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Business / Qatar Business

Qatar-US trade volume stood at QR1.66bn in January

Published: 05 Apr 2020 - 08:43 am | Last Updated: 06 Nov 2021 - 12:26 am
File photo used for representation

File photo used for representation

By Mohammad Shoeb | The Peninsula

Bilateral trade between Qatar and the US has continued to maintain its growth momentum (year-on-year) in January 2020. The combined value of two-way trade exchange of goods between the two countries reached QR1.66bn ($456.4m), up 4.8 percent compared to QR1.58bn ($435.4m) recorded for the corresponding month last year (January 2019), official data show. 

The US trade surplus against Qatar in January 2020 stood at nearly QR990m ($271.7m), which is a remarkable growth compared to the same month last year. In January 2019, the US had reported a trade deficit of QR521m ($143.2m) against Qatar, which was a rare exception as trade balance between the two countries is always in favour of the US over the last several years, given the fact it (the US) is one of Qatar’s leading import destinations. 

According to the latest data published by the US Census Bureau on its website, in January 2020 the US exported goods worth $364.1m to Qatar, and its imports from energy-rich Gulf state has declined to $92.3m compared with $289.3m in the same month a year ago (January 2019). The sharp decline in US imports from Qatar can be attributed to its shale gas revolution which made the US, the world’s largest energy consumer, self-reliant in terms of the production of oil, gas and other petroleum products.  However, both the countries have been working aggressively over the past few years to further deepen and strengthen trade and economic cooperation in new areas, which resulted in the significant jump in trade volume in 2019. 

The Qatar-US bilateral trade volume reached at all time high in 2019 breaching the previous peak level recorded in 2014. The total value of goods exchanged between the two countries during the year jumped to nearly QR30bn ($8.15bn), registering a double-digit growth of 36 percent (year-on-year) compared to QR21.84bn ($5.99bn) in 2018, latest official data show.  

The US trade surplus against Qatar in 2019 reached at QR17.34bn ($4.76bn), the all time high, registering a sharp jump of 67 percent compared to QR10.4bn ($2.85bn) for the corresponding period previous year (2018). 

The total value of US exports of goods to Qatar in 2019 stood at QR23.52bn ($6.46bn)—all time high—, while its imports from Qatar reached at QR6.15bn ($1.69bn) (second highest ever), and slightly higher compared to $1.57bn in 2018. 

The remarkable growth in annual bilateral trade volume in 2019 can be attributed to significant surge in US exports of goods to Qatar, especially during the last two months of the year. The combined value of US exports of goods for November ($773.5m) and December ($1.39bn) stood at QR7.88bn ($2.16bn).   

The exceptional exchange of goods in 2019 breached the previous peak trade volume which was recorded in 2014. The bilateral trade volume in 2014 had reached at $6.91bn (QR25.16bn) with US exports to Qatar at $5.17bn and imports at $1.74bn. The US trade surplus with Qatar in 2014 had stood at $3.43bn. When compared to 2014 figures, the trade volume in 2019 was nearly 18 percent higher. 

The US exports to Qatar constitute a major part of the local economy, while the US continue to heavily export advanced technologies such as commercial aircraft, vehicles, heavy equipment, satellite and communications equipment.

The US is also a leading investor in Qatar’s oil and gas sector helping produce more than two thirds of the country’s LNG output. The bilateral trade and economic cooperation is expected to reach new highs with a significant jump in trade volumes in the coming years as both sides are working very closely and aggressively to expand and deepen the relationship in new areas, including more cooperation in small and medium-sized enterprises (SMEs) sector.