Commercial Relations: Brazil and European Union

Rebeca Duran

Staff Writer
The Brazil Business

Updated

7 February 2014

In 2012, The European Union was the largest exporter and investor on a global scale, and it was the main commercial partner of more than 100 countries throughout the world. Brazil was one of those countries. Here you’ll get an overview of Brazilian relations with this powerful economic bloc.

With the exchange of formal diplomatic missions, Brazil and the European Union (EU) established its first diplomatic relations in 1960. The country and the economic bloc are also strategic partners since 2007, with the creation of the Formal Partnership EU-Brazil.

European Union: Main Socioeconomic Indicators

The 1992 Framework Cooperation Agreement, 1995 Framework Cooperation Agreement EU-Mercosur and the Scientific and Technological Cooperation Agreement of 2004 are also part of Brazil and EU relation background. The relations between both are strong, marked by regular visits, political dialogue and cooperation in many sectors.

Commercial Exchange and the European Crisis

With the European Economic crisis, the commercial exchange of European Union with the world reduced in 4.2%, from $11.91 trillion USD in 2008 to $11.41 trillion USD in 2012. In this period imports decreased 6.0% and exports 2.3% and the trade account balance of the economic bloc with the world was in deficit.

The situation inside the bloc wasn't good as well, the exportation in-bloc also reduced in 10.1% from 2008 to 2012. In parallel, the exportation extra-bloc increased in 13.4% and the commercial exchange Brazil-European Union was able to feel this effect. The exchanges between the partners increased 16.9% in this period, from $82.2 billion USD to $96.8 billion USD. The table below show the commercial exchange Brazil-European Union in Billion USD.

The Balance of Trade

Nowadays Brazil is the 10th European Union trading partner, the country is referent a 2.2% of the total trade of the economic bloc, while the European Union is the main trading partner of the country, accounting 22.2% of the Brazilian total trade.

Exportation: from Brazil to European Union (Million USD)

Brazilian exportation to the European Union is mainly tied to three types of products: manufactured (36%), semi manufactured (14%) and basics (50%), with iron the largest Brazilian export to the economic bloc. Together, with other minerals and crude materials, these exportation represent 34% in the total amount exported from Brazil to European Union. Food and live animals represent 26% of this amount.

Among the countries that most export products from Brazil are Netherlands, Germany, Italy, United Kingdom, France, Belgium, Spain, Portugal, Finland and Sweden.The information presented on the tables are referent to a report published by the Ministry of Foreign Affairs (MRE), the Department of Investments and Trade Promotion (DPR) and the Division of Trade Intelligence (DIC).

Importation: from European Union to Brazil (Million USD)

Brazil mainly imports manufactured goods from the European Union. From the total amount of European goods imported, 90% is referent to cars, aircraft and medicines. The table below shows the largest importer countries from EU to Brazil.