Statistics Explained

Archive:Brazil-EU – international trade in goods statistics

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Data extracted in September 2017. Most recent data: Further Eurostat information, Main tables and Database. Planned article update: October 2018.

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

Figure 1: The position of Brazil among the world's largest traders, 2016
source: Eurostat (ext_lt_introle)
Figure 2: Evolution of trade of the EU-28 and Brazil (2007 = 100) and cover ratio 2007-2016 (1)
source: Eurostat (ext_lt_introle)
Figure 3: The position of Brazil among the EU's main partners, 2016
source: Eurostat (ext_lt_maineu)
Figure 4: Imports, exports and trade balance between the EU and Brazil, 2007-2016 (EUR billion)
source: Eurostat (ext_lt_maineu)
Figure 5: EU-28 exports to and imports from Brazil by SITC group, 2007 and 2016 (EUR billion)
source: Eurostat DS-018995
Figure 6: EU-28 imports, exports and trade balance with Brazil by SITC group, 2007-2016 (EUR billion)
source: Eurostat DS-018995
Figure 7a: Unit value index (2010 = 100) by SITC group for EU imports from Brazil, Jan 2007 - Jun 2017
source: Eurostat (ext_st_eu28sitc)
Figure 7b: Unit value index (2010 = 100) by SITC group for EU exports to Brazil, Jan 2007 - Jun 2017
source: Eurostat (ext_st_eu28sitc)
Figure 8: Most traded goods with Brazil, top 20 of SITC level 3 products, 2016 (EUR billion)
source: Eurostat DS-018995
Figure 9a: Imports from Brazil by Member State, 2016
source: Eurostat DS-018995
Figure 9b: Exports to Brazil by Member State, 2016
source: Eurostat DS-018995
Figure 9c: Trade balance with Brazil by Member State, 2016 (EUR million)
source: Eurostat DS-018995

Main statistical findings

  • In 2016, Brazil was the 17th largest exporter of goods in the world with a share of 1.5 % of world exports and also the 17th largest importer with a share of 1.1 % of world imports.
  • Among EU's trading partners, Brazil was the 17th largest partner for EU imports and 11 largest partner for EU exports in 2016.
  • EU trade balance with Brazil, which had always been in deficit from 2007 to 2011, has since 2012 turned into a surplus reaching EUR 1.4 billion in 2016.
  • Manufactured goods dominate the exports from the EU to Brazil while imports from Brazil have equal shares of around 30 % each for 'raw materials', 'food & drink' and 'manufactured products'.
  • Among EU Member States, the Netherlands is the largest importer (EUR 6.3 billion in 2016) from Brazil and has the largest trade deficit (EUR 2.9 billion) with Brazil.
  • Germany is the largest exporter (EUR 8.5 billion) to and has the largest trade surplus with Brazil (EUR 3.5 billion).

EU and Brazil in world trade in goods

Figure 1 shows that the four largest exporters account for almost half of the world exports. The largest is China (17 %) followed by the EU (16 %), the United States (12 %) and Japan (5 %). The same four also account for almost half of the world imports but in different order. Here the USA (18 %) leads, followed by the EU (15 %), China (12 %) and Japan (5 %). Brazil is the 17th largest exporter, accounting for 1.5 % of world exports and the 17th largest importer accounting for 1.1 % for world imports.

Figure 2 focuses on the evolution of trade in the EU and Brazil over the period 2007-2016. After the financial crisis in 2009 Brazil's trade recovered more quickly than that of the EU. Because its imports increased more rapidly than its exports its cover ratio (exports divided by imports) fell below 100 % in 2014 which was the only years when Brazil recorded a trade deficit. Between 2014 and 2016 Brazil's exports index dropped 4 points to 143 % but at the same its imports dropped 54 points to 141 %. As a result both indexes were almost equal in 2016 and Brazil's cover ratio returned to 135 % almost equal to the 133 % it had been in 2007. The EU's exports developed more gradually and were just two points lower than those of Brazil in 2016. However its imports grew much less than that and consequently the EU has had a cover ratio just above 100 % since 2013.

Growing exports to, but falling imports from Brazil

Figure 3 shows that in 2016, Brazil had a share of 1.8 % in extra-EU exports (EUR 31 billion) and 1.7 % in extra-EU imports (EUR 29 billion). This meant it was the 17th largest partner for imports, just behind Singapore (EUR 31 billion) but well ahead of South Africa (EUR 23 billion). In exports Brazil was also the 11th largest EU partner between Vietnam (EUR 33 billion) and Canada (EUR 29 billion).

The EU recorded a trade deficit with Brazil from 2007 to 2011 but from 2012 to 2016 had a surplus (see Figure 4). In this time span, trade between the two economies hit a low in 2009 but quickly regained. Imports peaked in 2011 at EUR 40 billion after which there was a decline to EUR 29 billion in 2016. Exports also peaked at EUR 40 billion but two years later than imports. After that they fell to 31 billion in 2016. All this meant that since 2007 exports to Brazil had increased by EUR 9.6 billion but imports had dropped by EUR 3.4 billion.

Manufactured goods dominate exports to Brazil

The breakdown of EU-Brazil trade by SITC groups gives very different results for imports and exports (see Figure 5). The main categories driving the exports to and Brazil are 'Machinery and vehicles' (SITC 7), 'Chemicals' (SITC 5) and 'Other manufactured goods' (SITC 6&8). Together these manufactured goods accounted for around 86 % of the EU exports. However in imports from Brazil their combined share is only 30 % which is in between the shares of 'Food & drink' (33 %) and 'Raw materials' (28 %). The group were imports fell most was 'Other manufactured goods from EUR 19 billion in 2007 to EUR 14 billion in 2016, probably due to increased competition from Asian countries.

Figure 6 shows the evolution of EU imports and exports by SITC group since 2007. The EU has large trade deficits in 'Food & drink' and 'Raw materials' and large surpluses in 'Chemicals' and 'Machinery and vehicles'. In the other groups the balances are smaller and change over time from positive to negative or vice versa. Overall in 2016 imports and exports are almost balanced with a small surplus for the EU.

Figure 7a shows the unit value index for EU imports from Brazil by SITC group. The index for total imports is largely determined by the indexes for 'Food & drink' and 'Raw materials'. The food & drinks index gained 21 points between 2013 and 2016 indicating prices of food products imported from Brazil rose fairly quickly. On the other hand the raw materials index lost 14 points because world market prices of some raw materials such as iron ore dropped.

On the export side, the total index is large determined by 'Chemicals' and 'Other manufactured goods' and 'Machinery and vehicles', which gained 4, 6 and 9 points respectively since 2010. (see figure 7b).

As 'Machinery & vehicles' and 'Other manufactured goods' were the only groups in which both imports and exports had shares of more than 10 % (as was shown in Figure 5) it is interesting to compare their import and export indexes. For 'Machinery and vehicles' we see that in 2016 the Imports index (115) was 6 points above the export index (109) indicating that the prices for 'Machinery and vehicles' imported into the EU had risen more than prices for exports to Brazil since 2010. A similar development took place for 'Other manufactured goods' where the import index (113) was 7 points above the export index (106) in 2016.

Most traded goods: aircraft and associated equipment

Figure 8 gives more details about the goods exchanged between the EU and Brazil, showing the top 20 traded goods at a more detailed level (by SITC level 3). Those top 20 goods covered around 50 % of total traded goods in 2016. Six products among the top 20 belong to the 'Machinery and vehicles' group and four each to 'Food & drink' and 'Raw materials'. Aircraft and associated equipment was the most traded product and had both sizeable imports (EUR 1.5 billion) as exports (EUR 2.3 billion). The next five products were predominantly imports from Brazil belonging to either the 'Food & drink' or 'Raw materials' group.

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 9. For the top product, aircraft and associated equipment, the ratio equals 154 meaning that the EU exports are 1.5 times higher than EU imports. A similar ratio is found for internal combustion piston engines and parts further down the graph. However these two two are the exceptions as all other products in the top 20 have either very low values (meaning imports from Brazil dominate trade) or very high values (meaning exports to Brazil dominate trade).

Portugal is the Member State trading most with Brazil as share of its total EU trade

Figure 9a shows Member States' imports from Brazil and the share of the partner Brazil in national extra-EU imports. Table 9b provides similar information but concerning Member States' exports to Brazil.

Among EU Member States, the Netherlands was the largest importer from Brazil (EUR 6.3 billion) and the third largest exporter to Brazil (EUR 3.4 billion). It also had the highest trade deficit with Brazil (EUR 2.9 billion). The share of Brazil in total imports from outside the EU per country, varied from 0.1 % for Latvia to 7.7 % for Portugal. It was less than 2 % for 21 Member States.

Germany was the largest exporter to Brazil (EUR 8.5 billion) and the second largest importer (EUR 5.1 billion). It had the largest trade surplus (EUR 3.5 billion) with Brazil. The share of Brazil in total exports to outside the EU varied from 0.05 % for Cyprus to 4.3 % for Portugal. It was less than 2 % for 23 Member States.

Figure 9c shows that 11 Member States had a trade surplus with Brazil in 2016, ranging from just EUR 3 million for Romania to EUR 3 billion Germany. France (EUR 2 billion) was the only other country with a surplus higher than 1 billion. The remaining 17 Member States had a trade deficit, starting at EUR 3 million for Bulgaria to EUR 3 billion for the Netherlands.

Data sources and availability

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 case 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 block 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.

See also

Further Eurostat information

Data visualisation

Main tables

International trade in goods - long-term indicators (t_ext_go_lti)
International trade in goods - short-term indicators (t_ext_go_sti)

Database

International trade in goods - aggregated data (ext_go_agg)
International trade in goods - long-term indicators (ext_go_lti)
International trade in goods - short-term indicators (ext_go_sti)
International trade in goods - detailed data (detail)
EU trade since 1988 by SITC (DS-018995)

Dedicated section

Methodology / Metadata

Source data for tables, figures and maps (MS Excel)

External links

  • European Commission