Trading Partner Portal: Hungary
Hungary is a high-income country in Central Europe. It has a population of 9.76 million people and a gross domestic product (GDP) of approximately $163.46 billion. Hungary is a member of the European Union and has a strong market economy that has recovered from deficit suffered from the global economic crisis. As a member of the EU, Hungary’s main trading partners are other European countries, predominantly Germany and Austria. World Bank, CIA
In 2020, the United States exported $2.1 billion worth of goods to Hungary. The largest export category, which accounted for 34.3% of total exports from the US to Hungary was computer/electronic products with a total value of $726 million. Two other key exports from the US to Hungary were non-electrical machinery with a total of $383.6 million and chemicals with a value of $311 million. The same year, the United States imported $5.29 billion of goods from Hungary. 26.3% was transportation equipment, while 18.9% was computers/electronic products. Other key imports from Hungary was electrical appliances/equipment, followed by non-electrical machinery. US Department of Commerce
Not only do the US and Hungary have a substantial trade relationship, but they also have sufficient flows of foreign direct investment (FDI). Hungary had $91 million invested in the United States in 2019. BEA
Hungary- California Trade
In the United States, California is one of the largest state exporter of goods to Hungary. In 2020, California exported $131 million of goods to Hungary, the smallest amount in recent years. The top exports were computer/electronic products, miscellaneous manufactured commodities, chemicals, and non-electrical machinery, totaling 42.5%, 12.9%, 12.4% and 9.1% respectively. California is one of the largest importing states of goods from Hungary. In 2020, California imported $430.9 million worth of goods. 50% of all goods imported into California from Hungary was transportation equipment. US Department of Commerce
Governor Edmund G. Brown Jr. established the California International Trade and Investment Advisory Council in 2014, bolstering the state’s efforts to grow international business opportunities for California companies. He named former U.S. Ambassador to Hungary Eleni Kounalakis to chair the council. Susanne Stirling, Vice President of International Affairs for CalChamber, is a member of the council.
Trade Agreements and Issues
Transatlantic Trade and Investment Partnership (TTIP)
Hungary 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
Hungarian Ambassador Stops by CalChamber
(April 29, 2011) A visit from Hungarian Ambassador to the United States Gyorgy Szapary (left) provided an opportunity to discuss Hungary’s role as president of the European Union for the first half of 2011. With the ambassador are (from left) Ambassador Gyorgy Szapary; CalChamber President and CEO Allan Zaremberg; Susanne Stirling, CalChamber Vice president, International Affairs; The Honorable Nicholas Bartsch, Honorary Consul of Hungary in Sacramento; and Dr. Gabor Kaleta, Consul, Hungarian Consulate in Los Angeles.