Archive:Switzerland-EU - international trade in goods statistics

Data extracted in Februaria 2019.

Planned article update: Februari 2020.

Highlights

In 2017, Switzerland was the 13th largest exporter of goods in the world with a share of 2.2 % of world exports and the 12th largest importer of goods with a share of 1.9 % of world imports.

In 2018, among EU's trading partners, Switzerland was the third largest destination for EU exports of goods and the fourth largest origin for EU imports of goods.

Imports, exports and trade balance in goods between the EU and Switzerland, 2007-2016

This article provides a picture of the international trade in goods between the European Union (EU) and Switzerland. It analyses the type of goods exchanged between the two economies and the shares of each EU Member State in those exchanges.

This article is part of an online publication providing recent statistics on international trade in goods, covering information on the EU's main partners, main products traded, specific characteristics of trade as well as background information.

Full article

Overview

In 2017, Switzerland was the 13th largest exporter of goods in the world with a share of 2.2 % of world exports and the 12th largest importer of goods with a share of 1.9 % of world imports.
In 2018, among EU's trading partners, Switzerland was the fourth largest origin for EU imports of goods and the third largest destination for EU exports of goods.
The EU trade in goods balance with Switzerland was in surplus from 2008 to 2018 when it stood at EUR 47 billion.
In 2018, manufactured goods dominated both EU exports of goods to Switzerland and EU imports of goods from Switzerland, accounting for over 79 % of the total exports and 83 % of total imports.
In 2018, among EU Member States, Germany was the largest importer of goods (EUR 43 billion) from Switzerland and the largest exporter of goods (EUR 54 billion) to Switzerland.
The United Kingdom had the largest trade in goods surplus with Switzerland (EUR 14 billion), while Belgium had the largest trade in goods deficit with Switzerland (EUR 689 million).

EU and Switzerland in world trade in goods

Figure 1a shows that the four largest exporters of goods accounted for almost half of the world's exports. The largest is China (16 %) followed by the EU (15 %), the United States (11 %) and Japan (5 %). The same four accounted also for almost half of the world imports of goods but in different order. Here the United States (18 %) leads, followed by the EU (15 %), China (12 %) and Japan (5 %).

Figure 1a: The position of Switzerland among the world's largest traders in goods, 2017
Source: Eurostat (ext_lt_introle)

Figure 1b has some more detail, showing the twenty-five largest exporters and importers of goods in the world. Switzerland is the 13th largest exporter (EUR 265 billion), accounting for 2.2 % of world exports, situated between the United Arab Emirates (2.2 %, EUR 270 billion) and India (EUR 261 billion). Switzerland is the twelfth largest importer (EUR 243 billion) accounting for 1.9 % for world imports, between the United Arab Emirates (2.0 %, EUR 245 billion) and Taiwan (1.8 %, EUR 230 billion).

Figure 1b: Top 25 importers and exporters of goods in the world with a focus on Switzerland, 2017 (EUR billion)
Source: Eurostat (ext_lt_introle)

Figure 2 shows changes in trade of goods between the EU and Switzerland from 2007 to 2017. From 2007 to 2011, the exports and imports (both indexed at 100 % in 2007) of both economies grew similarly. Between 2011 and 2017, despite a dip in 2014, Swiss exports and imports grew more than the EU’s. The Swiss cover ratio (exports divided by imports) increased by 5 percentage points from 107 to 112 between 2007 and 2017. In the same period this ratio increased even more for the EU, gaining 16 percentage points from 85 to 101 which meant the trade deficit turned into a small surplus.

Figure 2: Trade in goods of the EU-28 and Switzerland (2007 = 100) and cover ratio (%), 2007 to 2017
Source: Eurostat (ext_lt_introle)

Switzerland is the EU's largest European partner for trade in goods

Figure 3 shows that in 2017, Switzerland had a share of 8 % in extra-EU exports of goods (EUR 156 billion) and 6 % in extra-EU imports of goods (EUR 109 billion). This meant that it was the EU's third largest partner for exports, behind the United States (EUR 406 billion) and China (EUR 210 billion) and followed by Russia (EUR 85 billion). In imports it was the fourth largest partner, behind the United States and China and Russia. In total trade (exports plus imports) Switzerland with EUR 266 billion was the largest European partner of the EU ahead of Russia (EUR 253 billion).

Figure 3: The position of Switzerland among the EU-28's main partners for trade in goods, 2018
Source: Eurostat (ext_lt_maineu)

The EU has had a trade surplus with Switzerland between 2008 and 2018 (see Figure 4) which peaked in 2013 at EUR 48 billion, coinciding with a peak in exports of EUR 169 billion. The surplus fell to EUR 21 billion in 2016 when there was a peak in imports of EUR 121 billion. Since then exports increased while imports decreased, leading to a trade surplus of EUR 47 billion in 2018.

Figure 4: Imports, exports and balance for trade in goods between the EU-28 and Switzerland, 2008-2018 (EUR billion)
Source: Eurostat (ext_lt_maineu)

Manufactured goods dominate trade with Switzerland

When breaking down imports and exports by SITC groups, the main categories of exports to and imports from Switzerland are 'Machinery and vehicles' (SITC 7), 'Chemicals' (SITC 5) and 'Other manufactured goods' (SITC 6&8). Together these manufactured goods accounted for around 79 % of the EU exports and 83 % of imports in 2018 (see Figure 5). In exports 'Other manufactured goods' were the largest group with 33 % while in imports 'Chemicals' accounted for 32 % of the total.

Figure 5: EU-28 exports to and imports from Switzerland by product group, 2008 and 2018 (EUR billion)
Source: Eurostat DS-018995

Figure 6 shows the evolution of EU imports and exports by SITC group since 2008. In 2018 the EU had a trade deficit in 'Chemicals' (EUR 8 billion). In all the other groups the EU had a surplus, which was largest in 'Other manufactured goods' (EUR 19 billion) and 'Machinery and vehicles' (EUR 16 billion).

Figure 6: EU-28 trade with Switzerland by product group, 2008-2018 (EUR billion)
Source: Eurostat DS-018995

Most traded goods: non-monetary gold and medicaments

Figure 7 gives more details about the goods exchanged between the EU and Switzerland, showing the top 20 traded goods at a more detailed level (by SITC level 3). Those top 20 goods covered 55 % of total traded goods in 2018. Ten products among the top 20 belong to 'Other manufactured goods', four to 'Machinery and vehicles', three to 'Chemicals', two to 'Other goods' and one to 'Energy'. The first and third most traded products were medical products products, while non-monetary gold came second.

Another interesting way to look at data is to investigate the export/import ratio of traded goods, in order to better identify the direction taken by flows and specialisation between the two areas. These ratios can be found in the right margin of Figure 7. Three of the top four products, 'medicaments', 'medicinal and pharmaceutical products' and 'organo-inorganic and related compounds' have ratios below 100 indicating higher imports than exports. The reverse is true for 'non-monetary gold'. The highest cover ratios among the top 20 products were found for 'motor cars and motor vehicles' and 'petroleum oils other than crude' while the lowest were found for 'special transactions and commodities' and 'watches and clocks'.

Figure 7: Most traded goods between EU-28 and Switzerland, top 20 of SITC level 3 products, 2018 (EUR billion)
Source: Eurostat DS-018995

Germany is trading most with Switzerland

Table 8a shows Member States' imports of goods from Switzerland and the share of Switzerland in national extra-EU imports of goods in 2018. Table 8b provides similar information but concerning Member States' exports of goods to Switzerland.

There were three Member States whose imports of goods from Switzerland in 2018 were higher than EUR 10 billion: Germany (EUR 43 billion), France (EUR 17 billion) and Italy (EUR 11 billion). Together they accounted for 65 % of imports from Switzerland. Two countries had more than 10 % of their imports of goods originating from Switzerland namely Austria (19 %), Germany (12 %) while France (10 %) was just below that.

Figure 8a: EU-28 imports of goods from Switzerland by Member State, 2018
Source: Eurostat DS-018995

In four countries exports of goods to Switzerland were higher than EUR 10 billion. Like in imports, Germany (EUR 54 billion) was the largest, followed at some distance by Italy, the United Kingdom (both EUR 22 billion) and France (EUR 16 billion). Their combined share in total EU exports to Switzerland was 65 %. Three Member States exported at least 10 % of their total extra-EU exports of goods to Switzerland. These were Austria (16 %), Italy (11 %) and Slovakia (10 %).

Figure 8b: EU-28 exports of goods to Switzerland by Member State, 2018
Source: Eurostat DS-018995

Table 8c shows that nine Member States had a trade in goods deficit with Switzerland in 2018, ranging from just EUR 12 million for Estonia to EUR 689 million for Belgium. The United Kingdom had the largest trade in goods surplus while Italy, Germany (both EUR 11 billion) and Ireland (EUR 6 billion) also had trade surpluses of more than EUR 5 billion.

Figure 8c: EU-28 trade balance of goods with Switzerland by Member State, 2018 (EUR million)
Source: Eurostat DS-018995

Source data for tables and graphs

Switzerland-EU-28 – international trade in goods statistics - graphs and tables

Data sources

EU data is taken from Eurostat's COMEXT database. COMEXT is the reference database for international trade in goods. It provides access not only to both recent and historical data from the EU Member States but also to statistics of a significant number of third countries. International trade aggregated and detailed statistics disseminated via the Eurostat website are compiled from COMEXT data according to a monthly process.

Data are collected by the competent national authorities of the Member States and compiled according to a harmonised methodology established by EU regulations before transmission to Eurostat. For extra-EU trade, the statistical information is mainly provided by the traders on the basis of customs declarations.

EU data are compiled according to Community guidelines and may, therefore, differ from national data published by the Member States. Statistics on extra-EU trade are calculated as the sum of trade of each of the 28 EU Member States with countries outside the EU. In other words, the EU is considered as a single trading entity and trade flows are measured into and out of the area, but not within it.

Data for the other major traders are taken from the Comtrade database of the United Nations. Data availability differs among countries, therefore Figure 1 shows the latest common available year for all the main traders. For the calculation of shares the world trade is defined as the sum of EU trade with non-EU countries (source: Eurostat) plus the international trade of non-EU countries (source: IMF Dots database).

Methodology

According to the EU concepts and definitions, extra-EU trade statistics (trade between EU Member States and non-EU countries) do not record exchanges involving goods in transit, placed in a customs warehouse or given temporary admission (for trade fairs, temporary exhibitions, tests, etc.). This is known as ‘special trade’. The partner is the country of final destination of the goods for exports and the country of origin for imports.

Product classification

Information on commodities exported and imported is presented according to the Standard international trade classification (SITC). A full description is available from Eurostat’s classification server RAMON.

Unit of measure

Trade values are expressed in millions or billions (10⁹) of euros. They correspond to the statistical value, i.e. to the amount which would be invoiced in the event of sale or purchase at the national border of the reporting country. It is called a FOB value (free on board) for exports and a CIF value (cost, insurance, freight) for imports.

Context

Trade is an important indicator of Europe’s prosperity and place in the world. The bloc is deeply integrated into global markets both for the products it sources and the exports it sells. The EU trade policy is an important element of the external dimension of the ‘Europe 2020 strategy for smart, sustainable and inclusive growth’ and is one of the main pillars of the EU’s relations with the rest of the world.

Because the 28 EU Member States share a single market and a single external border, they also have a single trade policy. EU Member States speak and negotiate collectively, both in the World Trade Organization, where the rules of international trade are agreed and enforced, and with individual trading partners. This common policy enables them to speak with one voice in trade negotiations, maximising their impact in such negotiations. This is even more important in a globalised world in which economies tend to cluster together in regional groups.

The openness of the EU’s trade regime has meant that the EU is the biggest player on the global trading scene and remains a good region to do business with. Thanks to the ease of modern transport and communications, it is now easier to produce, buy and sell goods around the world which gives European companies of every size the potential to trade outside Europe.