Teritoriální setkání Finsko (ICC, 28.11.2016) Foreign Trade Czech Republic – Finland and trends Ing. Jan Vosmanský, CSc. Odbor zahraničně ekonomických politik I Ministerský rada

Content of the presentation Contractual base in the economic field Foreign trade CZ-Finland Foreign trade trends Main export items Main import items Investment Business opportunities

Contractual base Documents resulting from EU membership (Finland has been a member of the EU since 1 May 1995), a member of the Schengen area since 1996 and a member of the Eurozone since 1999 Bilateral Agreement on encouragement and reciprocal protection of investments Treaty on avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income, etc.

FINLAND/Czech Republic Population (millions) 5.5 (CZ 10.5) GDP (2015, US$ billions) 229.7 (CZ 181.9) GDP per capita (2015, US$) 41 970 (CZ 17 260) GDP (PPP Purchasing-Power-Parity) per capita (2015, US$) 41 120 (CZ 31 550) GDP (PPP) as share (%) of world total (2015, %) 0.20 (CZ 0.29) (The Global Competitiveness Report 2016-2017, WE Forum, IMF) Rankings Global Competitiveness Index (2016-2017) 10/138 (CZ 31/138) Doing Business (2017) 13/190 (CZ 27/190) IMD World Competitiveness Scoreboard (2016) 20/61 (CZ 27/61)

Foreign trade - developments Finland is an important Nordic trading partner for the CZ. In 2015 the volume of trade exceeded 1.1 billion EUR (with a ratio of exports to imports of around 2:1) Finland is the 25th largest trading partner of the CZ (21st in terms of exports), its contribution to the CZ´s foreign trade is 0.4 % Bilateral trade increased by 7.2 % in 2015, with exports from the CZ rising by 8.8 % and imports by 4.3 %. The trade balance posted its highest surplus to date, amounting to 0.4 billion EUR (a year-on-year increase of 14.1 %). A similar trend is continuing this year

Foreign trade – trends

Foreign trade – export items Rank Commodity groop Share  % 1. road vehicles 27,3 2. office machinery and automatic data processing machines 9,4 3. machinery and equipment generally used in industry 9,2 4. electrical equipment, devices and appliances 8,3 5. various products 7,2 6. metal products 5,8 7. equipment for telecommunications and sound recording 5,5 8. iron and steel 3,5 9. machinery and equipment for energy generation 3,1 10 tobacco and tobacco products 1,9

Foreign trade – import items Rank Commodity group Share   % 1. paper, cardboard and products from them 17,6 2. iron and steel 9,8 3. electrical equipment, devices and appliances 9,5 4. machinery for specific industrial sectors 6,4 5. rubber products 5,3 6. medication and pharmaceutical products 7. pulp and waste paper 4,6 8. machinery and equipment generally used in industry 4,4 9. non-ferrous metals 4,2 10. plastics in primary forms 3,4

Investment – CNB and examples Finnish investment in the CZ to the end of 2015 was around 6.4 billion mld. CZK. Around 60 companies with Finnish capital are operating in the Czech market Most investment is targeted at construction, manufacturing, information and communications technology Kone Corporation, Tieto, Nokian Tyres, Lindex, Berger, Finnair, Stora Enso, Helkama, IMCO, OK-Tours, KoneCranes etc. Czech investment in Finland is negligible (around 31 million CZK as at the end of 2015). Metrostav is represented for example, through a joint company with Destia – construction. June 2016 - excavation of a tunnel for a new Helsinki metro line – their third commission Škoda Transportation (ŠT) bought a controlling stake in TransTech in Otanmäki (rail and urban rail vehicles),in August 2016 Contract for 40 Škoda Artic trams for the city of Helsinki transport company (2016-2018)

Business - Examples and opportunities The main companies conducting business with Finnland include, for example: Škoda Mladá Boleslav carmaker, Mitas Praha, Škoda Power Plzeň, Staropramen, Kone Ústí nad Labem, Mitttal Steel Ostrava, Moravia Steel Třinec, etc. According to the Map of sectoral opportunities, opportunities include, for example: Energy industry – new technologies for energy efficiency and environmental protection; construction of a new nuclear power station, Hanhikivi 1 – possible participation in construction work, sub-contracts Elektrical engineering – heat pumps; state aid for the replacement of standard heating sources by renewable enery sources Chemical industry – basic chemicals, organic chemistry, etc.

Business - Examples and opportunities Engineering – sub-contracts in the area of metallurgy, precision machining and welded steel structures Healthcare and pharmaceuticals – high-quality and technologically sophisticated medical equipment, medical technology Agricultural and food industries – primarily Czech beer – both traditional and lesser-known brands, products from small breweries Rail and urban rail transport – projects in railway, tram and road transport; potential deliveries of trams, trains, locomotives and railway equipment. Infrastructure construction – e.g. in the planning of the new nuclear power station, Hanhikivi 1 Other sectoral opportunities – see Map of sectoral opportunities – BusinessInfo.cz portal (www.businessinfo.cz/mop)

Thank you Ing. Jan Vosmanský, CSc Thank you Ing. Jan Vosmanský, CSc. Ministerský rada Odbor zahraničně ekonomických politik I Politických vězňů 20, Praha 1 +420 224 852 020 pospisil@mpo.cz