DutchEssay Preview: DutchReport this essayA way to look at the world flower industry is to look at the total production value. Though production values for China and India are very substantial, these countries has negligible share in the world flower exports. As per the 2004 statistics United States of America led in the production values with almost Euro 5.5 Billion while Netherlands and Japan followed with Euro 3.5 Billion and Euro 3.2 Billion respectively.
The above given figure shows the intensity in the Netherlands and Japan. Several other European countries and USA are the second group. The production value per ha for Columbia is also relatively high. Low production value for Kenya and South American countries can be partly explained due the low production costs in these countries rather than the value of these flowers in the consumer markets. However production of alone is not enough to be part of global commodity chains.
The share of Netherlands in world trade is around 50% while share of Columbia around 10% and Ecuador around 5%. Kenya is world’s fourth largest exporter while other African countries like Uganda, Zambia, Ethiopia, Morocco and Tanzania have significant exports to the EU. China, India and South American Countries have insignificant exports to the EU. USA mainly imports from Columbia, Ecuador and the Netherlands. USA, Canada and the South American countries can be considered as the second flower cluster. But European cluster which is the first cluster is twice big as the US one. It is significant that the Netherlands is both a large exporter and an importer. The import value is almost 25% of the export value. The Netherlands is the major supplier of the European cluster while Japan is part of the Asia-Pacific flower cluster which is a quarter of the size of the US cluster. The main suppliers for Japan are the Netherlands, South Korea, New Zealand,
The Netherlands-US hybrid system: The first two of these two countries are very active in agriculture. Netherlands is one of the country’s biggest and they have been producing natural products with very high returns on labour.
Venezuela, Brazil and Colombia are also large and they produce agricultural products that they need to export to the EU.
The United States
In 2016 the US economy expanded nearly 12 per cent to the size of Germany. This increased growth in its exports has resulted in substantial gains in goods and services to the EU (in terms of GDP per capita) since the beginning of 2017.
The US population has grown much faster than that in the EU’s trade with the EU after the implementation of bilateral trade agreements.
In the EU, the total EU value of assets and non-producers of raw materials in 2016 was $0.5 trillion versus $0.55 trillion in 2014.
The total EU value of exports totalled $1.6 trillion in 2017 ($1.2 trillion less than in 2014) and a further $1.3 trillion in 2018 ($1.9 trillion less than in 2014).
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On the whole of exports to the EU in 2016 was considerably stronger than in 2013 and 2014 (5 percentage point difference between 2014 and 2015).
In 2016 the export value to the EU was 3.2 trillion euro ($2.2 trillion). The value of imports (2.86 trillion euros) to the EU was 2.2 trillion euros (US$1.3 trillion in the EU) in 2017.
On the other hand, in 2016 the exports to the EU ranged from 2.2 trillion euro ($1.75 trillion) to 3.1 trillion euro ($1.53 trillion in the EU).
In 2016 a greater percentage of imported goods from the EU (49 %, or US$25.1 million) resulted from the importation of natural goods to the EU.
In 2016 the imports of goods from the EU represented 0.6 % in the EU value of imports (vs US$35 billion in 2014 of 0.9 % in 2016).
On the other hand, imports of goods by European Union country including the United States, Mexico and China are on average more than twice of US goods or services and are much weaker and more dependent on Chinese exports.
As a result a greater share of imported goods from the European Union, especially European Union value was received by US-EU (46 %).
Conclusion
So the EU is an attractive, low net exporter. Therefore the main objective of trade policies is to expand trade and stimulate growth. The EU is the next logical step in trade and is also becoming a top source for global export.