Entry into Europe, Now is the Right Time

Analysis of Martial Arts 'COVID-19 Impact'... Need to Target EU Biohealth Market

[Asia Economy Reporter Hwang Yoon-joo] As the European Union (EU) moves to diversify its supply chains in the aftermath of the novel coronavirus disease (COVID-19), opportunities for our biohealth companies to enter the EU market are also increasing.

According to the "EU's COVID-19 Economic Response and Our Companies' Business Strategies" report released on the 15th by the Korea International Trade Association's Brussels office, the EU Commission has significantly lowered the economic growth rates for this year to -7.4% for the EU (27 countries) and -7.7% for the Eurozone (19 countries). Due to member countries' travel restrictions and business closures, industries such as automotive, aviation, travel, and distribution suffered production declines, revenue deficits, and workforce reductions.

In response, to overcome the pandemic crisis, the EU has prepared an economic response package worth 540 billion euros and has also begun promoting a supply chain diversification strategy. In particular, to reduce the high dependence on imported essential medicines, the EU is emphasizing the expansion of pharmaceutical production facilities within the EU.

For quarantine supplies such as diagnostic reagents and masks, from January 30th retroactively for the following six months, tariffs and value-added tax on import volumes have been exempted. To effectively respond to such urgent health crises, the EU has also started considering the permanent abolition of tariffs on medical supplies and medical equipment.

The report stated, "As the need for supply chain diversification arises among EU member states, interest in Korean companies capable of continuously producing products without national-level travel restrictions or production stoppages even in crisis situations has increased," adding, "Along with the rising awareness of K-quarantine and Korean medical supplies, the EU's supply chain diversification and discussions on the permanent exemption of medical supplies tariffs will be a good opportunity for our biohealth exports."

Kang No-kyung, deputy director of the Korea International Trade Association's Brussels office, emphasized, "With this pandemic as a turning point, untact, remote, and online consumption will be further activated, as elderly populations accounting for 20% of the EU population experience e-commerce," and added, "Our companies must unite their efforts to proactively respond to the EU's supply chain diversification movement and changes in consumer habits to be incorporated into the restructured value chain."

This content was produced with the assistance of AI translation services.