Spain - Pakistan Trade

SPAIN WAS PAKISTAN’S EIGHTH LARGEST EXPORT DESTINATION IN 2018 RANK COUNTRY EXPORT VALUE (US$) % SHARE IN TOTAL EXPORTS World 23,630,893,000 1 United States of America 3,802,500,000 16% 2 China 1,818,069,000 8% 3 United Kingdom 1,728,637,000 7% 4 Afghanistan 1,347,934,000 6% 5 Germany 1,310,444,000 6 United Arab Emirates 983,575,000 4% 7 Netherlands 942,802,000 8 Spain 922,898,000 9 Bangladesh 783,825,000 3% 10 Italy 771,593,000 EU is Pakistan’s largest export market and the UK is the most important export market within the EU

SPAIN WAS THE FOURTH LARGEST EXPORT DESTINATION WITHIN THE EU IN 2018 The EU is Pakistan’s largest export market representing 34% of exports Spain accounted for 11% of total EU exports from Pakistan in 2018. EU is Pakistan’s largest export market and the UK is the most important export market within the EU

SPAIN RANKS NO. 37 IN PAKISTAN’S IMPORT SOURCES COUNTRY IMPORT VALUE (US$) % SHARE IN TOTAL EXPORTS World 60,162,862,000 1 China 14,544,687,000 24% 2 United Arab Emirates 8,668,637,000 14% 3 Saudi Arabia 3,242,349,000 5% 4 United States of America 2,946,715,000 5 Indonesia 2,502,372,000 4% 6 Qatar 2,386,183,000 7 Japan 2,273,024,000 8 India 1,928,465,000 3% 9 Thailand 1,430,727,000 2% 37 Spain 208,638,000 0.35% EU is Pakistan’s largest export market and the UK is the most important export market within the EU

WITHIN THE EU, SPAIN WAS THE EIGHTH HIGHEST EXPORTER TO PAKISTAN IN 2018 EU is Pakistan’s 3rd largest import partner after China and UAE. Imports from the EU stood at $5.46 billion in 2018. Spain accounts for 4% of Pakistan’s imports from the EU and 0.35% of total imports from the world. The UK is the second most important import supplying market of Pakistan in the EU

PAKISTAN SPAIN Trade Trends Bilateral trade increased from US$ 0.94 bn in 2014 to US$ 1.13 bn in 2018 i.e. by 20.2% in five years Pakistan’s exports to Spain rose by 16.9% during this period. Meanwhile, Spain’s exports to Pakistan increased by 41.8% during these five years. The trade surplus has increased during the last five years, from $642.7 Mn in 2014 to around $714.3 Mn in 2018.

PAKISTAN’S TOP 10 EXPORTS TO SPAIN HS CODE DESCRIPTION EXPORT VALUE 2016 (US$) EXPORT VALUE 2017 (US$) EXPORT VALUE 2018 (US$) 620322 Men's or boys' ensembles of cotton (excluding knitted or crocheted, ski ensembles and swimwear) 74,101,000 211,115,000 222,719,000 620342 Men's or boys' trousers, bib and brace overalls, breeches and shorts, of cotton (excluding ... 101,300,000 58,044,000 57,855,000 630239 Bedlinen of textile materials (excluding of cotton and man-made fibres, printed, knitted or ... 44,688,000 45,874,000 48,290,000 610349 Men's or boys' trousers, bib and brace overalls, breeches and shorts of textile materials, ... 22,275,000 26,885,000 34,158,000 630260 Toilet linen and kitchen linen, of terry towelling or similar terry fabrics of cotton (excluding ... 23,831,000 30,095,000 32,824,000 630231 Bedlinen of cotton (excluding printed, knitted or crocheted) 26,040,000 27,391,000 32,573,000 630210 Bedlinen, knitted or crocheted 23,852,000 25,872,000 27,320,000 611090 Jerseys, pullovers, cardigans, waistcoats and similar articles, of textile materials, knitted ... 8,259,000 19,944,000 25,828,000 220710 Undenatured ethyl alcohol, of actual alcoholic strength of >= 80% 14,817,000 20,585,000 21,505,000 610590 Men's or boys' shirts of textile materials, knitted or crocheted (excluding of cotton or man-made ... 11,216,000 15,580,000 20,753,000

PAKISTAN’S TOP 10 IMPORTS FROM SPAIN HS CODE DESCRIPTION IMPORT VALUE 2016 (US$) IMPORT VALUE 2017 (US$) IMPORT VALUE 2018 (US$) 300490 Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic purposes, ... 12,758,000 11,766,000 11,271,000 320740 Glass frit and other glass in the form of powder, granules or flakes 3,833,000 5,598,000 10,285,000 720449 Waste and scrap of iron or steel (excluding slag, scale and other waste of the production of ... 5,485,000 6,647,000 8,999,000 150990 Olive oil and fractions obtained from the fruit of the olive tree solely by mechanical or other ... 5,120,000 6,527,000 7,340,000 630900 Worn clothing and clothing accessories, blankets and travelling rugs, household linen and articles ... 2,969,000 3,521,000 5,162,000 690722 Ceramic flags and paving, hearth or wall tiles, of a water absorption coefficient by weight ... - 3,480,000 5,150,000 760200 Waste and scrap, of aluminium (excluding slags, scale and the like from iron and steel production, ... 3,218,000 4,286,000 4,705,000 845180 Machinery for dressing, finishing, coating or impregnating textile yarns, fabrics or other ... 1,569,000 2,537,000 4,059,000 520100 Cotton, neither carded nor combed 3,711,000 6,359,000 3,993,000 690721 2,999,000 3,840,000

TRADE COMPLIMENTARITY* * Trade complementarity is the ability of each country to satisfy the other’s import needs from its existing export pool

ACTUAL EXPORTS IN 2018 (US$) POTENTIAL EXPORTS IN 2018 (US$) Pakistan’s Theoretical Potential* for Additional Exports to Spain, 2018 Top 10 Potential Products (HS 06). Aggregate Theoretical Potential is $10.4 bn HS CODE DESCRIPTION ACTUAL EXPORTS IN 2018 (US$) POTENTIAL EXPORTS IN 2018 (US$) 271012 Light oils and preparations, of petroleum or bituminous minerals which >= 90% by volume "incl. ... 8,000 3,720,911,000 271019 Medium oils and preparations, of petroleum or bituminous minerals, not containing biodiesel, ... 1,976,000 3,113,642,000 270900 Petroleum oils and oils obtained from bituminous minerals, crude - 767,948,000 870321 Motor cars and other motor vehicles principally designed for the transport of persons, incl. ... 542,106,000 390210 Polypropylene, in primary forms 31,000 539,107,000 300490 Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic purposes, ... 11,271,000 421,525,000 851712 Telephones for cellular networks "mobile telephones" or for other wireless networks 4,000 395,404,000 390110 Polyethylene with a specific gravity of < 0,94, in primary forms 552,000 336,398,000 870322 244,000 291,636,000 850231 Generating sets, wind-powered 33,000 284,395,000 8 of the 10 high potential exports already benefit from 0% tariffs under GSP+. The two products that don’t are rice and sugar which are unlikely to receive preferential treatment even under an FTA *Theoretical potential from diverting Pakistan’s existing exports from other countries to meet Spain’s imports, ignoring competitiveness and tariffs

ACTUAL IMPORTS IN 2018 (US$) Pakistan’s Theoretical Potential* for Additional Imports from Spain, 2018 Top 10 Potential Products (HS 06). Aggregate theoretical potential is $ 4 bn HS CODE ACTUAL IMPORTS IN 2018 (US$) POTENTIAL IMPORTS IN 2018 (US$) 851712 Telephones for cellular networks "mobile telephones" or for other wireless networks 69,000 833,005,000 720449 Waste and scrap of iron or steel (excluding slag, scale and other waste of the production of ... 138,078,000 811,168,000 300490 Medicaments consisting of mixed or unmixed products for therapeutic purposes 11,978,000 420,818,000 870321 Motor cars and other motor vehicles principally designed for the transport of persons, incl. ... 125,000 367,319,000 390110 Polyethylene with a specific gravity of < 0,94, in primary forms 15,000 336,935,000 390210 Polypropylene, in primary forms 11,000 302,525,000 870322 256,000 291,624,000 870323 631,000 266,094,000 847130 Data-processing machines, automatic, portable, weighing <= 10 kg, consisting of at least a ... 21,451,000 264,722,000 630900 Worn clothing and clothing accessories, blankets and travelling rugs, household linen 26,964,000 256,348,000 In the high potential imports of Pakistan from the UK, most products already face tariffs similar to those faced by Pakistan’s FTA partners *Theoretical potential from switching imports from existing sources to Spain exporters, ignoring competitiveness and tariffs