Brussels: The European Union recorded a trade surplus, with goods exported to non-EU countries exceeding imports by pound 12.7 billion, according to Eurostat. Although this surplus was almost halved from pound 23.6 billion in the last quarter of 2025, the EU maintained a positive trade balance, established in the third quarter of 2023, following a period of deficits fuelled by soaring energy costs from late 2021 to mid-2023.

According to Emirates News Agency, the decline in the trade balance compared to the previous quarter was primarily due to a reduction in the surplus for machinery and vehicles, which decreased from pound 39.8 billion in Q4 2025 to pound 27.8 billion in Q1 2026. Additionally, there was an increase in the deficit on energy products, rising from pound 64.0 billion in Q4 2025 to pound 72.2 billion in Q1 2026.

This decrease in the trade surplus was partially offset by improvements in other areas. The deficit for other manufactured goods narrowed significantly, dropping from pound 10.9 billion in Q4 2025 to pound 5.0 billion in Q1 2026. Furthermore, the surplus for other goods increased from pound 7.2 billion in Q4 2025 to pound 11.5 billion in Q1 2026.

In Q1 2026, the EU experienced a contraction in exports by 0.1 percent, marking the fourth consecutive quarterly decline. This trend has been partly attributed to ongoing tariff tensions. On the other hand, imports saw an increase of 1.7 percent, ending a period of three consecutive quarters of decline.