NETHERLANDS - Pakistan Trade

NETHERLANDS WAS PAKISTAN’S SEVENTH 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

NETHERLANDS WAS THE THIRD LARGEST EXPORT DESTINATION WITHIN THE EU IN 2018 The EU is Pakistan’s largest export market representing 34% of exports Netherlands accounted for 12% 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

NETHERLANDS RANKS NO. 22 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% 22 Netherlands 544,605,000 1% EU is Pakistan’s largest export market and the UK is the most important export market within the EU

WITHIN THE EU, NETHERLANDS WAS THE FOURTH 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. Netherlands accounts for 10% of Pakistan’s imports from the EU and 1% of total imports from the world. The UK is the second most important import supplying market of Pakistan in the EU

PAKISTAN NETHERLANDS Trade Trends Bilateral trade increased from US$ 1.01 bn in 2014 to US$ 1.49 bn in 2018 i.e. by 47.5% in five years Pakistan’s exports to Netherlands rose by 0.7% during this period. Meanwhile, Netherland’s exports to Pakistan rose by 37.7% during these five years. The trade surplus has increased during the last five years, from $360 Mn in 2014 to around $398 Mn in 2018.

PAKISTAN’S TOP 10 EXPORTS TO NETHERLANDS 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) 54,800,000 63,526,000 118,617,000 630231 Bedlinen of cotton (excluding printed, knitted or crocheted) 86,312,000 75,228,000 89,052,000 630210 Bedlinen, knitted or crocheted 50,855,000 56,542,000 75,737,000 630260 Toilet linen and kitchen linen, of terry towelling or similar terry fabrics of cotton (excluding . . . 23,416,000 34,400,000 47,196,000 610711 Men's or boys' underpants and briefs of cotton, knitted or crocheted 29,099,000 37,335,000 45,662,000 100630 Semi-milled or wholly milled rice, whether or not polished or glazed 9,054,000 8,880,000 40,867,000 611595 Full-length or knee-length stockings, socks and other hosiery, incl. footwear without applied . . . 23,656,000 47,343,000 38,280,000 220710 Undenatured ethyl alcohol, of actual alcoholic strength of >= 80% 25,896,000 42,826,000 36,917,000 630239 Bedlinen of textile materials (excluding of cotton and man-made fibres, printed, knitted or . . . 27,080,000 35,588,000 31,699,000 620342 Men's or boys' trousers, bib and brace overalls, breeches and shorts, of cotton (excluding . . . 18,892,000 24,614,000 25,258,000

PAKISTAN’S TOP 10 IMPORTS FROM Netherlands HS CODE DESCRIPTION IMPORT VALUE 2016 (US$) IMPORT VALUE 2017 (US$) IMPORT VALUE 2018 (US$) 271012 Light oils and preparations, of petroleum or bituminous minerals which >= 90% by volume "incl. ... 104,340,000 635,042,000 187,387,000 271111 Natural gas, liquefied - 61,645,000 190110 Food preparations for infant use, put up for retail sale, of flour, groats, meal, starch or ... 35,819,000 45,506,000 43,530,000 210690 Food preparations, n.e.s. 12,237,000 13,713,000 15,778,000 190190 Malt extract; food preparations of flour, groats, meal, starch or malt extract, not containing ... 6,720,000 8,004,000 10,490,000 760200 Waste and scrap, of aluminium (excluding slags, scale and the like from iron and steel production, ... 7,776,000 7,948,000 10,355,000 291816 Gluconic acid, its salts and esters 5,115,000 4,654,000 7,916,000 293723 Oestrogens and progestogens 5,463,000 4,268,000 7,150,000 390190 Polymers of ethylene, in primary forms (excluding polyethylene and ethylene-vinyl acetate ... 7,296,000 6,290,000 6,812,000 720449 Waste and scrap of iron or steel (excluding slag, scale and other waste of the production of ... 5,044,000 4,714,000 6,543,000

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 Netherlands, 2018 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% 36,917,000 388,582,000 620342 Men's or boys' trousers, bib and brace overalls, breeches and shorts, of cotton (excluding . . . 25,258,000 323,731,000 610910 T-shirts, singlets and other vests of cotton, knitted or crocheted 9,384,000 233,319,000 611595 Full-length or knee-length stockings, socks and other hosiery, incl. footwear without applied . . . 38,280,000 176,487,000 610990 T-shirts, singlets and other vests of textile materials, knitted or crocheted (excluding cotton) 8,403,000 148,860,000 610510 Men's or boys' shirts of cotton, knitted or crocheted (excluding nightshirts, T-shirts, singlets . . . 7,459,000 145,398,000 420310 Articles of apparel, of leather or composition leather (excluding clothing accessories, footware . . . 21,823,000 111,459,000 100630 Semi-milled or wholly milled rice, whether or not polished or glazed 40,867,000 82,450,000 630260 Toilet linen and kitchen linen, of terry towelling or similar terry fabrics of cotton (excluding . . . 47,196,000 72,523,000 611610 Gloves, mittens and mitts, impregnated, coated or covered with plastics or rubber, knitted . . . 8,989,000 60,404,000 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 Netherland’s imports, ignoring competitiveness and tariffs

ACTUAL IMPORTS IN 2018 (US$) Pakistan’s Theoretical Potential* for Additional Imports from Netherlands, 2018 Top 10 Potential Products (HS 06). Aggregate theoretical potential is $11 bn HS CODE ACTUAL IMPORTS IN 2018 (US$) POTENTIAL IMPORTS IN 2018 (US$) 271012 Light oils and preparations, of petroleum or bituminous minerals which >= 90% by volume "incl. ... 187,387,000 3,533,532,000 271019 Medium oils and preparations, of petroleum or bituminous minerals, not containing biodiesel, ... 952,000 3,114,666,000 720449 Waste and scrap of iron or steel (excluding slag, scale and other waste of the production of ... 6,543,000 942,703,000 151190 Palm oil and its fractions, whether or not refined (excluding chemically modified and crude) - 885,949,000 851712 Telephones for cellular networks "mobile telephones" or for other wireless networks 2,000 833,072,000 270112 Bituminous coal, whether or not pulverised, non-agglomerated 523,541,000 300490 Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic purposes, ... 5,084,000 427,712,000 120510 Low erucic acid rape or colza seeds "yielding a fixed oil which has an erucic acid content ... 397,121,000 720839 Flat-rolled products of iron or non-alloy steel, of a width of >= 600 mm, in coils, simply ... 390,053,000 854140 Photosensitive semiconductor devices, incl. photovoltaic cells whether or not assembled in ... 389,594,000 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 Netherlands exporters, ignoring competitiveness and tariffs