EU - Brazil Summit EU27 deficit in trade in goods with Brazil of 9 bn euro in 2008, surplus of 3 bn in trade in services Brazil tenth trading partner of the EU27

STAT/09/142

2 October 2009

EU - Brazil Summit
EU27 deficit in trade in goods with Brazil of 9 bn euro in 2008, surplus of 3 bn in trade in services
Brazil tenth trading partner of the EU27

Between 2000 and 2008, the value of EU27 exports of goods to Brazil grew by 56%, while imports nearly doubled . This led to an increasing EU27 deficit in trade in goods with Brazil , up from 1.8 billion euro in 2000 to 9.5 bn in 2008. In the first half of 2009, the value of EU27 exports to Brazil fell to 9.3 bn compared with 12.0 bn in the first half of 2008, and imports decreased to 12.6 bn from 17.5 bn. As a result, the EU27 trade deficit with Brazil fell, reaching 3.3 bn in the first half of 2009, compared with 5.5 bn in the same period of 2008. It should be noted that the fall in the value of EU27 trade with Brazil recorded between the first half of 2008 and the first half of 2009 is in line with the general downward trend in the EU27 's total external trade over the same period.

The share of Brazil in the EU27 's total external trade in goods remained around 2% between 2000 and 2008. In the first half of 2009, the share of Brazil in the EU27 's total trade was 1.8% for exports and 2.1% for imports. Brazil was the EU27 's tenth most important trading partner.

On the occasion of the third European Union - Brazil summit, which will take place on 6 October in Stockholm , 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 (3.1 bn euro or 33% of EU exports of goods) was by far the largest exporter to Brazil in the first half of 2009, followed by France and Italy (1.2 bn or 13% each) and the United Kingdom (0.7 bn or 8%). The Netherlands 1 (2.7 bn or 21% of EU imports) was the largest importer, followed by Germany (2.5 bn or 20%), the United Kingdom and Italy (1.3 bn or 10% each), France (1.2 bn or 10%), and Spain (1.1 bn or 9%).

Germany (+0.6 bn euro) recorded the largest surplus in trade with Brazil in the first half of 2009, followed by Austria (+0.2 bn). The largest deficits were observed in the Netherlands 1 (-2.1 bn euro), the United Kingdom
(-0.6 bn), Spain (-0.5 bn) and Belgium (-0.4 bn).

Half of EU27 exports to Brazil in the first half of 2009 were machinery and vehicles 2 and one fifth each were chemicals and other manufactured goods 2 , while food & drink and raw materials 2 accounted for 30% each of imports. At the detailed level, the main EU27 exports to Brazil were motor vehicles and parts, aircraft and parts and medicine, 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

Increasing EU27 surplus in trade in services with Brazil

In 2008, the EU27 exported 9.0 bn euro of services to Brazil , while imports amounted to 6.1 bn, meaning that the EU27 had a surplus of 2.9 bn in trade in services with Brazil , compared with +0.6 bn in 2006 and +1.6 bn in 2007. The surplus in 2008 was mainly due to transport (+1.0 bn), royalties & license fees, construction services and travel (+0.4 bn each). Brazil accounted for around 1.5% of total extra- EU27 trade in services.

EU27 trade in services with Brazil

million euro

* Provisional data

: Data not available

Large rise in Brazilian investment in the EU27 in 2008

EU27 Foreign Direct Investment (FDI) flows to Brazil moved from investment of 15.3 bn euro in 2007 to disinvestment of 3.4 bn in 2008, while Brazilian direct investment into the EU27 increased from 1.6 bn in 2007 to 6.9 bn in 2008.

EU27 FDI flows with Brazil

(million euro)

* Provisional data

• 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.

• Raw 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 goods 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.