EU trade gap widens with US & China

The goods trade surplus between the EU and the US, as well as the bloc's surplus with China has increased in the first five months of the year, according to figures released by the EU statistics office Eurostat.

The figures, which could add an extra strain to already fraught global tensions over trade, showed that there had been a increase in the European Union's surplus with the United States, growing to €62.1bn in January to May 2019 from €55.4bn in the same period the previous year.

The EU's trade deficit with China has also expanded over the same time frame; to €76.7bn to €69.2bn.

Washington has slapped the EU with tariffs and threatened that more will follow in protest at the trade imbalance and as a means of diminishing Russian influence on the continent. At the same time, both the US and the EU have criticised China for wanting free trade but not on fair terms. 

The European Union's overall goods trade deficit has now grown to €14.2bn in January to May 2019 from €9.9bn over the same period in the previous year.

The primary reason for the deficit has been touted as being due to energy imports, most notably from Norway and Russia.

On a seasonally adjusted basis, the 19 country euro zone also showed an increase. In May 2019, the trade surplus was €20.2bn. This is up from €15.7bn in April as imports declined by 1% and exports rose by 1.4%.

For the full Eurostat release, click here

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