Home Business Brazil – EU trade to reach US$ 68 billion in 2017

Brazil – EU trade to reach US$ 68 billion in 2017

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The European Union is Brazil’s second largest trading partner. Between January and November 2017, Brazilian exports to the European bloc totaled US $ 31.9 billion and imports US $ 29.4 billion. For the year as a whole, exports are estimated to surpass US$ 35 billion, and imports US$ 33 billion.

Brazil’s first place in trade is with China (exports of US $ 44 billion in the first eleven months of 2017, imports of US $ 25.1 billion). The third place belongs to the US (exports: US $ 25.5 billion, imports US $ 22.7 billion, jan-nov 2017)

In addition to trade, the countries of the European Union also stand out for direct investments in Brazil. In 2015, the stock of Foreign Direct Investment of the European Union in Brazil reached 327.1 billion euros.

In 2017 (January-November period), the main European countries that invested most in Brazil (flow concept) were the Netherlands (US $ 8.1 billion); Luxembourg (US $ 3.8 billion); Germany (US $ 2.4 billion) Spain (US $ 1.9 billion) and Italy (US $ 1.4 billion).

In terms of investment stock, Brazil was the third destination outside the European Union (behind the United States and Switzerland) and the first among BRICS countries in Latin America. Still in relation to this question, the Brazilian economy accounted (in 2015)  for 48.5% of total European FDI for Latin America and 81% for Mercosur.

In all, in 2016 133 EU companies ranked   among the 1,000 largest companies operating in Brazil, or almost 14% of the total.

The accumulated net investment of these companies reached 194 billion euros in 23 different sectors. 44% of these investments came from companies in the following sectors: “vehicles and parts”, “chemical and petrochemical”, “metallurgy and mining”, “transportation and logistics” and “specialized services”.

With regard to Brazilian investments in the European Union, Brazil’s FDI stock in the bloc in 2015 reached EUR 127.6 billion. Thus, in terms of stocks destined for the European bloc, Brazil was the fifth world origin outside the European Union, the first among the BRICS countries and the first in Latin America and, therefore, Mercosur.