The OECD and the WTO have reviewed trade figures from 40 major countries to take into account the huge increase in re-export trade that is occurring as a result of globalisation; their report shows that trade imbalances in official statistics are often well overstated.
- China’s bilateral trade surplus with the United States shrinks by 25% on a value-added basis, reflecting the high level of foreign-sourced content in Chinese exports
- One-third of the total value of motor vehicles exported from Germany actually comes from other countries, while nearly 40% of the total value of China’s electronics exports come from foreign sources.
- While conventional trade data suggests that services represent less than one-quarter of total trade, on a value-added basis services trade reaches an average 50% of OECD countries’ exports, and well above that in the United States, the United Kingdom, France, Germany and Italy
New OECD-WTO analysis highlights changing face of global trade
- In value-added terms, China takes only 17 per cent of Australia’s exports compared with 21 per cent in the official figures, Japan takes 15 per cent compared with 19 per cent and Korea 6 per cent compared with 8 per cent.
- It says 40 per cent of Australia’s gross exports represent value-added goods from the services sector
