Archive:Brazil-EU – international trade in goods statistics

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 1a: The position of Brazil among the world's largest traders, 2016
source: Eurostat (ext_lt_introle)

Figure 1b: The position of Brazil among the world's largest exporters and importers, (EUR billion), 2016
source: Eurostat (ext_lt_introle)

Figure 2: Evolution of trade of the EU-28 and Brazil (2007 = 100) and cover ratio (%), 2007-2016
source: Eurostat (ext_lt_introle)

Figure 3a: The position of Brazil among the EU's main partners, 2017
source: Eurostat (ext_lt_maineu)

Figure 3b: Top 20 import and export partners of the EU, 2017.png
source: Eurostat (ext_lt_maineu)

Figure 4: Imports, exports and trade balance between the EU and Brazil, 2008-2017 (EUR billion)
source: Eurostat (ext_lt_maineu)

Figure 5: EU-28 exports to and imports from Brazil by SITC group, 2008 and 2017 (EUR billion)
source: Eurostat DS-018995

Figure 6: EU-28 imports, exports and trade balance with Brazil by product group, 2008-2017 (EUR billion)
source: Eurostat DS-018995

Figure 8: Most traded goods with Brazil, top 20 of SITC level 3 products, 2017 (EUR billion)
source: Eurostat DS-018995

Table 9a: Imports from Brazil by Member State, 2017
source: Eurostat DS-018995

Table 9b: Exports to Brazil by Member State, 2017
source: Eurostat DS-018995

Table 9c: Trade balance with Brazil by Member State, 2017 (EUR million)
source: Eurostat DS-018995

Main statistical findings

In 2016 Brazil was the 19th largest exporter of goods in the world with a share of almost 2 % of world exports. It was the 20th largest importer with a share of 1.1 % of world imports.
In 2017, among the EU's trading partners, Brazil was the 17th largest partner for EU exports and 11th largest partner for EU imports.
EU trade balance with Brazil, which had been in deficit from 2007 to 2011, turned into a surplus in 2013 and was EUR 1.4 billion in 2017.
Manufactured goods dominate the exports from the EU to Brazil while imports from Brazil have equal shares of around 30 % each for Manufactured goods, 'Raw materials' and 'Food & drink'.
Among EU Member States, the Netherlands is the largest importer (EUR 6.3 billion in 2017) from Brazil and has the largest trade deficit (EUR 2.9 billion) with Brazil.
Germany is the largest exporter (EUR 8.5 billion) to Brazil and has the largest trade surplus with Brazil (EUR 3.5 billion).

EU and Brazil in world trade in goods

Figure 1a 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 %).

Figure 1b has a more detailed set of countries and shows Brazil's place between Malaysia and Vietnam for exports and between Vietnam and Indonesia for imports. With EUR 167 billion, Brazil is the 19th largest exporter, accounting for 1.5 % of world exports. Its imports of EUR 124 billion makes it the 20th largest importer with a share of 1.1 % in world imports.

Figure 2 focuses on the evolution of trade in the EU and Brazil over the period 2007-2017. It shows imports and exports (both indexed at 100 in 2007) as well as the cover ratio (exports divided by imports). After the drop in 2009, Brazil's trade recovered quicker than that of the EU. Since its imports increased more rapidly than its exports, its cover ratio fell below 100 % in 2014 which was the only year when Brazil recorded a trade deficit. Between 2014 and 2016, Brazil's exports index dropped 4 percentage points but at the same time its imports dropped 54 percentage points. 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 3a shows Brazil's trade compared to the top 4 trading partners of the EU which were the United States, China, Switzerland and Russia. These four made up 45 % of all exports from the EU and 49 % of all imports to the EU. There is more detail in Figure 3b which shows that in 2017, Brazil had a share of 1.8 % in extra-EU exports (EUR 32 billion) which meant it was the 17th largest partner, just behind Saudi Arabia (EUR 33 billion) but well ahead of South Africa (EUR 24 billion). In imports Brazil was the 12th largest EU partner (1.7 %, EUR 31 billion) just behind between Canada (EUR 31 billion) and before Taiwan (EUR 29 billion).

The EU recorded a trade deficit with Brazil from 2008 to 2011 but had a surplus from 2012 to 2017 (see Figure 4). In this time span, trade between the two economies hit a low in 2009 but quickly recovered. 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 this happened in 2013, two years later than imports. After that they fell to 31 billion in 2016. Finally in 2017 both exports and imports increased to EUR 32 billion and EUR 31 billion respectively. This means that between 2008 and 2017 exports to Brazil increased by EUR almost 6 billion, but imports dropped by close to EUR 5 billion; thus turning the intial trade deficit of EUR 10 billion to a trade surplus of EUR 1 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 Brazil are 'Machinery and vehicles', 'Chemicals' and 'Other manufactured goods'. Together these manufactured goods accounted for 83 % of the EU exports in 2017. However in EU imports from Brazil their combined share is only 28 % while the primary products: 'Food & drink', 'Raw materials' and 'Energy' have a combined share of 67 %.

Figure 6 shows the evolution of EU imports and exports by SITC group since 2008. The EU had large trade deficits in 'Food & drink' and 'Raw materials' and large surpluses in 'Chemicals' and 'Machinery and vehicles'. In the other groups the balances were smaller and changed over time from positive to negative or vice versa. Overall in 2017 imports and exports are almost balanced with a small surplus for the EU.

Most traded goods: aircraft and associated equipment

Figure 7 gives more detail 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 52 % of total traded goods in 2017. Five products among the top 20 belong to the 'Machinery and vehicles' group, four each to 'Food & drink' and 'Raw materials' and three to 'Chemicals'. Iron ore and concentrates was the most traded product.

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-hand margin of Figure 8. For most primary products the ratios are very small indicating trade flows predominantly from Brazil to the EU. On the other hand for most manufactured products the ratios are very high showing the opposite. The only two products showing substantial trade flows in both directions are 'aircraft and associated equipment' and 'internal combustion piston engines and parts'.

Portugal has highest shares of trade with Brazil

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

Among EU Member States, the Netherlands (EUR 6.3 billion) was the largest importer from Brazil ahead of Germany (EUR 5.1 billion), Spain (EUR 3.9 billion) and Italy (EUR 3.3 billion). The share of Brazil in total imports from outside the EU per country was below 2.5 % for all but three Member States. The exceptions were Portugal (7.4 %) clearly ahead of Spain (3.1 %) and Slovenia (3.0 %).

Germany (EUR 8.5 billion) was the largest exporter to Brazil ahead of France (EUR 4.4 billion), Italy (EUR 3.8 billion) and Belgium (EUR 3.5 billion). The share of Brazil in total exports to outside the EU was less than 2.5 % for all but three Member States. The exceptions were Portugal (6.6 %) clearly ahead of Belgium (3.3 %) and Spain (2.6 %).

Table 8c shows that fifteen Member States had a trade surplus with Brazil in 2016, ranging from just EUR 1 million for Lithuania and Bulgaria to EUR 3.4 billion for Germany. France (EUR 1.9 billion) was the only other country with a surplus higher than 1 billion. The remaining thirteen Member States had a trade deficit, starting at EUR 1 million for Latvia to EUR 3.6 billion for the Netherlands. Spain (EUR 1.4 billion) was the only other country with a deficit higher than 1 billion.

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.

Further Eurostat information

Data visualisation

Main tables

International trade in goods (t_ext_go), see:

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 (ext_go), see:

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)

Full access to detailed statistics on international trade in goods (Comext), see:

EU trade since 1988 by SITC (DS-018995)

External links

European Commission