Czech exports to US see rapid growth

Czech exports to the United States have grown rapidly in the past three years, approaching the 100 billion crown mark for the first time ever, according to the Czech Statistics Office. This makes the US the country’s biggest export partner outside the EU and the most dynamically growing market for the Czech Republic regarding mutual trade.

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The Czech Republic has the 30th largest export economy in the world and although 83 percent of the country’s exports are destined for EU member states, trade with the US has seen a significant boost in recent years. Exports to the US have almost doubled in the past decade and since 2011 the volume of Czech exports to the country has exceeded the volume of US imports. The US market is now one of the top ten export destinations in terms of export volume. In terms of value creation the United States ranks among the top three countries. In 2015 Czech companies exported goods to the US worth 92.2 billion crowns, a 2.4 percent share of the country’s overall exports, and an export volume comparable to that with Spain or Belgium.

In terms of economic added value, the United States is becoming a key destination for the export-dependent Czech economy, with an almost 6% share of added value, putting it in second position behind Germany (19%), according to the Czech Association of Small and Medium Sized Businesses. This is also reflected in the composition of exported product ranges, as the Czech Republic is exporting more and more products with higher added value to the US, whereas previously the country exported a cheaper line of products.

The most common export commodities to the US are now cars and vehicle parts, engines and tyres, turbines and turbine pumps, pharmaceuticals and microscopes. The amount of tyres exported to the US has grown by 175 percent in the past ten years and last year the sales volume exceeded 4.6 billion crowns. On the other hand, the amount of semi-products and materials exported has dropped. A further point of interest is that services now account for almost a third of the total volume of exports.

American imports to the Czech Republic, dominated by machinery and transport equipment, reached 81.9 billion crowns in 2015, making up 2.4 percent of overall imports. This puts the US in twelfth place as regards the volume of imports. The US is also the fifth largest investor in the Czech Republic, where the amount of American investments is approximately a quarter compared to German investments.