Trade agreements boost EU agri-food sector, new study shows

Trade agreements have boosted EU agricultural exports and jobs, according to an independent study carried out for the European Commission.

Trade agreements have helped to boost EU agricultural exports and have supported jobs in the agri-food sector and other sectors of the economy, according to a new independent study carried out on behalf of the European Commission into trade relations with Mexico, South Korea and Switzerland. The study also shows that more recent, ambitious agreements such as the EU-Korea trade deal, which entered into force in 2011, have a higher positive impact than older and less comprehensive agreements like the 2000 EU-Mexico agreement.

The study shows that the agreements contributed to increased trade in both directions, with increased EU exports and increased imports of products from these three countries, giving EU consumers and business greater access to agri-food products. The study suggests that increased imports have little impact on domestic EU production, reflecting a replacement of imports from other third countries or an increase in EU consumption.

The study shows that:

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  The agreement between the EU and Mexico added €105 million to EU agri-food exports in 2013 (mostly processed food and beverages), three years after both sides had removed agreed trade barriers. The study also identifies potential for the EU agri-sector through further elimination of current tariffs and barriers, which will be taken into account in negotiations to modernise the EU-Mexico Agreement.
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  The EU-South Korea Free Trade Agreement (FTA) added €439 million in additional EU agri-food exports in 2015 (the latest year for which data is available), mostly in the form of primary products and commodities.
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  The EU-Switzerland trade agreements on agricultural products and processed agricultural products added €532 million to EU agri-food exports in 2010, three years after they were fully implemented. Most of this was in the form of processed food and beverages.

The three trade agreements also contributed to a record year for EU agri-food exports in 2016, with total exports reaching €130.7 billion, up €1.7 billion on 2015. The biggest increases in annual exports were to the USA (up €1.26 billion) and China (up €1.06 billion). At the same time, the value of EU agri-food imports went down 1.5% to €112 billion. The agri-food sector accounted for 7.5% of total EU exports in goods in 2016; 6.6% of all imported goods are agri-food products. With a surplus of €18.8 billion the agri-food sector contributes almost half of the overall surplus of the European Union in merchandise trade, which stood at €39.3 billion in 2016.

Related links

Press release - Trade agreements boost EU agri-food sector

Q&A- Trade agreements boost EU agri-food exports

Study - Impacts of EU trade agreements on the agricultural sector

More information on the EU-Mexico trade agreement

More information on the EU-South Korea Free Trade Agreement

More information on the EU-Switzerland trade agreement