Spanish exports to exceeded Spain’s imports from other European nations by $7.1 billion in 2014. Similarly, Spain achieved a $718.5 million trading surplus with Middle Eastern countries.
The fact that Spain earns these country-specific trade surpluses indicates Spanish competitive advantages albeit for a specific set of export products highlighted below.
Major product supply advantages provide a silver lining for the grim fact that Spain carried the world’s ninth-biggest trade deficit during 2014, and comparing very unfavorably to China’s $384.3 billion trade surplus.
Spain’s trade deficit in 2014 grew by 53.3% since 2010 when its negative balance stood at -$69.3 billion.
Spain Major Product Supply Advantages
Top 10
Presented in descending order, the following list showcases the general product categories under which Spain earned the highest trade surpluses in 2014.
- Vehicles : US$12.2 billion (20.1% of all product surpluses)
- Fruits, nuts: $6.6 billion (10.8%)
- Vegetables: $5.1 billion (8.5%)
- Meat: $4.1 billion (6.8%)
- Articles of iron or steel: $3.9 billion (6.5%)
- Ceramic products: $3 billion (5%)
- Aircraft, spacecraft: $2.7 billion (4.5%)
- Beverages, spirits, vinegar:$2.7 billion (4.5%)
- Animal/vegetable fats, oils: $2.6 billion (4.3%)
- Vegetable/fruit preparations: $2.1 billion (3.5%)
The above top 10 product categories represent 74.6% of Spain’s overall product-category surplus subtotal which amounted to $60.4 billion. For that subtotal, 49 of Spain’s 97 general product categories delivered a surplus in 2014 while the remaining 48 categories incurred deficits.
Growth
Spain enriched its trade surplus amounts at the fastest-pace during 2010 to 2014 under the product categories below.
- Arms and ammunition: Up 2,183% since 2010 (US$133.3 million)
- Railways, streetcars:Up 303.9% ($1.7 billion)
- Aircraft, spacecraft: Up 265.5% ($2.7 billion)
- Collector items, art, antiques: Up 252.9% ($80.2 million)
- Meat/seafood preparations: Up 175.3% ($159.6 million)
- Live trees, plants: Up 168.4% ($145.1 million)
- Tanning, dyeing extracts: Up 145.3% ($1022.2 million)
- Aluminum: Up 122.9% ($492.4 million)
- Felt, yarn, twine, cordage: Up 119% ($129.5 million)
- Cotton: Up 97.6% ($257.7 million)
Detail
From the perspective of the more detailed 4-digit harmonized tariff system (HTS) level, below are 15 products that enabled Spain to achieve the highest surpluses in its international trade with other countries.
- Cars: US$17 billion
- Trucks: $4.7 billion
- Fresh or dried citrus fruit: $3.6 billion
- Olive oil: $3.5 billion
- Wine: $3.2 billion
- Swine meat: $3.1 billion
- Glazed ceramic tiles, cubes: $2.8 billion
- Electric generating sets, converters: $1.9 billion
- Coal tar oils (high temperature distillation): $1.8 billion
- Miscellaneous fresh/chilled vegetables: $1.7 billion
- Processed petroleum oils: $1.7 billion
- Iron or non-alloy steel angles, shapes, sections: $1.6 billion
- Miscellaneous iron and steel structures: $1.6 billion
- Aircraft, spacecraft: $1.5 billion
- Apricots, cherries, peaches, nectarines, plums: $1.3 billion
Among these, aircraft and spacecraft had the fastest-growing Spanish surplus with a 3,017% gain since 2010. In second place were coal tar oils up 222.2% while exported electric generating sets and converters moved ahead in value by 114.3%.
Spain Major Product Supply Advantages by Country
Top 10
Presented in descending order, the following list shows with which trade partners Spain earned the highest trade surpluses in 2014.
- France: US$11.5 billion (16.5% of Spanish country-specific surpluses)
- Portugal: $10.6 billion (15.3%)
- United Kingdom: $7.2 billion (10.4%)
- Morocco: $2.4 billion (3.4%)
- Italy: $2.3 billion (3.3%)
- United Arab Emirates: $1.9 billion (2.7%)
- Greece: $1.9 billion (2.7%)
- Turkey: $1.4 billion (2%)
- Gibraltar: $1.2 billion (1.7%)
- Bulgaria: $1.1 billion (1.6%)
The above 10 trade partners represent 72.4 % of Spain’s subtotal surplus of $69.6 billion from the 133 geographic entities with which Spain demonstrated competitive trade advantages. That subtotal excludes the 95 geographic entities with which Spain incurred trade deficits.
Growth
Spain enriched its trade surplus amounts with the countries below at the fastest-pace during 2010 to 2014.
- Kiribati: Up 17,471% since 2010 (US$1.2 million)
- Greenland: Up 10,365% ($22.7 million)
- Maldives: Up 2,869% ($22.5 million)
- Bhutan: Up 2,324% ($2.1 million)
- Kuwait: Up 1,628% ($359.5 million)
- Bahamas: Up 1,535% ($116.5 million)
- Bulgaria: Up 1,184% ($1.1 billion)
- Guinea-Bissau: Up 1,182% ($17.7 million)
- Wallis/Futuna Islands: Up 1,083% ($71,000)
- Turks/Caicos Islands: Up 1,057% ($590,000)
From the above list, Spain showed major product supply advantages over trade partners with comparatively small populations and for generally small surplus amounts. However, Spain did generate hundred-million-dollar positive trade balances with Kuwait and Bahamas as well as over a billion-dollar surplus against Bulgaria.
France
Below are the products that gave Spain the highest surpluses in its international trade with France.
- Cars: US$6.1 billion (53% of Spain’s surplus versus France)
- Trucks: $1.9 billion (16.5%)
- Processed petroleum oils: $919.3 million (8%)
- Fresh or dried citrus fruit: $817.9 million (7.1%)
- Swine meat: $808 million (7%)
- Crude oil: $730.9 million (6.4%)
- Aircraft parts: $592.6 million (5.2%)
- Insulated wire/cable: $495.3 million (4.3%)
- Footwear (leather): $428.4 million (3.7%)
- Miscellaneous fresh/chilled vegetables: $378.8 million (3.3%)
Among these, crude oil had the fastest-growing Spanish surplus for France up dramatically from plus $31,000 in 2010. In second place was leather footwear up 33.8% followed by exported trucks ahead by 20.9%.
Portugal
Below are the products that gave Spain the highest surpluses in its international trade with Portugal.
- Cars: US$585.9 million (5.5% of Spain’s surplus vs. Portugal)
- Swine meat: $362 million (3.4%)
- Medication mixes in dosage: $246 million (2.3%)
- Copper wire: $228.4 million (2.1%)
- Fresh or chilled beef: $221.5 million (2.1%)
- Aluminum (unwrought): $209.5 million (2%)
- Olive oil: $206.9 million (1.9%)
- Computers, optical readers: $202.8 million (1.9%)
- Live swine: $185.3 million (1.7%)
- Polyacetal/ethers/carbonates: $172 million (1.6%)
Among these, unwrought aluminum had the fastest-growing Spanish surplus with Portugal posting a 1,421% gain from 2010 to 2014. In second place were cars up 172.6% followed by polyacetals, polyethers and polycarbonates ahead by 25%.
UK
Below are the products that gave Spain the highest surpluses in its international trade with the United Kingdom.
- Cars: US$1.9 billion (26.6% of Spain’s surplus versus UK)
- Aircraft, spacecraft: $619.7 million (8.6%)
- Trucks: $587.9 million (8.1%)
- Automobile parts/accessories: $477.8 million (6.6%)
- Wine: $447 million (6.2%)
- Gold (unwrought): $390.7 million (5.4%)
- Aircraft parts: $370.9 million (5.1%)
- Insulated wire/cable: $357.2 million (4.9%)
- Fresh or dried citrus fruit: $340.4 million (4.7%)
- Iron or non-alloy steel angles, shapes, sections: $295.7 million (4.1%)
Among these, aircraft parts had the fastest-growing Spanish surplus with the UK posting a 296.3% gain from 2010 to 2014. In second place were trucks up 143% followed by insulated wire and cable ahead by 119.7%.
Research Sources:
The World Factbook, Country Profiles, Central Intelligence Agency. Accessed on December 14, 2015
Trade Map, International Trade Centre. Accessed on December 14, 2015
Investopedia, Net Exports Definition. Accessed on December 14, 2015