BY JOACHIM BAMRUD
Brazil has replaced Mexico as the European Unions top market in Latin America, according to a Latin Business Chronicle analysis of 2007 trade data from Eurostat. Meanwhile, Latin Americas trade with the European Union continues to grow at faster levels than with the United States, the analysis shows.
"Thats not surprising [since] the European economies keep growing, while the United States is slowing down," says Isaac Cohen, president of US-based consultancy Inverway and a former director of the Washington office of the United Nations Economic Commission for Latin America and the Caribbean (ECLAC).
The EUs trade with Latin America grew by 11.5 percent last year to a new record of 160.0 billion euros (US$245.3 billion). EU exports to Latin America reached 71.4 billion euro, an increase of 12.8 percent. Meanwhile, EU imports from Latin America grew by 10.5 percent to 88.6 billion euro.
That means Latin Americas trade with the EU is growing nearly twice as much as its trade with the United States, which only grew by 6.2 percent last year (See US-Latin Trade Grows). The EU also continues to have a much smaller trade deficit with Latin America than the United States. Last year it reached 17.3 billion euro (or $26.5 billion), an increase of 1.7 percent from 2006. By comparison, the US deficit reached $100.5 billion. However, the EU still lags the US in terms of total trade with Latin America. Last years EU trade with the region was less than half of U.S.-Latin America trade.
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Keywords: ALBA, Andean Community, Argentina, Austria, Belgium, Bolivia, Brazil, CAFTA, Chile, Colombia, Costa Rica, El Salvador, Finland, France, Dominican Republic, Ecuador, Germany, Italy, Mercosur, Mexico, Nicaragua, Panama, Peru, Portugal, Spain, Sweden, Venezuela