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EU Trade with India and China

26 November 2007
by eub2 -- last modified 26 November 2007

EU27 trade with China grew by 150% between 2000 and 2006. EU Trade with India up by 80%.


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China and India play an increasing role in EU27 trade. China, which was the fourth trading partner of the EU27 in 2000, has since 2003 become the second trading partner after the USA. India, which was the 17th trading partner in 2000, ranked ninth in 2006.

On the occasion of the EU-China Summit, which will take place on Wednesday 28 November in Beijing, and the EU-India Summit, which will take place on Friday 30 November in New Delhi, Eurostat, the Statistical Office of the European Communities, issues the latest data available on trade and investments between China and the EU27 and India and the EU27.

Germany accounts for more than 40% of EU27 exports to China

Between 2000 and 2006, EU27 trade in goods with China grew by more than 150%, with exports increasing from 26 billion euro to 64 bn and imports from 75 bn to 195 bn. As a result the EU27 deficit in trade with China rose from 49 bn in 2000 to 131 bn in 2006. In 2006, China accounted for 6% of EU27 exports and 14% of EU27 imports.

Among the EU27 Member States, Germany (27 bn euro or 43% of the total) was by far the largest exporter to China in 2006, followed by France (8 bn or 13%) and Italy (6 bn or 9%). Germany (43 bn or 22%) was also the largest importer, followed by the Netherlands1 (31 bn or 16%) and the United Kingdom (29 bn or 15%). All Member States recorded trade deficits with China in 2006. The largest were observed in the Netherlands1 (-28 bn), the United Kingdom (-24 bn), Germany (-16 bn) and Italy (-12 bn).

More than half of EU27 exports to China in 2006 were machinery and vehicles2 and one fifth were other manufactured articles2, while these two groups accounted for nearly 95% of imports. At the detailed level, the main EU27 exports to China were aircraft and motor cars, while the main imports were computers and parts, mobile phones and digital cameras.

Germany, United Kingdom and Belgium main EU27 trading partners of India

Between 2000 and 2006, EU27 trade in goods with India grew by around 80%, with exports increasing from 14 bn euro to 25 bn and imports from 13 bn to 23 bn. As a result the EU27 deficit in trade with India rose from 1 bn in 2000 to 2 bn in 2006. In 2006, India accounted for 2.1% of EU27 exports and 1.7% of EU27 imports.

Among the EU27 Member States, Germany (6.3 bn euro or 26% of the total) was the largest exporter to India in 2006, followed by Belgium (4.6 bn or 19%) and the United Kingdom (4.0 bn or 16%). The United Kingdom (4.5 bn or 20%) was the largest importer, followed by Germany (3.9 bn or 17%), Belgium and Italy (3.0 bn or 13% each). The largest surplus in trade with India in 2006 was observed in Germany (+2.5 bn) and the largest deficit in Spain (-1.2 bn).

Around 80% of EU27 exports to India in 2006 were machinery and vehicles and other manufactured articles, while other manufactured articles accounted for more than 60% of imports. At the detailed level, the main EU27 exports to India were unworked diamonds and aircraft, while the main imports were worked diamonds and clothes.

EU27 Member States' trade in goods with China

million euro


Exports
Imports
Balance
2000
2006
2000
2006
2000
2006
EU27
25,863
64,101
74,632
195,038
-48,768
-130,937
Belgium1
1,340
2,921
4,011
10,204
-2,671
-7,282
Bulgaria
12
62
74
770
-62
-708
Czech Republic
72
318
755
2,606
-683
-2,288
Denmark
424
909
1,429
3,417
-1,005
-2,508
Germany
9,459
27,426
17,126
43,312
-7,667
-15,885
Estonia
7
211
164
332
-157
-120
Ireland
166
874
741
1,767
-574
-893
Greece
33
124
757
1,819
-724
-1,694
Spain
553
1,713
4,136
12,116
-3,583
-10,403
France
3,424
8,052
8,158
15,839
-4,734
-7,788
Italy
2,380
5,703
7,028
17,962
-4,647
-12,260
Cyprus
1
9
129
232
-128
-223
Latvia
0
16
26
153
-26
-138
Lithuania
2
15
89
369
-88
-355
Luxembourg
68
215
89
3,525
-21
-3,310
Hungary
44
617
1,031
4,307
-986
-3,689
Malta
2
53
61
106
-59
-53
Netherlands1
1,116
3,339
8,705
30,972
-7,589
-27,633
Austria
586
1,288
842
2,500
-257
-1,213
Poland
107
609
1,500
3,571
-1,393
-2,961
Portugal
53
214
382
773
-330
-559
Romania
93
174
189
1,738
-96
-1,564
Slovenia
16
56
149
305
-133
-249
Slovakia
10
175
191
742
-181
-566
Finland
1,462
1,970
935
2,946
527
-976
Sweden
2,043
2,246
1,859
3,909
185
-1,663
United Kingdom
2,391
4,791
14,077
28,745
-11,687
-23,954
Total Extra-EU27
849,739
1,165,223
992,698
1,360,590
-142,959
-195,367
China / Total
3.0%
5.5%
7.5%
14.3%



EU27 trade in goods with China by product

million euro


Exports
Imports
Balance
2000
2006
2000
2006
2000
2006
Total
25,863
64,101
74,632
195,038
-48,768
-130,937







Primary products:
2,018
5,894
3,498
5,970
-1,480
-76
Food & drink
439
885
1,525
2,809
-1,086
-1,924
Crude materials
1,417
4,908
1,571
2,578
-154
2,330
Energy
162
101
402
583
-239
-481
Manufactured goods:
23,234
56,686
70,611
188,459
-47,376
-131,773
Chemicals
2,421
6,100
2,805
6,268
-385
-169
Machinery & vehicles
16,528
38,083
27,739
93,912
-11,211
-55,829
Other manuf’d articles
4,285
12,503
40,066
88,278
-35,781
-75,775
Other
611
1,521
524
609
87
912


EU27 Member States' trade in goods with India

million euro


Exports
Imports
Balance
2000
2006
2000
2006
2000
2006
EU27
13,678
24,603
12,846
22,728
832
1,874
Belgium1
3,467
4,624
1,732
3,029
1,735
1,595
Bulgaria
12
26
13
38
-1
-12
Czech Republic
84
317
81
133
3
184
Denmark
166
265
203
395
-37
-130
Germany
2,084
6,324
2,298
3,857
-213
2,467
Estonia
2
12
9
8
-7
3
Ireland
110
154
119
198
-9
-44
Greece
45
50
126
489
-81
-440
Spain
212
543
748
1,722
-535
-1,178
France
1,031
2,631
1,266
1,820
-235
811
Italy
1,007
2,170
1,626
2,984
-618
-814
Cyprus
2
4
29
35
-28
-30
Latvia
1
6
5
22
-4
-16
Lithuania
4
15
19
19
-15
-4
Luxembourg
8
27
10
13
-2
14
Hungary
20
105
71
118
-51
-13
Malta
1
2
15
17
-15
-15
Netherlands1
549
1,129
929
1,890
-380
-761
Austria
131
407
97
177
34
230
Poland
52
161
152
282
-99
-121
Portugal
25
29
170
238
-144
-209
Romania
40
191
31
172
9
18
Slovenia
18
35
24
55
-6
-21
Slovakia
57
21
25
39
32
-19
Finland
318
330
66
114
252
217
Sweden
310
1,072
223
354
87
718
United Kingdom
3,920
3,953
2,759
4,510
1,161
-558
Total Extra-EU27
849,739
1,165,223
992,698
1,360,590
-142,959
-195,367
India / Total
1.6%
2.1%
1.3%
1.7%



EU27 trade in goods with India by product

million euro


Exports
Imports
Balance
2000
2006
2000
2006
2000
2006
Total
13,678
24,603
12,846
22,728
832
1,874







Primary products:
944
1,357
1,928
3,307
-983
-1,950
Food & drink
57
263
1,207
1,471
-1,150
-1,208
Crude materials
463
927
680
818
-217
109
Energy
424
167
40
1,017
383
-850
Manufactured goods:
11,795
22,602
10,848
19,252
947
3,350
Chemicals
1,276
2,198
1,141
2,377
135
-179
Machinery & vehicles
4,067
10,421
1,206
2,917
2,861
7,503
Other manuf’d articles
6,452
9,983
8,502
13,957
-2,049
-3,974
Other
939
644
70
170
869
474

EU27 surplus in trade in services with China and India

In 2006, the EU27 exported 12.3 bn euro of services to China, while imports of services from China amounted to 10.6 bn, meaning that the EU27 had a surplus of 1.7 bn in trade in services with China. China accounted for just under 3% of total extra-EU27 trade in services.

In 2006, the EU27 exported 6.6 bn euro of services to India, while imports of services from India amounted to 5.1 bn, meaning that the EU27 had a surplus of 1.5 bn in trade in services with India. India accounted for just around 1.5% of total extra-EU27 trade in services.

EU27 trade in services with China

million euro


Credit
Debit
Net
2005
2006
2005
2006
2005
2006
Total
11 129
12 328
8 858
10 624
2 271
1 704
of which:






Transportation
3 765
4 505
3 508
4 776
257
-271
Travel
1 308
1 608
2 306
2 170
-998
-562
Other services
5 845
6 214
2 774
3 655
3 072
2 559
Total extra-EU27
404 394
447 395
346 219
380 331
58 175
67 064
China / total extra-EU27
2.8%
2.8%
2.6%
2.8%


EU27 trade in services with India

million euro


Credit
Debit
Net
2005
2006
2005
2006
2005
2006
Total
5 277
6 595
4 694
5 143
583
1 452
of which:






Transportation
2 221
2 202
1 214
1 427
1 007
775
Travel
662
811
1 655
1 413
-993
-602
Other services
2 340
3 569
1 817
2 292
523
1 278
Total extra-EU27
404 394
447 395
346 219
380 331
58 175
67 064
India / total extra-EU27
1.3%
1.5%
1.4%
1.4%



EU27 net investor in China and India

The EU27 invested 3.7 bn euro in China in 2006, with Chinese investment in the EU27 of 2.1 bn, a net outward flow of 1.6 bn. In 2006, the EU27 invested 1.6 bn in India, with Indian investment in the EU27 of 0.1 bn, a net outward flow of 1.5 bn.

EU27 FDI* flows with China and India

(million euro)


China
India
2005
2006
2005
2006
EU27 FDI in China / India (outward)
5 928
3 704
2 239
1 580
China / India FDI in the EU27 (inward)
441
2 135
567
99
Net EU27 FDI flows (outward minus inward)
5 487
1 569
1 672
1 481

* FDI: Foreign Direct Investment

  1. 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 recorded in harmonised EU external trade statistics in Dutch ports. This then has a positive effect on the external trade balances with China/India 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 China/India. To a lesser extent, Belgian trade figures are similarly over-estimated.
  2. 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 articles include leather, rubber, wood, paper, textiles, metals, building fixtures and fittings, furniture, clothes, shoes and accessories, scientific instruments, clocks, watches and cameras.

Source: Eurostat

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