Key Economic Events
- In 2007, the trade deficit with the EU decreased for the second year in a row, declining by 6 percent, while bilateral trade increased 10 percent. The EU was the largest market for U.S. exports and the third-largest source of U.S. imports. The economies of the United States and the EU are interdependent with nearly one-quarter of bilateral trade consisting of intrafirm transfers.
- Three-quarters of increase in U.S. exports to the EU were conducted in the transportation equipment, chemicals and related products, and minerals and metals sectors. Strong EU economic growth, popularity of German-branded U.S.-produced motor vehicles in Germany, and rising global demand for medicinal chemicals and intrafirm transfers of pharmaceuticals worldwide contributed to the overall increase in U.S. exports to the EU.
- Over one-half of the increase in U.S. imports from the EU were conducted in the chemicals and related products, transportation equipment, and machinery sectors. Increased demand for pharmaceuticals due to the Medicare Part D program and availability of generic drugs, record aircraft deliveries by Airbus to U.S. airlines seeking more economical fuel efficient jets, and increased demand for semiconductor manufacturing equipment (produced only in Japan and the Netherlands) all contributed to the overall increase in U.S. imports from the EU.
Trade Shifts in 2007 from 2006
- U.S. trade deficit:Decreased by $7.7 billion (6 percent) to $125.9 billion
- U.S. exports: Increased by $29.0 billion (15 percent) to $226.3 billion
- U.S. imports: Increased by $21.3 billion (6 percent) to $352.2 billion
Other Government Resources
U.S. Central Intelligence Agency
U.S. Department of Energy, Energy Information Administration
Country Analysis Brief - European Union