Developments of international agricultural trade
in the European Region

1. Introduction
2. Development of international agricultural trade
   between 1990 and 1999
3. The European region

Summary

1. Introduction

This Conference Room Document has been prepared by FAO for the Pan-European Conference on Food Safety and Quality, to be convened in Budapest from 25 - 28 February 2002. As members from the European regions of both FAO and WHO have been invited, the international trade of almost all 45 countries of that region has been taken into consideration from available data.

This document is intended to inform the participants of this Conference about the state of affairs of international trade of agricultural products, performed by the countries of the European region. No distinction has been made between food and non-food products, raw materials or processed products. Food and animal feed products form the most important part of these figures. Wood and wood products are not included.

The countries of the European region of FAO and WHO cover almost 50 percent of all international food trade both import and export. Food safety and quality issues strongly influence international food trade and market possibilities of food products. Therefore measures to strengthen and harmonize food safety and quality may also improve marketing potentials and stimulate trade. On the other hand harmonization may also cause higher costs requiring external technical assistance. If product requirements are beyond legitimate concerns, such as human health, it may become difficult for certain countries to participate in international trade. If performed in a proper way higher safety and quality levels of food will enhance protection of consumers and improve standards of living. These may be important objectives for development of the FAO/WHO Member countries.

2. Development of international agricultural trade between 1990 and 1999

In the past decade the world international agricultural exports increased from 326 to 417 billion US$. In the same period imports rose from 353 to 441 billion US$ (see figure 1).

In the first 6 years of the nineties international agricultural trade increased by 6 percent per year until agricultural export value reached its highest level of 466 billion US$ in 1996 and import of 479 billion US$. After 1996 both im- and exports dropped gradually with 2 percent per year to the trade levels of 1999.

The European region as a whole followed more or less the same pattern whereas intra-EU trade covers 70 percent of all international trade of the region. Agricultural exports rose from 163 billion US$ in 1990 to 225 billion in 1996. After that it dropped to 206 billion dollars in 1999. Imports grew from 182 billion US$ to 244 in 1996 and then fell to the 1999 level of 222 billion dollars. The differences in international agricultural trade performance between the European Union and the countries in Central and Eastern Europe are substantial and strongly influenced by the socio-economic changes in the past decade.

3. The European region

Agricultural im- and exports of the European countries represent roughly 50 percent of the worlds' international agricultural trade (see figure 2). This figure is based on external trade of individual countries. When the European Union as a whole is considered, the figures are different. Exports in 1999 of the individual EU countries had a total value of 185 billion US$ whereas export value of products from the Union as a whole to countries outside the Union was US$ 51 billion. Almost 70 percent of agricultural export value of the EU-countries are covered by internal EU-trade. For imports in 1999 the figures are US$ 188 billion accumulated by the member countries and US$ 55 billion by the EU as a whole. Of those imports roughly 70 percent is based on internal EU trade.

Source: FAOStat, November 2001

Outside the European Union and especially in the transition markets, both exports and imports dropped considerably between 1996 and 1999. High import rates of some countries at the beginning of the nineties decreased by higher domestic agricultural production or economical decline by the end of the decade. A limited number of Central and Eastern European countries developed exports in that period.

The total agricultural trade deficit of the European Region as a whole is 9 percent, mainly due to a negative trade balance in many Central and East European countries. The agricultural trade balance of the European Union is just slightly negative. Increase of agricultural exports might be an important tool for the socio-economic development of some transition countries, where a large part of the active population is working in agriculture.

On the level of individual countries, most of the 45 countries are net importers. Only 12 European countries are net exporters. Germany is the most significant importer of agricultural products in Europe, followed by the United Kingdom. The most important exporting countries in the European Union are France, the Netherlands and Germany. Outside the European Union the main exporting countries in the region are Turkey, Poland and Hungary.

More information about trade statistics can be found at the FAO web site:

http://apps.fao.org/page/collections