Trading Partner Portal: Czech Republic
The Czech Republic is a landlocked Central European country. It is classified by the World Bank as a high income country with a population of 10.6 million people and a gross domestic product (GDP) of $245.2 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 2015, they produced over one million cars, and 80% of them were exported, bolstering their economy. World Bank, CIA
In 2019, the US exported $2.79 billion of goods to the Czech Republic. 33.5% of those goods were computer and electronic products, with a total of $934 million. The following top exports were non-electrical machinery, with a total of $552 million and transportation equipment, valuing $330.9 million. The United States imported $5.5 billion of goods from the Czech Republic in 2019. For the first time in recent years, the top import was computer and electronic products, which made up 19.7% of the total. The second top import was non-electrical machinery, which made up 13.9% of the total. These were followed closely by transportation equipment which made up 13.6% of total imports and electrical equipment which made up 9.2%. US Department of Commerce
Czech Republic- California Trade
California is one of the largest state exporter of goods to the Czech Republic in the United States, only second to Texas. In 2019, California exported $462 million of goods to the Czech Republic, an increase of almost $40 million from 2018. Computer and electronic products composed 51% of goods exported from California to the Czech Republic and had a value of approximately $235 million. The second leading export from California was non-electrical machinery with a total of $78 million. In the US, California is also the fourth largest importer of Czech goods and products. California imported $343 million worth of goods from the Czech Republic in 2019, just over 32.2% of which were computer and electronic products, valuing $110 million. Other leading imports from the Czech Republic into California were plastics and rubber products, reimports, and and transportation equipment. US Department of Commerce
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.
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