Andreas Maurer WTO.org http://www.oecd.org/std/its/49047538.ppt

1. Made in the World
From Trade in Goods to Trade in Tasks
andreas.maurer@wto.org

2. Boeing Dreamliner 787
Source: Graphic News

3. http://online.wsj.com/article/SB1000142405274870482810457602114290241
3796.html

4. Processors, €34, 6%
Memories, €15, 3%
Integr.circuits, €32, 6%
Display, €22, 4%
Camera (5 mp), €17, 3%
Other parts, €59, 11%
Licenses, €21, 4%
Nokia’s
operating
profit, €89, 16%
Final assembly, €11, 2%
Distribution, €19, 4%
Value added
in Nokia’s
internal
support
fns, €169, 31%
(Excl. Operating profit &
assembly listed below)
Retailing, €60, 11%
Who Captures Value in Global
Supply Chains?
Case Nokia N95
Source:
Jyrki Ali-Yrkkö, Petri Rouvinen,
Timo Seppälä & Pekka Ylä-Anttila
ETLA, The Research Institute of
the Finnish Economy

5. Smiley Face
(Source: Business Week International online extra, May 16, 2005, Stan Shih on
Taiwan and China)
Higher Added-value
and Lower
Replacement
Marketing
Brand
Innovation
Design
R&D
R&D/Innovation
Centre
Value Creation
Standardisation
Added
Value
Value-added process
Global Logistics
Center
Logistics
AssemblyManufacture

7. 7
MIWI website
News
Discussion forum
MIWI publications
Upcoming/Past events
Recently submitted
articles
Feedback
Links to other websites
Stay Informed
Related
articles, documents …
Flyer
Videos

8. Trade patterns and global
value chains in East Asia :
From Trade in Goods to Trade in Tasks
andreas.maurer@wto.org

9. Global production chains – Ins and outs
International consumer demand
Export processing zones
Development of infrastructure
and technological progress
Lower applied tariffs
and trade policy incentives
Outsourcing and offshoring strategies
and FDI
Emergence of “Trade in tasks”:
Need for new statistical
measures of international trade
Global production chains
and world trade
• Dominance of trade in
intermediate goods
• Development of intra-
firm trade
• Increase of processing
trade

10. Asian economies have relatively low applied tariffs on imports
(especially on semi-processed goods)
Source: WTO

11. Export processing zones account for about 20% of total
merchandise exports of developing economies
Sources: ILO & WTO
(2006 or most recent year): economies with EPZs

12. Asia is the most attractive FDI destination
in the developing regions
Source: UNCTAD
(Billions of US$)

13. … Confirming that:
• Asia is the “World manufacturer”
• Asian supply chains boost the regional markets
• Asian economies present a high degree of industrial specialization
Key facts on Asia trade in intermediate goods …
• Asia’s share in world exports of intermediate goods increases : 35% in 2009
• Intra-Asian trade is predominant
• Asia imports more intermediate goods than it exports
• Intermediate goods traded by Asian economies are more and more sophisticated
• More and more concentrated trade on few components
Intermediate goods dominate world non-fuel
merchandise exports
Source: UNSD & WTO
2009 value
BillionsofUS$

14. Towards a new measure of international trade
• Traditional statistics present some biases:
– Multi-counting of trade flows in intermediate goods
– Difficult attribution of the country of origin of an imported
product
• Measuring trade in value added terms allows:
– To circumvent the biases observed with traditional statistics
– To take into account the specificity of trade occurring between
the different actors of a production chain

15. Computers and electronic equipment
exports and their domestic and imported contents
(in billions of $ and percentage)
Source: WTO, based on IDE-JETRO Asian Input-Output tables

16. United States-China trade balance
Traditional versus VA measure (in billions of US$)
Sources: UN Comtrade Database, IDE-JETRO AIO table and WTO estimates

17. Summary of the benefits of trade in value added
analysis
• A better evaluation of the actual contribution of
international trade to an economy
(incl. development, employment, environment)
• To highlight the interdependency of economies, and the
counter-productive effects of protectionist measures on
economies and enterprises they are supposed to protect
• Better evaluation of the contribution of the services sector
on trade
• Conventional trade statistics need complement for analysing
value added – data gaps and how can they be closed
(TEC, WIOD, OECD/WTO)

18. http://www.wto.org/english/res_e/statis_e/miwi_e/miwi_e.htm