The Impact of European Enlargement on the Direction and Prospects of Brussels Exports

Previous studies have argued that the enlargement of the European Union triggered a geographical reorientation and diversification in the exports by European Union member states, caused by a combination of trade creation and trade diversion. This paper adds to the existing literature, by analyzing the export dynamics and potentials of a city rather than a country. It focuses on Brussels, the European capital. Our findings indicate that the new European Union member states became important destination markets for Brussels exports in recent years. Moreover, there appear to be large export potentials for Brussels products, in particular in Latin American and certain Asian markets. The export potentials within the European Union are more limited, although several new European Union member states are likely to become more important trading partners.