EU - Brazil Summit A surplus of 1.0 bn euro in EU27 trade in goods with Brazil in the first nine months of 2012 An EU27 surplus of 4.3 bn in trade in services in 2011

Reference: STAT/13/10 Event Date: 18/01/2013

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STAT/13/10

18 January 2013

EU - Brazil Summit
A surplus of 1.0 bn euro in EU27 trade in goods with Brazil in the first nine months of 2012
An EU27 surplus of 4.3 bn in trade in services in 2011

Both EU27 exports and imports to Brazil increased steadily between 2003 and 2008, fell in 2009, and then recovered to reach peak levels in 2011. EU27 exports to Brazil amounted to 35.7 billion euro and imports to 38.9 bn in 2011. The EU27 registered a continuous deficit in trade in goods with Brazil up to 2011, reaching a peak of 11.5 bn in 2007, then falling progressively to 3.2 bn in 2011.

The first nine months of 2012 showed a slightly different picture, with EU27 exports to Brazil growing from 26.2 bn euro in the first nine months of 2011 to 29.6 bn in the same period of 2012, while over the same period imports fell from 29.9 bn to 28.5 bn. As a result, the EU27 deficit in trade of goods with Brazil of 3.7 bn in the first nine months of 2011 turned into a surplus of 1.0 bn in the same period of 2012. Brazil accounted for just over 2% of the EU27's international trade in goods, and was the EU27's eighth most important trading partner in the first nine months of 2012.

On the occasion of the sixth European Union - Brazil summit, which will take place on 24 January 2013 in Brasilia, Eurostat, the statistical office of the European Union, issues data on trade and investments between Brazil and the EU.

Germany, France and Italy registered the largest trade surpluses with Brazil

Among the EU27 Member States, Germany (8.9 bn euro or 30% of EU exports of goods) was by far the largest exporter to Brazil in the first nine months of 2012, followed by France (3.8 bn or 13%), Italy (3.6 bn or 12%), the Netherlands and the United Kingdom (both 2.3 bn or 8%). The Netherlands1 (6.3 bn or 22% of EU imports) was the largest importer, followed by Germany (5.3 bn or 18%), France (2.8 bn or 10%), Spain, Italy and the United Kingdom (all 2.7 bn or 9%).

The largest surpluses in trade with Brazil in the first nine months of 2012 were observed in Germany (+3.6 bn euro), France (+1.0 bn) and Italy (+0.9 bn), and the largest deficits in the Netherlands1 (-4.1 bn), Portugal
(-0.7 bn) and Spain (-0.6 bn).

Over 85% of EU27 exports to Brazil in the first nine months of 2012 were manufactured goods, while for imports raw materials2 accounted for just over a third of the total and food & drink for nearly 30%.

EU27 international trade in goods with Brazil

billion euro

EU27 Member States' international trade in goods with Brazil

million euro

0 less than 0.5 million

EU27 international trade in goods with Brazil by product

million euro

Significant increase in EU27 trade in services with Brazil in 2011

EU27 exports of services to Brazil increased by 16% between 2010 and 2011, and imports by 11%. In 2011, the EU27 exported 11.5 bn euro of services to Brazil, while imports amounted to 7.1 bn, meaning that the EU27 had a surplus of 4.3 bn in trade in services with Brazil, compared with +3.4 bn in 2010 and +3.5 bn in 2009. The surplus in 2011 was mainly due to travel (+1.5 bn), royalties & license fees (+1.3 bn) and transportation (+0.8 bn). Brazil accounted for 1.7% of total extra-EU27 trade in services.

EU27 international trade in services with Brazil

million euro

EU27 invested 27 bn euro in Brazil in 2011

EU27 Foreign Direct Investment (FDI) flows with Brazil have been highly variable in recent years. In 2011, the EU27 invested 27.5 bn euro in Brazil, compared with 43.6 bn in 2010, 12.4 bn in 2009 and 9.5 bn in 2008, while Brazil invested 3.0 bn in the EU27 in 2011, compared with 10.2 bn in 2010, 1.2 bn in 2009 and 10.3 bn in 2008.

EU27 FDI flows with Brazil

(million euro)

• 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 therefore 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 include 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.

3. Other business services comprise merchanting and other trade-related services, operational leasing services and miscellaneous business, professional and technical services.