Trading Partner Portal: Austria
Austria is in central Europe and is a member of the European Union. It is geographically similar to the size of South Carolina and Vienna is the capital. Austria has a population of 8.8 million people with a gross domestic product (GDP) of $455.28 billion. Austria is categorized as a high income country with a well-developed market economy. Austria has developed a large service sector, while sustaining their manufacturing and agriculture fields. World Bank, CIA
The United States is the second largest export destination for Austria, second to Germany. In 2019, the US imported $13.17 billion of goods from Austria. Some of the key imported goods were transportation equipment, non-electrical machinery, and chemicals. All three totaling rover $2 billion each and composing over 55% of total imports from Austria together. Another major import from Austria was beverages and tobacco, which had a value of over $1 billion. Austria is the 41st largest exporting partner of the US, with a total of approximately $5.7 billion worth of goods exported from the US to Austria in 2019. 51.5% of US exports to Austria were chemicals, with a value of $2.9 billion. Other prevalent exported categories were transportation equipment, computer and electronic products, and minerals and ores. US Department of Commerce
The strong economic relationship between the US and Austria is not just prominent in trade, but also in foreign direct investment (FDI) flows. In 2018, the US had roughly $8.5 billion invested in Austria and Austria had $6.29 billion invested in the US. US Department of Commerce
In 2018, Austria was the tenth fastest-growing source of FDI in the U.S. In 2017, Austrian FDI supported 18,700 jobs. $22 million was invested into research and development in the US and $682 was put toward expanding US exports. The top industry sectors for Austrian FDI in the US were: industrial equipment, plastics, software and IT services, food and beverages, metals, and electronic components. SelectUSA
Austria- California Trade
The United States, California, in particular, has a strong trade relationship with Austria. Though Austria receives an exceedingly high amount of imports from Kentucky, California still remains one of the top exporting states to Austria. In 2019, California exported $309 million of goods to Austria. The major category of exported goods from California was agricultural products, with a total of $94.4 million, and accounted for 30.5% of total exports to Austria from California. The other major exports included non-electrical machinery with a value of $61 million and computer and electronic products with a value of $52.5 million. California is also the largest importer of goods from Austria compared to the other states in the US. California imported almost $1.64 billion of goods in 2019 from Austria. 31.3% of those imports were transportation equipment with a value of $513.6 million. The following major imported good categories were reimports, beverages and tobacco, and non chemicals, and non-electrical machinery. US Department of Commerce
Trade Agreements and Issues
Transatlantic Trade and Investment Partnership (TTIP)
Austria 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.
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