Luxembourg - Pakistan Trade

LUXEMBOURG RANKED NO. 162 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% 162 Luxembourg 200,000 0.001% EU is Pakistan’s largest export market and the UK is the most important export market within the EU

LUXEMBOURG WAS THE SMALLEST EXPORT DESTINATION WITHIN THE EU IN 2018 The EU is Pakistan’s largest export market representing 34% of exports Luxembourg accounted for 0.003% 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

LUXEMBOURG RANKS NO. 87 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% 87 Luxembourg 7,299,000 0.012% EU is Pakistan’s largest export market and the UK is the most important export market within the EU

WITHIN THE EU, LUXEMBOURG WAS THE 22ND 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. Luxembourg accounts for 0.13%% of Pakistan’s imports from the EU and 0.01% of total imports from the world. The UK is the second most important import supplying market of Pakistan in the EU

PAKISTAN LUXEMBOURG Trade Trends Bilateral trade decreased from US$ 14.07 Mn in 2014 to US$ 7.5 Mn in 2018 i.e. by 46.7% in five years Pakistan’s exports to Luxembourg declined by 51% during this period. Meanwhile, Luxembourg's exports to Pakistan fell by 46.6% during the last five years. The trade deficit in 2018 has decreased from 2014 from $13.2 Mn to $7.1 Mn

PAKISTAN’S TOP 10 EXPORTS TO LUXEMBOURG HS CODE DESCRIPTION EXPORT VALUE 2016 (US$) EXPORT VALUE 2017 (US$) EXPORT VALUE 2018 (US$) 520942 Denim, containing >= 85% cotton by weight and weighing > 200 g/m², made of yarn of different ... - 81,000 570110 Carpets and other textile floor coverings, of wool or fine animal hair, knotted, whether or ... 15,000 52,000 69,000 620339 Men's or boys' jackets and blazers of textile materials (excluding of wool, fine animal hair, ... 1,000 32,000 901890 Instruments and appliances used in medical, surgical or veterinary sciences, n.e.s. 3,000 34,000 8,000 620422 Women's or girls' ensembles of cotton (excluding knitted or crocheted, ski overalls and swimwear) 950662 Inflatable balls 6,000 5,000 390761 Poly"ethylene terephthalate", in primary forms, having a viscosity number of >= 78 ml/g 630790 Made-up articles of textile materials, incl. dress patterns, n.e.s. 2,000 610590 Men's or boys' shirts of textile materials, knitted or crocheted (excluding of cotton or man-made ... 420329 Gloves, mittens and mitts, of leather or composition leather (excluding special sports gloves) 57,000

PAKISTAN’S TOP 10 IMPORTS FROM LUXEMBOURG HS CODE DESCRIPTION IMPORT VALUE 2016 (US$) IMPORT VALUE 2017 (US$) IMPORT VALUE 2018 (US$) 730110 Sheet piling of iron or steel, whether or not drilled, punched or made from assembled elements 1,548,000 274,000 2,421,000 841989 Machinery, plant or laboratory equipment, whether or not electrically heated, for the treatment ... - 1,121,000 847790 Parts of machinery for working rubber or plastics or for the manufacture of products from these ... 428,000 219,000 773,000 560313 Nonwovens, whether or not impregnated, coated, covered or laminated, n.e.s., of man-made filaments, ... 625,000 1,030,000 700,000 721632 I sections of iron or non-alloy steel, not further worked than hot-rolled, hot-drawn or hot-extruded, ... 656,000 848071 Injection or compression-type moulds for rubber or plastics 508,000 931,000 285,000 560314 31,000 163,000 690220 Refractory bricks, blocks, tiles and similar refractory ceramic constructional goods containing, ... 100,000 560311 Nonwovens, whether or not impregnated, coated, covered or laminated, n.e.s., of synthetic or ... 82,000 392310 Boxes, cases, crates and similar articles for the conveyance or packaging of goods, of plastics 61,000

ACTUAL EXPORTS IN 2018 (US$) POTENTIAL EXPORTS IN 2018 (US$) Pakistan’s Theoretical Potential* for Additional Exports to Luxembourg, 2018 Top 10 Potential Products (HS 06). Aggregate Theoretical Potential $0.7 bn HS CODE DESCRIPTION ACTUAL EXPORTS IN 2018 (US$) POTENTIAL EXPORTS IN 2018 (US$) 271019 Medium oils and preparations, of petroleum or bituminous minerals, not containing biodiesel, ... - 235,930,000 390761 Poly"ethylene terephthalate", in primary forms, having a viscosity number of >= 78 ml/g 5,000 132,959,000 521142 Denim, containing predominantly, but < 85% cotton by weight, mixed principally or solely with ... 80,510,000 300490 Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic purposes, ... 73,543,000 740400 Waste and scrap, of copper (excluding ingots or other similar unwrought shapes, of remelted ... 57,826,000 901890 Instruments and appliances used in medical, surgical or veterinary sciences, n.e.s. 8,000 36,394,000 521019 Woven fabrics of cotton, containing predominantly, but < 85% cotton by weight, mixed principally ... 32,549,000 520922 Woven fabrics of cotton, containing >= 85% cotton by weight and weighing > 200 g/m², in three-thread ... 31,496,000 521112 30,549,000 610910 T-shirts, singlets and other vests of cotton, knitted or crocheted 23,488,000 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 Luxembourg’s imports, ignoring competitiveness and tariffs

ACTUAL IMPORTS IN 2018 (US$) Pakistan’s Theoretical Potential* for Additional Imports from Luxembourg, 2018 Top 10 Potential Products (HS 06). Aggregate theoretical potential is $1.4 bn HS CODE ACTUAL IMPORTS IN 2018 (US$) POTENTIAL IMPORTS IN 2018 (US$) 550410 Staple fibres of viscose rayon, not carded, combed or otherwise processed for spinning - 315,774,000 291736 Terephthalic acid and its salts 171,703,000 848180 Appliances for pipes, boiler shells, tanks, vats or the like (excluding pressure-reducing valves, ... 5,000 138,460,000 401120 New pneumatic tyres, of rubber, of a kind used for buses and lorries (excluding typres with ... 137,223,000 851712 Telephones for cellular networks "mobile telephones" or for other wireless networks 130,455,000 540331 Yarn of viscose rayon filament, incl. monofilament of < 67 decitex, single, untwisted or with ... 126,612,000 854140 Photosensitive semiconductor devices, incl. photovoltaic cells whether or not assembled in ... 102,901,000 853710 Boards, cabinets and similar combinations of apparatus for electric control or the distribution ... 3,000 92,975,000 540247 Filament yarn of polyester, incl. monofilament of < 67 decitex, single, untwisted or with a ... 89,942,000 730890 Structures and parts of structures, of iron or steel, n.e.s. (excluding bridges and bridge-sections, ... 81,799,000 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 Luxembourg exporters, ignoring competitiveness and tariffs