The EU Chemical Industry’s International Trade Balance
(CHEManager International 4/2014) Top Ranking in Total Trade The EU chemical industry still holds the world top ranking in total trade. As a historically important player in the global chemicals market, the EU chemical industry continues to benefit from trade opportunities. The industry registered more than simply a solid recovery in 2012 after the 2008 economic crisis. It posted a record extra-EU net trade surplus of €49.1 billion, according to CEFIC's latest Facts and Figures report that was published in February and provides the most up-to-date information about the EU chemicals sector with the newest full-year data (2012) available. EU exports to non-EU countries climbed to €143.7 billion in 2012, while EU imports were €94.6 billion.
Trade with Emerging Markets Extra-EU chemicals trade flow, calculated as total exports plus imports, in 2012 was mainly directed to the rest of Europe, with 26.2% of total trade flow going to the region. It was followed by the North American Free Trade Agreement (NAFTA) market with 22.6%. Asia, excluding Japan and China, accounted for 22.1% of EU trade flows. Taken together, the Rest of Europe - or non-EU-Europe - NAFTA and Asia markets contributed in 2012 to nearly 71% of total chemicals trade flows. Compared with 2007, the contribution to total trade activity from the rest of Europe, NAFTA and Japan declined, while the total contribution by China and the rest of Asia increased.
Deteriorating Competitiveness The EU has a trade surplus with each of the main trading regions. However, the Trade Competitiveness Indicator (TCI), an indicator that compares the trade balance to total trade activity of a region reveals deteriorating competitiveness of the overall EU chemical industry. This means that total chemicals imports are growing faster than total chemicals exports. A look at the EU trade balance with a number of countries and regions shows that the EU's position is especially deteriorating with certain key performers among emerging Asian countries, with the Middle East and the U.S. for sectors such as base chemicals or petrochemicals.
Trade Position of Sub-Sectors Sectoral analysis shows that specialty chemicals and consumer chemicals performed well in 2012. The trade surplus in these sectors increased by 21.7% and 8.1% respectively in 2012 compared with 2011. Almost half of the EU chemicals trade surplus in 2012 (47.8%) came from specialty chemicals and 30.7% from the consumer chemicals subsector. Basic inorganics experienced a trade deficit of €1.8 billion - the only sector with a trade deficit since more than 10 years ago. But the trade position of certain sub-sectors such as raw materials and energy-intensive fields like petrochemicals and fertilizers shows signs of serious deterioration.
Keywords : CHEManager Europe graphics
