,. +ubse/uently a portion of the credit was used for setting up of a ?yclotron plant in ?alcutta in 1;;;. Indian software companies Belgium such as $?+ $ata Infotech A?5 and Infosys ha!e set up offices in Brussels and are doing business with Belgian companies. $here are also se!eral Indian I$ professionals employed by Belgian companies e6ecuting on(sight I$ proBects from time to time. Infosys shortly after setting up its operation in 1;;; secured an I$ contract from BelgacomNs mobile ser!ices Q=ro6imusN. With shrin)age of professionals in Belgium the sector offers !ast opportunities for Indian I$ companies. It is estimated that the shortage of I$ professionals in Belgium is around 30 000. Belgium sees Indian I$ professionals as competiti!e in comparison to those from de!eloped countries. 2aBor companies 5i)e Barco and #lcatel are bringing in Indian professionals for training and later e6ecuting off(shore
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programmes in India. In addition Belgian and 5u6embourg companies are belie!ed to be outsourcing the I$ wor) from India on a regular basis. Indian Co unity: $he estimated number of Indian nationals and people of Indian origin resident in Belgium is about 4000. In addition there are about 0,00 Indian children adopted by Belgian parents. $he bul) of the Indian community is concentrated in #ntwerp and Brussels. $he Indian community resident in #ntwerp is mostly the diamond merchants from GuBarat and is a well(established and prosperous community. $he others are scattered thinly in 5ou!ain Ghent etc. 2any of the other Indians li!ing in Belgium are professionals employed with either multinational corporations or professional organisations. $he Indian community has formed associations for cultural and social acti!ities: amongst these are a9 Bharatiya +amaB b9 #ntwerp Indian #ssociation c9 Bharat 'arshan d9 2a1lish e9 Indo(*landers #ssociation Ghent and f9 Indian +tudentsF #ssociation 5ou!ain.
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Bilateral "isits: Outgoing =2 +mt. Indira Gandhi =2 +hri 2orarBi 'esai "#2 +hri = > Narasimha @ao ?2 +hri > = +ingh 1;41 1;48 1;83 1;83
=arliamentary delegation led by +pea)er +hri Balram 1;88 Ca)har "#2 +hri I.7. GuBral ?2 +hri #run Nehru =arliamentary delegation led by +pea)er +hri @abi @ay "#2 +hri =ranab 2u)herBee "#2 +hri 'inesh +ingh 2inister of $e6tiles M 5abour +hri >en)at +wami 2%? +hri B B @amaiah 2inister of +urface $ransport +hri $ G >en)atraman 2inister of ?ommerce +hri @ama)rishna Aegde 1;;0 2ay(Cune 1;;0 Culy 1;;0 1;;3 1;;2arch 1;;3 No!ember 1;;3 +ept 1;;4 %ctober ;8
=arliamentary delegation led by +pea)er +hri G.2.?. #pril 1;;; Balayogi accompanied by amongst others 'r. NaBma Aeptullah 'eputy ?hairperson @aBya +abha "#2 +hri Caswant +ingh 2inister of +tate for ?MI +hri %mar #bdullah 2inister of +urface $ransport +hri @aBnath +ingh 2inister for @ural 'e!elopment +hri >en)iah Naidu +eptember 1;;; *ebruary 0000 +eptember 0000 Culy 0001
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Inco ing 7ing Baudoin 2inister of *oreign $rade 2r. A. 'e Bruyne *oreign 2inister 2r. 5eo $indemans +ecretary of +tate for *oreign $rade 2r. 7empenaire +pea)er 2r. *erdinand Nothomb 1;40 1;48 1;80 1;83 1;;3
A@A =rince =hilippe and *oreign $rade 2inister 2r. 2arch 1;;, @obert &rbain in 1;;, ( 8 th Coint ?ommission Wallon =arliamentary +pitaels delegation led by =resident +ept ;3
*oreign 2inister 2r. "ri) 'eryc)e =rime 2inister Cean(5uc 'ehaene
*ebruary 1;;4 %ct ( No! 1;;4
A@A ?rown =rince =hilippe accompanied by 'y =2 M No!ember 1;;8 2inister for *oreign $rade "lio 'i @upo. +tate +ecretary for *oreign #ffairs 2s. #nnemie Neyts( Canuary 0001 &yttebroec) for India(B5"& Coint ?ommission
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COMME5CIAL 5ELATIO(2 O& I(*IA

$he commercial offices attached to India play a !ital role in the promotion of IndiaNs foreign trade and economic relations. $he commercial representati!es assist the Go!ernment in the formulation of its trade and economic policies ?ommerce through regular feed( bac) on mar)et trends trade promotion prospects and the general economic situation of the country to which they are accredited. $o )eep commercial representati!es informed on the important economic policy de!elopments a QNewsletterN is brought out by the 2inistry. 2OUT+ EA2T A2IA IndiaNs trade with +outh "ast #sia region comprising the #+"#N countries 8!i1 Indonesia 2alaysia +ingapore $hailand =hilippines Brunei >ietnam 2yanmar and 5aos9 ?ambodia #ustralia New Xealand and countries of %ceania at about &+ G 8031 million registered a nominalgrowth of about 3 per cent during the year 1;;4( ;8 in the wa)e of financial and currency turmoilfaced by some of the countries in the region !i1. Indonesia 2alaysia =hilippines $hailand etc Imports from this region at &+ G ,13, million registered an increase of about 1, per cent while e6ports at &+ G 08;, million declined by about 1- per cent during the year 1;;4(;8. 'uring the period #pril( Canuary 1;;8(;; IndiaNs trade with the countries in the region at &+ G 33;0.3- million declined by 1.3 per cent during the corresponding period in the pre!ious year. While IndiaNs e6ports at &+ G 1388.3, million during the period #pril(Canuary 1;;8(;; to the countries in the region ha!e gone down by 33.1 per cent imports ha!e registered a growth of 1.31 per cent. $he principal commodities for e6port to this region include oil meals gem and Bewellery electronic goods cottonDfabrics made(ups machinery and instruments primary and semi(finished iron and steel drugs and pharmaceuticals meat etc. $he maBor commodities imported from this region are coalDco)eDbri/uettes !egetable oils electronic goods organic chemicals machinery e6cept electrical
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machinery wood and wood products non(ferrous metals raw wool pulses wheat electrical machinery etc. In consonance with IndiaNs N5oo) "ast =olicyN and after ha!ing become a *ull 'ialogue =artner with #+"#N #+"#N(India Wor)ing Group on $rade and In!estment 8#+"#N(India WG$I9 has been established under the aegis of the #+"#N(India Coint ?ooperation ?ommittee to gi!e a maBor fillip to IndiaNs relationship with #+"#N in trade and in!estment which are maBor areas of focused cooperation with #+"#N. Its first meeting was held on 0,(03 2ay 1;;8 in New 'elhi which was attended by 0, delegates from nine #+"#N countries. India also has Coint $rade ?ommittees with $hailand and New Xealand and Coint Wor)ing Group with =hilippines to periodically re!iew the bilateral trade and economic cooperation with these countries. In addition India has a Coint ?ommission with #ustralia to re!iew trade and economic matters the last meeting of which was held in New 'elhi on 03 *ebruary 1;;;. W"+$ #+I# #N' N%@$A #*@I?#West #sian and North #frican 8W#N#9 countries occupy important ?ommerce positions in IndiaNs trade. 'uring 1;;4(;8 e6ports to this region were @s 13 ;4-.3- crore and imports were @s3, 030.;8 crore. 'uring the first ele!en months of 1;;4(;8 8#pril(*ebruary9 e6ports to this region amounted to @s 1, ,80.88 crore and imports to this region amounted to @s 0; ,83.83 crore. $he balance of trade is not in fa!our of India because of import of large /uantities of crude oil from this region. $his region is also an important source of supply of some important agricultural and industrial inputs re/uired in India !i1. fertili1ers roc) phosphate etc. It holds considerable promise for the growth of IndiaNs e6ports particularly in processed foods drugs and pharmaceuticals and gems and Bewellery sectors. India has trade agreements with "gypt Ira/ Iran #fghanistan Cordan 7uwait 5ibya 2orocco +yria and $unisia. India is also ha!ing Bointcommissions with some of these countries with a !iew to de!ising measures for impro!ing and di!ersifying trade flows. )E2T EU5O,E West "urope is the maBor trading partner accounting for about 08 per cent of IndiaNs total e6ports and 30 per cent of imports during #pril(
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*ebruary 1;;8(;;. It comprises countries in the "uropean &nion 8Belgium 'enmar) *rance Germany Greece Ireland Italy 5u6emburg Netherlands &7 +pain =ortugal #ustria *inland and +weden9 "uropean &ree Trade #ssociation 8"*$#9 countries 8Norway +wit1erland Iceland and 5iechtenstein9 in addition to $ur)ey 2alta and ?yprus. $ur)ey has since Boined the customs union of the "uropean &nion 8"&9. # maBor part of IndiaNs total e6ports to West "uropean regions is accounted for by Bust eight countries !i1. Germany &7 Belgium Italy *rance Netherlands +pain and +wit1erland. Aence most of the mar)ets in this region are relati!ely une6plored. $he main items of e6port to West "urope comprise te6tiles yarn fabrics and engineering goods software besides agricultural and marine products. Imports from the region are generally manufactured products especially plant and machinery chemicals steel and transport e/uipment. 'uring #pril( *ebruary 1;;8(;; "& countries accounted for nearly 0, per cent of e6ports and 0- per cent of imports of IndiaNs global rade. While efforts are being made to e6pand IndiaNs trade with "& member countries there are certain hurdles posed by "& in the shape of anti( dumpingDanti(subsidy in!estigations leading to imposition of counter!ailing duties and other trade barriers put in place obstructing mar)et access. CE(T5AL A(* EA2T EU5O,EA( COU(T5IE2 India has traditionally enBoyed close and multi(faceted relations with most of the countries of ?entral and "astern "urope. Aowe!er the transition from centrally planned socialist economies to mar)et oriented economies collapse of old trading arrangements se!ere li/uidity constraints in these countries fragmentation of retail mar)ets high interest rates which discourage long distance trading on 5Dc basis an increase in demand for sophisticated pac)aging and /uality goods competition from other countriesDregions li)e ?hina $ur)ey and "uropean &nion and image problems of Indian goods were responsible for the -4.-- per cent decline in bilateral trade between
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?ommerce1;;0(;1 and 1;;4(;8. $he e6ports from India to the countries of ?entral and "astern "urope has also declined from &+ G 31-.30 million to &+ G 1;-.00 million during the same period. $he decline in percentage term has been 38.43 per cent. $he current financial year howe!er has witnessed a decline in our e6ports to the ?entral and "astern "uropean countries by -.8 per cent during the period #pril(*ebruary 1;;8(;;. #*@I?# India has ta)en se!eral measures to increase bilateral cooperation and Boint !entures with sub(+aharan #frican countries. $rade agreements ha!e been signed with 1; countries namely Bur)ina *aso "thiopia Ghana #ngola ?ameroon I!ory ?oast 7enya 5iberia 2o1ambi/ue Namibia Nigeria @wanda +enegal +outh #frica &ganda Xambia Xaire Ximbabwe and +eychelles. #lmost all these agreements pro!ide for constitution of bilateral trade committee for periodical re!iew of trade and co(operation. India has a total of 40 Boint !entures in sub(+aharan #frica. 2aBor items of e6ports from India to this region are engineering goods ransport e/uipment !ehicles small and medium scale industrial machinery consultancy ser!ices cotton manufactures chemicals and allied products iron and steel manufactures tobacco and spices etc. (O5T+ AME5ICA $he &nited +tates is IndiaNs largest single trading partner. In 1;;4(;8 e6ports to the &+ were of the order of @s 0- 3-0.38 crore and imports from the &+ were of the order of about @s 13 ,0;.33 crore. 'uring #pril(Canuary 1;;8(;; IndiaNs e6ports to &+# at @s 0- 333.04 crore ha!e registered a growth of more than 0, per cent: whereas the imports from &+# at @s 10 3;8.3, ha!e registered a growth of more than 10 per cent o!er the corresponding period of pre!ious year. $he dollar !alue of the two(way trade has been increasing since 1;;1(;0. IndiaNs maBor e6ports to &+ include gems and Bewellery te6tiles coir Bute and handicrafts chemicals and allied products engineering goods leather and leather manufactures etc. 2aBor imports from &+ include fertili1ers aircrafts turbo(Bets aircraft parts automatic data processing machines electronic goods wood pulp parts of locomoti!es fertili1er proBect goods chemicals etc.
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Indian trade with ?anada is !ery modest. 'uring 1;;4(;8 e6ports to ?anada were of the order of around @s 1 ,-8.88 crore and imports were of the order of @s 1 ,8,.43 crore. 'uring #pril(Canuary 1;;8(;; IndiaNs e6ports to ?anada at @s 1 ,,8 crore ha!e registered a growth of more than 03 per cent while imports from ?anada at @s 1 0;,.-0 crore ha!e registered a decline of 4.33 per cent o!er the corresponding period of the pre!ious year. $he maBor items of e6ports include garments leather goods carpets minerals chemicals and allied products coffee cashew spices etc. while imports include pulp and waste paper pulses metaliferrous ores and metal scraps fertili1ers artificial resins plastic materials newsprint non(ferrous ?ommerce metals proBect goods electrical machinery etc. 2OUT+ AME5ICA IndiaNs e6ports to +outh #merica and ?arribean region were of the order of @s 0 3,3.4, crore and IndiaNs imports from this region were of the order of @s 0 188.;3 crore during 1;;4(;8.'uring #pril(Canuary 1;;8(;; IndiaNs e6ports to this region at @s 0 03; crore ha!e registered agrowth of about ;.-3 per cent and the imports from the region at @s 0 -0-.84 crore ha!e registereda growth of about -1 per cent o!er the corresponding period of the pre!ious year. 'espite !arious constraints IndiaNs e6ports to the region ha!e shown a healthy rate of growth in the recent years. $his is largely the result of trade and industry responding to the lowering of tariffs and non(tariff barriers in many of the 5atin #merican countries and special thrust of the Go!ernment through the N*%?&+. 5#?N =rogramme to enhance trade with this region. #rgentina Bra1il ?hile =eru 2a6ico =anama ?olumbia >ene1uela and &ruguay are IndiaNs maBor e6port mar)ets in the region. "6ports to the region include te6tiles and readymade garments drugs and pharmaceuticals engineering goods such as bicycles and components thereof mopeds two(wheelers automoti!e components diesel engines hand(tools leather and leather manufactures dyes intermediates etc. %ur imports from the region include crude minerals iron and steel and their products non(ferrous metals metaliferrous ores !egetables oils pulp and paper waste raw wool etc.
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7OI(T 3E(TU5E2 =roposals from Indian companies for o!erseas direct in!estment in Boint !entures and wholly owned subsidiaries are being considered in the @eser!e Ban) of India ?entral %ffice 2umbai. $he in!estment appro!ed by the @BI are well di!ersified in terms of their destination countries. #ppro!als ha!e been gi!en to set up a large number of trading concerns meant for promoting IndiaNs e6ports in the field of te6tiles and garments besides marine products leather and electricalgoods. In the manufacturing sector appro!als ha!e been gi!en for different sectors such as iron and steel drugs and pharmaceuticals yarn and te6tiles garments cement and sugar. # number of appro!als ha!e been gi!en for setting up units in the field of computer software.
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GE(E5AL IM,LICATIO(2 O& )TO I( (UT2+ELL

It is a tribute to the human ci!ili1ation that so!ereign nations ha!e agreed to subordinate their freedom 8to act9 and ha!e agreed to wor) within the framewor) of rules to promote global trade. $he &ruguay @ound of negotiations has resulted into formation of W$% a rule based system which is e6pected to lead to smooth and orderly international trade. In nutshell the implications Z both threats and opportunities could be summari1ed as. $he impact of W$% and its agreements are on e!ery economic acti!ity may it be agriculture trading ser!ice or manufacturing. World mar)ets are opening up due to lowering of tariffs and dismantling of other restrictions in de!eloped and de!eloping countries. "nlightened and awa)ened entrepreneurs ha!e greater opportunities to benefit from their comparati!e ad!antages. 'omestic mar)ets will be increasingly threatened because of lowering of tariffs leading to freer entry of foreign goods and because of foreign companiesN establishing manufacturing bases locally. Whereas the de!eloping countries will ha!e greater opportunities in sectors in which they ha!e cost based comparati!e ad!antages e.g. $e6tiles #griculture etc. the de!eloped countries to benefit by opening of ser!ice sector and tightening of Intellectual =roperty @egime. "6port 2ar)ets will become tougher because of competition among de!eloping countries with similar comparati!e ad!antages. $here is a wa!e of standardi1ation blowing across the globe: products from de!eloping countries are to face tougher /uality standards in de!eloped mar)ets particularly in the areas where they ha!e comparati!e cost ad!antage. "!ery company Z whether ser!ing domestic or international mar)et will ha!e to underta)e internal e6ercise to identify factors affecting its international competiti!eness in terms of cost as well as /uality. It will
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need to study if it can stay competiti!e once the product becomes freely importable or tariffs are further lowered or at both. $he W$% regime will benefit those countries more which show wits and s)ills in the ongoing dialogue. $he Go!ernments that are in constant touch with their industries and affected groups will be able to determine with clarity how and what should be negotiated at multilateral negotiations to the best of their ad!antage. $he International $rade is increasingly becoming )nowledge based. $he entrepreneurial ability will come to fore in the new en!ironment. $he concepts of liberali1ation of international $rade deregulation and pri!ati1ation of internal economy ha!e now been strengthened and legali1ed under W$%. $he choice before countries in adopting a direction other than this has become almost unreali1able. $he countries that ha!e understood this ha!e mo!ed swiftly in fine tuning their domestic and international trade policies creating a winning en!ironment for their businesses. $hose who are still debating the issue or are in the stage of bewilderment will help neither themsel!es nor their businesses.
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EU AT A GLA(CE
Trade Blocs $he number of regional trade blocs has grown rapidly in recent decades. 2ore than one(third of world trade now ta)es place within such blocs. New form of bloc encompassing both rich and poor countries attempt to secure Tdeep integrationT of economic acti!ities. $rade Blocs analy1es both the political and the economic benefits of regional trade blocs. It argues that the benefits can sometimes be illusory and that careful economic choices ha!e to be made if the schemes are to bring benefits. $he trade(offs faced in these choices are analy1ed and the design of successful blocs is studies. "uropean integration has deli!ered half a century of stability peace and economic prosperity. It has helped to raise standards of li!ing built an internal mar)et launched the euro and strengthened the &nionFs !oice in the world. $he "uropean &nion 8"&9 was set up after the 0nd World War. $he process of "uropean integration was launched on ; 2ay 1;,0 when *rance officially proposed to create Fthe first concrete foundation of a "uropean federationF. +i6 countries 8Belgium Germany *rance Italy 5u6embourg and the Netherlands9 Boined from the !ery beginning. $oday after four wa!es of accessions 81;43. 'enmar) Ireland and the &nited 7ingdom: 1;81. Greece: 1;83. +pain and =ortugal: 1;;,. #ustria *inland and +weden9 the "& has 1, 2ember +tates and is preparing for the accession of 13 eastern and southern "uropean countries. $he "uropean &nion is based on the rule of law and democracy. It is neither a new +tate replacing e6isting ones nor is it comparable to other international organisations. Its 2ember +tates delegate so!ereignty to common institutions representing the interests of the &nion as a whole on /uestions of Boint interest. #ll decisions and procedures are deri!ed from the basic treaties ratified by the 2ember +tates.
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,rincipal ob>ecti"es o# the Union are: "stablish "uropean citi1enship 8*undamental rights: *reedom of mo!ement: ?i!il and political rights9 "nsure freedom security and Bustice 8?ooperation in the field of Custice and Aome #ffairs9 =romote economic and social progress 8+ingle mar)et: "uro the common currency: Cob creation: @egional de!elopment: "n!ironmental protection9 #ssert "uropeFs role in the world 8?ommon foreign and security: $he "uropean &nion in the world9. $he "& is run by fi!e institutions each playing a specific role. "uropean =arliament 8elected by the peoples of the 2ember +tates9: ?ouncil of the &nion 8composed of the go!ernments of the 2ember +tates9: "uropean ?ommission 8dri!ing force and e6ecuti!e body9: ?ourt of Custice 8compliance with the law9: ?ourt of #uditors 8sound and lawful management of the "& budget9. *i!e further bodies are part of the institutional system. "uropean "conomic and +ocial ?ommittee 8e6presses the opinions of organised ci!il society on economic and social issues9: ?ommittee of the @egions 8e6presses the opinions of regional and local authorities on regional policy en!ironment and education9: "uropean %mbudsman 8deals with complaints from citi1ens concerning maladministration by an "& institution or body9: "uropean In!estment Ban) 8contributes to "& obBecti!es by financing public and pri!ate long(term in!estments9: "uropean ?entral Ban) 8responsible for monetary policy and foreign e6change operations9.
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# number of agencies and bodies complete the system. Me ber 2tates Belgium Germany +pain Ireland 5u6embourg #ustria *inland &nited 7ingdom 'enmar) Greece *rance Italy $he Netherlands =ortugal +weden
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I(*IA%EU 5ELATIO(2
$he "uropean &nion 8"&9 with its fifteen member countries constitutes the largest economic entity of the world today. #ustria Belgium 'enmar) *inland Germany Greece +pain *rance Ireland Italy 5u6embourg the Netherlands =ortugal +weden and the &nited 7ingdom are the present constituents of the grouping. $wo of its member states are permanent members of the &N +ecurity ?ouncil one more is one of the strongest candidates for membership once the ?ouncil is e6panded four are members of the G(8 and all are among the most ad!anced economies in the world today. India has traditionally had a multi(dimensional relationship with the "& which is our largest trading partner biggest source of foreign direct in!estment maBor contributor of de!elopmental aid important source of technology and home to a large and influential Indian diaspora. India was one of the first #sian nations to accord recognition to the "uropean ?ommunity in 1;30.Initially our contacts with the ?ommunity were limited to economic and commercial lin)s since this was the e6tent of the ?ommunityNs competence. #s the ?ommunity e!ol!ed and too) on a political dimension as well India decided to establish a closer political relationship with it. #ccordingly in 1;83 it was agreed to formally institute the India("? political dialogue. $here are se!eral institutional mechanisms that foster India "& relations. India("& +ummit 2eeting India("& $roi)a 2inisterial 2eeting +enior %fficial 2eetings India("? Coint ?ommission India("& Coint Wor)ing Group on $errorism India("& Coint Wor)ing Group on ?onsular #ffairs India "& @ound $able etc. "#2 participated at the India "& annual troi)a ministerial tal)s in 2adrid on 1-th *ebruary 0000 which was held under the +panish =residency of the "&. $he "& side consisted of +panish *oreign 2inister Coseph =i/ue "? Aigh @epresentati!e 2r Wa!ier +olana and "? ?ommissioner for "6ternal @elations 2r. ?hris =atten. "? ?ommissioner for "6ternal #ffairs ?hris =atten !isited New 'elhi on 0-th 2ay 0000 and met with "#2 and =rincipal +ecretary to =2. $his was followed by a !isit by "& Aigh @epresentati!e Ca!ier +olana on
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03th Culy 0000. %n both occasions bilateral issues as well as regional and international issues of mutual concern were discussed. $here was a broad con!ergence of !iews that terrorism was a global phenomenon and the need to dismantle infrastructure of cross border terrorism. Interaction at the le!el of =arliament has pic)ed up in the recent past. $he +outh #sia 'elegation of the "uropean =arliament led by 2r. Gerard ?ollins ?hairman of the 'elegation !isited India on #pril 14( 00 0000. Indian =arliamentay group led by =# +angma in Canuary !isited "uropean =arliament to sensitise the 2embers of the "uropean =arliament on terrorist attac)s on Indian =arliament. +ummit 5e!el Interaction .With the institutionali1ation of the +ummit le!el interaction since the first India("& +ummit in 5isbon bilateral relations ha!e soared to a higher le!el. +ince the 5isbon 'eclaration there ha!e been se!eral new initiati!es demonstrating our determination to engage at all le!els Z go!ernmental and non( go!ernmental. $he Coint Wor)ing Group on International $errorism has shown con!ergence of !iews on tac)ling the scourge of terrorism. $he Coint Wor)ing Group on ?onsular #ffairs has shown our mutual desire to remo!e impediments in the furtherance of business and people to people contacts. $he Indo("& @ound $able and the $hin) $an) Networ) which are part of the ongoing ci!il society dialogue between India and the "& are complementary to our o!erall relationship. $he $hird 2eeting of India "& @ound was held on -(, *ebruary 0000 in Caipur where the role of the media and human capital in enhancing ci!il society dialogue was discussed. $he recommendations of the @$ ha!e been submitted to the Aeads of Go!ernment of India and "& for consideration. India("& $roi)a +enior %fficials 2eeting too) place on 0nd 2ay 0000 in New 'elhi. *ormer *oreign +ecretary 2rs. ?ho)ila Iyer led the Indian side and 2r. 'on Ca!ier Garrigues +ecretary General of *oreign %ffice of +pain led the "& side. India and "& committed themsel!es to continue the fight against international terrorism and discussed de!elopments in +outh #sia and "uropean &nion. $he fourth meeting of India "& CWG ?onsular #ffairs was held on 00nd 2ay 0000 in New
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'elhi under the +panish =residency. =roblems of transit !isas instituted by "& countries following the 11th +eptember terrorist attac)s business !isas wor) permits and general consular problems such as dri!ing licenses and documentation were discussed during the meeting. $he 10th India "& Coint "conomic ?ommission was held in Brussels on 10th Culy 0000. Both sides discussed the problems of mar)et access issues G+= issues +ummit deli!erables and re!iewed the progress of sub(commissions as well as Coint Wor)ing Groups. $he second +ummit was held in New 'elhi on 03rd No!ember 0001 under the Belgian =residency. India was represented by =rime 2inister #tal Behari >aBpayee and the "& was represented by the =rime 2inister of Belgium Guy >erhofstadt in his capacity as =resident of the "uropean ?ouncil and the =resident of the "uropean ?ommission @omano =rodi. Indian 2inisters Caswant +ingh 8"6ternal #ffairs9 2urali 2anohar Coshi 8Auman @esource 'e!elopment %cean 'e!elopment and +cience M technology9 2urasoli 2aran 8?ommerce M Industry9 as well as the Belgian 2inister of +tate 2s #nne(2ie Neyts(&ytterbroech 8*oreign #ffairs9 and the "uropean ?ommissioner =ascal 5amy 8$rade9 participated in the +ummit. $he Coint ?ommuni/uJ that was adopted during the +ummit re!iewed the progress since the 5isbon 'eclaration and outlined the future course of action. It incorporated se!eral issues of mutual interest: reiterated the commitment of India and the "& global actors in the multi(polar world to further e6pand the relationship at all le!els: e6pressed support for the international coalition in the fight against terrorism where!er it occurs and regardless of its moti!es: e6pressed support to the early implementation of ?omprehensi!e ?on!ention on International $errorism. %n #fghanistan hope was e6pressed that afghan people would ha!e a broad(based multi(ethnic go!ernment which will respond to the needs and aspirations of the afghan people. %n the economic and de!elopment cooperation there was recognition for building mutual confidence and understanding. %n W$% it e6pressed satisfaction at the successful conclusion of the *ourth W$% 2inisterial ?onference held at 'oha particularly its de!elopment and agenda. $he +ummit adopted the declaration against international
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terrorism as a separate document. It underlined the common commitment of India and the "uropean &nion to counter the great threat faced by open democratic and multi(cultural societies. $he declaration called upon all states to cooperate in the fight against terrorism. $he 'eclaration affirmed that international terrorism is a threat to peace and security and called upon all states for refraining from pro!iding moral material or diplomatic support to acts of terrorism and from pre!enting the use of their territory for sponsoring terrorist acts against other +tates. $he Coint >ision +tatement on Information $echnology was adopted and se!eral useful agreements the +cience M $echnology and the +ar!a +hi)sha #bhiyan on primary and secondary education in India with a contribution of "uro 000 million were also signed.India("& Business +ummit that preceded the political e!ent was organised Bointly by ?II and *I??I in partnership with the 'epartment for Industrial =olicy and =romotion of the 2inistry of ?ommerce on 00nd No!ember 0001. %!er -0, participants including high(le!el business participation and business community from India and "& countries attended the e!ent. Biotechnology food processing and pharmaceuticals I$ and telecommunications engineering and manufacturing and financial ser!ices and insurance were )ey areas identified on which recommendations were made. =rime 2inister in his )eynote address urged the "& to grant greater mar)et access to Indian products and ser!ices and welcomed useful sector specific reports emanating from the Boint initiati!e to enhance bilateral trade and in!estment flows. $he ne6t India("& Business summit will be held on 8(; %ctober 0000 in ?openhagen before the political summit of the $hird India "& +ummit in %ctober 0000. $here has been acceptance that India("& dialogue at the highest le!el should be institutionalised on a regular basis. $he ne6t India("& +ummit would be held in ?openhagen during the 'anish =residency of the "& on 10(11 %ctober 0000. $he New 'elhi +ummit adopted a fresh F#genda for #ctionF with concrete obBecti!es to be implemented in time for the 3rd +ummit. F#genda for #ctionF pledges India and "& to intensify the political dialogue in order to address the conse/uences of the terrorist attac)s
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of 11th +eptember and reiterates the commitment of both sides to wor) together for early adoption and implementation of the ?omprehensi!e ?on!ention on International $errorism. It commits India and "& to deepen the dialogue on economic and de!elopment co(operation through the India("? Coint ?ommission which will e6amine the recommendations of the Business +ummit in the framewor) of TIndia("& Coint Initiati!e for "nhancing $rade and In!estmentT. Econo ic relations: $he "& is IndiaNs largest trading partner with a steady growth in !olume and di!ersity since 1;;3 with a third of Indian e6ports reaching "& destinations. Bilateral trade was appro6imately "uro 0,.00 billion in 0001. It accounts for 03< of our e6ports and 0,< of our imports. India is the "&Ns 14th largest supplier and 00th largest destination of e6ports. Aowe!er its "& mar)et share in 0001 was about 1.3<. IndiaFs strength still lies in its traditional e6ports li)e te6tiles agricultural and marine products gems and Bewellery leather and engineering and electronics products. +ome sectors li)e chemicals carpets granites and electronics ha!e shown the fastest growth in the last fi!e years. Indian imports ha!e been dominated by gems M Bewellery engineering goods and chemicals M minerals. $he "& is one of the maBor sources of foreign direct in!estment for India with countries li)e the &7 Germany *rance Belgium Italy and the Netherlands accounting for a large proportion of the in!estment. *'I flows from "& to India amounted to "uro 1.1 billion in 1;;; while *'I from India to "& was "uro 3; million. $he pattern of "& in!estment has shifted towards the infrastructure mainly power and telecommunications. $he "& has a substantial sta)e in the industrial machinery transport electrical and electronics te6tiles chemicals and consultancy sectors. *e"elop ent Co%operation: $he "uropean ?ommission has a large number of de!elopment programmes with education health and en!ironment as priority sectors. $he main obBecti!e is to enhance human de!elopment by pro!iding assistance for proBects which benefit the economically wea)er and depri!ed sections of the society. $he "& has mo!ed from
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a proBect(based approach to a programme(specific one. $here is potential for di!ersifying into new areas such as drin)ing water supply particularly in rural areas watershed de!elopment housing sanitation slum impro!ement etc. $he combined contribution of the "& member states and the "? accounted for almost 04< of the total aid flow into India o!er the last fi!e years. #t present 1, "? funded proBects are operational in the health education en!ironment and other sectors. While "& countries together contribute a large chun) of bilateral aid only 10(1,< of this aid comes from "? budgetary funds. $he "? has indi!idually contributed about "?& 0 billion o!er the last 00 years in grants(in(aid for de!elopmental proBects. $he "& member countries indi!idually contributed a total of G ,3 million worth of money material and men as relief assistance in the wa)e of the GuBarat earth/ua)e in Canuary 0001 8"? alone ga!e a grant of "uro 13 million9. #t the +econd India "& summit on 03rd No!ember the *inancing #greement for uni!ersalising elementary education Dprimary education proBect Q+ar!a +i)sha #biyanN with a contribution of "uro 000 million was signed. India%EU 5ound Table: In !iew of the e6istence of !ibrant dynamic and multifaceted ci!il societies on both sides ci!il societies dialogue has become an important dimension of India "& relations. *ollowing a decision ta)en by "#2 and "? "6ternal @elations ?ommissioner ?hris =atten in 'ecember 1;;; the India("& @ound $able was launched during ?ommissioner =attenNs !isit to India Canuary 0;th 0001. $he two co( ?hairpersons are 2r. N.N. >ohra 'irector India International ?entre and 2r. Go)e *rerichs =resident of the "conomic M +ocial ?ommittee. $he @ound $able is a distinguished non(go!ernmental forum of eminent personalities drawn from the fields of business and industry academics media NG%s etc. who would share their e6periences and perceptions on global issues of mutual interest and identify measures to strengthen and di!ersify the relationship between India and the "uropean &nion. $he 3rd meeting of the India("& @ound $able was held on -th Z ,th *ebruary 0000 in Caipur. $he two ?o(?hairmen 2r. NN >ohra and 2r.
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Go)e *rerichs in their opening remar)s condemned the 13th 'ecember terrorists attac) on Indian =arliament. $he meeting led to a useful discussion on the selected topics O$he role of media in promoting and strengthening ci!il society lin)agesP and O$he de!elopment of human capital specially focusing on the migration of highly s)illed personsP. @ecommendations of the $hird @ound ha!e been submitted for implementation to the Aeads of Go!ernment of both India and the "&. $he *ourth meeting is scheduled to ta)e place on 10(13 +eptember 0000 at ?ascais =ortugal. $he identified topics for discussion are 8a9 ?ooperation in the field of food and agriculture business between India and "& and 8b9 In!estment promotion in the conte6t of the W$% trade negotiations.
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T5A*E A2,ECT2 % EU
A2,ECT2 O& I(TELLECTUAL ,5O,E5TH 5IG+T2 OB7ECTI3E $o ensure effecti!e and appropriate protection for trade(related intellectual property rights ta)ing into account differences in national legal systems. $o draw up a multilateral framewor) of minimum rules to help combat counterfeiting. 2UMMA5H 1. $he principles are those of national treatment and most(fa!oured( nation treatment. $hus members of the W$% must accord the nationals of other members treatment no less fa!ourable than that they accord to their own nationals. 2oreo!er any ad!antage granted by a member to nationals of another member must be accorded immediately and unconditionally to the nationals of all other members e!en if this treatment is more fa!ourable than that accorded to its own nationals. 0. $he #greement aims to ensure that ade/uate rules on the protection of intellectual property are applied in all member countries on the basis of the basic obligations laid down by the WI=% 8World Intellectual =roperty %rganisation9 in the !arious con!entions on intellectual property rights 8the =aris ?on!ention for the =rotection of Industrial =roperty the Berne ?on!ention for the =rotection of 5iterary and #rtistic Wor)s the @ome ?on!ention for the =rotection of =erformers =roducers of =honograms and Broadcasting %rganisations and the Washington $reaty in @espect of Integrated ?ircuits9. Numerous new rules or stricter rules are introduced in fields not co!ered by the e6isting con!entions or where the e6isting con!entions are inade/uate. 3. With regard to copyright the members of the W$% must comply with the basic pro!isions of the Berne ?on!ention for the =rotection of 5iterary and #rtistic Wor)s. ?omputer programs will
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from now on be protected rights authors of computer recordings may authorise or wor)s to the public. # cinematographic wor)s.
as literary wor)s. #s regards rental programmes and producers of sound prohibit the commercial rental of their similar e6clusi!e right applies to
-. With regard to trademar)s the #greement specifies the types of signs that may benefit from protection as trademar)s as well as the minimum rights conferred on their owner. It also lays down the re/uirements relating to the use of trademar)s the duration of protection licensing and the assignment of trademar)s. ,. #s far as geographical indications are concerned members of the W$% must pro!ide the means to pre!ent the use of any indications which mislead the public as to the origin of a product and any use which would constitute an act of unfair competition. $he #greement also made pro!ision for additional protection for geographical indications for wines and spirits e!en where there is no ris) of consumers being misled. 3. Industrial designs are protected under the #greement for ten years. $heir owners ha!e the right to pre!ent third parties from ma)ing selling or importing articles embodying a design which is a copy of the protected design. 4. With regard to patents members of the W$% ha!e the general obligation to comply with the basic pro!isions of the 1;34 =aris ?on!ention. In addition the $@I=+ #greement stipulates that it must be possible for all in!entions to be protected by a patent for 00 years. ?ertain in!entions may be e6cluded from patentability if their e6ploitation is prohibited for reasons of public order or morality. %ther authorised e6clusions relate to diagnostic therapeutic and surgical methods for the treatment of humans or animals as well as plants and animals 8other than micro( organisms9 and essentially biological processes for the production of plants or animals 8other than non(biological and microbiological processes9. Aowe!er members must pro!ide for the protection of plant !arieties either by patents or by a sui generis system.
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8. #s regards layout(designs of integrated circuits W$% members must pro!ide for their protection in accordance with the pro!isions of the Washington $reaty on Intellectual =roperty in @espect of Integrated ?ircuits. $he $@I=+ #greement also sets out a number of other pro!isions relating in particular to the term of protection. ;. #ccording to the #greement trade secrets and technical )nowledge that ha!e commercial !alue must be protected against breaches of confidence and any act contrary to honest commercial practices. *urthermore anti(competiti!e practices in contractual licences may be subBect to measures on the part of members to pre!ent andDor control such practices. En#orce ent o# intellectual property rights 10. $he laws of the member countries of the W$% must include procedures to ensure that intellectual property rights are respected both by foreign right holders and by their own nationals. $hese procedures must permit effecti!e action against any act of infringement of these rights. $hey must be fair and e/uitable they must not be unnecessarily complicated or costly and they must not entail unreasonable time limits. *inal administrati!e decisions may be re!iewed by a Budicial authority. $he #greement pro!ides details inBunctions damages pro!isional remedies. concerning e!idence measures and other
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10.
With regard to the application of the #greement de!eloped countries ha!e a period of one year to bring their legislation and practices into line with the #greement. $his period is e6tended to fi!e years for de!eloping countries and countries in the process of transformation from a centrally(planned economy to a mar)et economy and to ele!en years for the least(de!eloped countries. $he #greement created a ?ouncil for $rade(@elated #spects of Intellectual =roperty @ights. It is responsible for monitoring the operation of the #greement ensuring that members comply with
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their obligations and affording opportunities for consultations between members. 1-. $he settlement of disputes o!er intellectual property is go!erned by the dispute settlement procedures adopted following the &ruguay @ound negotiations.
A2,ECT2 5ELATI(G TO T5A*E I( GOO*2

OB7ECTI3E $o liberalise trade in industrial and agricultural goods under fair conditions of competition. $o reduce tariff and non(tariff barriers to trade in goods. 2UMMA5H 1. $his is the basic te6t containing the general rules go!erning trade in goods the specific rules being laid down in the sectoral agreements established in the *inal #ct. G#$$ 1;;- encompassed G#$$ 1;-4 and all of the legal instruments adopted before the #greement establishing the World $rade %rganisation 8W$%9. 0. $he General #greement lays down a number of fundamental principles based on G#$$ 1;-4 in particular. $he general principle of most fa!oured nation treatment. according to this principle each W$% member accords to products of any other member treatment no less fa!ourable than that it accords to li)e products of any other country 8concept of non(discrimination9. $he principle of national treatment with regard to ta6ation and internal regulations. according to this principle each W$% member accords products of another member regulatory and fiscal treatment no less fa!ourable than that accorded to products of national origin. 3. $he #greement also pro!ides for the reduction and binding of customs duties the elimination of /uantitati!e restrictions on imports and e6ports and the notification re/uirement for +tate trading enterprises. $he #greement co!ers anti(dumping duties
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and regulates subsidies and safeguard measures. $he pro!isions concerning consultations and dispute settlement are dealt with in the W$% rules on dispute settlement. -. In addition it sets out a number of criteria concerning free trade areas and customs unions as well as re/uirements for the members of these areas and unions. =ro!isions added in 1;3, lay down special rules and pri!ileges for de!eloping countries. ,. $he 2arra)esh =rotocol anne6ed to G#$$ 1;;- is the legal instrument that incorporates into G#$$ 1;;- the schedules of concessions and commitments for goods negotiated during the &ruguay @ound and establishes their authenticity and the arrangements for their implementation. "ach W$% member draws up a schedule of goods concessions. $his schedule forms an integral part of G#$$ 1;;-. "ach schedule lists all of the concessions offered by the member concerned during the &ruguay @ound or pre!ious negotiations. In accordance with #rticle II of G#$$ 1;;- each member must accord to the commerce of the other members treatment no less fa!ourable than that pro!ided for in the appropriate part of the corresponding schedule. 3. #s far as industrial products were concerned the aim of the &ruguay @ound was to reduce tariff barriers by at least one third in fi!e years and to increase the number of bound customs duties 8where go!ernments agree not to raise the le!el of duty9. $hus the tariff reductions agreed upon by each member are being implemented in fi!e e/ual rate reductions as of 1 Canuary 1;;, e6cept as may be otherwise specified in the schedules of concessions. 4. #s a result of these commitments customs duties le!ied by de!eloped countries on industrial products imported from all regions of the world ha!e fallen by -0< on a!erage from 3.3< to 3.8<. 8. #s regards the "uropean ?ommunity almost -0< of its industrial products will be free of duty. In fact the customs duties le!ied by
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the "? on industrial products are amongst the lowest in the world and most of them will ha!e disappeared by 000- in line with the commitments made by the ?ommunity during the &ruguay @ound. ;. In accordance with the #greement on #griculture access to agricultural mar)ets is now co!ered by a regime based solely on customs duties. Non(tariff border measures are replaced by customs duties ensuring e/ui!alent protection. $he new customs duties resulting from the Ftariff fi6ingF process together with the other duties le!ied on agricultural products should be reduced by an a!erage of 33< in si6 years for de!eloped countries and 0-< in ten years for de!eloping countries. $he least ad!anced countries are not obliged to reduce their duties. 10. W$% members are also re/uired to reduce spending on e6port subsidies and the /uantities of e6ports that are subsidised with regard to specific products. *or products not subBect to commitments regarding a reduction in e6port subsidies the #greement on #griculture stipulates that no such subsidy may be used in the future. 'e!eloped countries are obliged to reduce the le!el of direct e6port subsidies by 33< in relation to the 1;83(1;;0 base period le!els o!er an implementing period of si6 years and to decrease the /uantity of e6ports subsidised by 01< o!er the same period. 'e!eloping countries must ensure reductions e/ui!alent to two thirds of the reductions carried out by de!eloped countries o!er a period of ten years 8no reductions for the least ad!anced countries9. #s regards domestic support measures for farmers 8price support9 these are regulated through a reduction in the total aggregate measurement of support 8total #2+9. 'e!eloped countries are committed to reducing their total #2+ by 00< o!er si6 years 81;83(1;88 being the base period used to calculate the reductions9. 'e!eloping countries must reduce their total #2+ by 13< o!er ten years. $hese commitments do not apply to measures with a 1ero or minimal impact on trade 8so(called Fgreen categoryF measures such as agricultural
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research or training pro!ided within the framewor) of public programmes9. 10. $his set of measures is designed to be a continuous process with the long(term aim of securing gradual substantial reductions in support and protection in the field of agriculture. $he 1;43 2ultifibre #rrangement 82*#9 which co!ers natural and synthetic fibres and related products had left trade in te6tile products outside the common G#$$ system. In fact this agreement had set up a derogatory system by legalising bilateral !oluntary restraint agreements between states in other words /uantitati!e restrictions prohibited by the G#$$. $he &ruguay @ound negotiations aimed to ensure the smooth integration of the te6tiles and clothing sector into G#$$ 1;;-. $hus the #greement on $e6tiles and ?lothing 8#$?9 pro!ides for the gradual dismantling of the 2ultifibre #rrangement by 1 Canuary 000,. $his in!ol!es the gradual elimination of /uantitati!e restrictions especially the bilateral /uotas negotiated under the 2*#. Integration means that once the product is integrated trade in that product is go!erned by the general rules of G#$$ 1;;-. $he integration programme has four stages and all products must be integrated no later than 1 Canuary 000,. $he #greement also stipulates that all restrictions on imports of te6tiles and clothing not co!ered by the 2*# must be notified and brought into line with the G#$$ within one year of the entry into force of the #$? or gradually eliminated o!er a period not e6ceeding the duration of the agreement 8by 000,9. +afeguard measures may be applied for countries whose local industries will ha!e difficulties adBusting. $hese measures may last no longer than three years and will be strictly monitored by the $e6tiles 2onitoring Body. $he #greement on $echnical Barriers to $rade 8$B$9 aims to ensure that technical regulations and standards and conformity
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1-.
1,.
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assessment procedures do not create unnecessary obstacles to international trade. $he #greement recognises the right of countries to adopt such measures in order to fulfil a legitimate obBecti!e for e6ample the protection of human health or safety or the protection of the en!ironment. $echnical regulations and standards must not discriminate between national products and li)e products that are imported. Indeed the #greement encourages the use of international standards and the harmonisation and mutual recognition of technical regulations standards and conformity assessment procedures. 14. $he #greement contains a ?ode of Good =ractice for the =reparation #doption and #pplication of +tandards by central go!ernment bodies together with pro!isions concerning the preparation and application of technical regulations for local go!ernment bodies and non(go!ernmental organisations. $he #greement stipulates that procedures for assessing conformity of products with national standards must not discriminate against imported products. $he #greement also pro!ides for the establishment of national en/uiry points to facilitate access to information on the technical regulations standards and conformity assessment procedures in each member country. $he #greement on the #pplication of +anitary and =hytosanitary 2easures 8+=+9 relates to all +=+ measures which may directly or indirectly affect international trade. +=+ measures are defined as measures applied to protect human and animal life or to protect plant life from ris)s associated with additi!es contaminants to6ins or diseases present in foodstuffs or to protect a country in the e!ent of the entry establishment or spread of pests. $he #greement affords members the right to ta)e +=+ measures based on scientific principles but they must ensure that those measures do not discriminate against other countries. 2oreo!er the +=+ measures must not be used for protectionist purposes. 2embers are encouraged to base their measures on international standards guidelines or recommendations
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where!er possible. $he application of standards may be contested and a dispute settlement procedure is established. 00. Where customs duties are le!ied on an ad !alorem basis it is important to establish a clear procedure to determine the customs !alue of the goods imported. Indeed when carried out according to unfair rules the customs !aluation may ha!e the effect of a non(tariff protecti!e measure and be more restricti!e than the customs duty itself. $he #greement on customs !aluation recognises that this !alue should in principle be based on the transaction !alue in other words the real price of the goods. In !ery specific cases where the transaction !alue cannot be used as a basis for determining the customs !alue the #greement pro!ides for fi!e other methods of customs !aluation which must be applied in a particular hierarchical order. In order to pre!ent fraud and compensate for the shortcomings of their administrati!e structures a number of de!eloping countries ha!e recourse to the ser!ices of pri!ate companies for the !erification of the /uality /uantity price andDor customs classification of imported goods before they are e6ported from supplying countries. $he #greement on =reshipment Inspection sets out the re/uirements for user countries mainly as regards non(discrimination transparency the protection of confidential business information and price !erification. #s necessary criteria for determining the country of origin of a product rules of origin must not create unnecessary obstacles to international trade. $he #greement on @ules of %rigin establishes disciplines for the application of these rules. It co!ers the rules used in non(preferential commercial policy instruments. $he main obBecti!e of this #greement is to harmonise non(preferential rules of origin so as to ensure that the same criteria are applied by all W$% members irrespecti!e of the purpose of their application.
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A2,ECT2 5ELATI(G TO T5A*E I( 2E53ICE2

OB7ECTI3E $o establish a multilateral framewor) of principles and rules for trade in ser!ices with a !iew to promoting the e6pansion of this trade and its gradual liberalisation through negotiations whilst ensuring transparent regulations and the increasing participation of de!eloping countries. 2UMMA5H 1. $he General #greement on $rade in +er!ices 8G#$+9 is the first set of rules and disciplines agreed at multilateral le!el to go!ern international trade in ser!ices. It consists of three elements. a general framewor) containing fundamental re/uirements for all W$% members national schedules of specific commitments concerning mar)et access and finally anne6es laying down special conditions to be applied to different sectors. 0. $he agreement is distinguished by its uni!ersal scope. It applies to all ser!ices in all sectors with the e6ception of ser!ices pro!ided by the public authorities. It also applies to all measures applicable to ser!ices ta)en at all le!els of go!ernment 8central regional local etc.9. $he agreement defines four methods of supplying a ser!ice. +upplying a ser!ice from the territory of one member into the territory of any other member 8e.g. international telephone calls9: +upplying a ser!ice in the territory of one member to a consumer of any other member 8e.g. tourism9: +upplying a ser!ice through commercial presence of a member in the territory of any other member 8e.g. ban)ing ser!ices9: +upplying a ser!ice through presence of natural persons of a member in the territory of any other member 8e.g. construction proBects fashion models consultants9.
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3. $he agreement is based on the principle of most(fa!oured(nation treatment 82*N9 according to which each member must accord unconditionally ser!ices and ser!ice suppliers of any other member treatment no less fa!ourable than that it accords to ser!ices and ser!ice suppliers of any other country. Aowe!er certain e6ceptions are en!isaged in the conte6t of specific ser!ice acti!ities within the framewor) of a list of e6emptions from the 2*N re/uirement. In fact each go!ernment has included in its schedule the ser!ices for which it guarantees access to its mar)et by setting out the limits it wishes to maintain for such access. -. 2oreo!er members entering into an agreement in!ol!ing economic integration are authorised to liberalise trade in ser!ices between the parties without ha!ing to e6tend the agreement to the other G#$+ members pro!ided that it has substantial sectoral co!erage and pro!ides for the absence or elimination of practically all discrimination. ,. In order to ensure ma6imum transparency the agreement re/uires go!ernments to publish all rele!ant laws and regulations. $hese measures must be administered in a reasonable obBecti!e and impartial manner. 3. $he bilateral agreements concluded between go!ernments on the recognition of /ualifications must be open to other members who wish to negotiate their accession to these agreements. In addition each member must ensure that monopolies and e6clusi!e ser!ice suppliers do not abuse their position. +imilarly members must enter into consultations on business practices that may restrain competition with a !iew to eliminating them. 4. International transfers and payments for current transactions relating to specific commitments entered into under the G#$+ must not be restricted e6cept in cases of balance(of(payments difficulties and under certain circumstances.
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AUTO(OMOU2 TA5I&& 2U2,E(2IO(2 A(* :UOTA2

OB7ECTI3E $o define the guiding principles and simplify the procedures on autonomous tariff suspensions and /uotas specifying the economic reasoning behind ?ommunity policy in this sector. 2UMMA5H 1. $he "? $reaty states that autonomous tariff suspensions and /uotas are appro!ed by the ?ouncil acting on a /ualified maBority on a ?ommission proposal. In this communication the ?ommission defines the guiding principles and the procedures it will follow in drawing up the proposals. 0. $he autonomous tariff suspension is an e6ception to the general rule represented by the ?ommon ?ustoms $ariff since the measure allows a total or partial wai!er of the normal duties applicable to imported goods. If such a measure applies to a limited /uantity of goods it is referred to as a /uota if the /uantity is unlimited it is )nown as a suspension. $he aim of autonomous tariff suspensions 3. +uspensions allow ?ommunity businesses to bring in supplies from outside the "& for a limited period without ha!ing to pay normal ?ommon ?ustoms $ariff duties aiming among other things. to stimulate economic acti!ity within the ?ommunity: to impro!e the competiti!eness of businesses: to create Bobs. -. +ince customs duties ha!e a particular economic function suspensions can only be granted temporarily and for specific economic reasons in the general interest of the ?ommunity.
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,. In principle only raw materials semi(finished goods or components not a!ailable within the ?ommunity can benefit from a suspension. 3. *inished products used as components in the final product may benefit from a suspension pro!ided that the added !alue of the assembly is sufficiently high. 4. 2aterials to be used in the production process may benefit from a suspension pro!ided that they are specific and necessary for the manufacture of a clearly identified product and are not Beopardising competing ?ommunity enterprises. 8. $he following cannot benefit from a suspension. goods for which an e/ui!alent or substitute product is manufactured in sufficient /uantities within the ?ommunity or in a third country with preferential tariff arrangements: goods for which a suspension could result in a distortion of competition between ?ommunity enterprises: finished products intended for sale to end(consumers: goods subBect to an e6clusi!e trading agreement pre!enting importers from buying them in third countries: goods for which the benefits of the suspension are not passed on to the ?ommunity producers: cases where a suspension results in a conflict with another ?ommunity policy. ;. When there is production from the ?ommunity or a third country with preferential tariff arrangements but such production is insufficient /uotas co!ering the una!ailable /uantities or partial suspensions may be granted. 10. %nly firms producing in the ?ommunity can benefit from a suspension.
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11.
@e/uests for suspensions should be submitted by the 2ember +tates on behalf of ?ommunity producers. #pplicants should indicate that they ha!e tried without success to obtain the products or e/ui!alent or substitute goods from suppliers in the ?ommunity or a third country with preferential tariff arrangements. $he ?ommission only e6amines suspension re/uests if they are of benefit to the ?ommunity economy. In such cases the economic reasons are e6amined closely. @e/uests are not considered if the amount of uncollected customs duty is estimated to be less than "&@ 00 000 per year. Aowe!er small and medium(si1ed enterprises may group together to reach this threshold. $he ?ouncil adopts multiannual regulations granting suspensions updated e!ery si6 months to ta)e account of new re/uests and technical or economic trends in products and mar)ets. Luotas are allocated on a Tfirst come first ser!edT basis. If the continuation of a suspension implies the lasting need to supply the ?ommunity with products at reduced or 1ero rates the ?ommission may propose an amendment to the autonomous duty of the ?ommon ?ustoms $ariff.
10.
13.
1-.
1,. 13.
COMMO( 5ULE2 &O5 E6,O5T2

OB7ECTI3E $o establish common rules for e6ports from the "uropean ?ommunity 8"?9 based on the principle of freedom of e6port and to define the procedures enabling the ?ommunity to implement where necessary the sur!eillance and protecti!e measures re/uired.
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2UMMA5H 1. $his regulation lays down the principle that e6ports from the "uropean ?ommunity to third countries are free that is to say they are not subBect to any /uantitati!e restrictions. 0. Aowe!er this principle of freedom of e6port does not preclude the 2ember +tates from maintaining or introducing /uantitati!e restrictions or bans on e6ports on grounds of public morality public policy public security etc. 3. In 1;;0 all derogations to the principle of freedom of e6port granted to the 2ember +tates in relation to e6ports of certain products were eliminated. -. $he regulation applies to all industrial and agricultural products co!ered by the "? $reaty. With regard to agricultural products it is complementary to the regulations establishing common organisation of agricultural mar)ets and the special regulations for processed agricultural products. ,. *rom a geographical point of !iew it applies to all third countries. ?ouncil @egulation 8""?9 No 030-D3; of 00 'ecember 1;3; e6tended the regulation to co!er the *rench o!erseas departments. 3. $he regulation establishes a ?ommunity procedure for information and consultation to be followed before implementing protecti!e measures. If as a result of unusual de!elopments on the mar)et a 2ember +tate considers that protecti!e measures might be necessary it must inform the ?ommission accordingly which will then ad!ise the other 2ember +tates. ?onsultations may thus be held at any time within an ad!isory committee composed of representati!es of each 2ember +tate and chaired by a representati!e of the ?ommission. $hese consultations relate in particular to the e6port conditions and trends for the product in /uestion as well as the measures if any to be adopted. 4. $he ?ommission may re/uest 2ember +tates to supply statistical data on mar)et trends in a gi!en product for the purpose of
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assessing the economic and commercial situation. It may also as) them to e6ercise sur!eillance o!er gi!en products in accordance with their national legislation and with the procedure specified by the ?ommission. 8. =rotecti!e measures may ma)e it possible to pre!ent or remedy a critical situation brought about by a shortage of essential products or allow international commitments entered into by the ?ommunity or all the 2ember +tates to be fulfilled in particular those relating to trade in primary products. In addition the ?ommunityFs interests must re/uire the adoption of appropriate measures which generally means /uantitati!e restrictions on e6ports. ;. $hese protecti!e measures may be limited to e6ports to certain countries or e6ports from certain regions of the ?ommunity. $hey must not affect products already on their way to the ?ommunity frontier. Aowe!er the measures may not be adopted for agricultural products co!ered by common organisations of mar)ets or processed agricultural products co!ered by special regulations adopted within the framewor) of #rticle 308 of the "? $reaty 8e6( #rticle 03,9. 10. In principle protecti!e measures are adopted by the ?ouncil acting by a /ualified maBority on a proposal from the ?ommission. $he ?ommission may also implement such measures where immediate action is re/uired. $he ?ommission acting at the re/uest of a 2ember +tate or on its own initiati!e may ma)e the e6port of a product subBect to the production of an e6port authorisation the granting of which shall be go!erned by such pro!isions and subBect to such limits as the ?ommission shall lay down pending subse/uent action by the ?ouncil. $he ?ouncil and the 2ember +tates shall be notified of the measures ta)en and they shall ta)e effect immediately. # 2ember +tate may also as an interim protecti!e measure ma)e the e6port of a product subBect to production of an e6port authorisation the granting of which shall be go!erned by such pro!isions and subBect to such limits as that 2ember +tate shall
11.
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lay down. $he ?ommission shall be notified of these measures immediately and they shall apply only until the decision ta)en by the ?ommission or the ?ouncil ta)es effect. 10. 'uring their application protecti!e measures are the subBect of consultation on the ad!isory committee with a !iew to e6amining their effects and ascertaining whether the conditions for their application are still satisfied. #s a result they may be amended or re!o)ed if they are longer necessary.
COMMO( 5ULE2 &O5 IM,O5T2 &5OM CE5TAI( T+I5* COU(T5IE2

OB7ECTI3E $o establish common rules for imports into the "uropean ?ommunity 8"?9 from certain +tate(trading third countries and to lay down the procedures enabling the ?ommunity to implement where necessary the sur!eillance and safeguard measures re/uired. 2UMMA5H 1. $he e6istence of special import rules for former communist countries was Bustified by the +tateFs monopoly in these countries in the area of foreign trade. +ince the brea)down of the communist bloc there has been a mo!e towards liberalisation of the economy and foreign trade in these countries. $his has led the ?ommission to remo!e most of these countries from the scope of the @egulation applicable to +tate(trading countries and to bring them under the standard procedure. Aowe!er the fact remains that certain countries are still subBect to this specific legislation. 0. $his regulation has many similarities with the regulation establishing common rules for imports 8@egulation 8"?9 No 308,D;-9. #s a result only the aspects that differ from that regulation will be considered here.
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3. $his regulation applies to products originating in the ?ommonwealth of Independent +tates 8?I+9 #lbania ?hina >ietnam North 7orea and 2ongolia. -. In addition its scope e6cludes te6tile products which are co!ered by special common rules for imports. ,. Imports of products co!ered by this regulation are free and are not subBect to any /uantitati!e restrictions without preBudice to the safeguard measures and /uotas applied to ?hina. 3. $his procedure is similar to that set out in @egulation 8"?9 No 308,D;- applicable to third countries in general. 4. $his procedure is identical to that set out for the third countries co!ered by @egulation 8"?9 No 308,D;-. Aowe!er it is stipulated that the ?ommission must gi!e consideration in its in!estigation to the specific economic system in the countries in /uestion. 8. $he conditions for implementing sur!eillance measures are the same as those applied to other third countries. Aowe!er where sur!eillance measures are implemented the conditions for the use or issue of import documents may be stricter than for other third countries. In particular where the ?ommunityFs interests so re/uire the ?ommission may limit the period of !alidity of the import document ma)e issue of this document subBect to certain conditions or e!en pro!ide for the insertion of a re!ocation clause. ;. $he conditions laid down for the introduction of safeguard measures with regard to the countries concerned are the same as those applied to other third countries. increased imports or imports under conditions that cause inBury to the ?ommunity industry. $hese two conditions are alternati!es in the case of the countries in /uestion whilst they may be cumulati!e in the case of other third countries. 10. Luotas are applied to a number of products from ?hina including the following. certain footwear tableware or )itchenware of porcelain and tableware or )itchenware other than of porcelain.
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$hese /uotas are administered by the ?ommission according to the procedure for administering /uantitati!e /uotas.
COMMO( 5ULE2 &O5 IM,O5T2

OB7ECTI3E $o establish common rules for imports into the "uropean ?ommunity based on the principle of the freedom of import and to define the procedures enabling the ?ommunity to implement where necessary the sur!eillance and safeguard measures re/uired to protect its interests. 2UMMA5H 1. $his @egulation applies to imports of products originating in third countries e6cept for te6tile products co!ered by special common rules for imports. It is also complementary to the regulations on agricultural products co!ered by organisations of the mar)et. *rom a geographical point of !iew it applies to imports from all third countries with the e6ception of #lbania the ?ommonwealth of Independent +tates 8?I+9 and certain #sian countries 8North 7orea ?hina 2ongolia and >ietnam9 co!ered by @egulation 8"?9 No ,1;D;-. 0. $he regulation lays down the principle of freedom to import products originating in third countries subBect to possible safeguard measures. 3. $he 2ember +tates must inform the ?ommission should trends in imports appear to call for safeguard measures. ?onsultations may be held either at the re/uest of a 2ember +tate or on the initiati!e of the ?ommission. $hey ta)e place within an ad!isory committee made up of representati!es of each 2ember +tate with a representati!e of the ?ommission as chairman. -. $hese consultations aim to e6amine the conditions of imports the economic and commercial situation and the measures to be ta)en. ?onsultations may be conducted in writing if necessary and the
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2ember +tates may e6press their opinion or re/uest consultations within a period of fi!e to eight wor)ing days.
oral
,. Where after consultations it is apparent that there is sufficient e!idence to Bustify the initiation of an in!estigation the ?ommission initiates an in!estigation within one month and publishes a notice in the %fficial Cournal of the "uropean ?ommunities summarising the information Bustifying the initiation of the procedure. 3. $he in!estigation see)s to determine whether imports of the product in /uestion are causing or threatening to cause serious inBury to the ?ommunity producers concerned. %nce the in!estigation has been launched the ?ommission see)s and !erifies all information it considers necessary for the conduct of the in!estigation. 4. Within the framewor) of the in!estigation the ?ommission see)s information on the following aspects. the !olume of imports the price of imports the conse/uent impact on ?ommunity producers and factors other than trends in imports which are causing or may ha!e caused inBury to the ?ommunity producers concerned. 8. #t the end of the in!estigation the ?ommission submits a report to the ad!isory committee and depending on the conclusion of its in!estigations terminates the in!estigation or implements or proposes to the ?ouncil that it implement sur!eillance or safeguard measures. ;. $his in!estigation procedure does not preclude the use particularly in critical circumstances of sur!eillance or safeguard measures. In this instance the duration of such measures must not e6ceed 000 days. 10. Imports of products may ha!e to undergo ?ommunity chec)s on the basis of a decision by the ?ouncil or the ?ommission should mar)et trends in this product threaten to cause inBury to the ?ommunity producers of li)e or competing products and the ?ommunityFs interests re/uire such chec)s.
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11.
$he decision to introduce sur!eillance measures is normally ta)en by the ?ommission. +uch sur!eillance may in!ol!e retrospecti!e chec)s of imports 8statistical sur!eillance9 or prior chec)s. In the case of the latter products under prior ?ommunity sur!eillance may be put into free circulation only on production of an import document. $his document is issued or endorsed by the 2ember +tates free of charge for any /uantity re/uested and within a ma6imum of fi!e days of receipt of a declaration by the importer. $his document must be issued to all importers regardless of their place of business in the ?ommunity. +ur!eillance measures do not necessarily co!er the entire ?ommunity. Where imports of a product ha!e not been made subBect to prior ?ommunity sur!eillance within eight wor)ing days of the end of consultations on the possibility of establishing ?ommunity sur!eillance the ?ommission may introduce sur!eillance confined to imports into one or more regions of the ?ommunity. 2ember +tates shall inform the ?ommission each month of the import documents that were issued 8in cases of prior sur!eillance9 and the imports recei!ed 8in cases of prior and retrospecti!e sur!eillance9. easures
10.
13.
2a#eguard 1-.
+afeguard measures may be applied where products are imported into the ?ommunity in such greatly increased /uantities andDor on such terms or conditions as to cause or threaten to cause serious inBury to ?ommunity producers. #s regards members of the World $rade %rganisation 8W$%9 these measures are cumulati!e. Where these conditions are fulfilled the ?ommission may change the period of !alidity of the import documents issued in respect of sur!eillance or establish an import authorisation
1,.
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procedure and imports. 13.
in particular
introduce a /uota system for
When establishing a /uota account is ta)en of the desirability of maintaining as far as possible traditional trade flows and the !olume of contracts concluded before the entry into force of the measure. In principle the /uota should not be set lower than the a!erage le!el of imports o!er the last three years. $he /uota may be allocated among the supplier countries. +afeguard measures apply to e!ery product which is put into free circulation after their entry into force. Aowe!er they do not pre!ent the release for free circulation of products already on their way to the ?ommunity. In e6ceptional cases they may be confined to one or more regions of the ?ommunity. $hese measures are ta)en by the ?ommission or by the ?ouncil. Where inter!ention by the ?ommission has been re/uested by a 2ember +tate the ?ommission ta)es a decision within a ma6imum of fi!e wor)ing days. $he ?ommissionFs decision is communicated to the ?ouncil and to the 2ember +tates. #ny 2ember +tate may within one month refer the decision to the ?ouncil. In this case the ?ouncil acting by a /ualified maBority may confirm amend or re!o)e that decision. If within three months the ?ouncil has not ta)en a decision the decision ta)en by the ?ommission is deemed to be re!o)ed. In any e!ent where the interests of the ?ommunity so re/uire the ?ouncil acting on a proposal from the ?ommission drawn up in accordance with the conditions set out abo!e may adopt safeguard measures. No safeguard measure may be applied to a product originating in a de!eloping country as long as that countryFs share of ?ommunity imports of the product concerned does not e6ceed 3<. $he duration of safeguard measures may not in principle e6ceed four years unless they are e6tended under the same
14.
18.
1;.
00.
01.
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conditions as the initial measures were adopted. &nder no circumstances may the duration of the measures e6ceed eight years. 00. In addition to safeguard measures as such the regulation stipulates that the ?ommission may adopt appropriate measures to allow the rights and obligations of the ?ommunity or of all its 2ember +tates in particular those relating to trade in commodities to be e6ercised and fulfilled at international le!el. $his @egulation does not preclude the fulfilment of obligations arising from special agreements concluded between the ?ommunity and third countries. Nor does it preclude the adoption or application by the 2ember +tates of measures on grounds of public order public morality public security the protection of health and life of humans animals or plants the protection of national treasures the protection of industrial and commercial property and special formalities concerning foreign e6change.
03.
&AI5 T5A*E
OB7ECTI3E $o launch the process for the de!elopment of the ?ommunityFs position on fair trade. 2UMMA5H -; Background $he promotion of fair trade comes under the framewor) of the ?ommunityFs broader obBecti!es in relation to de!elopment cooperation in other words the fight against po!erty economic and social de!elopment and in particular the gradual integration of de!eloping countries into the world economy.$rade has a fundamental role to play in the creation of wealth and thus de!elopment. $his communication is a first stage in the de!elopment of the ?ommunityFs position on this matter.
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E; *e#inition o# #air trade $he concept of fair trade applies in general to trade operations which strengthen the economic position of small(scale producers and landowners in order to ensure that they are not marginalised in the world economy. It mainly relates to de!eloping countries and under the present communication co!ers two main aspects. ensuring that producers including employees recei!e a share of the total profit commensurate with their input: impro!ing social conditions particularly those of employees in the absence of de!eloped structures for social ser!ices and wor)er representation 8trade union representation for instance9 etc.: $his concept has long(term de!elopment in mind. =articipation in initiati!es on fair trade is !oluntary for both sellers and consumers. It is important to note that the concept of Ffair tradeF is not the same as that of Fethical tradeF. F"thical tradeF usually relates to the operating methods of companies present in the country 8codes of conduct for e6ample9. G; &air trade in practice *air trade goods are always made a!ailable to consumers through pri!ate initiati!es. $he practical implementation of fair trade has changed considerably o!er the years. The traditional #air trade o"e ent
$he concept was originally de!eloped by non(go!ernmental organisations 8NG%s9. $he philosophy is based upon precise principles and was originally applied by alternati!e trading organisations often started by churches charities etc. $he organisations are in!ol!ed in e!ery stage 8sourcing production etc.9
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and the profits are often de!oted to de!elopment causes. $he products are not always labelled. 5abelling initiati!es +ince the end of the 1;80s normal commercial companies 8supermar)ets etc.9 ha!e been more li)ely to be in!ol!ed in fair trade initiati!es and the products are mar)eted according to the usual rules. In this regard systems for labelling products were introduced in order to ensure their authenticity. $here are se!eral fair trade labels 8F*airtrade 2ar)F etc.9 and each has a certification agency which !erifies all the stages in the production process to ensure that the product respects fair trade principles. $he certification bodies also set the criteria that must be respected in order for a product to carry a fair trade label. $hese criteria are harmonised at international le!el. #ll the labels are members of the *5% 8*air $rade 5abelling %rganisations International9 which is responsible for coordination at "& and international le!el. =roducers and importers who ha!e been assessed as complying with the fair trade criteria are included in international fair trade registers. *air trade labelling schemes are financed by licence fees paid by importers and traders. $hese fees are related to turno!er and !olume of sales. 0; European Union and #air trade *air trade accounts for a relati!ely substantial proportion of consumption in "urope. In 1;;4 the turno!er in the "& of fair trade products was estimated to be in the region of "&@ 000 to 0,0 million. %!erall 11< of the "& population buy fair trade products and sur!eys show that there is high demand for such products. $he "& has already implemented initiati!es concerning fair trade including "uropean =arliament resolutions and financing of NG%s labelling bodies and proBects in de!eloping countries. With regard to legislation the &nion implements these principles through !arious instruments particularly measures concerning the "&Fs generalised
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system of preferences. +ome of these regulations on fair trade benefit fair trade goods by facilitating their access to the ?ommunity mar)et. .; International co unity
$he international community has recognised the important role played by fair trade in the de!elopment of poorer countries. $he World $rade %rganisation 8W$%9 has concluded that initiati!es in this field do not represent an obstacle to the liberalisation of mar)ets since they do not impose import restrictions or other forms of protectionism. $hey are thus in line with the general principles of the world economy. /; Issues $he ?ommission identifies certain problems that should be addressed in order to ensure the continued success of fair trade initiati!es. $his in!ol!es ensuring greater consistency between the policies of the actors at !arious le!els and establishing a legal definition of the concept as well as the criteria in!ol!ed. "fforts should also be made to impro!e the substantiation !erification and control of fair trade products so as to allow consumers to ma)e properly informed choices. In addition consumers must be better informed about fair trade and dialogue should be continued with the mo!ement through the creation of a formal platform for e6ample.
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CO(CLU2IO(2
In the final analysis of the aggregate figures India has maintained performance in all maBor e6port sectors. #lthough most of the items ha!e shown positi!e growth our mar)et share is low and under( utilised. $he aggregate Indian mar)et share in the "uropean &nion has increased from 0.;8 < in 1;;0 to 1.0;< in 1;;;. While the performance can be considered generally encouraging IndiaNs mar)et shares in "& compares low in relation to our principal competitors of #sia. In our traditionally strong sectors li)e te6tiles leather and gems and Bewellery there is a need for !alue additions brand names inno!ati!e designs and /uality standards. In more sensiti!e areas such as agriculture and chemicals there is a compulsi!e need to adhere to en!ironmental and hygienic standards. In the electronic and software India has a natural ad!antage due to its "nglish spea)ing and s)illed manpower. *ar(reaching changes are ta)ing place in the "&. $he single "uropean currency Q"uroN came into effect on 1 st Canuary 1;;; with 11 countries Boining in the first phase. #s "& e6pands new countries will Boin by 000- only to ma)e "& mar)et fiercely competiti!e. 2ember countries will adopt a common strategy on imports from e6tra "& sources while from within i.e. intra("& trade will increasingly insulate them against outside competition. "& non(tariff barriers li)e anti(dumping anti( subsidies eco(labels social issues en!ironmental and phyto(sanitary and still recently dual use technology issues will continue to impede IndiaNs e6ports. It is in this conte6t that there is a greater need for aggressi!e mar)et strategies
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BIBLIOG5A,+H
http.DDwww.in!estinbelgium.fgo!.beDopp.htm http.DDwww.obcebdbh.beDimport[enDinfo(centerDtrade( statisticsDannual(studyD0001Dcontents[en.html http.DDwww.obcebdbh.beDimport[enDinfo(centerDtrade( statisticsDannual(studyD0001Dcontents[en.html http.DDwww.indembassy.beD"conomic<00M<00Industrial <00Growth<00#nalysis.htm http.DDwww.indembassy.beDbelgian[lin)s.htm http.DDwww.diplobel.orgDdefault[en.htm http.DDwww.obcebdbh.beDmenuDmenuie.htmlY!erVen
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OB7ECTI3E
$he %bBecti!e of this proBect are( $o )now the details fact file of Belgium M 5u6embourg country $o throw light about the trade relation with India *uture trade prospect of the country +tudy @elation with "uropean &nion.
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ACJ(O)LE*GEME(T
While presenting this proBect I wish to e6tend my sincere than)s to all my teachers family 2ember and *riends who ha!e contributed in many ways towards the successful completion of this proBect wor). I e6press my sincere gratitude to *r;M;2;Laksh i M *r;2;,anda who ga!e me this proBect M guided me the way to achie!e my goal. I also want to e6tend my warm than)s to Mr; Arun Ju ar 85ibrarian(*IIB9 Mr; (aresh 85ab Incharge *IIB9 M Mr; 2an>it ,anda 85ab #ssistance *IIB9 who pro!ided me e!ery )ind of information as and when needed.
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MET+O*OLOGH
?ollecting the secondary data from different sources. Aere all the data has been collected from 5ibrary and internet sources and ?II *act Boo). #fter collecting the data it has been analysed to see the present trade scenario trade relations with India as well as other countries.
LIMITATIO(2
$he latest figure of trade dealings destination wise was not a!ailable. 5ac) of e6act information of the respecti!e country. It was difficult to contact the "mbassy =eople of respecti!e country.
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CO(TE(T2
Topics #c)nowledgements %bBecti!es 2ethodology 5imitations #bout Belgium *acts about 5u6embourg #bout "uropean &nion Z *#Ls "conomic and ?ommercial @eport "conomic =olicies Belgium Z"& ?ustom +ystem In!estment Z Why BelgiumY ?ustoms and International $rade IndiaNs *oreign =olicy ZWestern "urope I2* Luota and India India to Beef up $rade with Belgium and 5u6embourg *oreign 'irect In!estment IndiaNs $rade =artners India(Belgium @elations ?ommercial @elation of India General Implications of W$% in Nutshell "& at a Glance India "& @elations $rade #spects ?onclusions Bibliography == 1(13 == 14(03 == 04(33 == 3-(38 == 3;(31 == 30(34 == 38(3; == 40(4== 4,(48 == 4;(83 == 8-(8, == 83(8; == ;0(;3 == ;4(100 == 103(108 == 10;(110 == 111(113 == 11-(100 == 101(1-3 = 1-4 = 1-8 ,age (o;
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ANNUAL PROJECT REPORT ON

COUNTRY PROFILE:
B ELGIUM & L UXEMBOURG
Submitted to: Dr. M. S. LAKSHMI
(Dean Academic)
Submitted by: Govind Kumar Patel Roll No. 15/A

Submitted on: 31st January 2003 To ards !u"!i""ment o! P#$%& '2001(2003)
FOR !N" INS I ! " OF IN "RNA IONAL #!SIN"SS
(e1 *elhi
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Belgium &amp; Luxembourg

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COUNTRY PROFILE - BELGIUM & LUXEMBOURG

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COUNTRY PROFILE - BELGIUM & LUXEMBOURG

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COUNTRY PROFILE - BELGIUM & LUXEMBOURG

Ethnic groups: 5eligions:

@oman ?atholic 4,< =rotestant or other 0,<

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COUNTRY PROFILE - BELGIUM & LUXEMBOURG

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COUNTRY PROFILE - BELGIUM & LUXEMBOURG

COUNTRY PROFILE - BELGIUM & LUXEMBOURG

3.8< 80001 est.9

Military branches: Gendarmerie Military est.9

anpo1er % a"ailability: males age 1,(-;. 0 ,08 ,,4 80000

Military anpo1er % #it #or 0 040 013 80000 est.9

ilitary ser"ice: 2ales age 1,(-;.

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COUNTRY PROFILE - BELGIUM & LUXEMBOURG

Military anpo1er % reaching 80000 est.9

ilitary age annually: males. 33 0-4

Military e!penditures % dollar #igure:

G3 043 ,00 000 8*H01D009 1.-< 8*H01D009

Military e!penditures % percent o# G*,: *isputes % international: none

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COUNTRY PROFILE - BELGIUM & LUXEMBOURG

COUNTRY PROFILE - BELGIUM & LUXEMBOURG

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COUNTRY PROFILE - BELGIUM & LUXEMBOURG

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COUNTRY PROFILE - BELGIUM & LUXEMBOURG

COUNTRY PROFILE - BELGIUM & LUXEMBOURG

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COUNTRY PROFILE - BELGIUM & LUXEMBOURG

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COUNTRY PROFILE - BELGIUM & LUXEMBOURG

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COUNTRY PROFILE - BELGIUM & LUXEMBOURG

COUNTRY PROFILE - BELGIUM & LUXEMBOURG

arkets% 2tock e!change

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COUNTRY PROFILE - BELGIUM & LUXEMBOURG

&ACT2 ABOUT LU6EMBOU5G

COUNTRY PROFILE - BELGIUM & LUXEMBOURG

10.03 birthsD1 000 population 80000 est.9

*eath rate: 8.83 deathsD1 000 population 80000 est.9

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COUNTRY PROFILE - BELGIUM & LUXEMBOURG

noun. 5u6embourger8s9 adBecti!e. 5u6embourg

COUNTRY PROFILE - BELGIUM & LUXEMBOURG

183; 8from the Netherlands9 National 'ay 8Birthday of Grand 'uchess

(ational holiday: ?harlotte9 03 Cune

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COUNTRY PROFILE - BELGIUM & LUXEMBOURG

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COUNTRY PROFILE - BELGIUM & LUXEMBOURG

G'= ( real growth rate.

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COUNTRY PROFILE - BELGIUM & LUXEMBOURG

E!penditures . G-.-- billion 80000 est.9

including capital e6penditures of GN#

E!ports % co odities: machinery and e/uipment chemicals rubber products glass

I ports % co consumer goods

Belgium & Luxembourg

Belgium & Luxembourg

G3 043 ,00 000 8H01D009 1.-< 8H01D009

Military e!penditures % percent o# G,: isputes % international: none

Military e!penditures % percent o# G,: 0.8< 8H01D009 *isputes % international: none

Source : Sia New Letter I(IA%BELGIUM COLLABO5ATIO(2 U5I(G -BB-%BB