Global Value Chains and Development

Jonathan T. Fried

Ambassador and Permanent Representative of Canada to the WTO

Regional and Global Supply Chains

Total

$179

Korea: $23

(13%)

Germany: $30

(17%)

Others: $48

(27%)

Value of Components and Labour of an iPod

Assembled in China

Total

$179

Japan: $61

(34%)

Korea: $23

(13%)

Others: $48

(27%)

Germany: $30

(17%)

China: $7

(3.6%)

Supply Chain for Airbus A400M Belgium

France

Germany

Spain

Turkey

UK

1

Regional and Global Supply Chains

2

Initial destinations of Asia’s exports

Asia45.5%

Elsewhere55.5%

More than half of Asia’s exports go

directly to the rest of the world

Initial destinations and uses of Asia’s

exports

Regional and Global Supply Chains

2

Asia final demand13.3%

Elsewhere final demand26.0%

Inputs for further production32.2%

Inputs to further production28.5%

But exports within Asia are often inputs for further production

Regional and Global Supply Chains

2

Finaldestinations of Asia’s exports

Ultimately, almost ¾ of Asia exports are destined for non-

Asian markets

Asia final demand28.9%

Non-Asia final demand71.1%

Supply Chains and Vertical Specialization

Vertical Specialization of G20 (1995 vs. 2009)

3

Trade and Development: Aid for Trade

0

10

20

30

40

50

60

2002-05avg.

2006-08avg.

2009-11avg.

2012 2013 2006-08avg.

2009-11avg.

2012 2013

USD billion(2013 constant)

Trade Policy & Regulations Economic Infrastructure Building Productive Capacity

Commitments Disbursements

Source: OECD‐DAC/CRS aid activity database

4

Trade and Development: Aid for Trade

Development Finance to Developing and Transition Economies

(USD Billions)

5

Aid for Building Productive Capacity(USD Millions, 2011 Constant Prices)

Source: UNCTAD: World Investment Report (2014) 

Source: Aid for Trade at a Glance 2013 (OECD and WTO), 2013

6

Regional and Bilateral FTAs

Regional and Bilateral FTAs

6

A World of Regional Blocs…

7

… or a Multilateral World

8