North Korea remains one of the world’s most isolated countries. With an abysmal human rights record and crushing economic sanctions, the nation is kept at arms-length by more developed nations. However, this does not stop the country from having active export relations with over 50 countries, including some of the world’s largest exporters.
According to the Observatory of Economic Complexity (OEC), in 2017, North Korea’s exports totaled $3.5 billion. Its top export products were mineral fuels, apparel, machinery, iron, and fish. Its biggest export markets were China, India, Thailand, the United Arab Emirates, and Kuwait. No surprise, the vast majority of North Korea’s exports went to China at $2.7 billion, more than three-quarters of the total.
North Korea’s main exports consist of raw metal materials, such as minerals, ore, anthracite coal, and metal scrap. It also exports a range of manufactured goods, including textiles, electronics, and machinery. Its exports to most countries are extremely small, suggesting a highly limited trade relationship. Even exports to Russia, which is a close ally of North Korea, totaled only $64 million.
The United States is also a major North Korea trade partner, despite the existing sanctions. In 2017, North Korea’s exports to the US accounted for just $1.17 million. The overwhelming majority of North Korean exports to the US are agricultural products. Seafood — such as tuna and crab — and tobacco are among the top imports into the US from the nation.
Exports from North Korea are also significant because they support the nation’s large weapons and nuclear program. A significant portion of its exports are small arms and related military hardware, sold to countries such as Myanmar, Eritrea, and Syria. It is estimated that these exports represent between 10 and 20 percent of North Korea’s total exports.
Although the nation’s exports are mostly limited to a handful of countries, it does have some significant trade partners. The two biggest of these are China and India. Together, the two countries make up more than 80 percent of North Korea’s exports. North Korean exporters have gained a foothold in the Chinese consumer market, producing a range of apparel and consumer electronics items.
In India, North Korea has a long history of exports. In 2017, North Korean exports to India totaled $247 million. Most of these exports were in the form of rice and other agricultural products, such as vegetable and animal oils, and fruits. This export relationship reflects the country’s need to import food to meet its domestic needs.
Wages and Working Conditions
Another factor contributing to North Korea’s exports is the low wages and working conditions that employees and laborers must endure. In North Korea, the national average salary is estimated to be around $2,750 a year. This is far below the amounts that laborers in other countries can make and is one of the reasons why the nation’s exports are often so cheap.
Furthermore, most of North Korea’s exports are handled by laborers, who suffer from forced labor and poor working conditions. Human rights groups have documented instances of apprentices being forced to work in overseas factories and of workers being held in overcrowded factory dormitories. Wages are rarely paid and there is little chance that any number of grievances will be heard.
To many consumers in China, India, and elsewhere, North Korean exports are attractive because they are typically very cheap. Unfortunately, this low cost comes at the expense of workers in the nation who are unable to benefit from the profits of their labor.
Global Sanctions
The effects of global sanctions on North Korea’s exports have been far-reaching. North Korea’s exports have declined by nearly 40 percent since 2017 and some reports indicate that the nation’s trade activity has all but halted.
In addition to economic sanctions, the US Treasury Department has imposed a blanket ban on all financial transactions with North Korea and restricted US citizens from traveling to the nation. This effectively cuts off any economic links between North Korea and the US and its allies.
The United Nations has also recently imposed a ban on North Korean exports of coal, iron, and seafood. This ban was imposed in response to the nation’s nuclear activities and is expected to cost the nation $1 billion a year in lost revenue.
The impact of these sanctions on North Korea’s exports has been stark. Even before the sanctions, North Korea’s exports were limited. With these added restrictions, it is likely that the nation’s exports will continue to decline in the near future.
Overseas Trade Partners
Despite the international sanctions, North Korea still has some overseas trade partners. The country exports to multiple countries in South East Asia and Europe, including Russia and the United Kingdom. Japan, once one of the nation’s biggest trading partners, has since pulled out of any trade ties with the nation following nuclear tests in 2006.
North Korea also has trade ties with several African nations, including Sudan. Sudan was once one of North Korea’s main trading partners and has since continued to buy military hardware from the nation.
Recently, North Korea has also sought to expand its trade links with nearby countries. China and South Korea are both potential trading partners and North Korean companies have already begun to export items such as seafood and apparel to these countries.
Although North Korea is unlikely to become a major trading partner anytime soon, its current trade activity reveals the country’s reliance on foreign markets for essential goods and services. Without these trading partners, it is likely that the nation’s economy would collapse.
The Impact of Expanding Sanctions
In the near future, North Korea’s exports are likely to continue to decline as the US and its allies continue to tighten sanctions against the nation. This could create significant shortages of essential goods, such as food and medicine, that the country is already struggling to provide. The chances of a humanitarian disaster increase with each new round of sanctions.
Furthermore, the increasing isolation of the nation could create a situation where the ruling regime loses control of the situation and an uprising ensues. North Korea experts warn that this could lead to even more dire consequences and increase the risk of a regional conflict.
The international community must take measures to ensure that the sanctions in place are not too severe and that North Korea’s trading partners are able to benefit from the activities of North Korean exporters. Negotiations are the only way forward for a peaceful resolution of this conflict.
Trade Relations and Regional Stability
It is important that any restrictions on North Korea’s exports do not impede the nation’s chances of developing closer trade relations with other states. Many of these countries, such as China and India, are essential partners for North Korea if it hopes to revive its economy and provide essential goods and services to its people.
The governments of these countries are also likely to be willing to work with North Korea if it can demonstrate that its goods and services are in demand globally. This will help to strengthen the North Korean economy and encourage other companies to invest in the nation.
Finally, North Korea’s exports are also important for maintaining regional stability. North Korean goods and services, or the lack thereof, in countries such as China have a direct effect on the political and economic dynamics in the region.
If North Korea is able to establish closer trading relationships with its neighbors, it will ultimately increase the chances of a peaceful resolution of the current crisis. It is up to the international community to ensure that North Korea’s exports are facilitated and its trade partners are able to benefit from the activities of North Korean exporters.
Preserving Cultural Identity
Given the increasingly volatile situation in North Korea, it is more important than ever for the nation to be able to preserve its cultural identity and maintain a sense of unity among its people. North Korea’s exports, particularly those of apparel and other consumer goods, provide an important opportunity for the nation to showcase its unique cultural heritage and preserve it for future generations.
For example, North Korea’s textile industry is well known for its intricate embroidery and use of traditional materials. By exporting these goods, North Korea’s textile workers are able to showcase their skills and help to preserve the nation’s cultural heritage.
Furthermore, North Korea’s exports provide an important source of revenue for the nation and act as a way to offset the impact of international sanctions. By allowing North Korea to access foreign markets, the government and its people are provided with a much needed source of income, helping to ease the effects of the sanctions imposed on the nation.
Minimizing Human Suffering
The impact of North Korea’s exports on its employees and laborers should not be overlooked. Many of the workers are subject to grueling working conditions and poor wages. It is essential that international organizations and governments take measures to ensure that these workers are protected and paid a fair wage.
The international community must also take action to ensure that overseas labor sourced from North Korea comply with international labor laws and standards. This includes providing access to health care and protecting workers from exploitation.
Furthermore, North Korea’s government must also take steps to ensure that workers and laborers in the nation are protected and paid a fair wage. This will help to minimize the human suffering and ensure that North Korean workers are able to benefit from the export of goods and services.
The future of North Korea’s exports remains uncertain. As international sanctions remain in place and the nation continues to isolate itself from the global economy, the chances of North Korea becoming a major exporter of goods and services diminish. However, with closer involvement of the international community and the facilitation of trading activities, it is possible that North Korea can begin to play a more significant role in the global economy.
