The EU and the USA have the strongest and most dependent economic relationship in the world. Their combined GDP accounts for around half of the world’s GDP and for nearly a third of international trade flow. Every year they invest large sums into FDI projects and they are each other’s major importers. Today, we will focus in our blog on the EU product demand, the most imported goods from the USA to the EU, and top EU countries interested in imports from the USA.
Market overview
Being the world’s biggest importer (€1,199.2 billion in 2009), the EU offers a great market for US companies, with 501 million consumers generating GDP of $16 228 billion (2010). It is a single market with unified regulations, free movement of goods, capital and people, and no borders. The USA is the second largest contributor towards EU imports, exporting products worth €169.5 billion, and services worth €131.0 billion.
Top EU product demand
Rising demand for energy products represents one quarter of the EU total imports, with growing popularity of renewable energies and clean technologies (cleantech). This trend also opens opportunities for other related non-energy industries, such as green IT, passive housing, environmentally friendly products and packaging, recycling, and eco-tourism. One third of the EU’s imports are mining, quarrying products, processed fuel products and chemicals, for which the demand is also rising. Even though Europe is the cradle of fashion, their international demand for clothes is increasing too. While they import cheap, lower-quality products from Asia, the US companies may succeed in conquering the market with high-quality and technologically advanced sportswear, outdoor and apparel.
Top USA supplies to the EU
Currently, energy products represent 5% of total USA exports towards the EU, chemicals represent 21%, and machinery equipment, transportation equipment and other manufactured goods represent 58%. The USA is the biggest EU supplier of many product categories, including chemicals, plastics, power generating machinery and equipment, aircraft, spacecraft, professional, scientific and controlling materials. It is also the second biggest supplier of vegetables, fruits and oil seeds, cork and wood, metal ores, coal, petroleum, medical technologies and pharmaceutical products, office machines and computers, electrical machinery as well as metal manufactures.
Top EU countries for US imports
The EU is important not only as a unified market, but it also offers plenty of opportunities within individual countries. The United Kingdom alone was the 5th biggest importer of US products in 2010, equalling $44 billion, closely followed by Germany, who imported only $200 million less. The biggest demand in the UK was for civilian aircraft, chemicals and primary resources, such as metals. Germany was the most interested the US pharmaceutical products. Despite its small size, the Netherlands ranks as the next biggest EU importer of the US products, with strong demand for pharmaceuticals.
Sources:
www.europa.eu
External and intra-EU trade - statistical yearbook, 2010