EU - USA Summit: An EU25 surplus in trade in goods of nearly 90 bn euro with the USA in 2005

Taking goods and services together, the EU25 and the USA account for the largest bilateral trade relationship in the world. The significant amount of bilateral trade and investment illustrates a high degree of interdependence of the two economies.

On the occasion of the European Union - USA summit, which will take place on Wednesday 21 June in Vienna, Eurostat, the Statistical Office of the European Communities, issues data on trade and investments between the USA and the EU25.

USA: nearly a quarter of extra-EU25 exports of goods and 14% of imports in 2005

In 2005, the EU25 exported 251 billion euro of goods to the USA, while imports amounted to 163 bn. The most notable feature of EU-US trade over recent years has been the continued growth in the EU25 surplus, from just over 20 bn in 1999 to more than 88 bn in 2005. This increase in the surplus is in particular due to a decrease in the level of imports from the USA, which have fallen by a fifth from their peak of 206 bn in 2000. In relative terms, EU25 imports from the USA fell from 22% of total EU25 imports in 1999 to 14% in 2005, while exports declined from 27% in 1999 to 24% in 2005. Almost 45% of EU25 exports to the USA, and almost half of EU25 imports from the USA, were machinery and vehicles¹ in 2005.

Among the EU25 Member States, Germany was the largest exporter to the USA in 2005, with 69 bn, or 27% of the total, followed by the United Kingdom (44 bn or 18%). The United Kingdom (34 bn or 21%) and Germany (32 bn or 20%) were also the largest importers. Most Member States recorded a surplus in trade with the USA in 2005, the largest being registered by Germany (+37 bn), Italy (+13 bn) and theUnited Kingdom (+10 bn).

EU25 trade in goods with the USA, 1999-2005

(million of euro)

EU25 trade in goods with the USA by product

(million euro)

EU25 and Member States trade in goods with the USA

(million euro)

USA: a third of extra-EU25 trade in services

In 2004, the EU25 exported 116 billion euro of services to the USA, while imports of services from the USA amounted to 105 bn, meaning that the EU25 had a surplus of 11 bn in trade in services with the USA. This surplus was mainly due to transportation services (+9 bn), as well as insurance, financial services and travel (+4 bn each), while royalties and license fees recorded the largest deficit (-10 bn). The USA accounted for a third of total extra-EU25 trade in services.

Among the EU25 Member States, and as for trade in goods, the United Kingdom (34 bn or 29% of total exports and 20 bn or 19% of imports in 2004) and Germany (17 bn or 15% and 18 bn or 17% respectively) were the largest traders of services with the USA. The largest surpluses were registered by the United Kingdom (+13 bn), France (+5 bn) and Greece (+4 bn), and the largest deficits by Ireland (-10 bn) and the Netherlands (-2 bn).

EU25 trade in services with the USA

million euro

EU25 and Member States trade in services with the USA, 2004

million euro

: Data not available

Large variation in EU25 FDI flows in the USA

Foreign Direct Investment (FDI) flows between the EU25 and the USA show large variations, with EU25 investment in the USA of 159 bn euro in 2001, 3 bn in 2002 and 47 bn in 2003 becoming disinvestment of nearly 3 bn in 2004. On the other hand, US direct investment into the EU25 shows a steady decrease from 80 bn in 2001 to 23 bn in 2004.

EU 25 FDI flows with the USA

(million euro)

1. 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.

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 the USA 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 the USA.

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• EU-US Summit - Washington, 30 April 2007 (30/4/2007)
• EU President Barroso to meet US President Bush at the White House on 8 January (5/1/2007)
• "The Transatlantic Relationship: A Balance Sheet" - Speech by EU Commissioner Ferrero-Waldner  (20/9/2006)
• EU-US Summit Declaration  (21/6/2006)
• EU - US Summit, Vienna, 21 June 2006 (19/6/2006)
• Speech by Amb Valenzuela on EU-US Partnership: Essential for Global Solutions  (6/12/2005)
• Speech by EU Commission President Barroso: The EU and US: a Declaration of Interdependence (18/10/2005)