Considerable drop in goods trade with Latin America between 2008 and 2009 — EU trade deficit halved

Since 2002, the EU has recorded a deficit in trade in goods with the 17 countries composing Latin America. In 2009, the deficit amounted to €8.6 billion, considerably less than in the previous three years. The products most exported to Latin America by the EU were machinery and road vehicles whereas imports were dominated by vegetables and fruit (especially from Argentina and Brazil), feeding stuff for animals, petroleum (mainly from Venezuela) and metalliferous ores (especially from Brazil). For the trade in services, a 14% increase in the total volume was registered between 2007 and 2008 (to reach €47.6 billion). The EU’s surplus in the trade of services amounted to €8.7 billion. In relative terms, the EU surplus was considerable with Venezuela. Foreign direct investment flows in the Latin American economies were substantially reduced in 2008 (-43% compared to 2007). Increases were noted for Mexico and Argentina but disinvestments occurred in Brazil.