Power Shift: EU trade with US and UK slumps

Although the US and the UK remain the EU’s largest export markets, trade with both countries dropped significantly, the statistics showed.

“Trade with the United States recorded a significant drop in both imports (-13.2%) and exports (-8.2%),” the data agency said.

Transatlantic trade has been hit by a series of tit-for-tat disputes that have resulted in tariffs on steel and products such as French Cognac or American Harley-Davidson motorcycles.

In 2020, the US had a trade volume of $671bn with the EU, down from $746bn the previous year.

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It’s not year clear if new US President Joe Biden will re-evaluate the US approach to trade with Europe.

The EU and China, however, are trying to deepen their economic ties, with both sides seeking to ratify an investment deal that would give European companies better access to the Chinese market.

Analysts are tipping global trade to turn around in 2021 after a lacklustre 2020.

The real value of global trade is set to rise by 7.6% after an an estimated contraction of 13.5% in 2020 to $16.4tn, according to research firm IHS Markit.