Bulgaria’s trade balance with the United States is positive


US President Donald Trump may support a new law with fiscal incentives for the economy affected by the coronavirus pandemic. This was reported by Reuters, citing his statement during his visit to the Ford plant in Ypsilanti, Michigan. The company is currently being re-equipped to produce respirators needed to treat patients with Kovid-19.

The president did not give further details on what exactly the incentives he envisages.

Trump has called on states to loosen restrictions on the coronavirus to allow the economy to recover. However, public health experts warn that premature easing of measures could lead to a second wave of the epidemic.

This is good news for trade and economic relations between the United States and Bulgaria.

In the last few years, the United States has a relatively small but stable share in Bulgaria’s foreign trade with relative weights of about 1.5% of our country’s exports and 0.9% of imports. The structure of bilateral trade has undergone some changes over the last decade, but in general the main export positions of Bulgaria are raw tobacco, ICT products, electronics and food products, sunflower seeds and essential oils, as well as petroleum oils and fertilizers in some years. The main goods imported from the United States are traditionally petroleum coke, information processing and telecommunications equipment, diodes, transistors and semiconductor devices.

In recent years, trade between Bulgaria and the United States has been on the rise. Last year mutual trade is growing by 1% to a record $ 985.2 million, according to preliminary customs statistics. Due to the excess of Bulgarian exports over imports, we have a positive trade balance for our country. Bulgarian exports reported a slight decline of 1.2% compared to 2018 (626.1 million USD), which is mainly associated with a significant decrease in sales of petroleum oils (-79%), accompanied by a decrease of 51% in iron and steel rods and 25% – a decrease in essential oils. However, an increase is observed in most of the leading positions in our export list to the United States. For example, significant sales of medical instruments, raw tobacco and measuring devices were realized, the value of which is many times higher than the volume of exports in 2018 on these commodity items. Significant growth is also present in the export of sunflower seeds (+ 42%), hardware components (+ 13%) and integrated circuits (+ 10%). Last year it was available increase in imports by 5.1% (USD 359.1 million), caused mainly by purchases of crude petroleum oils against the background of zero volumes for the previous year. Among the main positions in our import list from the USA there is a more significant decrease in the import of polymers of vinyl chloride (-61%), passenger cars (-17%) and integrated circuits (-16%).

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