Trading Partner Portal: Czech Republic
Overview
Trade Overview
The Czech Republic also called Czechia is a landlocked Central European country. It is classified by the World Bank as a high-income country with a population of 10.87 million people and a gross domestic product (GDP) of $330.86 billion. The Czech Republic has a stable market economy that benefits from trade relationships affirmed through their membership in the European Union (EU). The Czech Republic’s single largest industry for their economy is the auto industry. In 2022, they produced over one million cars, and 82% of them were exported, bolstering their economy. World Bank, CIA, Auto SAP
U.S. – Czech Republic Trade
In 2023, the US exported $4.54 billion of goods to the Czech Republic. The top export was computer and electronic products, with a total of $1.45 billion. The following top exports were transportation equipment ($986 million), electrical equipment ($786 million), chemicals ($273 million), and electrical equipment and appliances ($239 million)
The United States imported $7.5 billion of goods from the Czech Republic in 2023. For the 4th year in a row, the top import was computer and electronic products, which made up $1.51 billion of the total. The other top imports were non-electrical machinery ($1.25 billion), transportation equipment ($1.06 billion), electrical equipment ($711 million). and fabricated metal products ($583 million). US Department of Commerce
Czech Republic- California Trade
California is one of the largest state exporters of goods to the Czech Republic in the United States, only second to Texas. In 2023, California exported $513 million of goods to the Czech Republic. Non-electrical machinery composed $189 million of goods exported from California to the Czech Republic. The second leading export from California was computer and electronic products with a total of $168 million. other exports included fabricated metal products ($43 million), electrical equipment ($31 million), and transportation equipment ($19 million).
In the U.S., California is also the fifth largest importer of Czech goods and products. California imported $383 million worth of goods from the Czech Republic in 2023, just over $88 million of which were computer and electronic products. Other leading imports from the Czech Republic into California were nonelectrical machinery ($48 million), plastics and rubber products ($48 million), reimports ($45 million) and electrical equipment ($37 million). U.S. Department of Commerce
FDI- Czech Republic
The U.S. and the Czech Republic also have flows of investment across their borders. In 2023, the Czech Republic had $986 million invested in the United States, while the U.S. FDI position in the Czech Republic was $4.6 billion. BEA
Trade Agreements
Trade Agreements and Issues
Transatlantic Trade and Investment Partnership (TTIP)
The Czech Republic 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
Three Seas Initiative (3SI)
The Three Seas Initiative (3SI), getting its name from the three seas that border the region, was launched in 2015 by Croatian President Kolinda Grabar-Kitarović and Polish President Andrzej Duda to promote interconnectivity on energy, infrastructure, and digitization projects in Central and Eastern Europe. There are 12 EU member states that are part of the initiative: Austria, Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, and Slovenia. The main goal of the venture is to create a “north-south” energy and infrastructure corridor in the region. The region has a total population of 10 million and a combined GDP of about $1.7 trillion, and has emerged as a significant driver of European economic growth. (Atlantic Council)
The U.S. has committed up to $1 billion to the 3SI, adding momentum to the project and its investment fund, helping to attract international private capital to the region. The initiative has been endorsed diplomatically by the United States, Germany, and the European Union, among others.
Pompeo Pledges $1 Billion in US Support for European Energy Initiative
The Hill, February 15, 2020