Trading Partner Portal: Finland

Overview

Trade Overview

Flags of USA, Finland, California

Finland is located in Northern Europe between Sweden and Russia. It has a coastline on the Baltic Sea, where the Capital, Helsinki, lies. Finland is industrialized and retains a high gross domestic product per capita, much like its neighbor, Sweden. Finland has a population of 5.49 million people and a gross domestic product (GDP) of $238.5 billion. As a high income country, it promotes a free-market economy and relies heavily on trade. In fact, in the most recent years, one third of Finland’s GDP has come from exports. The two largest trading partners of Finland are Sweden and Germany. World Bank, CIA

The United States and Finland have a trade relationship that totaled approximately $7.4 billion in 2017. The United States exported $1.53 billion worth of goods to Finland in 2017. Computer and electronic products were a key export, which accounted for 25.2% of total exports to Finland from the United States and had a value of $385 million. The second largest export from the US to Finland was minerals and ores which made up 14.2% and had a value of $217 million. The same year, the US imported nearly $5.89 billion worth of goods from Finland. 20.8% of those imports was transportation equipment, which had a total of $1.23 million. The second largest import from Finland was chemicals in 2017 totaling $1.04 billion. The U.S. also imports paper from Finland, which had a value of $743 million and composed 12.3% of total imports from Finland to the United States in 2017. US Department of Commerce

The US and Finland also have a strong economic relationship in foreign California Exports to Finlanddirect investment (FDI). In 2016, the US had $3.3 billion invested in Finland and Finland had $9.5 billion invested in the US. Finnish FDI into the US supported 23,700 jobs and contributed to $119 million in research and development. Finish FDI also contributed $1.3 billion to expanding US exports. The top industry sectors for Finnish investment were: software and IT services, industrial machinery, textiles, communications, chemicals, and metals. Select USA

Finland- California Trade

California is the largest US exporting state to Finland. In 2017, California exported $172 million of goods to Finland. Computer and electronic products account for 57.5% of total exports from California to Finland and had a value of $99 million. The other leading exports from California were transportation equipment, chemicals, and non-electrical machinery each making up less than 10%. Additionally, California is one of the largest importing states of goods from Finland. In 2017, California imported a variety of goods with a total value of $449 million, up from $140 million in 2016, due to an increase in transportation equipment. California imported $304 million of transportation equipment making up 67.6% of the total, and in the previous years hadn’t imported more than $10 million worth of the goods. $41 million or 9.2% was non-electrical machinery. California also imported approximately $33 million worth of  computer and electronic products and $19 million worth of primary metal. US Department of Commerce

Current News

US-Nordic Leaders’ Summit (05/13/2016)

President Obama hosted a summit with the leaders of Denmark, Finland, Iceland, Norway, and Sweden in Washington D.C. in May. The summit was to pursue discussions on multiple topics, including immigration, security, climate change, and economic and trade relations

Trade Agreements

Trade Agreements and Issues

Transatlantic Trade and Investment Partnership (TTIP)

Finland is one of the nations that is currently involved in negotiations for the Transatlantic Trade and Investment Partnership (TTIP) with the rest of the European Union and the United States. The United States and the European Union have a strong bilateral trade relationship totaling $698.7 billion in 2015. A free trade agreement, such as TTIP, desires to strengthen that relationship by eliminating tariffs, aligning compatible regulations to open trade, and furthering trade in the service sector.

Transatlantic Trade and Investment Partnership

USTR Transatlantic Trade and Investment Partnership