trade liberalization and global trade since 1996 an … · trade liberalization and global trade...

WTO Symposium on the 15th Anniversary of the Information Technology Agreement (15 May 2012)

Trade liberalization and global trade since 1996

An Overview

Andreas Maurer

Economic Research and Statistics Division

World Trade Organization


Outline

Coverage

Tariffs

Trade flows

Global Production Networks

Summary

2


ITA Main Product Categories

3


4

Average applied tariffs on IT products prior to the ITA

0

5

10

15

20

25

30

35

40

Ind

ia

Kore

a, R

ep

New

Ze

ala

nd

Phili

ppin

es

Ch

inese

Taip

ei

Co

sta

Ric

a

Turk

ey

Euro

pe

an

Unio

n

Cana

da

United

Sta

tes

Austr

alia

El S

alv

ad

or

No

rwa

y

Ja

pa

n

Ma

ca

o,

Chin

a

Sin

ga

po

re

HK

G, C

hin

a

Ma

uritiu

s

Egyp

t

Mo

rocco

Pan

am

a

UA

E

Bah

rain

Dom

inic

an R

ep

Gua

tem

ala

Hond

ura

s

Nic

ara

gua

Kuw

ait

Peru

Vie

t N

am

Sau

di A

rab

ia

Ch

ina

Ukra

ine

%

Original participants

Joined in 1998 onwards

Joined during WTO

accession

Source: WTO Secretariat, based on Integrated Data Base (IDB) data.

Tariffs


Bound and latest applied tariffs for non-participants

0

5

10

15

20

25

30

35

40

45

Data storage media &software

Instruments &apparatus

Parts & accessories Semi-conductors Telecommunications Semi-conductormanuf eqpt

Computers

%

Bound

Applied

Source: WTO Secretariat, based on WTO schedules, CTS and IDB databases.

5

Tariffs


Source: WTO Secretariat, based on UN Comtrade and WTO estimates

6

Trade flows

The expansion of world exports of IT products and other manufactures, 1996-2010

(indexes, 1996=100)


Share of IT products in world merchandise exports, 2010

Source: WTO Secretariat, based on UN Comtrade and WTO estimates.

7

Trade flows


Source: WTO Secretariat, based on UN Comtrade, WTO estimates and US Bureau of Labor Statistics.

Share of IT products in exports of manufactures and price index of US imports of computers, peripherals and semiconductors

8

Trade flows



World exports of IT products, by product category

9

Trade flows

ITA 1 Computers

and calculating machines

28%

ITA 2 Telecommuni

cations equipment

9%

ITA 3 Semiconducto

rs 28%

ITA 4 Semi-conductor

manufacturing equipment

1%

ITA 5 Other instruments

and apparatus

3%

ITA 6 Data storage

media and software provided

on physical media

3%

ITA 7 Parts & accessories

28%

1996 ITA 1

Computers and

calculating machines

22%

ITA 2 Telecommuni

cations equipment

16%

ITA 3 Semi-conductors

33%

ITA 4 Semic. Manuf. Equip.

1%

ITA 5 Other instruments

and apparatus

3%

ITA 6 Data storage

media and software

provided on physical media

2%

ITA 7 Parts & accessories

24%

2010

+5

-6 -4

+7



Exports of IT products by economic and geographic region

10

Trade flows

0% 20% 40% 60% 80% 100%

1996

2005

2010

Developing economies Developed economies and CIS

0%

20%

40%

60%

80%

100%

1996 2005 2010

Asia Europe North America All other regions

31%

50%

64%

44%

66%


11

Source: WTO Secretariat, based on UN Comtrade, WTO estimates and US Bureau of Labor Statistics.

Leading exporters of IT products: shares in world exports of IT products

Trade flows

EU (15), 31

USA, 20 Japan, 15

Singapore, 7

Chinese Taipei, 6

Korea, Rep. of, 5

Malaysia, 4

Canada, 2

China, 2

Others, 9

China, 27

EU (27), 19

USA, 9 Singapore,

9

Chinese Taipei, 7

Korea, Rep. of, 7

Japan, 6

Malaysia, 4

Mexico, 3

Others, 8

1996 2010

+25 percentage points


Top 10 intermediate goods traded: Japan, 2010

12

Global production networks

0 1 2 3 4 5 6 7 8

Monolithic integrated circuits

Transmissions for motor vehicles

Parts of printing machinery andancillary equipment

Motor vehicle parts nes

Photosensitive/photovoltaic/LEDsemiconductor devices

Parts for spark-ignition enginesexcept aircraft

Parts for radio/tv transmit/receiveequipment, nes

Parts of machines and mechanicalappliances nes

Chemical prep, allied in

Electrical switch, protector, connecterfor < 1kV nes

0 1 2 3 4 5 6 7 8


Iron ore, concentrate, not ironpyrites,unagglomerated

Copper ores and concentrates

Parts for radio/tv transmit/receiveequipment, nes

Parts and accessories of dataprocessing equipment nes

Maize except seed corn

Aluminium unwrought, not alloyed

Parts of line telephone/telegraphequipment, nes

Ignition/other wiring sets forvehicles/aircraft/ship

Antisera and other blood fractions

Imports Exports

Source: UN Comtrade database.


Top 10 intermediate goods traded: China, 2010

13


0 1 2 3 4 5 6


Parts of linetelephone/telegraph equipment,

nes


Photosensitive/photovoltaic/LED semiconductor devices

Electronic printed circuits

Parts for radio/tvtransmit/receive equipment, nes

Parts of printing machinery andancillary equipment

Taps, cocks, valves and similarappliances, nes

Structures and parts ofstructures, iron or steel, nes

Electric conductors, nes < 80volts, with connectors

0 5 10 15 20


Iron ore, concentrate, not ironpyrites,unagglomerated

Soya beans

Copper cathodes and sections ofcathodes unwrought


Parts of line telephone/telegraphequipment, nes

Copper ores and concentrates

Copper/copper alloy waste or scrap

Electronic printed circuits

Transmissions for motor vehicles

Imports Exports

Source: UN Comtrade database


Case studies: smartphones

Nokia N95: cost breakdown,

2007

Source: Ali-Yrkkö, J., Rouvinen, P., Seppälä, T., Ylä-Anttila, P.

(2011). “Who Captures Value in Global Supply Chains? Case

Nokia N95 Smartphone”, Journal of Industry, Competition and

Trade, 11(3): 263-278.

Notes: 1 Value added in Nokia’s internal support function,

excluding operating profits and assembly listed in the table.

14


33%


Share of VS in office, accounting and computing machinery, 2005

Source: WTO estimates, based on OECD 2005 input-output tables.

Notes: For India, 2003-04 fiscal year.

15



Case studies: smartphones US trade balance in iPhones, 2009

Source: WTO/IDE-JETRO (2011), Trade Patterns and Global Value Chains in East

Asia: From Trade in Goods to Trade in Tasks, Geneva: WTO.

16



Are developed country jobs relocating to developing countries?

Source: R. Stehrer and T. Ward (2012), «Study on ‘Monitoring of Sectoral

Employment», Final Report, European Commission, Table 3.2.2.

17



Trade of IT products

Source: UN Comtrade database

China India

18



India: software services exports

Source: Reserve Bank of India.

Notes: *WTO estimates; software services cover computer

services (IT services and software development), IT-enabled

services and business process outsourcing.

19



To summarise

Trade in ITA products almost tripled in the last 16 years, changing trade patterns in terms of main traders and products. Developing countries' share is now at 64 per cent of exports…Semiconductors are the largest ITA product group, followed by computers and telecom. equipment.

Many finished electronic products are produced in GPNs. This makes the elimination of tariffs and other barriers to trade, as well as good infrastructure services and trade facilitation, ever more important.

Supply chains can be disrupted through protectionist policies. The smooth functioning of GPNs requires strengthened global governance.

20


Thank You!

trade liberalization and global trade since 1996 an … · trade liberalization and global trade...

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