EU27 deficit in trade in goods with Brazil of 4 bn euro in 2009

EU – Brazil Summit

EU27 deficit in trade in goods with Brazil of 4 bn euro in 2009

Brazil tenth trading partner of the EU27

Exports of goods from the EU27 to Brazil fell to 21.6 billion euro in 2009, down from the peak of 26.3 bn in 2008. Imports fell to 25.7 bn in 2009, after 35.9 bn in 2008. This led to a decreasing EU27 deficit in trade in goods with Brazil, from 9.6 bn in 2008 to 4.1 bn in 2009. It should be noted that the fall in the value of EU27 trade with Brazil recorded between 2008 and 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 has remained around 2% since 2000. In 2009,

Brazil was the EU27‘s tenth most important trading partner.

On the occasion of the fourth European Union - Brazil summit, which will take place on 14 July in Brasilia,

Eurostat, the statistical office of the European Union, 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 (7.2 bn euro or 33% of EU exports of goods) was by far the largest exporter to Brazil in 2009, followed by Italy (2.7 bn or 12%), France (2.6 bn or 12%) and the United Kingdom (1.9 bn or 9%). The Netherlands1 (5.6 bn or 22% of EU imports) was the largest importer, followed by Germany (5.0 bn or 20%), the United Kingdom (2.9 bn or 11%), France (2.5 bn or 10%), Italy (2.4 bn or 9%) and Spain(2.2 bn or 9%).

Germany (+2.1 bn euro) recorded the largest surplus in trade with Brazil in 2009, followed by Austria (+0.5 bn). The largest deficits were observed in the Netherlands (-4.4 bn euro), the United Kingdom and Spain (both-0.9 bn).

Around 90% of EU27 exports to Brazil in 2009 were manufactured goods, while food & drink and raw materials each accounted for more than 30% of imports. At the detailed level, the main EU27 exports to Brazil were motor vehicles & parts, medicine and aircraft & parts, while the main imports were soya beans, oilcake, iron ore, coffee and crude oil.

EU27 surplus of 2 bn euro in trade in services with Brazil

In 2009, the EU27 exported 8.8 bn euro of services to Brazil, while imports amounted to 6.4 bn, meaning that the EU27 had a surplus of 2.4 bn in trade in services with Brazil, compared with +3.2 bn in 2008 and +2.0 bn in 2007. The surplus in 2009 was mainly due to transportation (+0.8 bn), construction services and royalties & license fees (both +0.5 bn). Brazil accounted for around 1.7% of total extra-EU27 trade in services.

Large variation in EU27 FDI flows with Brazil

EU27 Foreign Direct Investment (FDI) flows with Brazil have been highly variable in recent years. In 2009, the EU27 invested 6.9 billion euro in Brazil, compared with a disinvestment of 1.1 bn in 2008 and an investment of 14.3 bn in 2007. Brazilian direct investment into the EU27 decreased from 24.7 bn euro in 2007 to 10.7 bn in 2008 and 2.8 bn in 2009.