The trade in goods between Europe and the BRIC

- "In the past year, trade in goods between Europe and the large emerging countries (Brazil, Russia, India and China) has once again been very vigorous. A particularity is found in the fact that exports and imports have increased at similar paces, which may suggest that the import content in these exports is high."
- "We look at, country by country, what types of goods currently contribute the most to the growth in trade between the six large EU-15 countries and the BRIC. We can see that their nature differs:
• Mainly exports of cars, transport equipment and machines for industry against imports of iron ores and semi-processed food products with Brazil;
• Exports of cars, perfume and office equipment against oil with Russia;
• Exports of metals and transport equipment against oil, clothing and cloth with India;
• Exports of cars, machines for industry and transport equipment against electronic products for telecommunications, office equipment and electrical equipment with China."
- "These observations do not mean that the import content in European exports to the BRIC is low. Oil is needed upstream in most production processes, and the major European manufacturers have offshored to the other emerging countries. These observations simply show that trade in goods between Europe and the BRIC is differentiated and that the simultaneous change in exports and imports does not fundamentally result from the fragmentation of the value chains."

Natixis Flash Economics 426 20100830

No comments:

Post a Comment