recent research A report from Finnish Customs reveals the growing trade partnership between Finland and the United States. The United States reaffirmed its position as Finland’s third largest export destination and emerged as Finland’s fifth largest import source from January to September 2023. This trade relationship produced a large surplus for Finland and highlighted the dominance of the United States. Its importance as a trading partner is increasing.
Despite a slight decrease of 1.6% compared to last year, Finland’s exports to the US remained strong, reaching 4.8 billion euros in the first nine months of 2023. This follows a significant 67.1% increase in exports to the US in the previous year. The slight decline in exports is seen against the backdrop of the continued high level of trade.
Imports from the United States showed a significant increase, increasing by 15.6% to EUR 3.1 billion over the same period. This follows her dramatic 78.4% increase in 2022, indicating a sustained upward trend in imports from the United States.
Ori Pekka Pentila, Director General of Finland’s Customs and Statistics Department, pointed out the growing importance of the United States as a trading partner of Finland. Finland has a large trade surplus in goods, especially industrial machinery and petroleum products. The increase in crude oil imports from the United States is a strategic shift following the suspension of trade with Russia.
Exports from Finland to the United States mainly consist of industrial machinery, equipment, and petroleum products. Exports of refined petroleum products, metals, and paper decreased, but exports of chemical industry, transportation, and machinery increased.
Fuel imports from Finland to the United States will reach $1.1 billion in 2022, an increase of 251% from 2017. However, large cruise ships exported from Finland to the US in recent years are not reflected in US import statistics, highlighting the gap in import value. United Nations trade statistics database.
Steel and aluminum tariffs imposed by the United States in 2018 due to national security concerns affected Finland’s exports. However, at the end of 2021, the dispute between the EU and the US was resolved and they agreed to eliminate these tariffs until March 31, 2025, contributing to the normalization of trade relations. The lifting of these tariffs and the subsidence of the COVID-19 pandemic facilitated a rapid recovery in exports from Finland to the United States.
Mr. Penttila concluded by stressing that although trade barriers such as steel tariffs can have a negative impact on foreign trade, recent developments indicate a positive trajectory for Finland-US trade relations.
HT