EU trade looks both East and West
The EU’s two biggest trade relationships are with China and the US. They are also the most unbalanced relationships, with the EU running a surplus with the US, but a deficit with China. Overall the EU enjoys a surplus in manufacturing and services, with a deficit in energy.
Europe has for the moment a healthy set of trade relationships, largely thanks to lower energy prices, with a combination of surpluses and deficits reflecting consumption patterns and production strengths. It is essential that public interventions either at or behind the border don’t distort this.