Brussels: Europe and the Arabs
The Foreign Affairs Council on Trade will convene in Brussels on Monday, where ministers will exchange views on current trade relations with the United States and provide guidance for future work. European Trade Commissioner Maroš Šefčović will also brief ministers on the current state of trade relations between the European Union and China, following his visit to the country.

EU-US Trade
According to European institutions, transatlantic relations are a key lifeline for the global economy. Together, the European Union and the United States account for nearly 30% of global trade in goods and services and 43% of global GDP (in US dollars). The EU and the United States enjoy the most integrated economic relationship in the world.
2023 was another record year, with bilateral trade in goods and services reaching €1.6 trillion. This exceeds the GDP of Spain. Goods and services worth more than €4.4 billion cross the Atlantic every day. The European Union achieved a trade surplus with the United States of €48 billion in 2023, taking into account both goods and services.
Investment
Reciprocal investment between the European Union and the United States is the largest in the world and a key driver of transatlantic relations. In 2022, reciprocal equity foreign direct investment exceeded €5.3 trillion, more than the combined economies of France and Italy. Nearly a third of EU foreign direct investment is either in or from the United States.
Total US investment in the EU is four times that in the Asia-Pacific region. EU foreign direct investment in the United States is approximately ten times the size of EU investment in India and China combined.
Bilateral trade and investment support millions of jobs in the European Union and the United States. US exports of goods and services to the EU support 2.3 million jobs in the United States, and investments by EU companies in the United States employ 3.4 million people. Energy
Close transatlantic cooperation has played a crucial role in ensuring the EU's energy security following Russia's aggressive war on Ukraine. The EU has replaced some Russian gas imports with American liquefied natural gas (LNG).
In 2024, the EU imported over 45 billion cubic meters of LNG from the United States. This represents 16.5% of the EU's total gas imports and approximately 45% of its LNG imports.
The two transatlantic partners cooperate within the framework of the Euro-American Energy Council, a forum for coordination on strategic energy issues of common interest and for cooperation in research and development.
Established in 2009, the Council works on energy security, technology, and markets, and promotes research, development, innovation, and knowledge dissemination in related fields. Trade Relations with China
China is the EU's second-largest trading partner in goods after the United States, with bilateral trade reaching €739 billion in 2023. This represents a 14% decrease compared to 2022. China is the EU's third-largest partner for exports and its largest for imports. The EU-China trade balance has consistently favored China. In 2023, the EU's deficit stood at €292 billion. EU exports to China amounted to €223.6 billion, while EU imports from China amounted to €515.9 billion, representing year-on-year decreases of 3.1% and 18%, respectively.
At the European Council in June 2023, EU Member States reaffirmed the EU's multifaceted policy approach to China, outlined in their 2019 Strategic Outlook. China is simultaneously a partner, a competitor, and a systemic rival.
However, the balance of challenges and opportunities presented by China has shifted over time. Our economic relationship is seriously unbalanced, both in terms of trade and investment flows, due to significant asymmetries in opening our markets. In addition, China's economic model has created systemic distortions with negative spillover effects on trading partners. According to the International Monetary Fund, China's use of industrial policies, particularly its support for priority sectors, has an impact on trading partners.
For the EU, ensuring reciprocity, achieving a level playing field, and addressing asymmetries in the relationship are priorities. The EU remains committed to addressing these challenges through dialogue with China and emphasizes the importance of the World Trade Organization as the best avenue for addressing the root causes of the current imbalance.
Regarding trade in goods, the EU has long had a trade deficit with China, which reached a record high of €396 billion in 2022.
In 2023, the deficit fell to €292 billion. However, this deficit remains the EU's second-highest bilateral deficit with China ever. In addition, imports from China decreased in value, but are said to have increased in volume.
In 2023, the EU's most imported goods from China were telecommunications equipment, electrical machinery and appliances, and automated data processing machines.
The EU's most exported goods to China in 2023 were cars and vehicles, pharmaceuticals, and other machinery.