BNP Paribas Fortis sees export gap of 10 bn euros in Belgium’s EU trade
Belgian exports to other EU member states are noticeably weaker than those to non-EU countries for many product categories, according to a new study by BNP Paribas Fortis. The bank estimates the untapped growth potential for Belgian exports at more than 10 billion euros.
While the majority of Belgian exports already go to the EU, the single market is not functioning optimally. National regulations and cultural differences continue to hinder trade between member states. According to the International Monetary Fund (IMF), these obstacles amount to the equivalent of an intra-European trade tariff of 45 per cent on goods. The European Central Bank (ECB) puts the cost even higher, at 65 per cent.
12.44 billion dollar gap
BNP Paribas Fortis has developed a tool that calculates the size of the export gap by product category and by destination country. The overall gap is estimated at 12.44 billion dollars, or more than 10 billion euros, the bank said during the presentation of the study on Wednesday.
The result is based on a comparison between Belgium’s overall export market share outside the EU and its export share to individual EU countries by product category. Given shorter distances, shared languages and a common currency, Belgium’s export performance within the EU should at least match exports outside the EU. In practice, however, exports to certain countries or in certain sectors fall well short of that benchmark.
"We found that [Belgium] has low market shares in economic heavyweights such as Germany, Spain and Italy in sectors such as organic chemistry, pharmaceuticals and specialised metals," said Arne Maes, senior economist at BNP Paribas Fortis. "Belgian exporters also score remarkably poorly in the Netherlands, Poland and Slovenia."
The bank plans to give its customers access to detailed data showing where additional growth may be possible. Maes acknowledged that such insights do not remove cultural barriers, but said companies could weaken existing brand loyalty through targeted marketing or by promoting innovation. He also called for a Belgian intra-European trade mission.
PHOTO © Nicolas TUCAT / AFP
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