Since May t, 2004 the European Union has consisted of 25 countries, with 455 million people. In 2004, EU international trade achieved Euro 1,990.5 billion or equivalent to 18% of world trade. EU is a potential market for Indonesian export commodities, but during year 2000 to 2004 there were tendencies that export values from Indonesia declined. Besides that most Indonesian export commodities to EU were still dominated by low technology products. In order to use this opportunity and to improve export performance, several actions should be taken, such as: increasing promotion activities, improving trade relation to EU new member from East Europe and conducting research cooperation between Indonesian and EU research institutions in product design and development.
