16/01/2013 - Business competitiveness and export performance are increasingly tied to countries’ integration into global production chains and a willingness to open markets to wider imports, according to preliminary international trade data released today by the OECD and the WTO.
The joint OECD – WTO Trade in Value-Added Initiative breaks with conventional measurements of trade, which record gross flows of goods and services each time they cross borders. It seeks instead to analyse the value added by a country in the production of any good or service that is then exported, and offers a fuller picture of commercial relations between nations.
“Countries’ capacity to sell to the world depends on their ability and readiness to buy from the rest of the world,” OECD Secretary General Angel Gurria said during the launch of the new database in Paris with WTO Director-General Pascal Lamy, EU Trade Commissioner Karel de Gucht and New Zealand Trade Minister Tim Groser. Read the full speech.
“Our new work with the WTO allows us to see more clearly than ever before how blocking imports will damage a country’s own competitiveness. Trade negotiations have to catch up to these new realities, and countries need to implement policies that help their firms better manage their place in international value chains.”
The first release from the OECD-WTO database offers new insights on how global value chains impact trade relationships and business activity. Among the key findings are:
The new indicators of trade in value-added are derived from global input-output tables, developed by the OECD, which describe interactions between industries and consumers for 58 economies, reflecting 95% of global output. The database can be accessed via the OECD's website and through WTO's data portal.
For more information on the methodology behind the TIVA database, indicators and future plans, as well as country notes see: www.oecd.org/trade/valueadded.