The European Union’s Trade Relations with Brazil in 2004–2015

Abstract

Brazil’s trade with the EU has been increasing, reflecting the growing role of Brazil in the world economy in 2004–2008. However, since the global economic crisis the growth rates have slowed down and bilateral trade flows have been declining. During 2004–2015, the EU trade balance with Brazil was mostly deficit and trade patterns were similar to each partner’s general merchandise structure. The paper contains an analysis of EU-Brazil trade flows and balance as well as points to main factors contributing to trade development. Apart from economic conditions in the EU and Brazil, main factors affecting bilateral trade were: world prices of primary products and protectionist tendencies in Brazil’s trade policy. There is still much growth potential when it comes to bilateral EU–Brazil trade, but whether it will be realized depends on improving trade rules and negotiating more favourable access to each other’s markets, especially to Brazil’s market.