Technical notes - World Trade Organization · Technical notes composition of regions and other...

world Trade reporT 2010

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Technical notescomposition of regions and other economic groupingsRegionsnorth America Bermuda Canada* Mexico* UnitedStatesof

America*

Otherterritoriesintheregionnotelsewherespecified(n.e.s.)

south and central America and the caribbean AntiguaandBarbuda* Brazil* Ecuador* Jamaica* SaintLucia*

Argentina* Chile* ElSalvador* NetherlandsAntilles SaintVincentandtheGrenadines*

Bahamas** Colombia* Grenada* Nicaragua* Suriname*

Barbados* CostaRica* Guatemala* Panama* TrinidadandTobago*

Belize* Cuba* Guyana* Paraguay* Uruguay*

Bolivia* Dominica* Haiti* Peru*

BolivarianRep.ofVenezuela*

DominicanRepublic* Honduras* SaintKittsandNevis*

Otherterritoriesintheregionn.e.s.

europe Andorra** Denmark* Iceland* Montenegro** Slovenia*

Austria* Estonia* Ireland* Netherlands* Spain*

Belgium* Finland* Italy* Norway* Sweden*

BosniaandHerzegovina**

France* Latvia* Poland* Switzerland*

Bulgaria* FYRMacedonia* Liechtenstein* Portugal* Turkey*

Croatia* Germany* Lithuania* Romania* UnitedKingdom*

Cyprus* Greece* Luxembourg* Serbia**

CzechRepublic* Hungary* Malta* SlovakRepublic*


commonwealth of Independent states (cIs) a Armenia* Georgiaa Moldova* Turkmenistan

Azerbaijan** Kazakhstan** RussianFederation** Ukraine*

Belarus** KyrgyzRepublic* Tajikistan** Uzbekistan**


Africa

Algeria** Congo* Guinea* Morocco* SouthAfrica*

Angola* Congo,Dem.Rep.of* Guinea-Bissau* Mozambique* Sudan**

Benin* Côted’Ivoire* Kenya* Namibia* Swaziland*

Botswana* Djibouti* Lesotho* Niger* Tanzania*

BurkinaFaso* Egypt* Liberia** Nigeria* Togo*

Burundi* EquatorialGuinea** LibyanArabJamahiriya** Rwanda* Tunisia*

Cameroon* Eritrea Madagascar* SãoToméandPríncipe** Uganda*

CapeVerde* Ethiopia** Malawi* Senegal* Zambia*

CentralAfricanRepublic* Gabon* Mali* Seychelles** Zimbabwe*

Chad* Gambia* Mauritania* SierraLeone*

Comoros** Ghana* Mauritius* Somalia


middle east Bahrain* Israel* Lebanon** SaudiArabia* Yemen**

Iran,IslamicRep.of** Jordan* Oman* SyrianArabRepublic**

Iraq** Kuwait* Qatar* UnitedArabEmirates*


Asia Afghanistan** HongKong,China* Malaysia* PapuaNewGuinea* Tonga*

Australia* India* Maldives* Philippines* Tuvalu

Bangladesh* Indonesia* Mongolia* Samoa** Vanuatu**

Bhutan** Japan* Myanmar* Singapore* VietNam*

*WTOmembers

**ObservergovernmentsaGeorgiaisnotamemberoftheCommonwealthofIndependentStatesbutisincludedinthisgroupforreasonsofgeographyandsimilaritiesineconomicstructure.

tecHnIcAL notes

241

composition of regions and other economic groupings (cont’d)RegionsAsia(cont’d)BruneiDarussalam* Kiribati Nepal* SolomonIslands*

Cambodia* Korea,Republicof* NewZealand* SriLanka*

China* LaoPeople’sDem.Rep.** Pakistan* Taipei,Chinese*

Fiji* Macao,China* Palau Thailand*


OtherGroupsAcP (African, caribbean and Pacific countries) Angola Côted’Ivoire Haiti Niger SouthAfrica

AntiguaandBarbuda Cuba Jamaica Nigeria Sudan

Bahamas Djibouti Kenya Niue Suriname

Barbados Dominica Kiribati Palau Swaziland

Belize DominicanRepublic Lesotho PapuaNewGuinea TimorLeste

Benin EquatorialGuinea Liberia Rwanda Togo

Botswana Eritrea Madagascar SaintKittsandNevis Tonga

BurkinaFaso Ethiopia Malawi SaintLucia TrinidadandTobago

Burundi Fiji Mali SaintVincentandtheGrenadines

Tuvalu

Cameroon Gabon MarshallIslands Samoa Uganda

CentralAfricanRepublic

Gambia Mauritania SãoToméandPríncipe UnitedRepublicofTanzania

Chad Ghana Mauritius Senegal Vanuatu

Comoros Grenada Micronesia Seychelles Zambia

Congo Guinea Mozambique SierraLeone Zimbabwe

Congo,Dem.Rep.of Guinea-Bissau Namibia SolomonIslands

CookIslands Guyana Nauru Somalia

Africa North Africa

Algeria Egypt LibyanArabJamahiriya Morocco Tunisia

Sub-Saharan Africa

Western Africa

Benin Gambia Guinea-Bissau Mauritania Senegal

BurkinaFaso Ghana Liberia Niger SierraLeone

CapeVerde Guinea Mali Nigeria Togo

Côted’Ivoire

Central Africa

Burundi CentralAfricanRepublic Congo EquatorialGuinea Rwanda

Cameroon Chad Congo,Dem.Rep.of Gabon SãoToméandPríncipe

Eastern Africa

Comoros Ethiopia Mauritius Somalia Tanzania

Djibouti Kenya Seychelles Sudan Uganda

Eritrea Madagascar

Southern Africa

Angola Lesotho Mozambique SouthAfrica Zambia

Botswana Malawi Namibia Swaziland Zimbabwe

TerritoriesinAfricanotelsewherespecified

Asia East Asia (including Oceania):

Australia Indonesia Malaysia Samoa Tuvalu

BruneiDarussalam Japan Mongolia Singapore Vanuatu

Cambodia Kiribati Myanmar SolomonIslands VietNam

China Korea,Rep.of NewZealand Taipei,Chinese

Fiji LaoPeople’sDem.Rep. PapuaNewGuinea Thailand

HongKong,China Macao,China Philippines Tonga

West Asia:

Afghanistan Bhutan Maldives Pakistan SriLanka

Bangladesh India Nepal

OthercountriesandterritoriesinAsiaandthePacificnotelsewherespecified

*WTOmembers


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composition of regions and other economic groupings (cont’d)OtherGroupsLDcs (Least-developed countries) Afghanistan Comoros Kiribati Myanmar Sudan

Angola Congo,Dem.Rep.of LaoPeople’sDem.Rep. Nepal TimorLeste

Bangladesh Djibouti Lesotho Niger Togo

Benin EquatorialGuinea Liberia Rwanda Tuvalu

Bhutan Eritrea Madagascar Samoa Uganda

BurkinaFaso Ethiopia Malawi SãoToméandPríncipe UnitedRepublicofTanzania

Burundi Gambia Maldives Senegal Vanuatu

Cambodia Guinea Mali SierraLeone Yemen

CentralAfricanRepublic Guinea-Bissau Mauritania SolomonIslands Zambia

Chad Haiti Mozambique Somalia

RegionalIntegrationAgreementsAndean community (cAn) Bolivia Colombia Ecuador Peru

AseAn (Association of south east Asian nations) / AFtA (AseAn Free trade Area) BruneiDarussalam Indonesia Malaysia Philippines Thailand

Cambodia LaoPeople’sDem.Rep. Myanmar Singapore VietNam

cAcm (central American common market) CostaRica ElSalvador Guatemala Honduras Nicaragua

cARIcom (caribbean community and common market) AntiguaandBarbuda Belize Guyana Montserrat SaintVincentandthe

Grenadines

Bahamas Dominica Haiti SaintKittsandNevis Suriname

Barbados Grenada Jamaica SaintLucia TrinidadandTobago

cemAc (economic and monetary community of central Africa) Cameroon Chad Congo EquatorialGuinea Gabon

CentralAfricanRepublic

comesA (common market for eastern and southern Africa) Burundi Egypt LibyanArabJamahiriya Rwanda Uganda

Comoros Eritrea Madagascar Seychelles Zambia

Congo,Dem.Rep.of Ethiopia Malawi Sudan Zimbabwe

Djibouti Kenya Mauritius Swaziland

eccAs (economic community of central African states) Angola CentralAfricanRepublic Congo,Dem.Rep.of Gabon SãoToméandPríncipe

Burundi Chad EquatorialGuinea Rwanda

Cameroon Congo

ecoWAs (economic community of West African states) Benin Côted’Ivoire Guinea Mali Senegal

BurkinaFaso Gambia Guinea-Bissau Niger SierraLeone

CapeVerde Ghana Liberia Nigeria Togo

eFtA (european Free trade Association) Iceland Liechtenstein Norway Switzerland

european union (27) Austria Estonia Ireland Netherlands Spain

Belgium Finland Italy Poland Sweden

Bulgaria France Latvia Portugal UnitedKingdom

Cyprus Germany Lithuania Romania

CzechRepublic Greece Luxembourg SlovakRepublic

Denmark Hungary Malta Slovenia

Gcc (Gulf cooperation council) Bahrain Oman Qatar SaudiArabia UnitedArabEmirates

Kuwait

meRcosuR (southern common market) Argentina Brazil Paraguay Uruguay

nAFtA (north American Free trade Agreement) Canada Mexico UnitedStates

sAPtA (south Asian Preferential trade Arrangement) Bangladesh India Nepal Pakistan SriLanka

Bhutan Maldives

tecHnIcAL notes

243

composition of regions and other economic groupings (cont’d)RegionalIntegrationAgreementssADc (southern African Development community) Angola Lesotho Mauritius SouthAfrica Zambia

Botswana Madagascar Mozambique Swaziland Zimbabwe

Congo,Dem.Rep.of Malawi Namibia UnitedRepublicofTanzania

WAemu (West African economic and monetary union) Benin Côted’Ivoire Mali Senegal Togo

BurkinaFaso Guinea-Bissau Niger

WTOmembersarefrequentlyreferredtoas“countries”,althoughsomemembersarenotcountriesintheusualsenseofthewordbutareofficially“customsterritories”.The definition of geographical and other groupings inthis reportdoesnot implyanexpressionofopinionbytheSecretariatconcerningthestatusofanycountryorterritory, thedelimitationof its frontiers,nor therightsandobligationsofanyWTOmemberinrespectofWTOagreements. The colours, boundaries, denominationsandclassificationsinthemapsofthepublicationdonotimply, on the part of the WTO, any judgement on thelegalorotherstatusofanyterritory,oranyendorsementoracceptanceofanyboundary.

Throughoutthisreport,SouthandCentralAmericaandthe Caribbean is referred to as South and CentralAmerica. The Bolivarian Republic of Venezuela; HongKong Special Administrative Region of China; theRepublicofKorea;andtheSeparateCustomsTerritoryofTaiwan,Penghu,KinmenandMatsuare referencedas Bolivarian Rep. of Venezuela; Hong Kong, China;Korea,Republicof;andTaipei,Chineserespectively.


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Glossary 1

Autarky:Thesituationofnotengagingininternationaltrade;self-sufficiency.

Comparative advantage:Theabilitytoproduceagoodatlowercost,relativetoothergoods,comparedtoanothercountry.InaRicardianmodel,comparisonisofunitlabourrequirements;moregenerallyitisofrelativeautarkyprices.

Correlation:Ameasureoftheextenttowhichtwoeconomicorstatisticalvariablesmovetogether,normalizedsothattheirvaluesrangefrom-1to+1.Thecorrelationisusedintradetheorytoexpressweakrelationshipsamongeconomicvariables.

Demand Shock:Ashockonthedemandsideofamarket.Thusanunexpectedshift,upordown,inthedemandcurve.

Economies of scale:Seeincreasingreturnstoscale.

Elasticity:Ameasureofresponsivenessofoneeconomicvariabletoanother–usuallytheresponsivenessofquantitytopricealongasupplyordemandcurve.

Exchange rate:Thepriceatwhichonecountry’scurrencytradesforanother,typicallyontheexchangemarket.

Externality:Aneffectofoneeconomicagent’sactionsonanotherwhichisnottransmittedthroughprices,suchthatoneagent’sdecisionsmakeanotherbetterorworseoffbychangingtheirutilityorcost.Beneficialeffectsarepositiveexternalities;harmfulonesarenegativeexternalities.Inthepresenceofexternalities,marketpricesdonotreflectthefullcostorbenefitofproducingorconsumingagood.

Factor of production:Aninputthatexistsasastockprovidingservicesthatcontributetoproduction.Thestockisnotusedupinproduction,althoughitmaydeterioratewithuse,providingasmallerflowofserviceslater.Themajorprimaryfactorsarelabor,capital,humancapital(orskilledlabour),land,andsometimesnaturalresources.

Expectation(orexpectedvalue):Anticipationofthevalueofarandomvariableinfuturetimeperiods.Themathematicalexpectedvalueofarandomvariableequalsthesumofthevaluesthatarepossibleforit,eachmultipliedbyitsprobability.

Hedge:Tooffsetrisk.

Increasing/decreasing returns to scale:Apropertyofaproductionfunctionsuchthatchangingallinputsbythesameproportionchangesoutputmore/lessthaninproportion.Underincreasingreturnstoscale(alsocalledeconomiesofscale)averagecostsdecreaseasoutputincreases.Economiesofscaletendtooccurinindustrieswithhighcapitalcostsinwhichthosecostscanbedistributedacrossalargenumberofunitsofproduction.

Inter-industry trade:Tradeinwhichacountry’sexportsandimportsareindifferentindustries.

Intra-industry trade:Tradeinwhichacountryexportsandimportsinthesameindustry,incontrasttointer-industrytrade.

Learning by doing:Referstotheimprovementintechnologyorknow-howthattakesplaceinsomeindustries,earlyintheirhistory,astheylearnbyexperience,sothataveragecostfallsasaccumulatedoutputrises.

Marginal cost:Theincreaseincostthataccompaniesaunitincreaseinoutput;thepartialderivativeofthecostfunctionwithrespecttooutput.

Marginal revenue:Theamountbywhichafirm’srevenueincreaseswhenitexpandsoutputbyoneunit,takingintoaccountthattosellonemoreunititmayneedtoreducepriceonallunits.

Monopoly:Amarketstructureinwhichthereisasingleseller.

Monopsony:Amarketstructureinwhichthereisasinglebuyer.

Oligopoly:Amarketstructureinwhichthereareasmallnumberofsellers,atleastsomeofwhoseindividualdecisionsaboutpriceorquantitymattertotheothers.

Perfect competition:Anidealizedmarketstructureinwhichtherearelargenumbersofbothbuyersandsellers,allofthemsmall,sothattheyactaspricetakers.Perfectcompetitionalsoassumeshomogeneousproducts,freeentryandexit,andcompleteinformation.

Property rights:Thelegallydefinedandenforcedrulesofownership,specifyingwhohastherighttobuy,sell,anduseanything.

Rate of return:Thepercentageofanasset’svaluethattheowneroftheassetearns,usuallyperyear.

Real exchange rate:1.Thenominalexchangerateadjustedforinflation.2.Therealpriceofforeigngoods;i.e.,thequantityofdomesticgoodsneededtopurchaseaunitofforeigngoods.Equalsthereciprocalofthetermsoftrade.3.Therelativepriceoftradedgoodsintermsofnon-tradedgoods.

Relative price:Thepriceofonegoodintermsofanother;i.e.,theratiooftwoprices.

Rent:Thepremiumthattheownerofaresourcereceivesoverandaboveitsopportunitycost.

Rent-seeking:Theusingupofrealresourcesinanefforttosecuretherightstorentsthatarisefromgovernmentpolicies.

Speculation:Thepurchaseorsaleofanasset(oracquisitionotherwiseofanopenposition)inhopesthatitspricewillriseorfallrespectively,inordertomakeaprofit.

Supply chain:Thesequenceofsteps,oftendoneindifferentfirmsand/orlocations,neededtoproduceafinalgoodfromprimaryfactors,startingwithprocessingofrawmaterials,continuingwithproductionofperhapsaseriesofintermediateinputs,andendingwithfinalassemblyanddistribution.

Supply shock:Ashockonthesupplysideofamarket.Thusanunexpectedshift,upordown,inthesupplycurve.

Terms of trade:Therelativeprice,onworldmarkets,ofacountry’sexportscomparedtoitsimports.

Vertical integration:Productionofdifferentstagesofprocessingofaproductwithinthesamefirm.

1. TheglossarydefinitionsarelargelyattributedtoDeardorff’sGlossaryofInternationalEconomics,availableonlineathttp://www-personal.umich.edu/~alandear/glossary/.

ABBRevIAtIons AnD symBoLs

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abbreviations and symbolsAC alternatingcurrentASEAN AssociationofSoutheastAsianNationsBITs bilateralinvestmenttreatiesBTU BritishthermalunitCAREC CentralAsianRegionalEconomicCooperationCECA ComprehensiveEconomicCooperationAgreementCEQ CouncilonEnvironmentalQualityCFP CommonFisheriesPolicyCIS CommonwealthofIndependentStatesCITES ConventiononInternationalTradeinEndangeredSpeciesofWildFaunaandFloraCO2 carbondioxideCPI ConsumerPriceIndexCRRA constantrelativeriskaversionCTS CouncilforTradeinServicesDC directcurrentDWFN distantwatersfishingnationdwt deadweighttonneEAEC EurasianEconomicCommunityECT EnergyCharterTreatyEEZ ExclusiveEconomicZoneEITI ExtractiveIndustriesTransparencyInitiativeEKC environmentalKuznetscurveEMH EfficientMarketHypothesisEU EuropeanUnionFAO FoodandAgricultureOrganizationFDI foreigndirectinvestmentFTAs freetradeagreementsGATS GeneralAgreementonTradeinServicesGATT GeneralAgreementonTariffsandTradeGDP grossdomesticproductGEF GlobalEnvironmentFundGFTs governmentfinancialtransfersGLindex Grubel-LloydindexGPA AgreementonGovernmentProcurementHS HarmonizedSystemICA internationalcommodityagreementIDB IntegratedDatabaseIEA InternationalEnergyAgencyIMF InternationalMonetaryFundITQs individualtransferablequotasITTA InternationalTropicalTimberAgreementkt kilotonneLNG liquifiednaturalgasLPG liquifiedpetroleumgasm³ cubicmetreMEA multilateralenvironmentalagreementMERCOSUR SouthernCommonMarketMFN most-favourednationMoU MemorandumofUnderstandingNAFTA NorthAmericanFreeTradeAgreementNRBPs naturalresource-basedproductsNTM non-tariffmeasureNYMEX NewYorkMercantileExchangeOECD OrganizationforEconomicCo-operationandDevelopmentOPEC OrganizationofthePetroleumExportingCountriesOTC over-the-counterPPMs processandproductionmethodsPTAs PreferentialtradeagreementsR&D researchanddevelopmentRFMOs RegionalFisheriesManagementOrganisationsSAFEX SouthAfricanFuturesExchangeSCMs SubsidiesandCountervailingMeasuresTAC totalallowablecatchTBT TechnicalBarrierstoTradeTIFA TradeandInvestmentFrameworkAgreementTJ terajouleToP take-or-pay


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TPR TradePolicyReviewTRIPS Trade-RelatedAspectsofIntellectualPropertyRightsUK UnitedKingdomUN UnitedNationsUNCLOS UnitedNationsConventionontheLawoftheSeaUNCTAD UnitedNationsConferenceonTradeandDevelopmentUNEP UnitedNationsEnvironmentProgrammeUNFCC UnitedNationsFrameworkConventiononClimateChangeVMS vesselmonitoringsystems

Thefollowingsymbolsareusedinthispublication:... notavailable0 figureiszeroorbecamezeroduetorounding- notapplicable$ UnitedStatesdollars€ euro£ UKpound

LIst oF FIGuRes, tABLes, Boxes AnD mAPs

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list of figures, tables, boxes and maps

I The trade situation in 2009-10

Figures

Fig.1 Volumeofworldmerchandiseexports,1965-2009 20

Fig.2 RatioofworldexportsofgoodsandcommercialservicestoGDP,1981-2009 21

Fig.3 Worldmerchandiseexportsbyregion,2007Q1-2009Q4 21

Fig.4 RealGDPandtradegrowthofOECDcountries,2008-09 22

Fig.5 Exportpricesofselectedprimaryproducts,January2000-January2010 23

Fig.6 Exportpricesofselectedprimaryproducts,2007-09 23

Fig.7 Dollarexchangeratesofselectedcurrencies,January2000-January2010 23

Fig.8 GrowthinthevolumeofworldmerchandisetradeandGDP,1999-2009 24

Fig.9 Realmerchandisetradegrowthbyregion,2009 25

Tables

Table1 Worldtradeinmanufacturedgoodsbyproduct,2008Q1-09Q4 21

Table2 GDPandmerchandisetradebyregion,2007-09 24

Table3 Worldexportsofmerchandiseandcommercialservices,2005-09 26

Table4 Worldexportsofcommercialservicesbymajorcategory,2009 27

Appendixtables

App.Table1 Worldmerchandisetradebyregionandselectedcountry,2009 28

App.Table2 Worldexportsofcommercialservicesbyregionandselectedcountry,2009 29

App.Table3 Merchandisetrade:Leadingexportersandimporters,2009 30

App.Table4 Merchandisetrade:Leadingexportersandimportersexcludingintra-EU(27)trade,2009 31

App.Table5 Leadingexportersandimportersinworldtradeincommercialservices,2009 32

Appendixfigures

App.Fig.1 Monthlymerchandiseexportsandimportsofselectedeconomies,January2006-January2010 33


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II Trade in natural resources

B. Naturalresources:Definitions,specificitiesandtradepatterns

Figures

Fig.1 MonthlyUnitedStatesoilproduction,Jan.1920-Jan.2010 48

Fig.2 Worldfisheriesproduction,1990-2007 48

Fig.3 TotalworldCO2emissionsbylevelofdevelopment,1971-2007 50

Fig.4 WorldCO2/GDPandCO2percapita,1971-2007 50

Fig.5 Nominalandrealcrudeoilprices,Jan.1970-Oct.2009 54

Fig.6 Worldnaturalresourcesexportsbyproduct,1990-2008 55

Fig.7 Worldmerchandiseexportsbyproduct,1990-2008 56

Fig.8 Worldproductionoffossilfuelsbyproduct,1970-2008 56

Fig.9 Sharesofproductgroupsinworldmerchandisetradesince1900 57

Fig.10 Naturalresourcesexportsofregionsbydestination,2008 58

Fig.11 Naturalresourcesexportsofregionsbyproduct,2008 58

tables

Table1 Countrieswiththelargestdeclinesinforestedland,1990-2005 51

Table2 Exportconcentrationandshareofnaturalresourcesinmerchandiseexports,2006 52

Table3 Grubel-Lloyd(GL)indicesforselectedeconomies,2008 53

Table4 AverageGLindicesformanufacturesandnaturalresources,2008 53

Table5 Naturalresourcesexportsbyregion,2008 57

Boxes

Box1 Iselectricityanaturalresource? 55

Box2 Theevolutionofthemarketforcrudeoiltradefromlong-termcontractstoexchangetrading 62

Box3 Chevron–acaseofverticalintegration 63

C. Tradetheoryandnaturalresources

Figures

Figure12 PerfectcompetitionandtheHotellingrule 76

Figure13 Outputandpricepathsinperfectcompetitionandmonopoly 78

Figure14 Openaccessandoptimalharvestofnaturalresources 84

Figure15 Biodiversity,ecologicalproductivityandtrade 90

Figure16 ApermanentreductioninGDPfollowingaresourceboom 93

Figure17 Realpricesofselectedcommodities,Jan.2000-Aug.09 97

Figure18 Realpricesofenergycommodities:oil,naturalgasandcoal,Jan.2000-Aug.09 98

Figure19 Realpricesofnickel,plywoodandfish,Jan.2000-July09 98

Figure20 NotionalamountsoutstandingofOTCcommodityderivatives,June1998-June2009 101

Figure21 Naturalgas–long-shortpositionsbyclassofinvestor,June2006-July09 101

Figure22 Copper–long-shortpositionsbyclassofinvestor,June2006-Aug.09 102

Figure23 UnitedStatesmonthlyoilstocksandoilprice,Jan.1986-Aug.2009 102

Figure24 Worldoilconsumptionandconsumption-to-provedreservesratio,1980-2008 103

Figure25 Worldoilrefinerycapacities,consumptionandconsumption-to-refinerycapacitiesratio,1980-2008 104


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tables

Table6 Theeffectsoftradeonthecommonaccessproblem(smallcountrycase) 91

Boxes

Box4 Virtualtradeinwater 74

Box5 Whatisarent? 77

Box6 Whyarenaturalresourcespronetocartelization? 79

Box7 Whatarepropertyrights? 82

Box8 Rentsandopenaccess 83

Box9 Theroleofdemand 85

Box10 Krugman’smodelofDutchdiseasewithlearning-by-doing 92

Box11 HowBotswanaescapedtheresourcecurse 96

Box12 Economicimplicationsofthechangingnatureofoilpriceshocks 97

Box13 Investmentincommodityfutures:providinginsurance 99

D Tradepolicyandnaturalresources

Figures

Figure26 Structureoftariffprotection,bystageofprocessing 115

Figure27 Structureoftariffprotectionindevelopedcountries,bystageofprocessing 115

Figure28 Exporttaxesbynaturalresource-upperboundestimates 116

Figure29 Exporttaxesonminingproductsbysubheading-upperboundestimates 118

Figure30 Naturalresourcesexportscoveredbyexporttaxes-upperboundestimatesforselectedcountries 119

Figure31 Theeffectofatariffonnaturalresources(staticmodel) 124

Figure32 Theeffectofatariffonnaturalresources(two-periodmodel) 125

Figure33 Theeffectofaquotainperiod1 129

Figure34 Effectofaproductiontax 133

Figure35 Effectofasubsidyontrade 135

Figure36 Overallincomegainfromregionalintegration 143

tables

Table7 Simpleaverageappliedtariffratesinnaturalresourcesectors,2007 114

Table8 Boundratesinnaturalresourcesectors,2007 115

Table9 Numberoftarifflinesaffectedbynon-tariffmeasures,bytype 116

Table10 ExportrestrictionsonnaturalresourcesnotifiedtotheWTO 119

Table11 TaxesonfuelsinOECDcountries,2008 120

Table12 Fueltaxesinnon-OECDcountries,1991 120

Table13 GovernmentfinancialtransfersbyOECDcountriestofisheries,2006 121

Table14 Fisheriessubsidiesinyear2003:developingcountriesandcustomsterritories 122

Table15 Effectoftradeliberalizationonpollutiontaxes 140

Boxes

Box14 Datalimitations–non-tariffmeasures 116

Box15 Datalimitations–exporttaxesandquantitativerestrictions 117

Box16 Investmentsinnaturalresources–acaseof“exportrestriction-jumping”FDI? 117

Box17 Datalimitations–subsidies 121

Box18 Welfareeffectsofanexporttax:thecaseofalargecountry 126

Box19 Exporttaxesasatooltoaddressresourcevolatility,dominanceandtariffescalationproblems 127


250

Box20 Exportrestrictionsinthetropicallumberindustry 131

Box21 Alpinemeadows 132

Box22 Aretheregoodsubsidies?Thecaseofvesselbuy-backschemes 135

Box23 TheCaseofCentralAsiaandtheGreatLakesRegioninAfrica 144

Box24 TheEuropeanUnion’sCommonFisheriesPolicy 146

Annex tables

AnnexTable1 Averageappliedandboundtariffratesinnaturalresourcesectors,2007 151

AnnexTable2 AppliedMFNtariffratesofprocessedproducts,2007 156

AnnexTable3 OECDgovernmentfinancialtransferstofishing 158

E Naturalresources,internationalcooperationandtraderegulation

Boxes

Box25 HistoricaloverviewofnaturalresourcesintheGATT/WTO 163

Box26 “Commercialpresence”modeofsupplyundertheGATS:Rulesrelevantforinvestmentinservices 165

Box27 GeneralexceptionsintheGATSandtheprotectionoftheenvironment 169

Box28 Whatistheeconomicrationalefortradeagreements? 184

Statisticalappendix

App.Table1 Worldprovedoilreservesbycountryandregion,2008 206

App.Table2 Leadingexportersandimportersofnaturalresourcesincludingintra-EUtrade,2008 207

App.Table3 Leadingexportersandimportersofnaturalresourcesexcludingintra-EUtrade,2008 208

App.Table4 Leadingexportersandimportersoffishincludingintra-EUtrade,2008 209

App.Table5 Leadingexportersandimportersoffishexcludingintra-EUtrade,2008 210

App.Table6 Leadingexportersandimportersofforestryproductsincludingintra-EUtrade,2008 211

App.Table7 Leadingexportersandimportersofforestryproductsexcludingintra-EUtrade,2008 212

App.Table8 Leadingexportersandimportersoffuelsincludingintra-EUtrade,2008 213

App.Table9 Leadingexportersandimportersoffuelsexcludingintra-EUtrade,2008 214

App.Table10 Leadingexportersandimportersofminingproductsincludingintra-EUtrade,2008 215

App.Table11 Leadingexportersandimportersofminingproductsexcludingintra-EUtrade,2008 216

App.Table12 Importsofnaturalresourcesbypartnerregionandsupplierformajoreconomies,2008 217

App.Map1 Netexportersoffishandfishproducts,2008orlatestyear 219

App.Map2 Netexportersofforestryproducts,2008orlatestyear 220

App.Map3 Netexportersoffuels,2008orlatestyear 221

App.Map4 Netexportersofnon-ferrousmetals,2008orlatestyear 222

App.Map5 Netexportersoforesandotherminerals,2008orlatestyear 223

App.Map6 Totalrenewablefreshwaterresourcespercapita,2008 224

App.Map7 Energyproduction/totalprimaryenergysupply(energyself-sufficiency),2007 225

App.Map8 Oilproduction/totalprimaryenergysupplyofoil(oilself-sufficiency),2007 226

App.Map9 Totalprimaryenergysupply/GDP(energyintensityofGDP),2007 227

App.Map10 Totalprimaryenergysupply/population(percapitaenergysupply),2007 228


251

wTo members(AsofendJune2010)

AlbaniaAngolaAntiguaandBarbudaArgentinaArmeniaAustraliaAustriaBahrain,KingdomofBangladeshBarbadosBelgiumBelizeBeninBoliviaBotswanaBrazilBruneiDarussalamBulgariaBurkinaFasoBurundiCambodiaCameroonCanadaCapeVerdeCentralAfricanRepublicChadChileChinaColombiaCongoCostaRicaCôted’IvoireCroatiaCubaCyprusCzechRepublicDemocraticRepublicoftheCongoDenmarkDjiboutiDominicaDominicanRepublicEcuadorEgyptElSalvadorEstoniaEuropeanUnionFijiFinlandFormerYugoslavRepublicof

MacedoniaFranceGabonTheGambiaGeorgiaGermanyGhanaGreeceGrenadaGuatemala

GuineaGuineaBissauGuyanaHaitiHondurasHongKong,ChinaHungaryIcelandIndiaIndonesiaIrelandIsraelItalyJamaicaJapanJordanKenyaKorea,RepublicofKuwaitKyrgyzRepublicLatviaLesothoLiechtensteinLithuaniaLuxembourgMacao,ChinaMadagascarMalawiMalaysiaMaldivesMaliMaltaMauritaniaMauritiusMexicoMoldovaMongoliaMoroccoMozambiqueMyanmarNamibiaNepalNetherlandsNewZealandNicaraguaNigerNigeriaNorwayOmanPakistanPanamaPapuaNewGuineaParaguayPeruPhilippinesPolandPortugalQatarRomania

RwandaSaintKittsandNevisSaintLuciaSaintVincent&theGrenadinesSaudiArabiaSenegalSierraLeoneSingaporeSlovakRepublicSloveniaSolomonIslandsSouthAfricaSpainSriLankaSurinameSwazilandSwedenSwitzerlandChineseTaipeiTanzaniaThailandTogoTongaTrinidadandTobagoTunisiaTurkeyUgandaUkraineUnitedArabEmiratesUnitedKingdomUnitedStatesofAmericaUruguayVenezuela(BolivarianRepublicof)VietNamZambiaZimbabwe


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Previous World Trade Reportstrade Policy commitments and contingency measures

2009

WORLD TRADE REPORT 2009

World Trade Report The World Trade Report is an annual publication that aims to deepen understanding about trends in trade, trade policy issues and the multilateral trading system. The theme of this year’s Report is “Trade policy commitments and contingency measures”. The Report examines the range of contingency measures available in trade agreements and the role that these measures play. Also referred to as escape clauses or safety valves, these measures allow governments a certain degree of flexibility within their trade commitments and can be used to address circumstances that could not have been foreseen when a trade commitment was made. Contingency measures seek to strike a balance between commitments and flexibility. Too much flexibility may undermine the value of commitments, but too little may render the rules unsustainable. The tension between credible commitments and flexibility is often close to the surface during trade negotiations. For example, in the July 2008 mini-ministerial meeting, which sought to agree negotiating modalities – or a final blueprint – for agriculture and non-agricultural market access (NAMA), the question of a “special safeguard mechanism” (the extent to which developing countries would be allowed to protect farmers from import surges) was crucial to the discussions. One of the main objectives of this Report is to analyze whether WTO provisions provide a balance between supplying governments with necessary flexibility to face difficult economic situations and adequately defining them in a way that limits their use for protectionist purposes. In analyzing this question, the Report focuses primarily on contingency measures available to WTO members when importing and exporting goods. These measures include the use of safeguards, such as tariffs and quotas, in specified circumstances, anti-dumping duties on goods that are deemed to be “dumped”, and countervailing duties imposed to offset subsidies. The Report also discusses alternative policy options, including the renegotiation of tariff commitments, the use of export taxes, and increases in tariffs up to their legal maximum ceiling or binding. The analysis includes consideration of legal, economic and political economy factors that influence the use of these measures and their associated benefits and costs.

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WORLD TRADE REPORT 2009 - Trade Policy Com

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Trade Policy Commitments and Contingency Measures

Cover photos (from left to right): Image copyright Quayside, 2009; Image copyright Christian Lagerek, 2009; Image copyright Guido Vrola, 2009;

The2009Reportexaminestherangeandroleofcontingencymeasuresavailableintradeagreements.Oneof theReport’smainobjectives is toanalysewhetherWTOprovisions provide a balance between supplying governments with the necessaryflexibilitytofacedifficulteconomicsituationsandadequatelydefiningtheseinawaythatlimitstheiruseforprotectionistpurposes.

trade in a Globalizing World

2008

Trade in a Globalizing World

WORLD TRADE REPORT 2008

World Trade Report The World Trade Report is an annual publication that aims to deepen understanding about trends in trade, trade policy issues and the multilateral trading system.

International trade is integral to the process of globalization. Over many years, governments in most countries have increasingly opened their economies to inter-national trade, whether through the multilateral trading system, increased regional cooperation or as part of domestic reform programmes. Trade and globalization more generally have brought enormous benefits to many countries and citizens. Trade has allowed nations to benefit from specialization and to produce more efficiently. It has raised productivity, supported the spread of knowledge and new technologies, and enriched the range of choices available to consumers. But deeper integration into the world economy has not always proved to be popular, nor have the benefits of trade and globalization necessarily reached all sections of society. As a result, trade scepticism is on the rise in certain quarters.

The purpose of this year’s Report, whose main theme is “Trade in a Globalizing World”, is to remind ourselves of what we know about the gains from international trade and the challenges arising from higher levels of integration. The Report addresses a range of interlinking questions, starting with a consideration of what constitutes globalization, what drives it, what benefits does it bring, what challenges does it pose and what role does trade play in this world of ever-growing inter-dependency. The Report asks why some countries have managed to take advantage of falling trade costs and greater policy-driven trading opportunities while others have remained largely outside international commercial relations. It also considers who the winners and losers are from trade and what complementary action is needed from policy-makers to secure the benefits of trade for society at large. In examining these complex and multi-faceted questions, the Report reviews both the theoretical gains from trade and empirical evidence that can help to answer these questions.

ISBN 978-92-870-3454-0

WORLD TRADE REPORT 2008 - Trade in a Globalizing W

orld

The 2008 Report provides a reminder of what we know about the gains frominternational trade and highlights the challenges arising from higher levels ofintegration.Itaddressesthequestionofwhatconstitutesglobalization,whatdrivesit,whatbenefitsitbrings,whatchallengesitposesandwhatroletradeplaysinthisworldofever-growinginter-dependency.

sixty years of the multilateral trading system : Achievements and challenges

2007

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2007WORLD TRADE REPORT

On1January2008themultilateral tradingsystemcelebrated its60thanniversary.TheWorldTradeReport2007celebratesthislandmarkanniversarywithanin-depthlookat theGeneralAgreementonTariffs andTrade (GATT) and its successor theWorld Trade Organization — their origins, achievements, the challenges they havefacedandwhatthefutureholds.

exploring the Links between subsidies, trade and the Wto

2006


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TheWorldTradeReport2006focusesonhowsubsidiesaredefined,whateconomictheorycantellusaboutsubsidies,whygovernmentsusesubsidies,themostprominentsectorsinwhichsubsidiesareappliedandtheroleoftheWTOAgreementinregulatingsubsidiesininternationaltrade.TheReportalsoprovidesbriefanalyticalcommentariesoncertaintopicaltradeissues.

trade, standards and the Wto

2005


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The World Trade Report 2005 seeks to shed light on the various functions andconsequencesofstandards,focusingontheeconomicsofstandardsininternationaltrade, the institutionalsetting forstandard-settingandconformityassessment,andthe roleofWTOagreements in reconciling the legitimatepolicyusesof standardswithanopen,non-discriminatorytradingsystem.

coherence

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TheWorldTradeReport2004focusesonthenotionofcoherenceintheanalysisofinterdependentpolicies:theinteractionbetweentradeandmacroeconomicpolicy,theroleofinfrastructureintradeandeconomicdevelopment,domesticmarketstructures,governance and institutions, and the role of international cooperation in promotingpolicycoherence.

trade and Development

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TheWorldTradeReport2003focusesondevelopment.Itexplainstheoriginofthisissueandoffersaframeworkwithinwhichtoaddressthequestionoftherelationshipbetweentradeanddevelopment,therebycontributingtomoreinformeddiscussion.

This report is also available inFrench and Spanish.

To order, please contact:WTO Publications

World Trade Organization154, rue de Lausanne

CH-1211 Geneva 21Tel: (41 22) 739 52 08Fax: (41 22) 739 54 58

Email: [email protected] WTO bookshop:

http://onlinebookshop.wto.org

ISBN 978-92-870-3708-4Printed in Switzerland

Report designed by Services Concept

© World Trade Organization 2010

Photo creditsCover and page 41: Souda Tandara-Stenier

Cover and page 45: Karolina Szufnara - iStockphotoCover and page 73: Montferney - Fotolia

Cover and page 113: Brad Sauter - ShutterstockCover and page 161: Christian Lagerek - ShutterstockCover and page 201: Darren J. Bradley - Shutterstock

Page 3: Jay Louvion.Page 19: choicegraphx - iStockphoto

Page 39: Martin Harvey - Getty Images

The World Trade Report is an annual publication that aims to deepen understanding about trends in trade, trade policy issues and the multilateral trading system.

The 2010 World Trade Report is split into two main parts. The first is a brief summary of the trade situation in 2009-2010. The second part focuses on the special theme of natural resources.

Website: www.wto.orgGeneral enquiries: [email protected]: +41 (0)22 739 51 11

What is the World Trade Report?

Using this report

Find out more

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World Trade Report  

The World Trade Report 2010  focuses on  trade  in natural  resources, such as fuels, forestry, mining and fisheries. The Report examines the characteristics  of  trade  in  natural  resources,  the  policy  choices available  to governments and  the  role of  international cooperation, particularly of the WTO, in the proper management of trade in this sector.  

A  key  question  is  to  what  extent  countries  gain  from  open  trade  in natural resources. Some of the issues examined in the Report include the role of trade in providing access to natural resources, the effects  of  international  trade  on  the  sustainability  of  natural  resources,  the environmental  impact of resources trade,  the so-called natural resources curse, and resource price volatility. 

The  Report  examines  a  range  of  key  measures  employed  in  natural resource  sectors,  such  as  export  taxes,  tariffs  and  subsidies,  and provides  information on  their current use.  It analyses  in detail  the effects of these policy tools on an economy and on its trading partners.  

Finally, the Report provides an overview of how natural resources fit within the legal framework of the WTO and discusses other international agreements  that  regulate  trade  in  natural  resources.  A  number  of challenges are addressed, including the regulation of export policy, the treatment of subsidies, trade facilitation, and the relationship between WTO rules and other international agreements.  

“I believe not only that there is room for mutually beneficial negotiating trade-offs that encompass

natural resources trade, but also that a failure to address these issues could be a recipe for

growing tension in international trade relations. Well designed trade rules are key to ensuring

that trade is advantageous, but they are also necessary for the attainment of objectives such as

environmental protection and the proper management of natural resources in a domestic setting.”

Pascal Lamy, WTO Director-General

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