Laos set to benefit from EU expansion
Laos set to benefit from EU expansion
Laos stands to benefit from a larger European Union after Croatia joins the economic bloc on July 1, according to the EU Delegation in Laos.
Companies doing business with Europe will benefit from the enlargement of what was already the world's largest single market as well as simplified and enhanced access to the markets of new members. As of today there are a further 4.3 million potential customers for products and services from Laos.
In terms of Foreign Direct Investment in Laos, the EU (with 27 member countries) ranks fifth after Vietnam, Thailand, China, and the Republic of Korea.
According to a recent report from the Ministry of Planning and Investment, Vietnam is now the largest investor in Laos with a combined value of about US$4.9 billon for the period 1989-2012. The second largest investor is Thailand (US$4 billion) and in third place is China (US$3.9 billion).
France is the biggest investor from the EU with a strong presence in the hydropower sector followed by financial services and hospitality.
As a Least Developed Country, Laos benefits from the most favourable regime available under the EU's Generalised Scheme of Preferences (GSP), namely the Everything But Arms (EBA) scheme. The Everything But Arms scheme gives the 48 Least Developed Countries - including Laos - duty free access to the EU for exports of all products, except arms and ammunition.
The expansion of the EU means Lao products have access to a larger market.
Croatia is the first Western Balkans country to join the European Union. Its accession on July 1 is the result of a decade-long negotiation process.
Since its formal application for EU membership in 2003, Croatia has invested considerable effort and fulfilled all the accession criteria needed to bring it into line with EU laws and standards. Tangible progress has been achieved in areas such as the rule of law, the fight against corruption, human rights, and the protection of minorities.
This latest enlargement will make the EU more prosperous, help to improve the quality of people's lives, make Europe a safer place and give the EU more clout in today's multi-polar world. Croatia is brought into the EU family along with 4.3 million new EU citizens.
The EU was created with the six member states of Belgium, France, Germany, Italy, Luxembourg and the Netherlands, becoming nine in 1973 with the arrival of the UK, Ireland and Denmark. Greece followed in 1981, and Portugal and Spain in 1986.
Austria, Sweden and Finland made it 15 in 1995. Poland, Hun gary, the Czech Republic, Slovakia, Slovenia, Lithuania, Latvia, Estonia, Cyprus and Malta created the EU's largest expansion in 2004, and Bulgaria and Romania joined in 2007.
Now the EU, with 28 member states and more than 500 million citizens, is becoming a larger trading bloc.
Croatia's accession will strengthen Europe as it faces global challenges. The economic crisis has underlined the interdependence of national economies and the importance of cross-border solidarity. Enlargement benefits existing Member States not only by making the EU a bigge r player in the world, but also by diminishing threats of instability on the EU's frontiers. It is a win-win process.
Even though this is a time of hardship for many in the EU, the enlargement policy continues to contribute to peace, security and long-term prosperity across the continent.
vientiane times
