Foreign trade of the EU27

Between 1999 and 2012 the EU intensified its trade relations with countries outside the European Union (third countries). However, the major part (about 60 %) of the EU member states' external trade consists of trade with each other (intra-trade). In past years, the EU has benefited from the catching-up process of the emerging economies - especially China and Russia - and the associated strong demand for capital goods and production facilities. Consequently, China and Russia became more important trading partners for the EU, whereas the US and Japan declined in importance. Unlike EU's foreign trade with countries outside the EU, the foreign trade among EU member states has not yet recovered from the massive slump due to the economic and financial crisis 2008/2009. This is mainly due to the fact that many European countries have followed a strict austerity policy which has severely depressed domestic demand. While it may have longer-run impacts, in the short run the proposed Transatlantic Free Trade Agreement will do little to reverse the relative decline in EU-US trade, much less can it be expected to serve as a stimulus for economic recovery.