Merchandise trade remains subdued

This chapter provides an analysis of recent trends in trade in goods of the Asia-Pacific region which is now the largest trading region in the world. With a 38% share of world exports and 37% of world imports. Recent developments reveal that growth in merchandise trade in the Asia-Pacific region continued to slow down in 2013 and pressures are mounting on trade prospects for the Asia-Pacific region. As the region is not immune to global economic uncertainties, the need to focus on long-term strategies for securing benefits from new and emerging forms of trade and production has never been greater. From the analysis, which is based on newly available data on trade in value-added, this chapter highlights the fact that in order to enhance the competitiveness position of a country in the world of globalized production focus needs to be placed on raising domestic value-added rather than just increasing gross exports. Failure to distinguish between gross exports and domestic value-added in exports can lead to misguided trade and industrial policies.

Related Subject(s): International Trade and Finance