Portugal - Pakistan Trade

PORTUGAL RANKED NO. 26 AS PAKISTAN’S EXPORT DESTINATION IN 2018 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% 26 Portugal 191,981,000 1% EU is Pakistan’s largest export market and the UK is the most important export market within the EU

PORTUGAL WAS THE NINTH LARGEST EXPORT DESTINATION WITHIN THE EU IN 2018 The EU is Pakistan’s largest export market representing 34% of exports Portugal accounted for 2% 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

PORTUGAL RANKS NO. 70 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% 70 Portugal 25,470,000 0.04% EU is Pakistan’s largest export market and the UK is the most important export market within the EU

WITHIN THE EU, PORTUGAL WAS THE SEVENTEENTH 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. Portugal accounts for 0.5% of Pakistan’s imports from the EU and 0.04% of total imports from the world. The UK is the second most important import supplying market of Pakistan in the EU

PAKISTAN PORTUGAL Trade Trends Bilateral trade increased from US$ 186.2 Mn in 2014 to US$ 217.5 Mn in 2018 i.e. by 16.8% in five years. Pakistan’s exports to Portugal rose by 15% during this period. Meanwhile, Poland’s exports to Pakistan rose by 32.3% during these five years. The trade surplus has increased during the last five years, from $147.7 Mn in 2014 to around $166.5 Mn in 2018.

PAKISTAN’S TOP 10 EXPORTS TO PORTUGAL HS CODE DESCRIPTION EXPORT VALUE 2016 (US$) EXPORT VALUE 2017 (US$) EXPORT VALUE 2018 (US$) 520812 Plain woven fabrics of cotton, containing >= 85% cotton by weight and weighing > 100 g to 200 ... 26,776,000 29,380,000 30,147,000 520819 Woven fabrics of cotton, containing >= 85% cotton by weight and weighing <= 200 g/m², unbleached ... 6,962,000 10,946,000 15,266,000 520522 Single cotton yarn, of combed fibres, containing >= 85% cotton by weight and with a linear ... 5,329,000 13,973,000 12,643,000 520532 Multiple "folded" or cabled cotton yarn, of uncombed fibres, containing >= 85% cotton by weight ... 11,189,000 13,492,000 12,466,000 520512 Single cotton yarn, of uncombed fibres, containing >= 85% cotton by weight and with a linear ... 8,558,000 11,632,000 12,007,000 550953 Yarn containing predominantly, but < 85% polyester staple fibres by weight, mixed principally ... 10,990,000 11,476,000 9,296,000 521011 Plain woven fabrics of cotton, containing predominantly, but < 85% cotton by weight, mixed ... 6,685,000 6,057,000 6,292,000 520513 6,342,000 6,174,000 5,753,000 520919 Woven fabrics of cotton, containing >= 85% cotton by weight and weighing > 200 g/m², unbleached ... 1,837,000 6,156,000 5,578,000 100630 Semi-milled or wholly milled rice, whether or not polished or glazed 1,376,000 1,174,000 5,364,000

PAKISTAN’S TOP 10 IMPORTS FROM PORTUGAL HS CODE DESCRIPTION IMPORT VALUE 2016 (US$) IMPORT VALUE 2017 (US$) IMPORT VALUE 2018 (US$) 270730 Xylol "xylenes" containing > 50% of xylenes (excluding chemically defined) 6,472,000 11,133,000 9,623,000 550130 Filament tow as specified in Note 1 to chapter 55, acrylic or modacrylic 7,086,000 2,471,000 5,931,000 300490 Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic purposes, ... 688,000 882,000 1,507,000 480262 Uncoated paper and paperboard, of a kind used for writing, printing or other graphic purposes, ... 1,074,000 1,099,000 1,050,000 844319 Printing machinery used for printing by means of plates, cylinders and other printing components ... 363,000 - 929,000 320417 Synthetic organic pigments; preparations based on synthetic organic pigments of a kind used ... 639,000 592,000 744,000 290230 Toluene 1,918,000 1,677,000 714,000 720449 Waste and scrap of iron or steel (excluding slag, scale and other waste of the production of ... 317,000 786,000 572,000 550630 Acrylic or modacrylic staple fibres, carded, combed or otherwise processed for spinning 1,510,000 392,000 850212 Generating sets with compression-ignition internal combustion piston engine "diesel or semi-diesel ... 22,000 788,000 384,000

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 Portugal, 2018 Top 10 Potential Products (HS 06). Aggregate Theoretical Potential is $1.7 bn HS CODE DESCRIPTION ACTUAL EXPORTS IN 2018 (US$) POTENTIAL EXPORTS IN 2018 (US$) 270900 Petroleum oils and oils obtained from bituminous minerals, crude - 262,067,000 271019 Medium oils and preparations, of petroleum or bituminous minerals, not containing biodiesel, ... 235,930,000 901890 Instruments and appliances used in medical, surgical or veterinary sciences, n.e.s. 2,306,000 227,089,000 610910 T-shirts, singlets and other vests of cotton, knitted or crocheted 19,000 196,893,000 620342 Mens or boys trousers, bib and brace overalls, breeches and shorts, of cotton (excluding ... 2,766,000 181,486,000 20110 Carcases or half-carcases of bovine animals, fresh or chilled 154,518,000 390761 Poly"ethylene terephthalate", in primary forms, having a viscosity number of >= 78 ml/g 108,454,000 410712 Grain splits leather "incl. parchment-dressed leather", of the whole hides and skins of bovine ... 2,491,000 101,821,000 620462 Womens or girls trousers, bib and brace overalls, breeches and shorts of cotton (excluding ... 686,000 99,621,000 70190 Fresh or chilled potatoes (excluding seed) 91,183,000 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 Portugal’s imports, ignoring competitiveness and tariffs

ACTUAL IMPORTS IN 2018 (US$) Pakistan’s Theoretical Potential* for Additional Imports from Portugal, 2018 Top 10 Potential Products (HS 06). Aggregate theoretical potential is $6.1 bn HS CODE ACTUAL IMPORTS IN 2018 (US$) POTENTIAL IMPORTS IN 2018 (US$) 271019 Medium oils and preparations, of petroleum or bituminous minerals, not containing biodiesel, ... - 2,419,239,000 271012 Light oils and preparations, of petroleum or bituminous minerals which >= 90% by volume "incl. ... 1,353,218,000 870321 Motor cars and other motor vehicles principally designed for the transport of persons, incl. ... 542,106,000 300490 Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic purposes, ... 1,507,000 431,289,000 870322 291,880,000 870323 266,725,000 890120 Tankers 249,799,000 390120 Polyethylene with a specific gravity of >= 0,94, in primary forms 191,113,000 850231 Generating sets, wind-powered 181,347,000 291736 Terephthalic acid and its salts 171,703,000 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 Portugal exporters, ignoring competitiveness and tariffs