FINLAND - Pakistan Trade

FINLAND WAS PAKISTAN’S 72ND 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% 72 Finland 27,668,000 0.1% EU is Pakistan’s largest export market and the UK is the most important export market within the EU

FINLAND WAS THE 17th LARGEST EXPORT DESTINATION WITHIN THE EU IN 2018 The EU is Pakistan’s largest export market representing 34% of exports Finland accounted for 0.3% 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

FINLAND RANKS NO. 40 IN PAKISTAN’S IMPORT SOURCES COUNTRY IMPORT VALUE (US$) % SHARE IN TOTAL IMPORTS 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% 40 Finland 141,212,000 0.2% EU is Pakistan’s largest export market and the UK is the most important export market within the EU

WITHIN THE EU, FINLAND WAS THE 10TH 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. Finland accounts for 2.5% of Pakistan’s imports from the EU and 0.2% of total imports from the world. The UK is the second most important import supplying market of Pakistan in the EU

PAKISTAN FINLAND Trade Trends Bilateral trade increased from US$ 122 Mn in 2014 to US$ 169 Mn in 2018 i.e. by 39% in five years Pakistan’s exports to Finland went down by 53% during this period. Meanwhile, Finland’s exports to Pakistan rose by 127% during the last five years. The trade balance in 2018 has gone up $144 Mn in favor of Finland.

PAKISTAN’S TOP 10 EXPORTS TO FINLAND HS CODE DESCRIPTION EXPORT VALUE 2016 (US$) EXPORT VALUE 2017 (US$) EXPORT VALUE 2018 (US$) 420329 Gloves, mittens and mitts, of leather or composition leather (excluding special sports gloves) 4,284,000 4,288,000 3,976,000 630231 Bedlinen of cotton (excluding printed, knitted or crocheted) 2,236,000 6,185,000 3,561,000 620322 Men's or boys' ensembles of cotton (excluding knitted or crocheted, ski ensembles and swimwear) 616,000 1,364,000 1,130,000 610349 Men's or boys' trousers, bib and brace overalls, breeches and shorts of textile materials, ... 1,527,000 1,369,000 1,125,000 630260 Toilet linen and kitchen linen, of terry towelling or similar terry fabrics of cotton (excluding ... 447,000 570,000 965,000 420321 Specially designed gloves for use in sport, of leather or composition leather 656,000 731,000 805,000 420310 Articles of apparel, of leather or composition leather (excluding clothing accessories, footware ... 1,185,000 651,000 679,000 620342 Men's or boys' trousers, bib and brace overalls, breeches and shorts, of cotton (excluding ... 546,000 303,000 662,000 611090 Jerseys, pullovers, cardigans, waistcoats and similar articles, of textile materials, knitted ... 225,000 255,000 596,000 620349 Men's or boys' trousers, bib and brace overalls, breeches and shorts of textile materials (excluding ... 256,000 358,000 591,000

PAKISTAN’S TOP 10 IMPORTS FROM FINLAND HS CODE DESCRIPTION IMPORT VALUE 2016 (US$) IMPORT VALUE 2017 (US$) IMPORT VALUE 2018 (US$) 851762 Machines for the reception, conversion and transmission or regeneration of voice, images or ... 317,000 1,774,000 45,625,000 720441 Turnings, shavings, chips, milling waste, sawdust, filings, trimmings and stampings of iron ... 2,226,000 2,840,000 15,403,000 850239 Generating sets (excluding wind-powered and powered by spark-ignition internal combustion piston ... 5,189,000 3,442,000 9,020,000 854449 Electric conductors, for a voltage <= 1.000 V, insulated, not fitted with connectors, n.e.s. 18,000 65,000 6,491,000 350790 Enzymes and prepared enzymes, n.e.s. (excluding rennet and concentrates thereof) 8,633,000 9,252,000 5,608,000 481092 Multi-ply paper and paperboard, coated on one or both sides with kaolin or other inorganic ... 98,000 3,819,000 4,532,000 850440 Static converters 3,113,000 4,918,000 4,507,000 760200 Waste and scrap, of aluminium (excluding slags, scale and the like from iron and steel production, ... 3,071,000 2,913,000 3,876,000 470321 Semi-bleached or bleached coniferous chemical wood pulp, soda or sulphate (excluding dissolving ... 1,653,000 1,693,000 2,597,000 852349 Optical media for the recording of sound or of other phenomena (excluding unrecorded and goods ... 2,000 292,000 2,548,000

ACTUAL EXPORTS IN 2018 (US$) POTENTIAL EXPORTS IN 2018 (US$) Pakistan’s Theoretical Potential* for Additional Exports to the Finland, 2017 Top 10 Potential Products (HS 06). Aggregate Theoretical Potential $1.5 Bn HS CODE DESCRIPTION ACTUAL EXPORTS IN 2018 (US$) POTENTIAL EXPORTS IN 2018 (US$) 220710 Undenatured ethyl alcohol, of actual alcoholic strength of >= 80% - 425,499,000 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. 189,000 202,799,000 610910 T-shirts, singlets and other vests of cotton, knitted or crocheted 236,000 82,039,000 620342 Men's or boys' trousers, bib and brace overalls, breeches and shorts, of cotton (excluding ... 662,000 77,082,000 611020 Jerseys, pullovers, cardigans, waistcoats and similar articles, of cotton, knitted or crocheted ... 39,000 74,130,000 300490 Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic purposes, ... 73,543,000 940490 Articles of bedding and similar furnishing, fitted with springs or stuffed or internally filled ... 422,000 64,887,000 300439 Medicaments containing hormones or steroids used as hormones but not antibiotics, put up in ... 60,485,000 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 Finland’s imports, ignoring competitiveness and tariffs

ACTUAL IMPORTS IN 2018 (US$) Pakistan’s Theoretical Potential* for Additional Imports from the Finland, 2017 Top 10 Potential Products (HS 06). Aggregate theoretical potential is $7.4 BN HS CODE ACTUAL IMPORTS IN 2018 (US$) POTENTIAL IMPORTS IN 2018 (US$) 271019 Medium oils and preparations, of petroleum or bituminous minerals, not containing biodiesel, ... 11,000 3,115,607,000 271012 Light oils and preparations, of petroleum or bituminous minerals which >= 90% by volume "incl. ... - 2,170,749,000 890800 Vessels and other floating structures for breaking up 515,542,000 300490 Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic purposes, ... 284,000 432,512,000 870323 Motor cars and other motor vehicles principally designed for the transport of persons, incl. ... 266,725,000 390210 Polypropylene, in primary forms 218,994,000 851762 Machines for the reception, conversion and transmission or regeneration of voice, images or ... 45,625,000 197,117,000 870322 20,000 190,077,000 390110 Polyethylene with a specific gravity of < 0,94, in primary forms 638,000 180,080,000 847989 Machines and mechanical appliances, n.e.s. 170,309,000 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 Finland exporters, ignoring competitiveness and tariffs