International Trade: Commercial Relations Between the World and the Basque Country

Basque Country’s Trade in 2020

In 2020, the Basque Country maintained trade relations with the majority of countries worldwide (three-quarters of them). In most cases, exports were worth more than imports. However, the negative trade balance with China (where the Basque Country buys more than it sells) continued to grow.

Impact of COVID-19

The pandemic severely affected the global economy. Exports dropped significantly, with a 14.5% decline in the Basque Country. However, China and a few other countries managed to increase their exports during this period.

Basque Exports

Exports accounted for 50% of the Basque Country’s GDP in 2020. About 73% of Basque exports were
directed to Eurozone countries, mainly France, Germany, the United Kingdom, and Belgium.
In the Southern Basque Country, the most exported products included:

Capital goods, particularly industrial machinery, electrical devices, and transportation vehicles (37%)
Car parts (23%)
Manufacturing materials, mainly iron and steel, wheels, paper, and plastic (23%)

There is limited data on exports from the Northern Basque Country, but the most exported products are food and goods related to the aeronautics sector.

A significant portion of Basque exports goes to Spain, but this dependency has decreased in recent decades. Basque companies have made efforts to expand internationally over the past ten years, gaining new customers in the USA, Mexico, China, Turkey, Brazil, and South Africa.

Trade Balance

In general, the Basque Country exports more in value than it imports, leading to a positive trade balance. However, the negative trade balance with Spain, China, and Ireland is particularly high, amounting to €1.06 billion and €495 million, respectively.

The Basque Country imports heavily from China, purchasing industrial machinery, electronic devices, telecommunications equipment, chemicals, and plastics. This creates competitive challenges for Basque businesses.

Additionally, due to energy-related imports, the Basque Country has a negative trade balance with several countries, including Russia, Kazakhstan, Taiwan, and Libya.

A New Economic Landscape

The future of the economy remains uncertain, and Europe must find its place in the global market. Meanwhile, Asia is becoming increasingly influential in the world economy. The Basque Country will need to adapt to these changes in the coming years.