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EU Gateway Programme
File:EU Gateway Participants by country.jpg


The EU Gateway Programme is an initiative funded by the European Union (EU), created and managed by the Service for Service for Foreign Policy Instruments under the Instrument for Cooperation with Industrialized Countries (ICI).[1] The programme acts as a bridgehead.[2] The main focus of the programme is to provide business support services to European small and medium enterprises interested to develop their business on the Japanese and/or the Korean market.[3] The project organizes one-week business missions assisting EU companies in their efforts to export to Korea and Japan, encouraging the establishment of long-lasting business collaborations with Japanese and Korean companies. Between 2008 – 2014, the EU Gateway programme focused on four technological sectors: environment and energy-related technologies, information and communication technology, healthcare and medical technology, construction and building technology; and two design sectors: fashion design and interior design.[4]

History

File:EU Gateway Programme Historical Overview.jpg

Since 1979, through business support programmes such as the Executive Training Programme [5] and the EU Gateway Programme, the European Commission encouraged European enterprises' efforts to penetrate the Japanese market.[6] In 1990 the pilot EU Gateway Programme was created pursuing the European and Japanese resolve for equitable access to their respective markets and removing obstacles whether structural or other, impeding the expansion of trade and investment, on the basis of comparable opportunities.

In July 1991, the European Community member states and Japan, agreed to "pursuing their resolve for equitable access to their respective markets and removing obstacles whether structural or other, impeding the expansion of trade and investment, on the basis of comparable opportunities"[7] through the Joint Declaration that was signed.[7] As a result, combined efforts started to be made for rejecting protectionism, removing market barriers, implementing the General Agreement on Tariffs and Trade and OECD principles concerning trade and investment.[7] In addition, were set the basis for an intensive interaction and cooperation in areas such as trade, investment, industrial co-operation, advanced technology, energy, employment, social affairs and competition rules. In the light of this diplomatic development, EU Gateway programme gained support and build a solid reputation both on the European and Japanese markets.[8]

The democratic and economic drive of the Korean society started in 1992 after the election of Kim Young-sam, the first South Korean President with a civilian background. In 1995, European Union launched the negotiations for a Framework Agreement (FA) on Trade and Cooperation with the Republic of South Korea.[9] In April 2001, the Framework Agreement entered into force committing both parties to foster bilateral trade and investment.[10] In 2007, the Free Trade Agreement (FTA) negotiations between EU and South Korea started,[8] entering into force in July 2011.[11] The EU Gateway programme to South Korea was launched during the FTA consultations aiming to accompany the implementation of the agreement along the way.[8]

Since the initial launch of the programme, over 30 business missions were organised by the EU Gateway initiative with more than 3000 European SMEs participants.[12] From 2002 – 2007, the programme reduced its sectorial focus from 10 to 7, organising 30 business missions with close to 1000 participating companies.

2008 marked a new era in EU Gateway history as the programme was launched in another country, South Korea.[13] All in all, from 2008 – 2014 more than 1500 companies participated in 31 business missions to Japan and 15 business missions to South Korea respectively.[14]

EU Gateway as an instrument to foster bilateral trade relations: EU – Japan and EU – South Korea

EU - Japan Trade Relations

Main article: Japan-European Union relations

Over the past decades the EU and Japan have developed strong economic ties and Japan, the world’s third largest economy, is the EU’s 7th largest trading partner.[15] Trade between the two partners is expected to increase by a prospective FTA for which the negotiations were launched during the EU-Japan summit in March 2013.[16] Both parties aim to conclude a comprehensive agreement for goods, services and investment, eliminating tariffs, non-tariff barriers and covering other trade-related issues, such as public procurement. The Free Trade Agreement is expected to increase the EU’s GDP by 0.6 to 0.8% and EU export to Japan by more than 32,7%.[15] Despite the joint efforts made to foster economic cooperation, SMEs are still encountering challenges when entering the Japanese market:[17]

  • High business costs related to: taxes, salaries, purchasing or renting office, social security;
  • Legal restrictions and rigid/complicated administrative procedures required for business permits and licenses;
  • Lack of mobility in the labor market leading to difficulties in finding human resources;
  • Specificities of the Japanese market and difficulty in communicating in foreign languages.

EU – South Korea Trade Relations

Main article: South Korea-European Union relations

South Korea is the EU’s 8th largest trading partner and EU has become South Korea’s second largest trading partner and export destination.[18] In 2011 – 2012, South Korea was one of EU’s main trading partners registering 16.2% exports’ growth rate.[19] The EU – South Korea Free Trade Agreement entered into force on 1 July 2011 and lifted considerable trade barriers between the two partners.[18] The agreement eliminated tariffs for industrial and agricultural goods in a progressive, step-by-step approach. It is estimated that just 9 months after the first tariff cuts took effect, EU companies exporting their products to Korea already made cash savings of €350 million in duties.[20] Being recognized as one of the fastest growing hi-tech economies in the world,[21] South Korea is an attractive business destination for European SMEs specializing in high technologies.[22] Although significant progress has been made for overcoming market barriers, European companies are still facing challenges when acceding to the Korean market:[23][24]

  • Pricing and Marketing Arrangements;
  • Standards and other technical requirements;
  • Import licensing;
  • High tariffs;
  • Documentation and customs procedures.

How EU Gateway Helps European SMEs in Japan and South Korea

  • One week business missions to Japan and Korea for micro, small and medium-sized companies in the following sectors: Fashion Design; Interior Design; Construction and Building Technologies; Environment and Energy-related Technologies; Information and Communication Technologies, Healthcare and Medical Technologies:[25]
  • Two exhibition days (in the framework of the business week);
  • Arranging individual business meetings between EU SMEs and Japanese/Korean business representatives;
  • Customized business services;
  • Advice on certifications and legal matters to be dealt with in Japan and in Korea;
  • Company branding and promotion;
  • Logistical and operational support (prior to, as well as during the business mission week).

Main Achievements and Results

In 2014, the EU Gateway programme reached 20 years of history in Japan and 6 years of presence in Korea. In this timespan, over 3750 European SMEs participated in 163 business missions successfully entering the Japanese or the Korean market. During the current programme phase (2008 -2014), EU Gateway organised successfully 31 business missions to Japan and 15 business missions to Korea. Furthermore, from 2008 to 2014, about 1500 European SMEs from 28 EU Member States joined the programme with 94% of participants eager to enroll again. Engaged in the business support path, EU Gateway created long lasting business ties with Korean and Japanese representatives. In 2009, 51% of participants reported newly established business collaborations, a number which by 2014 increased to 82%. Programme results in financial terms are high, 97% of participants reported significant increase in their sales distribution figures. In addition, over 40% of EU Gateway’s attendees experienced revenue growth following the sector-related business missions.[26]

Future EU Gateway initiatives

File:EU Gateway Programme Destination Countries.jpg

Due to outstanding performance, the EU Gateway Programme expands further than Japan and South Korea entering new markets such as: Singapore, Malaysia and Vietnam. In March 2014, the pilot programme, EU Business Avenues was launched in Southeast Asia.[27] Between 2014 – 2015, three business missions to Singapore-Malaysia and Singapore-Vietnam will be organised focusing on two sectors: clean technologies and interior design.[27] In the future, EU Gateway initiative will be continued under the Partnership Instrument (PI),[28] as part of activities aiming at improving access to third country markets and boosting trade, investment and business opportunities for European companies. The Partnership Instrument will have a global reach, however with priority given to strategic partners, i.e. Mexico, Brazil, US, Canada, China, South Korea, Japan, India, Russia, and South Africa.

EU Gateway Partners

  1. Japan External Trade Organization[29]
  2. EU-Japan Centre for industrial cooperation[30]
  3. Japan Consulting Office[31]
  4. Korea Trade Investment Promotion Agency[32]

References

  1. ^ "The EU Gateway Programme for Japan and Korea". http://ec.europa.eu/dgs/fpi/showcases/cooperation_japan_korea_en.htm. European Commission. Retrieved 14 February 2014. {{cite web}}: External link in |work= (help)
  2. ^ "A small win-win EU Partnership held 7-8 days". Energy Daily Korea. 2011-04-29.
  3. ^ "Press Release: Launch of the new EU Gateway Programme" (in English, French, and German). Brussels, Belgium. 29 May 2008. {{cite news}}: |first= missing |last= (help)
  4. ^ "Support for the Internationalisation of SMEs" (PDF). Enterprise and Industry Magazine. 13 (July 2012): 7. 6 July 2012. ISSN 1831-1237. Retrieved 6 July 2012.
  5. ^ "Executive Training Programme". Euetp.eu. Retrieved 2014-06-15.
  6. ^ "EU-Japan Relations". European Commission.
  7. ^ a b c "Joint Declaration on Relations between the European Community and its Member States and Japan" (PDF). The Hague, The Netherlands. 18 July 1991. p. 2. Retrieved 18 July 1991. {{cite web}}: Check date values in: |accessdate= (help)
  8. ^ a b c Christian Franck; Jean-Christophe Defraigne; Virginie de Moriamé. European Union and the rise of regionalism (Volume 13 of Actes de la Chaire AGC (ex-Glaverbel) détudes européennes ed.). Academia-Bruylant, 2009. p. 290. ISBN 2872099298.
  9. ^ "Korea-EU Political Relations". Ministry of Foreign Affairs, South Korea.
  10. ^ Lee, Jae. "Korea-EU FTA EU is how to move and got to take advantage of?". http://www.globalwindow.org/gw/overmarket/GWOMAL020M.html?BBS_ID=10&MENU_CD=M10103&UPPER_MENU_CD=M10102&MENU_STEP=3&ARTICLE_ID=5013341&ARTICLE_SE=20302. Global Window. Retrieved 2014-03-25. {{cite web}}: External link in |website= (help)
  11. ^ "EU-South Korea FTA". European Commission. Retrieved 5 May 2014.
  12. ^ "Helping EU enterprises seize opportunities in Japan and Korea". Enterprise and Industry/Mission for Growth/International Issues. Retrieved 6 July 2012.
  13. ^ Renee, Park (11/06/2012). "EU Gateway Program in Korea 2012 opens in Seoul". The Korea Herald. The Korea Herald. Retrieved 11/06/2012. {{cite news}}: Check date values in: |accessdate= and |date= (help)
  14. ^ "Infographic: EU Gateway Korea in figures" (PDF). European Commission.
  15. ^ a b "EUROPA - PRESS RELEASES - Press release - A Free Trade Agreement between the EU and Japan" (Press release). Europa.eu. Retrieved 2014-06-15. Cite error: The named reference "European Commission" was defined multiple times with different content (see the help page).
  16. ^ "EUROPA - PRESS RELEASES - Press release - EU-Japan summit (Tokyo - 25 March 2013)" (Press release). Europa.eu. Retrieved 2014-06-15.
  17. ^ Arima, Jun. "Japanese Economy - Towards Twin Engine Nation" (PDF). Impediments in Doing Business in Japan (slide 27). Source: 2011 Foreign Affiliated Firms Survey (METI).
  18. ^ a b "Korea- EU Economic Relations". http://bel.mofa.go.kr/english/eu/bel/bilateral/eu/index.jsp. Retrieved 2014-02-28. {{cite web}}: External link in |website= (help)
  19. ^ "South Korea - Trade Picture". European Commission.
  20. ^ "MADB updates to reflect tariff dismantling under the EU-South Korea FTA" (PDF). European Commission.
  21. ^ "South Korea's economy: High tech, low growth". The Economist. 9/06/2012. {{cite journal}}: Check date values in: |date= (help)
  22. ^ "South Korea : the fastest growing and most hi-tech economy". Global Press Club. Global Press Club.
  23. ^ "Guidance Exporting to South Korea". UK Trade and Investment. UK Government.
  24. ^ "Doing Business in Korea: 2012 Country" (PDF). Commercial Guide for US companies. US Department of Commerce.
  25. ^ "International Network for Small and Medium Sized Enterprises (INSME)". EU Gateway to Japan and Korea – An initiative for companies going Far-East. Retrieved 25 February 2013.
  26. ^ "Study of the EU Gateway to Japan and Korea Programme" (PDF). EU Gateway. July 2013. {{cite journal}}: Cite journal requires |journal= (help)
  27. ^ a b "Singapore strengthened as EU's hub for regional business engagements". Singapore Today. 5 May 2014.
  28. ^ "REGULATION (EU) No 234/2014 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 11 March 2014". Office Journal of the European Union. Retrieved 15 March 2014.
  29. ^ "Japan External Trade Organization". JETRO. Retrieved 2014-06-30.
  30. ^ "EU-Japan". Eu-japan.eu. 2014-04-09. Retrieved 2014-06-30.
  31. ^ "Cross-cultural and cultural awareness training on working with Japanese and non-Japanese companies｜Japan Consulting Office". Japanconsultingoffice.com. Retrieved 2014-06-30.
  32. ^ "KOTRA". KOTRA. Retrieved 2014-06-30.
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