EU Market Research Articles

Recent Opportunities for Increasing Georgian Wine Export - Incentives or Obstacles to Improving Wine Quality

Abstract Along with the internationally recognized image of Georgian wine and the increase of wine exports, special attention is paid to maintaining and improving the quality of Georgian wine. Taking into account the requirements of the local and international wine markets and, consequently, promoting the development of a competitive market remains a challenge for Georgian law. The creation of favorable conditions for the export of wine at the local and international level implies, first of all, the existence of legal regulations. The aim of the Law of Georgia on Vine and Wine and its accompanying subordinate normative acts is to develop a competitive wine market in Georgia and to protect the interests of consumers, to maintain and grow the international reputation of the Georgian viticulture and winemaking sector. The law was substantially amended in 2017 and the aim of the reform was to adapt to the challenges in the wine sector and bring it closer to international standards. At the same time, the export of Georgian wine to different countries is regulated by a different legal framework. Therefore, it is in our interest to analyze these different legal regulations, which have a direct impact on the opportunities for wine exports from Georgia - the incentive or obstacle to improving the quality of Georgian wine. EU regulations apply to both wines produced in the EU and imported to the EU market, as well as to Georgia, as a third country that has signed the Deep and Comprehensive Free Trade Agreement (DCFTA) with the EU. Russia, Ukraine and the USA are important export markets for Georgia. Georgia has different international legal relations with each of them and, accordingly, the legal requirements for wine exports to these countries are different. The paper examines the current state of the modern Georgian wine market in the context of domestic and international norms regulating wine exports. It is analyzed whether local legislation and international agreements regulating wine exports contribute to the growth of Georgian wine exports and the improvement of wine quality.

Unpacking the tuna traceability mosaic – EU SFPAs and the tuna value chain

Traceability has been gaining in importance recently and has seen its potential uses within fisheries expanding from primarily food safety to combat illegal fishing and promote sustainability. In the tuna value chain, key processing actors have introduced comprehensive systems allowing consumers to trace products right back to the vessel that caught the tuna and the catch date. Traceability is also an important component of EU SFPAs (Sustainable Fisheries Partnership Agreements). This paper explains the rationale for the EU entering into SFPAs and shows how the current portfolio of SFPAs exhibits an increasing dependence on access to tuna stocks. Utilizing a unique dataset, we present information on area, method of capture and landing site for EU SFPA vessels. We show that there are economic incentives for vessels to misreport, and clear traceability challenges as vessels fish several species and across several areas (both coastal and in areas beyond national jurisdiction - ABNJ). The tuna value chains in Cabo Verde and the Seychelles are then examined from a traceability perspective. As we report, while an EU catch certificate scheme (CCS) operates to cover all tuna products imported into the EU market, there are flaws in the current system which need remedying.

Market Share Analysis and Export Performance of Indonesian Crude Palm Oil in the EU Market

This study aims to analyze the market share and export performance of Indonesian Crude Palm Oil (CPO) to the European Union Market, using time series data (2000 – 2020). The Market Share Index is used to assess the condition of the Indonesian CPO market in export destination countries when compared to its competitors (Malaysia). Analysis of the performance of CPO products in the European Union market using the Constant Market Share (CMS) approach. The results show that the average growth of Indonesia's export standards to Europe is 0.1526, indicating that Indonesia is able to take advantage of CPO export opportunities. Indonesia has been able to meet CPO product specification standards in importing countries, including the Roundtable Sustainable Palm Oil (RSPO) and Hazard Analysis and Critical Control Points (HACCP) certifications as standards for safety and consumer protection. Indonesian CPO is well positioned in Spain (0.000244) and Italy (0.00014), and less well positioned in the Netherlands and Germany. Indonesia does not have good competitiveness against CPO exports in the European Union market, which causes Indonesia to shift the Asian market as the target market for Indonesian CPO.

Screening of Cooling Technologies in Europe: Alternatives to Vapour Compression and Possible Market Developments

The aim of this study is to investigate, review, and assess the recent advances of alternative cooling technologies using traditional vapor compression (VC) systems as a baseline. Around 99% of the final energy consumption used for cooling in the current European market (European Union plus the United Kingdom (EU27 + UK) is supplied by VC technologies. In comparison, the remaining 1% is produced by thermally driven heat pumps (TDHPs). This study focuses on providing a complete taxonomy of cooling technologies. While the EU heating sector is broadly explored in scientific literature, a significant lack of data and information is present in the cooling sector. This study highlights technologies that can potentially compete and eventually replace VC systems within the decade (2030). Among others, the most promising of these are membrane heat pump, transcritical cycle, Reverse Brayton (Bell Coleman cycle), and absorption cooling. However, the latter mentioned technologies still need further research and development (R&D) to become fully competitive with VC technologies. Notably, there are no alternative cooling technologies characterized by higher efficiency and less cost than VC technologies in the EU market.

Parametric Analysis for Performance Optimization of Line-Start Synchronous Motor with Interior Asymmetric Permanent Magnet Array Rotor Topology

Line-start synchronous motors have attracted researchers’ interest as suitable replacements of asynchronous motors due to their high efficiency, which has been provoked by strict regulations regarding applicable efficiency classes of motors in the EU market. The research becomes even more challenging as it takes into consideration the diverse rotor topologies with different magnet locations for this type of motor. The rotor configuration with an interior asymmetric permanent magnet (PM) array rotor was chosen for analysis and optimization in this paper as this specific configuration is particularly challenging in terms of placing the magnets with adequate dimensions into the existing rotor of the asynchronous motor with a squirrel cage winding, in order simultaneously to obtain good operational characteristics such as high efficiency and power factor, good overloading capability and low material consumption. Therefore, an optometric analysis is performed in order to find the best configuration of the air gap length, magnet thickness, magnet width and number of conductors per slot, along with modifications of the rotor slot. The motor outer dimensions remained unchanged compared with the starting model of the line-start motor derived from the asynchronous motor, which is a product of the company Končar. The optimized model obtained higher efficiency, power factor and overloading capability than the starting model, along with good starting and synchronization capabilities.

Challenges of Enterprises Optimal Growth in Terms of the Covid-19 Pandemic

Challenges of Enterprises Optimal Growth in Terms of the Covid-19 Pandemic

Beggar thy neighbor? On the competitiveness and welfare impacts of the EU's proposed carbon border adjustment mechanism

Curbing climate change is gaining increasing consensus globally. While many countries seek to set carbon prices, significant price dispersion and policy stringency continue to raise concerns about competitiveness. To address this issue, the EU has proposed a carbon border adjustment mechanism (CBAM), which aims to level the playing field by levying a carbon price on EU imports. In this paper, we estimate the competitiveness and welfare impacts of the EU CBAM, based on a refined multi-regional IO approach. We quantify changes in the value of exports to the EU market upon CBAM implementation for both EU members and non-EU economies. It is found that the EU CBAM will lead to a redistribution of competitiveness among countries and regions. Specifically, it is estimated that EU output would increase by 0.38 per cent while output in rest of the world decreases by 0.1 per cent in the short run, when CBAM is set at $US100/tCO2e. The burden is unevenly distributed among regions, with China, Russia and India bearing the most. Moreover, a deeper sub-national-level analysis on China shows that, given its pervasive domestic production network, income losses in landlocked provinces exceed their export losses, contrasting with the pattern for trade-exposed provinces.

Hindering Factors for exporting Georgian Agri-food Products to the EU Market (DCFTA)

In 2014 after signing the Association Agreement between the European Union and Georgia, a wide range of trade relations has been opened for the state of Georgia and was given the opportunity for the free trade. Chapter IV of the Agreement - "Trade and Trade-Related Issues", the agreement about Deep and Comprehensive Free Trade Area (DCFTA) includes the mechanism of economic integration with the EU and opens its internal market for Georgia. According to the agreement, if the required conditions are achieved, the world’s largest market will be opened for Georgia, which currently unites 28 countries and more than the 500 million customers. Utilizing this opportunity will lead increasing investment flows in the country, the emergence of new enterprises and export products, suppling of safe and harmless products to the customers. This will ultimately have a positive impact on the country's economic growth and the development, nevertheless it is still a distant prospect. In order to receive all the foreseen benefits of the Association Agreement, it became necessary to identify and eliminate problems in the number of areas. According to the agreement, food safety is recognized as a political priority of the European Union. Created program of legislative approximation with the EU includes the fulfillment of commitments and the deadlines, which is an ongoing process. In the years of 2015-2020, in accordance with the DCFTA agreement, 146 legal acts had been aligned with the EU legislation in the fields of food safety, veterinary and phytosanitary. Despite all these achievements, the major challenge for both the regulators and business operators still remains to be the enforcement and putting into effect the EU required standards. As the most products in the EU market are subject to harmonized rules, that protect the consumers, public health and the environment, it excludes the adoption of different national rules - the product made in Georgia must comply with the EU standards. That is why the Georgian business operators have to: introduce internationally recognized systems in the enterprise; adapt to the new regulatory environment; create a harmless, quality and competitive product; attract the European partners and be able to produce the required quantity, which may need to involve the different and modern production technologies. Therefore, it is essential to understand, that using the terms of the agreement do not completely depend on the smooth running of government agencies, as it largely depends on the personal progress of the business operators and the relevant associations. Keywords : Economic integration with Europe, food safety, international commitment, Association Agreement.

DIFFERENTIATION OF FOOD PRICES BETWEEN EUROPEAN UNION COUNTRIES

Poland’s accession to the European Union and the related opening of the Polish economy increased its dependence on global and regional phenomena. Domestic prices of food products began to be influenced by, among others, prices on external markets, mainly on the EU market. Phenomena characteristic of economic integration also occurred in other “new” Member States. The aim of the article is to present the differentiation of food prices between European Union countries, with particular emphasis on the process of convergence of prices, and to evaluate the competitive advantages of Polish producers on the EU food market. A comparative analysis of food prices was carried out for 27 EU Member States, additionally broken down into “old” and “new” EU Member States. The study covered the years 2010-2020. Eurostat data was the source of information. The method of descriptive and comparative statistics was used to evaluate the collected research material. As a result of the conducted analyzes, it was found that there is a large differentiation in food prices between individual countries of the European Union and the prices are clearly higher in “old” than “new” Member States. However, along with the progressing economic integration of individual markets with the EU market, there is a gradual alignment of domestic prices with EU prices. It was also shown that Polish food producers still had significant price advantages over competitors from other Member States. The ongoing process of food price convergence in the EU means, however, that they should actively seek new sources of competitive advantage.

Validation of an Energy Dispersive X-Ray Fluorescence method for small sample intake in a wide range of matrices. Application to the analysis of saffron

Multi-elemental analyses using Energy Dispersive X-Ray Fluorescence have proven their efficacy in food authentication, but sample intake can be a drawback in the analysis of expensive matrices such as saffron. In this work, small sample holders and the double pellet method (a thin sample layer on a wax pellet) were combined to determine 19 elements of interest in food analysis, using only 1 g of sample. The trueness of these two approaches was evaluated with 17 different organic matrix reference materials of lichen, wheat flour, rice flour, bran, brown bread, cabbage, vegetable feed, pine needles, and spinach, tomato and tobacco leaves. In the analyses of reference materials, double pellets provided accurate results (recovery 100%) for Mg, Al, Si, P, Cl, S, K, Ca, Cr, Mn and Fe, but the penetration of the radiation into the wax layer of the double pellet hindered quantitative recovery for heavier elements. Contrarily, small sample holders were less accurate for the very light elements (Mg, Al and Si) but the recovery was satisfactory (> 80%) for the remaining ones, including the heavier elements (Cu, Zn, Rb, Sr, Cd and Ba). Ni and Br determinations were affected by a possible matrix dependent interference. With some few exceptions, the precision and the limits of quantification for the different elements in saffron, are comparable to those that characterise the analyses with standard pellets. The method was validated to analyse 21 Iranian saffron samples collected on the EU market.

Recycling of Post-Consumer Packaging Materials into New Food Packaging Applications—Critical Review of the European Approach and Future Perspectives

The European strategy for plastics, as part of the EU’s circular economy action plan, should support the reduction in plastic waste. One key element in this action plan is the improvement of the economics and quality of recycled plastics. In addition, an important goal is that by 2030, all plastics packaging placed on the EU market must either be reusable or can be recycled in a cost-effective manner. This means that, at the end, a closed-loop recycling of food packaging materials should be established. However, the use of recyclates must not result in less severe preventive consumer protection of food packaging materials. This may lead to a conservative evaluation of authorities on post-consumer recyclates in food packaging applications. On the other hand, over-conservatism might over-protect the consumer and generate insurmountable barriers to the application of post-consumer recyclates for food packaging and, hence, counteract the targets of circular economy. The objective of this review is to provide an insight into the evaluation of post-consumer recyclates applied in direct contact to food. Safety assessment criteria as developed by the European Food Safety Authority EFSA will be presented, explained, and critically discussed.

Impact of the Green Deal on copper imports from Russia to the EU

The article analyzes the prospects for copper imports from the Russian Federation to the EU in the context of the implementation of the plan for decarbonization of the EU economy by 2050. It is noted that green economy is more metal-intensive, but in the medium-run, the impact of the traditional drivers (population growth and rising welfare) on the global copper market will remain significant. Similar trends are shown in the EU copper market: in the current decade, the rapid relative growth of the green sectors of the economy and the demand for copper from them will not lead to fundamental changes in the dynamics and structure of the market. At the same time, the introduction of a cross-border carbon adjustment mechanism (CBAM) could disrupt the sustainability of the established business model in the European copper industry. Eight scenarios of the financial burden for copper imports from the Russian Federation to the EU after the introduction of CBAM are presented, showing that the new EU foreign trade instrument will not have a restrictive effect on copper imports from the Russian Federation. However, the increase in the supply of Russian copper to the growing EU market may be constrained by the geographic remoteness of new copper mining and refining facilities.

Konkurentnost izvoza vina iz zemalja CEFTA regiona na tržištu EU

The objective of this paper is to examine the competitiveness of wine export of CEFTA parties (excluding Kosovo), in the period from 2011 to 2020. The CEFTA group exported wine worth a total of 2.3 billion USD during the analyzed period, with significant differences in export value among certain parties. Moldova and North Macedonia generated over 80% of the wine export value. Competitiveness of wine export was analyzed by calculating two sets of indicators. The first set includes three competitiveness indices: revealed comparative advantage index, export specialization index and trade intensity index. The second set of factors relates to the analysis of market share and changes in the market share. With the purpose of identifying causes of changes in the market share, one of them being the competitiveness effect, the authors employed the method of constant market share analysis. The leading exporter, Moldova, although not predominantly focused on the European Union as the main export market, is competitive in the EU market and achieves specialization in exporting wine to the EU market, as well as an increase in trade intensity and market share. Other analyzed CEFTA countries have recorded a decrease in market shares and variable performance regarding export specialization, revealed comparative advantage and trade intensity.

Problems and Potential Opportunities for the Development of the it Sphere in Ukraine under the Condition of Activating the Processes of Integration to the International Market: Administrative Aspect

The article is devoted to the problems, potential opportunities for the development of the IT sphere in Ukraine under the conditions of the activation of the processes of integration into the international market. The trends in the number of business entities in the IT sphere in recent years have been analyzed. The article contains a description of development trends and institutional subjects of regulation of the global IT market by management levels. The strategic directions of the development of the national IT market, which should be logically consistent with the main areas of the economy, have been analyzed. Potential scenarios of the development of events on the domestic IT market are highlighted. Modern information technologies make it possible to find effective solutions that improve business operations and are manifested quantitatively and qualitatively: the number of services, the cost of IT services and the level of reliability, the speed of bringing new services to the market or creating new conditions for existing ones. This happened thanks to the expansion of the domestic market, the need to export IT services, the improvement of the level of effectiveness of legal regulation of this area, which is taking place, in particular, with the wide involvement of business associations, public associations, etc. One of the most promising and realistic scenarios is the consolidation and integration of the Ukrainian IT market with the EU market. It will contribute to the active development of the domestic IT market in Ukraine through the creation and implementation of new projects. Cooperation of the IT industry with the state, promotion and stimulation of the development of this sphere by the state is necessary. For further growth and development of the domestic IT industry, the following measures are necessary: formation of a stable fiscal policy for the industry, elimination of regulatory barriers, promoting the activation of the development of IT education, raising the level of qualification of IT personnel, etc. Keywords information, IT market, digitalization, information technologies, integration, international market, management.

Evidence Emerging from the Survey on European Union Timber Regulation [REG. (EU) 995/2010] in Italy

Illegal logging is a pervasive problem of major international concern that causes many negative social, economical and environmental consequences. EUTR is a tool adopted in 2010 and entered into force in 2013 to stop the trade of timber illegally logged within the EU market. The implementation in Italy is still in progress and varies among regions. This study considers the respondents’ opinions on different EUTR characteristics, implementation processes and compliance activities. Taking Italy as an example, the questionnaire was delivered to relevant Italian foresters and timber operators in the forest-timber system. Two hypotheses are under verification: 1) if Italian forest-wood-timber sector integrated EUTR into its activity and 2) if the Italian Due Diligence system is a valid model to other countries. The questionnaire has been submitted to the wood industry stakeholders. It has been organized into six sections to collect information about the professional characteristics of respondents, their experiences on EUTR, the opinion about EUTR and FLEGT, the support received on EUTR implementation, the opinion about the checks system, and the role of EUTR in marketing timber products. Questionnaire data have been elaborated in different ways. Conclusion underlines the EUTR Italian system criticalities and some suggestions for a more effective use of EUTR in the wood market. The picture that emerges from the results collected is that the EUTR, although proposed for morally and ethically valid purposes, doesn’t have unanimous effectiveness. In particular, EUTR can generate a distortion of the market, new expenditures for importers. Various operators applaud the role of certification schemes for sustainable forest management, which indirectly makes it possible to prevent the aforementioned problem. The Italian EUTR system is working only for satisfying Regulation 995/2010 targets. This must be considered as the starting point; however, three innovative topics could be developed in the future: digitalization and computerization of EUTR certification, integration of EUTR certification with forest certifications schemes and other quality certifications, and use of EUTR in the marketing initiatives.

Արտոնությունների ընդհանրացված և համալրված համակարգը (GSP+) և Հայաստանը/Generalised Scheme of Preferences Plus (GSP+) and Armenia

The paper discusses the export of Armenian goods to the EU within the framework of the «Generalized Scheme of Preferences (GSP +)», the preconditions for becoming a beneficiary of GSP +, the grounds for the graduation of preferences from January 2022, and its consequences. The graduation of the preferences will mainly affect the export of aluminum foil, knitted garments, ferromolybdenum, fermented beverages and tobacco products. The deprivation of GSP + privileges will lead to exports reduction in the EU in the extent of new tariffs and the price elasticity size of that specific product in the EU market. The products that are exported to the EU are competitive in terms of quality, and the decline in price competitiveness can be mitigated by cost savings and productivity growth.

Specific aspects on the adequate selection of electric equipment intended for use in potentially explosive atmospheres

When using electrical equipment in installations operating in hazardous areas endangered by potentially explosive atmospheres, care shall be taken also to the selection of such equipment. The correct selection of equipment for use in potentially explosive atmospheres must be considered in the design phase of an installation and verified in the mounting phase. Equipment intended for use in potentially explosive atmospheres must be designed, manufactured and placed on the EU market considering the provisions of the ATEX Directive 2014/34/EU. In order to adequately select the electrical equipment, the provisions of the regulations in force must be considered together with the provisions of applicable standards.

The Promise of Cooperation in Latin America: Building Deforestation-Free Supply Chains

An EU Regulation proposed in 2021 prohibits the trading of deforestation-linked commodities and products on the EU market.1 The Regulation aims this ban at its own market, but it has unavoidable consequences for commodity producing Latin American countries. The proposed Regulation will affect trade with the European Union, a key trade partner for Latin American countries. If this type of regulation is increasingly adopted by other industrialized countries, which currently represent the largest share of exports for Latin American countries, the trade impact in Latin America will be even broader. We argue that regulatory approaches focused on global supply chains—such as the EU Regulation—represent an opportunity to reinvigorate existing, albeit weak, Latin American environmental cooperation to tackle key drivers of deforestation, notably, agricultural expansion. Despite the global relevance of the region's forests and biodiversity, Latin American cooperation has not been significant in forest conservation.2

European integration development of Ukraine: current section in conditions of martial status

The European integration vector of Ukraine 's development has been studied. The risks of endogenous economic development in the context of the Association Agreement with the EU are highlighted. The main risk in the pre-war period was the raw material orientation of exports to the EU. Military action has blocked logistics routes, reduced exports, and restructuring the commodity structure of exports with an increasing share of high value-added products has become a priority for postwar recovery. It is determined that the necessary condition for the implementation of the Agreement is the approximation to Euro standards through harmonization with European technical, technological, phytosanitary, environmental norms and standards. The need to adhere to clearly defined standards restrained the intensification of exports, but made products more competitive and expanded opportunities for their export. It was determined that the harmonization process was somewhat slow, which was due to the lack of sufficient qualified staff in the system of technical regulatory bodies. It is noted that a large amount of work is planned for the period until 2025, which would harmonize regulations and technical regulations in accordance with EU legislation, however, it is currently difficult to predict how much work will be implemented, which will negatively affect the export potential of Ukrainian manufacturers. It is noted that the development of cooperation in high-tech sectors of industrial production, creating conditions for entering the EU market with products with a high share of added value requires ratification of the Agreement on Conformity Assessment and Acceptance of Industrial Products (ACAA). It was found that the process of preparation for "industrial visa-free travel" is asymmetric without a clear time frame on the part of the EU. It was found that the hostilities caused significant losses and reduced export potential of Ukrainian agribusiness, including organic products. It is determined that among the problems of export of Ukrainian organic products remains mostly its raw material nature with low added value.

EU Market Definition: Is It Outdated?

EU Market Definition: Is It Outdated?