EU - Brazil Summit<br>EU27 trade deficit with Brazil at 7 bn euro in the first nine months of 2008<br>Brazil tenth trading partner of the EU27

STAT/08/185
19 December 2008

EU - Brazil Summit
EU27 trade deficit with Brazil at 7 bn euro in the first nine months of 2008
Brazil tenth trading partner of the EU27

Between 2000 and 2007, the value of EU27 exports to Brazil grew more slowly than imports, leading to an increasing EU27 deficit in trade with Brazil, from 1.8 billion euro in 2000 to 11.5 bn in 2007. In the first nine months of 2008, the value of EU27 exports to Brazil rose to 19.5 bn compared with 15.4 bn in the first nine months of 2007, and imports increased to 26.8 bn from 23.7 bn. As a result, the EU27 trade deficit with Brazil fell slightly, reaching 7.3 bn in the first nine months of 2008, compared with 8.4 bn in the same period of 2007.

The share of Brazil in the EU27's total external trade in goods remained around 2% between 2000 and 2007. In the first nine months of 2008, the share of Brazil in the EU27's total trade reached 2.0% of exports and 2.3% of imports. Brazil was the EU27's tenth most important trading partner.

On the occasion of the European Union - Brazil summit, which will take place on 22 December in Rio de Janeiro in Brazil, Eurostat, the Statistical Office of the European Communities, issues data on trade and investments between Brazil and the EU.

Germany, one third of EU27 exports to Brazil and one fifth of imports

Among the EU27 Member States, Germany (6.6 bn euro, 34% of EU exports) was by far the largest exporter to Brazil in the first nine months of 2008, followed by Italy (2.5 bn or 13%) and France (2.4 bn or 12%). The Netherlands¹ (5.4 bn or 20% of EU imports) was the largest importer, followed by Germany (5.2 bn or 19%), Italy (3.0 bn or 11%), France (2.6 bn or 10%), the United Kingdom and Spain (both 2.4 bn or 9%).

Germany (+1.4 bn euro) recorded the largest surplus in trade with Brazil in the first nine months of 2008, followed by Austria (+0.4 bn). The largest deficits were observed in the Netherlands¹ (-4.5 bn euro), Spain (-1.2 bn), the United Kingdom (-1.0 bn) and Portugal (-0.9 bn).

Half of EU27 exports to Brazil in the first nine months of 2008 were machinery and vehicles² and one fifth each were chemicals and other manufactured articles², while crude materials² and food & drink accounted for a third and a quarter respectively of imports. At the detailed level, the main EU27 exports to Brazil were motor vehicles and parts, medicine, aircraft and parts, while the main imports were iron ore, soya beans and oilcake, crude oil and coffee.

EU27 trade in goods with Brazil

million euro

EU27 Member States' trade in goods with Brazil

million euro

EU27 trade in goods with Brazil by product

million euro

EU27 surplus of 1.6 bn euro in trade in services with Brazil in 2007

In 2007, the EU27 exported 6.4 bn euro of services to Brazil, while imports amounted to 4.8 bn, meaning that the EU27 had a surplus of 1.6 bn in trade in services with Brazil, compared with +0.6 bn in both 2005 and 2006. The surplus in 2007 was mainly due to transport (+0.7 bn), royalties & license fees (+0.4 bn) and construction services (+0.3 bn). Brazil accounted for just over 1% of total extra-EU27 trade in services.

EU27 trade in services with Brazil

million euro

EU27 net investment of 5.2 bn euro in Brazil in 2007

EU27 Foreign Direct Investment (FDI) into Brazil rose from 5.4 bn euro in 2006 to 7.1 bn in 2007, while Brazilian direct investment into the EU27 increased from 1.2 bn in 2006 to 1.9 bn in 2007.

EU27 FDI flows with Brazil

(million euro)

* Provisional data

1. Dutch imports and therefore the trade deficit are over-estimated because of the “Rotterdam effect” where goods destined for the rest of the EU arrive and are recorded in harmonised EU external trade statistics in Dutch ports. This then has a positive effect on the external trade balances with Brazil of those Member States to which the goods are re-exported as these shipments would be recorded as intra-EU trade with the Netherlands rather than extra-EU trade with Brazil. To a lesser extent, Belgian trade figures are similarly over-estimated.
2. Crude Materials includes animal skins and furs, oil-seeds, rubber, wood, wood pulp, textile fibres, minerals, metal ores and animal oils and fats.

Machinery and vehicles includes power generating and industrial machinery, computers, electric and electronic parts and equipment, road vehicles and parts, ships, airplanes and railway equipment.

Other manufactured articles includes articles made of leather, rubber and wood, paper, textiles, metals, building fixtures and fittings, furniture, clothes, shoes and accessories, scientific instruments, clocks, watches and cameras.