EU and US form the largest trade and investment relationship in the world.
Date: 2015-09-11
Institutions: Eurostat
Subjects: EU relations, European Union, United States, direct investment, foreign investment, international trade, trade policy

International trade

Statistics in focus 2/2015

Authors: Gilberto Gambini, Radoslav Istatkov and Riina Kerner

ISSN: 2314-9647

Catalogue number: KS-SF-15-002-EN-N

EU and US form the largest trade and investment
relationship in the world

USA-EU - international trade and investment statistics

This article focuses on recent trends in European Union (EU) trade with the United States in goods and
services and in foreign direct investment (FDI) . The EU–United States (US) economic relationship accounts
for a large share of global trade in goods and in services. They are each other’s main trading partners in goods
and services, and together they have the largest bilateral trade relationship in the world . Either the EU or the
United States is the largest trade and investment partner for almost all other countries in the global economy.
The two economies also provide each other with their most important sources of foreign direct investment.

Figure 1: Share of EU-28 and US imports and exports in world trade, total products, 2003–13
(%) Source: Eurostat (ext_lt_introle)

Main statistical ﬁndings

EU–US position in world trade
Compared with the other major world economies, the United States and the EU recorded among the highest
values for trade in goods (2013 data). In 2013, the EU-28 recorded EUR 1 736.6 billion worth of exports, the
highest value in international trade. China and the United States followed closely at EUR 1 663.3 billion and
EUR 1 188.2 billion respectively. The United States has traditionally been a major trading economy but its
relative signiﬁcance has declined in recent years, in particular in exports. In 2007, China overtook the United
States and became the second largest exporter of goods behind the EU-28. The United States had a considerable
deﬁcit in trade in 2013 (EUR 565.0 billion), the highest deﬁcit among the major economies. India recorded the

second highest deﬁcit (EUR 97.5 billion), while the EU-28 recorded a surplus of EUR 51.7 billion.1; Together,
the EU-28 and the United States accounted for close to one third (31.1 %) of global imports of goods and 27.0
% of global exports in 2013 (Figure 1). Between 2003 and 2013 the United States’ share of total exports fell
from 14.2 % to 11.0 %. The share of the United States in world imports has fallen substantially since 2003,
from 24.2 % to 15.9 % in 2013. The EU’s export share followed the same trend as the United States during the
above mentioned period, while the EU’s import share declined more gradually. As a result, from 2008 to 2011,
the EU-28 ranked ﬁrst among importers, but from 2012 the United States was again top.

Goods and services are increasingly linked together. Having access to certain services is a prerequisite for
the economic performance of many manufacturers of the main goods that are exchanged between the EU and
the United States. For example, producers and exporters of textiles, cars or computers cannot be competitive
without access to eﬃcient banking, insurance, accountancy, telecom or transport systems. The EU-28 is the
world’s largest exporter and importer of services, with a trade surplus of EUR 146.7 billion in 2012. The United
States shared the same pattern, and had the second highest levels of exports and imports of services (2011
data), and also came second in trade surplus for services, at EUR 128.3 billion.2

EU–US trade in goods
The United States has traditionally been the EU’s major trading partner, but its relative signiﬁcance has
declined in recent years, in particular for exports. Having peaked in 2006, EU trade in goods with the United
States declined notably for both imports and exports in 2009 (Figure 2), following the global ﬁnancial and
economic turmoil at the end of 2008. It recovered again following an upward trend up to 2012. However, in
2013 both imports and exports showed a slight decline compared with 2012. The trade balance is positive since
the beginning of the series (2002) meaning the EU’s exports to the United States are greater than its imports.

Figure 2: Total trade in goods with the US, EU-28, 2003–13 (billion EUR) Source: Eurostat
(Comext data code: DS-018995)

In 2013, manufactured goods (all products included in SITC 5–8) accounted for the largest share of EU exports
to the United States (87.1 % - see Figure 3). Manufactured goods made up the majority of EU imports (79.9
%) as well.

1Share of the EU in world trade (ext_lt_introle).

2International trade in services — Data for the Eurostat yearbook (bop_its_ybk)

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eurostatFigure 3: Trade in goods with the US, by product (SITC level 1), EU-28, 2013 (%) Source:
Eurostat (Comext data code: DS-018995)

Machinery and transport equipment were by far the most traded products in both EU export and import
ﬂows to the United States (EUR 124.2 million and 74.4 million respectively) and made up 43.4 % of total EU
exports and 38.2 % of total EU imports. Chemicals and related products accounted for 21.6 % of EU exports
and 22.3 % of EU imports. Miscellaneous manufactured articles (SITC 8) and manufactured goods classiﬁed
chieﬂy by material (SITC 6), followed. Among primary products, mineral fuels, lubricants and related materials
(SITC 3) held the highest share of both EU’s import and export ﬂows (6.1 % and 9.7 % respectively). Within
the SITC at 2-digit level, road vehicles were the most exported merchandise to the United States. The most
common imports were medical and pharmaceutical products closely followed by power-generating machinery
and equipment (Figures 4 and 5).

Figure 4: Main exports to the US (SITC level 2), EU-28, 2013 (%) Source: Eurostat (Comext
data code: DS-018995)

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eurostatFigure 5: Main imports from the US (SITC level 2), EU-28, 2013 (%) Source: Eurostat (Comext
data code: DS-018995)

In 2013, the share of exports to the United States in total extra EU-28 exports was 18.5 %. An analysis by
product breakdown shows that organic chemicals (36.7 %) and beverages (31.5 %) had the highest proportion
of exports to the United States in total extra-EU exports. In the case of six other products (medicinal and
pharmaceutical products, power-generating machinery, scientiﬁc and controlling instruments, miscellaneous
manufactured articles, coins and road vehicles) the United States accounted for between 20 % and 30 % of
the total. The United States had also close to a 20 % share of extra-EU exports for two other chapters:
’photographic, optical and clock equipment’ and ’inorganic chemicals’. The share of imports from the United
States in total extra EU-28 imports was, at 11.6 %, somewhat lower than exports. Live animals other than
animals of division 03 (meaning animals other than ﬁsh) recorded the highest share of imports from the United
States in total extra-EU imports, at more than 50 %. Power-generating machinery and equipment had a
slightly lower share imports from the United States: 49 % in 2013. Still within the top ten products where the
United States was the EU’s main partner in terms of imports, chemical materials and products; professional,
scientiﬁc and controlling instruments and apparatus; medicinal and pharmaceutical products and other transport
equipment all accounted for shares higher than one third of total EU imports (see Figures 6 and 7).

Figure 6: Share of exports to US on total extra-EU-28 exports, by product (SITC level 2), EU-28,
2013 (%) Source: Eurostat (Comext data code: DS-018995)

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eurostatFigure 7: Share of imports from the US on total extra-EU-28 imports, by product (SITC level
2), EU-28, 2013 (%) Source: Eurostat (Comext data code: DS-018995)

Main characteristics of traders
Figures 8 and 9 show trade in goods data with the United States in 2011 and 2012, broken down by two
characteristics of the traders, enterprise size (in terms of number of employees) and main economic activity
according to the Statistical classiﬁcation of economic activities in the European Community (NACE) .

Figure 8: Trade in goods with the US, by size class of trader (in terms of number of employees),
EU-28, 2011 and 2012 (%) Source: Eurostat (Comext data code: DS-057390)

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eurostatFigure 9: Trade in goods with the US, by main economic activity of the trader (NACE classiﬁ-
cation), EU-28, 2012 (%) Source: Eurostat (Comext data code: DS-057390)

Trade by size class of the traders is one of the most important statistical indicators from trade by enterprise
characteristics (TEC). In 2012, the contribution of small and medium sized enterprises (SMEs) was larger for
imports than for exports (see Figure 8). SMEs (which have less than 250 employees) were responsible for 28
% of the total value of exports to the United States and 38 % of imports. Figures for 2011 were similar.
Small enterprises (0–49 employees) were responsible for almost 12 % of the value of exports, while the share of
medium-sized enterprises (50–249 employees) was around 16 %. Large enterprises accounted for more than half
of the value of both exports and imports, 68 % and 54 % respectively.

Focusing on enterprise activities, the industry and trade sectors (NACE sections B–E and G) account for
the majority of EU trade with the United States, both in terms of trade value and number of enterprises (see
Figure 9). In 2012, the industry sector (B–E) contributed signiﬁcantly more than the trade sector (G) to total
trade value. For imports, trade was fairly equally distributed between the industry sector (48 %) and other
sectors including the trade sector (52 %, of which 30 % trade and 22 % other), while exports were principally
driven by the industry sector, which accounted for almost two-thirds (63 %) of total trade.

The number of establishments involved in trade with the United States was unequally distributed across the
various sectors: while trade represented a share of 41 % of importers from the United States, industry accounted
for only 26 %. On the other hand, the number of enterprises involved in exports was higher for industry (48 %)
than for trade (31 %). Other sectors had a share of 21 %.

EU-US trade in services
A relatively high share of the EU-28’s trade in services was with the United States — although exports and
imports were broadly in line with each other — resulting in a relatively small surplus. Trade in services also
declined notably for both imports and exports in 2009 (EUR 130.2 billion and EUR 128.1 billion respectively).
Since then, values rose to EUR 164.8 billion for exports and EUR 150.9 billion for imports in 2012. The trade
balance for services was a smaller surplus throughout the decade compared with the trade balance in goods.
The trade balance in services had been positive since the beginning of the series (2004) until 2008 when it was
almost balanced, followed by a EUR 2.1 billion deﬁcit in 2009.

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eurostatFigure 10: Total trade in services with the US, EU-28, 2004–12 (¹)(in billion EUR)(¹) 2004–09:
EU-27; 2010–12: EU-28. Source: Eurostat (bop_its_det)

Other business services made up 34.1 % of EU exports to the United States in 2013. Transportation followed
with 18.0 %. Travel and ﬁnancial services accounted for 11.0 % and 10.6 % respectively. Royalties and license
fees and computer and information services also accounted for proportions higher than 5 %, 8.8 % and 7.2 %
respectively. All other services accounted for shares lower than 5 %.

Figure 11: Trade in services with the US, by main sector, EU-28, 2013 (%) Source: Eurostat
(bop_its_det)

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eurostatFigure 12: Foreign direct investment stocks with the US, EU-27, 2004–12 (billion EUR) Source:
Eurostat (bop_fdi_main)

Foreign direct investment
The investment between the EU and the United States is the real driver of the transatlantic relationship,
contributing to growth and jobs on both sides of the Atlantic. Moreover, it inﬂuences trade ﬁgures positively, as
it is estimated that a third of the trade between the EU and the United States actually consists of intra-company
transfers.

Figure 13: Foreign direct investment ﬂows with the US, EU-27, 2004–12 (billion EUR) Source:
Eurostat (bop_fdi_main)

EU-273FDI stocks in the United States more than doubled between 2004 and 2012, and the United States’ FDI
stocks in the EU-27 doubled over that period. Since 2006, the EU has recorded a positive balance vis-à-vis the
United States, with outward stocks exceeding inward stocks.

Total EU-27 FDI outﬂows to the United States increased to EUR 163.4 billion in 2011 and dropped again

3EU-28 data not available for the whole time period

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eurostatin 2012, down to EUR 62.9 billion.
decreased in 2012 by more than a half from the previous year, down to EUR 98.8 billion.

Inward ﬂows, i.e. the ﬂows from the United States to the EU-27, also

Data sources and availability
EU data on international trade comes from Eurostat ’s COMEXT database. COMEXT is the Eurostat refer-
ence database for international trade in goods. It provides access not only to both recent and historical data
from the EU Member States but also to statistics of a signiﬁcant number of third countries.
International
trade aggregated and detailed statistics disseminated from Eurostat website are compiled from COMEXT data
according to a monthly process.

Data are collected by the competent national authorities of the Member States and compiled according to
a harmonised methodology established by EU regulations before transmission to Eurostat. The statistical in-
formation is mainly provided by the traders on the basis of Customs (extra-EU) declarations.

EU data are compiled according to community guidelines and may, therefore, diﬀer from national data published
by EU Member States. Statistics on extra-EU trade are calculated as the sum of trade of each of the 28 EU
Member States with countries outside the EU. In other words, the EU is considered as a single trading entity
and trade ﬂows are measured into and out of the area, but not within it.

Deﬁnitions

• Number of enterprises

The number of enterprises consists in a count of the number of enterprises involved in trade during at least a
part of the reference period.

• Number of employees

The number of employees is deﬁned as those persons who work for an employer and who have a contract
of employment and receive compensation in the form of wages, salaries, fees, gratuities, piecework pay or
remuneration in kind.

• Classiﬁcations

Enterprises are classiﬁed according to the Statistical Classiﬁcation of Economic Activities in the European
Community, Rev. 2 ( NACE Rev. 2). From the reference year 2008 onwards, the activity sector is broken down
by NACE Rev. 2 division (2-digit level) for sections C (Manufacturing) and G (Trade) and by section level for
other activities. The size-classes in terms of number of employees are: 0–9, 10–49, 50–249, 250 or more and
Unknown. For detailed information, please refer to ’ RAMON ’, Eurostat’s Classiﬁcation Server.

• Foreign direct investment (FDI) is the category of international investment made by an entity resident in
one economy (direct investor) to acquire a lasting interest in an enterprise operating in another economy
(direct investment enterprise). The lasting interest is deemed to exist if the direct investor acquires at
least 10 % of the voting power of the direct investment enterprise. FDI statistics record separately:

1) Inward FDI (or FDI in the reporting economy), namely investment by foreigners in enterprises resident in
the reporting economy.

2) Outward FDI (or FDI abroad), namely investment by residents entities in aﬃliated enterprises abroad.

• International trade in services statistics come from the transactions recorded under the country’s balance

of payment, hence the transactions that take place between economy’s residents and non-residents.

Context
The European Union and the United States have the largest bilateral trade relationship and enjoy the most
integrated economic relationship in the world. The EU and USA have decided to take their economic relation-
ship to a higher level by agreeing to launch negotiations for a comprehensive trade and investment agreement,

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eurostatthe Transatlantic Trade and Investment Partnership (TTIP). Launched in 2013, the current TTIP negotiations
between the EU and the United States are designed to increase trade and investment across the Atlantic by
reducing and, where possible, eliminating remaining barriers to transatlantic trade and investment, whether
they are tariﬀs on farm or manufactured products, restrictions on foreign service suppliers, or limitations on
investment possibilities.

See also

• All articles on international trade

• All articles on the non-EU countries

• Extra-EU trade in goods

Further Eurostat information

Data visualisation

• Statistics Illustrated –International trade

• Statistics Illustrated –Balance of payments

Publications

• The EU in the World 2014

Main tables

• International trade , see:

International trade (t_ext)

Database

• International trade , see:

International trade data (ext)

Dedicated section
• International trade

• Balance of payments — International transactions

• Balance of payments - International trade in services

Methodology / Metadata
In the methodology applied for statistics on the trade of goods, extra-EU trade statistics (trade between EU
Member States and non-member countries) do not record exchanges involving goods in transit, placed in a
customs warehouse or given temporary admission (for trade fairs, temporary exhibitions, tests, etc.). This is
known as ’special trade’. The partner is the country of ﬁnal destination of the goods for exports and the country
of origin for imports.

The balance of payments (BoP) is an important macro-economic indicator used to assess the position of an
economy (of credit or debit) towards the external world. Data on International Trade in Services (ITS), a
component of BoP current account, are used, alongside with data on Foreign Direct Investment, to monitor
the external commercial performance of diﬀerent economies. Some indicators of EU market integration are
also derived from BoP data. ITS data are collected by national enterprise surveys, International Transaction

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eurostatSystem (ITRS) and administrative records. The methodological framework followed the Manual on Statistics
of International Trade in Services . The balance of payments provides information on the total value of credits
(or exports) and debits (or imports) for each BoP item and on the net result or ’balance’ (credits minus debits)
of the transactions with each partner.

The main services categories are:

• Transport

• Travel

• Communication services

• Construction services.

• Insurance services.

• Financial services.

• Royalties and license fees.

• Other business services.

• Personal, cultural and recreational services.

• Government services n.i.e.

• Services not allocated.

For more information see the EU-International trade Metadata page and http://ec.europa.eu/eurostat/
cache/metadata/en/bop_its_esms.htm International trade in services, geographical breakdown Metadata
page].

• Product classiﬁcation

Information on commodities exported and imported is presented according to the Standard international trade
classiﬁcation (SITC) .

SITC is a product classiﬁcation of the United Nations (UN) used for external trade statistics (export and
Import values and volumes of goods), allowing for international comparisons of commodities and manufactured
goods.

The main categories are:

• food, drinks and tobacco (Sections 0 and 1 — including live animals);

• raw materials (Sections 2 and 4);

• energy products (Section 3);

• chemicals (Section 5);

• machinery and transport equipment (Section 7);

• other manufactured goods (Sections 6 and 8).

A full description is available from Eurostat’s classiﬁcation server RAMON .

• International trade metadata ﬁle

• Balance of payments metadata ﬁle

Source data for tables, ﬁgures and maps (MS Excel)
• EU_external_relations_with_the_United_States Excel ﬁle

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eurostatExternal links
European Commission

• Globalisation

• Trade

• Transatlantic Trade and Investment Partnership (TTIP)

United Nations

• Comtrade

Notes

View this article online at http: // ec. europa. eu/ eurostat/ statistics-explained/ index. php/ USA-EU_
-_ international_ trade_ statistics

© European Union, 2015

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