The dramatic collapse in world trade in 2009 is, this report shows, mainly due to: the drop in demand for highly traded products; the drying up of trade finance; and the vertically integrated nature of global supply chains. Contrary to expectations, protectionist measures were relatively muted and did not play a significant part. In fact, because of their sheer size, stimulus measures may have had more impact on trade than direct trade policy measures Nevertheless, dollar for dollar, direct trade restricting measures have the most strongly negative impacts on growth and employment: a one dollar increase in tariff revenues results in a USD 2.16 drop in world exports and a USD 0.73 drop in world income.
The analyses presented here suggest that exit strategies from measures to deal with the crisis will be most effective in boosting growth and jobs if they first roll back measures that discriminate between domestic and foreign firms and those that target specific sectors. General demand stimulus measures and active labour market policies are preferable under current conditions.
Developing countries and economies can see real benefits from trade liberalisation, which can play a role in economic development and poverty alleviation.
The OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations provide guidance on the application of the “arm’s length principle”, which is the international consensus on transfer pricing, i.e. on the valuation, for tax purposes, of cross-border transactions between associated enterprises. In a global economy where multinational enterprises (MNEs) play a prominent role, transfer pricing is high on the agenda of tax administrators and taxpayers alike. Governments need to ensure that the taxable profits of MNEs are not artificially shifted out of their jurisdictions and that the tax base reported by MNEs in their respective countries reflect the economic activity undertaken therein. For taxpayers, it is essential to limit the risks of economic double taxation that may result from a dispute between two countries on the determination of an arm’s length remuneration for their cross-border transactions with associated enterprises.
After having been originally published in 1979, the OECD Transfer Pricing Guidelines were approved by the OECD Council in their original version in 1995. A limited update was made in 2009, primarily to reflect the adoption, in the 2008 update of the Model Tax Convention, of a new paragraph 5 of Article 25 dealing with arbitration, and of changes to the Commentary on Article 25 on mutual agreement procedures to resolve cross-border tax disputes. In the 2010 edition, Chapters I-III were substantially revised, with new guidance on: the selection of the most appropriate transfer pricing method to the circumstances of the case; the practical application of transactional profit methods (transactional net margin method and profit split method); and on the performance of comparability analyses. Furthermore, a new Chapter IX, on the transfer pricing aspects of business restructurings, was added. Consistency changes were made to the rest of the Guidelines.
Private financial sector investment in agriculture has increased, mainly because of current prospects for income generation, capital appreciation, and uncorrelated returns with equity markets and as a hedge against inflation. This paper surveys this investment activity and its impacts.
To what extent do governments use international standards in their technical regulations? This paper looks at the electrical household appliance, natural gas equipment and telephony sectors in Canada, Japan, Korea, Mexico, United States and the European Union.
The Development Assistance Committee (DAC) is helping to tackle the challenge of how poorer countries can benefit more from trade and jointly with the WTO OECD will review self-assessment questionnaires sent to donors and partner countries.
Links to trade-related websites for Slovenia
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2010 Classification of countries according to per capita gross national income (GNI) to determine maximum repayment term and tied aid eligibility under the Arrangement, applicable as of 29 July 2010.
Description of OECD Structural Analysis Statistics Online Database.
Export restrictions on raw materials, including commodities like metals and minerals, are not always effective in meeting policy objectives and should be subject to greater transparency, says this OECD study of recent trends in these measures.