23 > 30 June 2018 BELGIUM S TRADE RELATIONS WITH URUGUAY Gentileza Uruguay XXI
1. TABLE OF CONTENTS IMPORTANCE OF BELGIUM AND THE OTHER EU-COUNTRIES IN THE TRADE WITH URUGUAY 4 1.1. EXPORTS 6 1.2. IMPORTS 7 2. IMPORTANCE OF URUGUAY AND ITS NEIGHBOURING COUNTRIES IN BELGIUM S FOREIGN TRADE (2017) 8 3. BILATERAL TRADE RELATIONS 10 3.1. TRADE IN GOODS 12 3.1.1 Exports 14 3.1.2 Imports 16 3.2. TRADE IN SERVICES 18 3.2.1 Exports 20 3.2.2 Imports 21 4. SOME ECONOMIC INDICATORS ON THE ECONOMY OF URUGUAY 22 5. INDEX OF THE UNIT PRICE IN IMPORTS AND EXPORTS 23 6. SOURCES 24 7. CONTACTS 24 2 BELGIUM S TRADE RELATIONS WITH URUGUAY 3
1 IMPORTANCE OF URUGUAY AND ITS NEIGHBOURING COUNTRIES IN BELGIUM S FOREIGN TRADE (2017) Gentileza Uruguay XXI 4 BELGIUM S TRADE RELATIONS WITH URUGUAY 5
1. IMPORTANCE OF URUGUAY AND ITS NEIGHBOURING COUNTRIES IN BELGIUM S FOREIGN TRADE (2017) 1.1. EXPORTS 1.2. IMPORTS Total exports of goods from the European Union (EU-28) While European exports (EU-28) to Uruguay dropped Total imports of goods by the European Union (EU-28) While European imports (EU-28) from Uruguay dropped to Uruguay amounted to EUR 1.6 billion in 2017. by 4.4% (-EUR 71.4 million) in 2017, Belgian exports from Uruguay amounted to EUR 1.5 billion in 2017. by 9.6% (-EUR 161.3 million) in 2017, Belgian im- Belgium represented a share of 6.9%, which made it were down by an even larger percentage rate (-17.3% Belgium was the 11 th largest importer of goods from ports from this particular country were up by 24.8% the 7 th largest exporter of goods to Uruguay within the or -EUR 22.6 million). As a result, our country s share in Uruguay within the EU with a share of only 1.2%. The (+EUR 3.6 million). As a result, our country s share in EU. Germany took first place with 16.0%, while Italy and EU exports to Uruguay decreased. Netherlands were the largest importer of goods from EU imports from Uruguay increased last year. Spain completed the top three with 14.5% and 14.3% re- Uruguay within the EU with a share of 37.4%, while spectively. German and Spanish exports to Uruguay dropped by Italy and Germany settled in second and third place with Dutch and German imports of goods from Uruguay fell 26.6% (-EUR 90.0 million) and 29.9% (-EUR 95.0 million) 18.2% and 12.5% respectively. by 11.3% (-EUR 72.3 million) and 33.1% (-EUR 93.5 mil- in value in 2017, while those of Italy were up by 3.0% lion) in value in 2017, while those of Italy rose by 27.1% (+EUR 6.5 million). (+EUR 58.7 million). EVOLUTION OF EXPORTS TO URUGUAY EVOLUTION OF IMPORTS FROM URUGUAY IN MILLION 2016 2017 VARIATION (IN %) SHARE (IN %) IN MILLION 2016 2017 VARIATION (IN %) SHARE (IN %) 1. GERMANY 338.7 248.7-26.6 16.0 1. NETHERLANDS 637.6 565.3-11.3 37.4 2. ITALY 218.6 225.1 3.0 14.5 2. ITALY 216.7 275.4 27.1 18.2 3. SPAIN 317.6 222.6-29.9 14.3 3. GERMANY 282.4 188.9-33.1 12.5 7. BELGIUM 130.4 107.8-17.3 6.9 11. BELGIUM 14.6 18.2 24.8 1.2 TOTAL EU-28 1,622.7 1,551.3-4.4 100.0 TOTAL EU-28 1,674.1 1,512.8-9.6 100.0 6 BELGIUM S TRADE RELATIONS WITH URUGUAY 7
CLIENT > BELGIAN EXPORTS SUPPLIER > BELGIAN IMPORTS 2 IMPORTANCE OF URUGUAY AND ITS NEIGHBOURING COUNTRIES IN BELGIUM S FOREIGN TRADE (2017) Brazil 18 th client EUR 3,528.5 million 23 rd supplier EUR 2,663.6 million Uruguay 96 th client EUR 107.8 million 124 th supplier EUR 18.2 million Argentina 49 th client EUR 640.2 million 60 th supplier EUR 345.6 million INTEREST IN URUGUAY The database of the Belgian Foreign Trade Agency, which registers more than 23,000 companies, records 1,043 Belgian companies that export to Uruguay and another 1,713 companies that show an interest in this market. Gentileza Uruguay XXI 8 BELGIUM S TRADE RELATIONS WITH URUGUAY 9
3 BILATERAL TRADE RELATIONS Gentileza Uruguay XXI 10 BELGIUM S TRADE RELATIONS WITH URUGUAY 11
3 BILATERAL TRADE RELATIONS 3.1. TRADE IN GOODS In 2017, Uruguay ranked 96 th among Belgium s main clients, before Botswana and after Libya. Total Belgian exports of goods to Uruguay amounted to EUR 107.8 million compared to EUR 130.4 million in 2016, a 17.3% (-EUR 22.6 million) decrease. Uruguay was Belgium s 124 th supplier of goods in 2017. It ranked after Montenegro, but preceded Togo. Total Belgian imports of goods from Uruguay grew by 24.8% (+EUR 3.6 million), from EUR 14.6 million in 2016 to EUR 18.2 million last year. VARIATION OF EXPORTS AND IMPORTS (IN %) 40.5% Exports Imports 24.8% 13.6% EVOLUTION OF BELGIUM S TRADE IN GOODS WITH URUGUAY 5.6% 5.1% IN MILLION 2013 2014 2015 2016 2017 EXPORTS 102.6 88.3 92.8 130.4 107.8 IMPORTS 21.1 22.2 16.4 14.6 18.2-20.7% -14.0% -26.1% -11.0% -17.3% TRADE BALANCE 81.5 66.1 76.4 115.8 89.6 EXPORTS: VARIATION IN % 13.6-14.0 5.1 40.5-17.3 2013 2014 2015 2016 2017 IMPORTS: VARIATION IN % -20.7 5.6-26.1-11.0 24.8 Belgium s merchandise trade balance with Uruguay, a result, the trade surplus first grew to EUR 76.4 million which is traditionally in favour of our country, displayed before reaching its highest level of the period under review a surplus of EUR 81.5 million in 2013, before decreasing with EUR 115.8 million. Last year, exports recorded to EUR 66.1 million a year later. Exports were subsequently a drop, while imports were up by almost a quarter. This up in both 2015 and 2016, while imports dis- caused the surplus to drop to EUR 89.6 million. played a negative growth rate during these two years. As Lower imports of wood were in part what caused total Belgian imports of goods from Uruguay to drop by 20.7% in 2013. They displayed signs of a recovery a year later when a growth rate of 5.6% was recorded, but in 2015 imports once again dropped by 26.1% due to the lower value of vegetable products. Imports shrunk by another 11.0% in 2016, this time resulting from a decrease in animal products. In 2017, imports (+24,8%) registered their largest growth rate of the period under review, which was the result of an increase in vegetable products. Total Belgian exports of goods to Uruguay displayed a 13.6% growth rate in 2013, thanks primarily to a higher value for vegetable products. The value of this product group was reduced a year later, which caused exports to drop by 14.0%. Exports slowly started to recover in 2014 (+5.1%), after which they recorded their largest growth rate of the period under review in 2016 (+40.5%). Because the value of chemical products was reduced by more than two thirds in 2017, total Belgian exports of goods to Uruguay were down by 17.3%. 12 BELGIUM S TRADE RELATIONS WITH URUGUAY 13
VARIATION OF EXPORTS TO URUGUAY BY PRINCIPAL COMMODITIES (IN VALUE AND QUANTITY) - 2017/2016 3.1. TRADE IN GOODS Value Quantity 2,020.2% Mineral products 3.1.1. EXPORTS -69.7% Chemical products -24.4% Machinery and equipment In 2017, mineral products took the top position in Machinery and equipment (main subsection: harvest- total Belgian exports of goods to Uruguay. With EUR 39.6 million, this group of products represented a ing or threshing machinery, including straw or fodder balers; grass or hay mowers; machines for cleaning, 21.2% Foodstuffs share of 36.7% in total exports. This section was mainly composed of petroleum oils and oils obtained from sorting or grading eggs, fruit or other agricultural produce ) completed the top three with a share of 13.6% 21.6% Plastics bituminous minerals. and exports totaling EUR 14.6 million. Exports of chemical products (main subsections: per- Foodstuffs (main subsection: potatoes ) were the 5.9% Vegetable products fumes and toilet waters and medicaments consisting of mixed or unmixed products for therapeutic or only other product group that recorded a share of more than 5.0%. The value of this section amounted 0.3% Optical instruments prophylactic uses ) amounted to EUR 24.6 million or a to EUR 7.0 million, which equals 6.5% of total Belgian share of 22.8%. exports of goods to Uruguay. -36.8% Transport equipment 55.9% Textiles BREAKDOWN OF BELGIAN EXPORTS TO URUGUAY BY PRINCIPAL COMMODITIES (IN %) 222.2% Paper and paperboard The graph above indicates that of the ten main product Chemical products displayed the largest negative groups, the mineral products section recorded by far growth rate. The value of this section fell from Other product groups - 6.2% the largest percentage increase in 2017. The exported value of this group of products grew from EUR 1.9 mil- EUR 81.3 million in 2016 to EUR 24.6 million last year due to lower exports of medicaments consisting of Textiles - 1.6% Transport equipment - 2.5% Optical instruments - 2.9% Vegetable products - 3.5% Plastics - 3.7% 2017 36.7% - Mineral products lion in 2016 to EUR 39.6 million last year, thanks to higher exports of the subsection petroleum oils and oils obtained from bituminous minerals. The value of paper and paperboard grew by 222.2% (+EUR 1.1 million) during the period under review. mixed or unmixed products for therapeutic or prophylactic uses. They were in large part responsible for the fact that total Belgian exports of goods to Uruguay were down by 17.3% in 2017. The two other product groups from the top ten that displayed a negative growth rate were machinery and Foodstuffs - 6.5% The other product groups from the top ten of which the export value increased, displayed a growth rate that var- equipment (-24.4% or -EUR 4.7 million) and transport equipment (-36.8% or -EUR 1.6 million). The loss in ied from 0.3% (optical instruments) to 55.9% (textiles). value of this last section resulted from the fact that Machinery and equipment - 13.6% 22.8% - Chemical products The rise of this last product group can be attributed to higher exports of non-wovens, whether or not impreg- the subsection crane lorries did not appear in exports anymore in 2017, while they still represented an amount nated, coated, covered or laminated and terry towel- of EUR 2.6 million a year earlier. ling and similar woven terry fabrics. 14 BELGIUM S TRADE RELATIONS WITH URUGUAY 15
VARIATION OF IMPORTS FROM URUGUAY BY PRINCIPAL COMMODITIES (IN VALUE AND QUANTITY) - 2017/2016 3.1. TRADE IN GOODS Value Quantity 39.9% Vegetable products 3.1.2. IMPORTS 12.2% Animal products In 2017, vegetable products took first place in total Belgian imports of goods from Uruguay. With a total of EUR 8.0 million, this group of products represented a share of 43.6%. This section was primarily composed of rice. Imports of animal products (main subsections: meat of horses, meat of rabbits and natural honey ) amounted to EUR 3.5 million or a share of 19.0%. Base metals, which were composed primarily of copper waste and scrap, completed the top three with a share of 8.9% or EUR 1.6 million in imports. Optical instruments (main subsections: surveying, hydrographic, oceanographic, hydrological, meteorological or geophysical instruments and appliances and orthopaedic appliances ) were the only other product group with a share of more than 5.0% in imports. They represented an amount of EUR 1.4 million, or 7.9% of total Belgian imports of goods from Uruguay. -60.1% -16.1% 195.8% 11.3% 5,042.9% 30,130.6% Base metals Optical instruments Wood Machinery and equipment Textiles Non-classified articles 94.6% Foodstuffs BREAKDOWN OF BELGIAN IMPORTS FROM URUGUAY BY PRINCIPAL COMMODITIES (IN %) 500.0% Chemical products Other product groups - 4.1% Foodstuffs - 1.6% Non-classified articles - 2.8% Textiles - 3.6% Machinery and equipment - 3.8% Wood - 4.7% 2017 43.6% - Vegetable products Of the ten main product groups, the base metals section recorded the largest percentage increase in 2017. The imported value of this group of products grew from only EUR 5,400 in 2016 to EUR 1.6 million last year, as a result of higher imports of copper waste and scrap. The value of vegetable products, the main import section from Uruguay, registered a rise of 39.9% (+EUR 2.3 million) in 2017. The higher value for this particular product group was in large part the reason why total Belgian imports of goods from Uruguay were up by 24.8% in 2017. The other product groups from the graph above of which the import value increased, displayed a positive growth rate that varied from 11.3% (machine and equipment) to 500.0% (chemical products). The rise of this last section can be attributed to higher imports of provitamins and vitamins, natural or reproduced by synthesis. Wood displayed the largest negative growth rate. The value of this section fell from EUR 2.2 million in 2016 to EUR 862,200 last year due to lower imports of plywood, veneered panels and similar laminated wood. Optical instruments - 7.9% Base metals - 8.9% 19.0% - Animal products Non-classified articles, which represented EUR 506,600 in 2017, only displayed an amount of EUR 9,900 in imports a year earlier. Textiles (-16.1% or -EUR 127,300) were the only other product group from the top ten that recorded a negative growth rate. 16 BELGIUM S TRADE RELATIONS WITH URUGUAY 17
3 BILATERAL TRADE RELATIONS 3.2 TRADE IN SERVICES In 2017, Belgian exports of services to Uruguay were down by 12.3% (-EUR 3.0 million) in value, decreasing from EUR 23.8 million to EUR 20.8 million. This made Uruguay the 106 th largest client of Belgium after Ethiopia but before Rwanda. Belgian imports of services from Uruguay represented EUR 12.3 million in 2017, a 42.1% (+EUR 3.6 million) rise when compared to the year before. Uruguay was Belgium s 121 st largest supplier of services in 2017. It ranked before Belarus, but after Bosnia and Herzegovina. EVOLUTION OF BELGIUM S TRADE IN SERVICES WITH URUGUAY IN MILLION 2015 2016 2017 EXPORTS 62.1 23.8 20.8 IMPORTS 63.3 8.7 12.3 TRADE BALANCE -1.2 15.1 8.5 EXPORTS: VARIATION IN % 146.1-61.7-12.3 IMPORTS: VARIATION IN % 581.8-86.3 42.1 In 2017, exports of services to Uruguay outperformed imports from this country. As a result, Belgium s services trade balance with Uruguay was positive last year. In 2017, the surplus was limited to EUR 8.5 million, because exports decreased even further, while imports displayed a positive growth rate. The deficit on the services trade balance, which amounted to EUR 1.2 million in 2015, changed into a surplus of EUR 15.1 million only a year later because imports were down by a larger margin than exports. The services trade balance of 2016 and 2017 displayed similarities to the balance for goods, which is traditionally in favour of our country. Gentileza Uruguay XXI 18 BELGIUM S TRADE RELATIONS WITH URUGUAY 19
3.2. TRADE IN SERVICES 3.2.1. EXPORTS 3.2.2. IMPORTS In 2017, transportation services were the largest cat- Travel services (+40.0% or +EUR 0.4 million) were the In 2017, total Belgian imports of services from Uruguay Communication services (+166.7% or +EUR 0.5 million) egory in total Belgian exports of services to Uruguay only other group of services from the top five of which were composed for 38.2% or EUR 4.7 million of trans- were the only other group of services from the top five of with a share of 40.9% or EUR 8.5 million. They cover sea exports moved in a positive direction. portation services. Other business services, which which imports recorded an increase. transport, air transport, space transport, rail transport, are composed of merchanting, operational leasing road transport, inland waterway transport and pipeline The drop in transportation services was the main rea- services, legal services, accounting, auditing, book- The value of travel services, which amounted to transport. Other business services and communication son why total Belgian exports of services to Uruguay keeping and tax consultancy services, advertising, EUR 2.0 million in 2017, remained unchanged when services took 2 nd and 3 rd place with a share of 26.9% and were down by 12.3% in 2017. The value of this particular market research and public opinion polling and waste compared to a year earlier. 9.6% respectively. section fell by 36.6%, from EUR 13.4 million in 2016 to treatment and depollution came in second with a share only EUR 8.5 million a year later. of 23.6%. Travel services completed the top three with Other business services (-9.4% or -EUR 0.3 million) Of the five major sections, communication services re- a share of 16.3%. and financial services (-37.5% or -EUR 0.6 million) dis- corded the largest percentage increase in 2017. Exports Other business services (-15.2% or -EUR 1.0 million) played a negative growth rate. of this section grew by 185.7% (+EUR 1.3 million), from and financial services (-6.3% or -EUR 0.1 million) were Transportation services may have been the primary EUR 733,000 in 2016 to EUR 2.0 million. the other groups of services from the top five that dis- reason for lower exports of services to Uruguay, but they played a negative growth rate. were also why total imports of services from this country rose by 42.1%. The value of this particular section grew by 261.5% (+EUR 3.4 million) to EUR 4.7 million. EVOLUTION OF BELGIUM S TRADE IN SERVICES WITH URUGUAY BELGIAN IMPORTS FROM URUGUAY BY PRINCIPAL SERVICES 2017/2016 2017/2016 VARIATION 2017 VARIATION 2017 IN MILLION 2016 2017 (IN %) SHARE (IN %) IN MILLION 2016 2017 (IN %) SHARE (IN %) TRANSPORTATION SERVICES 13.4 8.5-36.6 40.9 TRANSPORTATION SERVICES 1.3 4.7 261.5 38.2 OTHER BUSINESS SERVICES 6.6 5.6-15.2 26.9 OTHER BUSINESS SERVICES 3.2 2.9-9.4 23.6 COMMUNICATION SERVICES 0.7 2.0 185.7 9.6 TRAVEL SERVICES 2.0 2.0 0.0 16.3 FINANCIAL SERVICES 1.6 1.5-6.3 7.2 FINANCIAL SERVICES 1.6 1.0-37.5 8.1 TRAVEL SERVICES 1.0 1.4 40.0 6.7 COMMUNICATION SERVICES 0.3 0.8 166.7 6.5 OTHER SERVICES 0.5 1.8 260.0 8.7 OTHER SERVICES 0.3 0.9 200.0 7.3 TOTAL 23.8 20.8-12.3 100.0 TOTAL 8.7 12.3 42.1 100.0 20 BELGIUM S TRADE RELATIONS WITH URUGUAY 21
4 5 SOME ECONOMIC INDICATORS ON THE ECONOMY OF URUGUAY INDEX OF THE UNIT PRICE IN IMPORTS AND EXPORTS ECONOMIC STRUCTURE (2017 - ESTIMATES) GDP GDP GROWTH 3.5% INFLATION 6.1% EXPORTS OF GOODS (FOB) IMPORTS OF GOODS (FOB) TRADE BALANCE UNEMPLOYMENT RATE 7.3% POPULATION MAIN CLIENTS: % OF TOTAL (2016) 60.3 billion USD 9.0 billion USD 8.7 billion USD 0.3 billion USD 3.4 million MAIN SUPPLIERS: % OF TOTAL (2016) BRAZIL 16.4 CHINA 18.8 CHINA 12.2 BRAZIL 17.9 UNITED STATES 6.2 ARGENTINA 13.3 The table below gives an overview of the evolution of the index of the unit price in imports and exports for Belgium (with the world). Thanks to this index, the general evolution of the price of goods can be analyzed. This makes it possible to see the global evolution of Belgian imports and exports in perspective by determining the part which is caused by the price evolution (and hence which part is caused by a change in quantity). The table has to be interpreted as follows: If a given product had an export value of EUR 100 in the year 2010, then this product had an average value of EUR 103.2 in 2016. The same principle goes for imports. If a particular product had an import value of EUR 100 in 2010, the same product had an import value of EUR 103.5 in 2016. INDEX OF THE UNIT VALUE OF TOTAL BELGIAN EXPORTS AND IMPORTS (2010=100) EXPORTS IMPORTS 2002 86.1 81.7 2003 85.1 80.8 2004 86.3 82.9 2005 90.9 88.6 2006 94.3 92.7 2007 96.6 93.8 2008 100.4 100.4 2009 93.8 92.0 2010 100.0 100.0 2011 106.8 109.1 2012 109.4 112.9 2013 108.8 111.8 2014 107.5 109.8 2015 106.8 107.8 2016 103.2 103.5 ARGENTINA 5.0 UNITED STATES 6.9 MAIN EXPORTS BEEF SOYBEANS CELLULOSE MAIN IMPORTS REFINED OIL CRUDE OIL PASSENGER AND OTHER TRANSPORTA- TION VEHICLES Source: CIA World Factbook 22 BELGIUM S TRADE RELATIONS WITH URUGUAY 23
6 & 7 SOURCES & CONTACTS 6. SOURCES WORLD BANK www.worldbank.org NATIONAL BANK OF BELGIUM www.nbb.be CREDENDO GROUP www.credendogroup.com CIA WORLD FACTBOOK www.cia.gov DIRECTORATE-GENERAL COMMERCE, EUROPEAN COMMISSION http://ec.europa.eu/trade EUROSTAT, EUROPEAN COMMISSION http://ec.europa.eu/eurostat WORLD TRADE ORGANIZATION www.wto.org 7. CONTACTS STUDIES AND STATISTICS Christelle Charlier Director +32 2 206 35 78 christelle.charlier@abh-ace.be Dennis Gijsbrechts International Trade Analyst +32 2 206 35 73 dennis.gijsbrechts@abh-ace.be Cédric Cludts International Trade Analyst +32 2 206 35 64 cedric.cludts@abh-ace.be Gentileza Uruguay XXI 24 BELGIUM S TRADE RELATIONS WITH URUGUAY 25
Belgian Foreign Trade Agency Rue Montoyer 3 1000 Brussels +32 2 206 35 11 www.abh-ace.be Brussels Invest & Export Chaussée de Charleroi 112 1060 Brussels +32 2 800 40 00 http://invest-export.brussels Flanders Investment and Trade Boulevard du Roi Albert II, 37 1030 Brussels +32 2 504 87 11 www.flandersinvestmentandtrade.com Wallonia Exports-Investment Agency Place Sainctelette 2 1080 Brussels +32 2 421 82 11 www.awex.be KINGDOM OF BELGIUM Federal Public Service Foreign Affairs, Foreign Trade and Development Cooperation FPS Foreign Affairs, Foreign Trade and Development Cooperation Rue des Petits Carmes, 15 1000 Brussels +32 2 501 81 11 diplomatie.belgium.be Although everything possible was done to provide precise and updated information, neither the Belgian Foreign Trade Agency nor its partners (Brussels Invest & Export, Flanders Investment and Trade, Wallonia Exports-Investment Agency, FPS Foreign Affairs, Foreign Trade & Development Cooperation) can be held responsible for any error, omission or false declaration. They cannot either be held responsible for the use or interpretation of information contained in this publication which does not involve giving advice. Reproduction is authorised, provided the source is acknowledged. DATE OF PUBLICATION: MAY 2018 EDITOR: FABIENNE L HOOST AUTHOR: DENNIS GIJSBRECHTS PRINTED ON FSC AND EPFC PAPER. THIS PUBLICATION IS ALSO AVAILABLE ON THE WEBSITE OF THE : WWW.ABH-ACE.BE