The EU is the world’s largest exporter and importer of food and drink products. However, its share of the global market fell from 24.6% in 1997 to 19.8% in 2007, largely as a result of greater competition from Brazil and China. The United States was the second largest exporter and importer of food and drink. Brazil, China and Argentina were the third, fourth and fifth biggest exporters while Japan, China and Russia were the third, fourth and fifth biggest importers.

EU-US FOOD TRADE

While the volume of trade in products affected by transatlantic food safety-related disputes is significant, most trade in agricultural goods continues to flow freely. For example, spirits, wines and beers account for about two thirds of EU agricultural exports to the US and trade in these products has not been hit.

US MARKET SHARE DECLINING

Though the volume of US agricultural exports to the EU continues to rise, the US shareof the EU food market has declined in the past decade, as other trade partners have increased their exports at a faster rate. For example, the amount of cereals the EU imports jumped from 11.7 million tonnes in 2006 to 22.3 million in 2007, mainly due to an increase in maize imports. The main source of this was Brazil, which in 2000 had not even been in the top five suppliers among non-EU countries. The US had garnered 28% of the EU cereal import market in 2000 but this fell to 20% in 2007, while Brazil’s market share soared to 31% in 2007.

Similarly, while US meat product exports to the EU counted for 5% of total EU meat imports in 2000, this share had dropped to below 2% by 2007. Though the decline cannot solely be attributed to EU food safety restrictions on US products, it is clear that US exporters trying to expand their markets are looking to other parts of the world where it is less difficult to get their food products on the shelves.

Sources: Eurostat, US Department of Agriculture (www.fas.usda.gov), Confederation of the Food and Drink Industries of the EU.

Food and drink trade 2007

EU exports to the world = US$74.3 billion, imports = $70.9 bn

US exports to the world = $43 bn, imports = $63.4 bn

Key trade sectors

Major EU agricultural exports to the US: spirits, wine, beer, water, cheese, olive oil, bread pastry and cakes, chocolate, coffee, live horses, pasta and couscous, casein, bulbs, tubers, pork, sugar, confectionary, cocoa powder.

Major EU agricultural imports from the US: tree nuts, soybeans, tobacco, wine, animal feed, spirits, wheat, food preparations, live horses, grain sorghum, essential oils, peptones, seeds, residues of starch.

EU agricultural exports to the US in 2008: US$15.5 billion (2003: $11 bn)

US agricultural exports to the EU in 2008: US$10.1 bn (2003: $6.7 bn)