EU Agricultural Trade
Agri-food trade covers trade in agricultural commodities as well as processed products of the food and drinks industry. Agri-food trade accounted for 6% of total EU15 trade in goods with non-EU15 countries in 2003, a fall from 9% in 1995.
Total exports and imports of agri-food produccts were valued at ?120 billion in 2003. The EU15 traditionally has run a deficit in its agri-food trade but this has been falling over time and agri-food trade flows are almost balanced now. The deficit of ?5.1 billion in 1995 was reduced to just ?0.5 billion in 2003.
Vegetable products (fruits, vegetables, cereals, coffee etc.) are the largest group of imports, followed by prepared foodstuffs (meat preparations, cereal based foods, sugar confectionar, beer, wine, spirits, tobacco). On the export side, more that half of EU exports is concentrated in prepared foodstuffs and particularly beverages (beer, waters, wine and spirits which accounted for 20% of all EU agri-food exports in 2003).
Trade by regions
The Mercosur region (Brazil, Argentina, Chile) is now the single most important supplier of food imports to the EU. Imports from the Mercosur countries increased by 33% over the 1997-2002 period. During this period, imports from the CEEC countries doubled, while imports from the Mediterranean and ACP countries have also grown. Imports from NAFTA (US, Canada, Mexico) and Oceania fell over this period, while imports from other suppliers remained more or less constant.
The role of preferences
Given the high level of protection for the EU market for agricultural and food products, how is it that the EU is the single largest importer of foodstuffs in the world? Partly, this is because tariffs are low or zero on non-competing commodities such as tropical products which the EU does not itself produce. And partly, it is because of preferential access given to imports from developing countries. According to WTO statistics, 43% of EU agricultural imports in 1999 were eligible for preferential access, and a further 24% of imports entered under MFN arrangements where the tariff rate is 0%.
Another study estimated that 33% of EU imports, where the MFN duty is greater than zero, enter under preferential access arrangements (see Gallezot reference). The proportion of preferential imports from developing countries is higher, at 42%. For ACP countries not in the least developed country category, the figure is 83%. For least developed countries, under the Everything but Arms scheme, the figure is now 100%..
Further Links:
Agricultural trade statistics for the EU 2003
EU Commission page which provides access to tables and graphs describing the European Union's agricultural trade position in the world as well as detailed trade information - per chapter and/or at aggregated product level and by region - in values and quantities for the years 1995-2003 for the EU15 and from 1999 onwards for the enlarged EU25 based on Eurostat data.
Resources:
J. Gallezot, Real Access to the EU's Agricultural Market, INRA, 2003
Presents a breakdown of imports under different preferential schemes and calculates the average applied level of EU protection against third country imports based on a detailed analysis of customs data.
Gallezot EU agric mkt openness to LDCs.pdf (788.34 kB)
EU Commission, DG Trade, Trade in Agriculture the EU-15
A short overview of EU imports and exports of agricultural commodities and food products with a breakdown by region and trading partner using 2003 data.
DG_Trade_EU_agricultural_trade.pdf (46.52 kB)
