Trading Partner Portal: Brunei Darussalam
Brunei Darussalam is a high income and well educated country in Southeastern Asia. Brunei has a population of 428,697 people and a gross domestic product (GDP) of $12.13 billion, which makes it one of the highest GDPs per capita in the world. Brunei was a British protectorate until independence in 1984 and has vast natural gas and petroleum fields. In fact, Brunei’s largest exports are mineral fuels and organic chemicals. World Bank
The United States is Brunei Darussalam’s 4th largest importer of goods. The US exported approximately $266.7 million worth of goods to Brunei in 2018, a significant decrease from 2016 when the US exported $614 million to the country. In 2018, 53.4% of US exports to Brunei was transportation equipment, which was valued around $142 million. Other major US exports to Brunei fall under the categories of non-electrical machinery, chemicals, and computer and electronic products. US Department of Commerce
Brunei exports heavily to other countries in the Pacific that are closer geographically; including, Japan, South Korea, and Australia. Nevertheless, in 2018 the US imported approximately $98 million worth of goods from Brunei, up from $22 million in 2017. The key imports were oil and gas, reimports, primary metal, and apparel manufacturing products. US Department of Commerce
U.S. FDI into Brunei totaled $19 million in 2017 (Bureau of Economic Analysis).
Brunei Darussalam -California Trade
In the United States, California is one of 10 exporting and importing states to Brunei. In 2018, California exported roughly $8.8 million of goods to Brunei. Fabricated metal products made up 23.5% of total exported goods from California to Brunei ($2 million). Followed by food manufactures, non-electrical machinery, and computer products. California imported $16 million worth of goods form Brunei, up from $540,000 in 2016 and $1.9 million in 2017. The main import was oil and gas which made up almost 95% of the total. US Department of Commerce
Brunei has promoting private-sector influence in the economy, due to their major reliance on oil and gas. Brunei is attempting to stimulate growth through possible trade agreements and diversification of their economy.
Trade Agreements and Issues
The Trans-Pacific Partnership was signed by the participating countries, including the US and Brunei Darussalam, on February 4th, 2016. The deal signed in Auckland, New Zealand sets the rules for global trade in the Pacific region. The partnership aims to promote economic growth through the liberalization of trade, and create new opportunities for businesses and workers. For the U.S. specifically, TPP promises to bring American economic progress through increases in exports of American products, the creation of more American jobs, and overall benefits to the middle class. TPP would eliminate over 18,000 taxes on American manufactured products and include strong environmental and worker protections in the agreement.