Trading Partner Portal: Sweden
Sweden is a high income county in Northern Europe and is slightly larger than California in relative size. Sweden has a population of 9.9 million people and a gross domestic product (GDP) of $538 billion. Sweden has one of the highest standards of living in the world with a strong capitalist system and welfare state. Sweden is one of the 28 countries in the European Union. World Bank, CIA
The United States is Sweden’s 4th largest export destination. The United States imported $11.4 billion worth of Swedish goods in 2018. The key imported goods from Sweden into the US were transportation equipment, non-electrical machinery, chemicals, and computer and electronic products. Transportation equipment and non-electrical machinery totaled over $2.5 billion each. Sweden is the 46th largest export destination for goods for the United States. In 2018, the United States exported $4.48 billion worth of products to Sweden. The main exports included chemicals, which composed 20.2% of all exports to Sweden, and was worth roughly $906 million dollars. Other main product exports from the US to Sweden were transportation equipment, computer and electronic products, and non-electrical machinery.
Direct investment from the United States into Sweden totaled around $34.6 billion in 2017, while FDI from Sweden into the US was approximately $50.9 billion of the same year. Swedish FDI supported 210,600 jobs in the US, contributed $639 million to research and development and another $6.8 billion to expanding US exports. The top industry sectors for Swedish FDI in 2016 were: textiles, software and IT services, industrial machinery, communications, consumer products, and business services. Select USA
Sweden- California Trade
California is the third largest importer of Swedish goods out of all the States with the US. In 2018, California imported around $839.6 million worth of goods from Sweden. In 2018, transportation equipment equated to 56.5% of all imports from Sweden and totaled approximately $474.5 million. Other goods imported into California from Sweden were computer and electronic products, non-electrical machinery, and miscellaneous manufactured commodities. Though Sweden is California’s 34th largest export destination, California is the top exporting state to Sweden in the US. California exported $566.4 million of products to Sweden in 2018. The key exports from California were computer and electronic goods, miscellaneous manufactured commodities, transportation equipment, and chemicals. Exported computer and electronic products to Sweden made up 31.5% of the total and were valued at $178.5 million. US Department of Commerce
In Southern California, the number nine country for FDI through foreign-owned enterprises (FOEs) is Sweden. Swedish FOEs in Southern California provide over 11,000 jobs through over 100 firms. This amounts to $568 million in wages. The top sectors of Swedish FOEs are information, retail trade, construction, manufacturing, and professional and business services. (LA Business Journal, V. 40 No. 21, 2018)
Trade Agreements and Issues
Transatlantic Trade and Investment Partnership (TTIP)
Sweden is one of the European nations that are 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.