The trade deficit of fresh and processed fruit and vegetables in the EU with third countries has grown in recent years. BY 2011 it stood at 9.8 million Euro, according to a study by the Directorate General for Agriculture and Rural Development of the
European Commission entitled "The EU and the leading global players in the fruit and vegetable trade," published in July.
The trade deficit of fresh and processed fruit and vegetables in the EU in 1999 was 7.6 million Euro and the year beforewas up to 9.8 million Euro.
In this study, the EU trade deficit with third countries is mainly due to deficits in tropical fruits particularly because of the increased imports of bananas and pineapples.
Imports of other fresh fruits such as table grapes and oranges from the countries of the south hemisphere also experienced strong growth, however the total deficit of the fruit sector is not as noticeable since the increase of these imports has been offset by the increase exports of other fresh fruits like apples and pears.
By contrast, vegetable trade between the EU and third countries, both fresh and processed is quite balanced. There was an increase in imports of vegetables from Mediterranean countries, including Morocco, which has coincided with a boom in exports of fresh vegetables to Russia. However, despite the fact that exports of fruit and vegetables from the EU to Russia have increased impressively in the last decade, the percentage of European Union participation in the Russian market is declining against Turkey and China. The expansion of tomato exports from Turkey to the former Soviet Union, particularly in Russia, has been impressive, according to the European Commission study. Turkey currently supplies Russia three times more tomatoes than EU.
The EU also faces competition from Turkey and China in the Russian market for cucumber. Although the EU had been the dominant supplier of cucumbers to Russia for the last decade, sales from Turkey and China in recent years outsold those
of the EU.
As for China, the European Commission report says it has tripled its exports of fruit and vegetables throughout the world and especially to the EU. It highlights especially apple juice export. China is also the leading provider of EU fruit and vegetables, particularly tomatoes and mushrooms.
For FEPEX, the trade deficit behaviour is caused by low protective tariff and non-tariff of the Community production, which contrasts strongly with phytosanitary barriers imposed on Community exports which shield the markets of other major areas of consumption.
Source: Fepex