| This World Trade Overview is provided by the Whitehouse
& Associates, leaders in African market research and risk
assessment. |
|
According to the latest World Trade Organisation (WTO) annual report, total
world trade during 1999 amounted to US$ 11485.0 billion with exports totalling
US$ 5610.0 billion and imports totalling US$ 5875.0 billion. The United States,
the European Union and Japan are the key players in world trade accounting for
45% of world exports and 49% of world imports. Developing countries accounted
for 27.5% of merchandise exports in 1999.
| Rank
|
Exporters
|
Value (bn dollars)
|
%age of world trade
|
Importers
|
Value (bn dollars)
|
%age of world trade
|
| 1
|
European Union
|
798.6
|
18.9%
|
United States
|
1059.9
|
23.6%
|
| 2
|
United States
|
695.0
|
16.4%
|
European Union
|
851.2
|
18.9%
|
| 3
|
Japan
|
419.4
|
9.9%
|
Japan
|
310.7
|
6.9%
|
| 4
|
Canada
|
238.4
|
5.6%
|
Canada
|
220.2
|
4.9%
|
| 5
|
China
|
194.9
|
4.6%
|
Hong Kong
|
181.7
|
4.0%
|
| 6
|
Hong Kong
|
174.8
|
4.1%
|
China
|
165.7
|
3.7%
|
| 7
|
Korea, Republic of
|
144.2
|
3.4%
|
Mexico
|
148.2
|
3.3%
|
| 8
|
Mexico
|
136.7
|
3.2%
|
Korea, Republic of
|
119.7
|
2.7%
|
| 9
|
Taiwan, Province of China
|
121.6
|
2.9%
|
Taiwan, Province of China
|
111.0
|
2.5%
|
| 10
|
Singapore
|
114.6
|
2.7%
|
Singapore
|
111.0
|
2.5%
|
| |
Total*
|
4232.0
|
|
Total*
|
4494.0
|
|
*Excludes intra-EU trade
SOURCE: World Trade Organisation Annual
Report, 1999
The process of globalisation in the world economy is increasing the
dependence of countries on foreign trade and making the requirement for a
rule-based system to monitor this trade increasingly important. Countries need
to know that they will be assured access to international markets and that the
terms and conditions of this trade will not be suddenly changed at the whim of
governments.
The World Trade Organisation (WTO), the global
organisation dealing with the rules of trade between countries, is
providing this multilateral rules-based system. Click here for more information
on the WTO. (orgs/cdt1)
This system is underpinned by a set of WTO agreements that have been
negotiated and signed by the majority of the world’s trading nations and
ratified by their parliaments. The current set of WTO agreements were
negotiated between members at the Uruguay Round of negotiations (1986-94).
Effectively, these agreements form the legal framework in which international
trade occurs. They guarantee member countries trade rights and bind member
governments to keep their trade policies within agreed limits. The agreements
have three principal objectives:
- To assist in free flows of trade
- To achieve further gradual trade liberalisation through negotiation
- To set up an impartial means of dispute settlement
The WTO system consists of three principal substantive agreements. They are:
- Multilateral Agreements on Trade in Goods including the General Agreement
of Tariffs and Trade and its associate agreements
- General Agreement on Trade in Services (GATS)
- Agreements of Trade-Related Aspects of Intellectual Property Rights (TRIPS)
The Multilateral Agreements include a number of instruments including the
Agreement on Preshipment Inspection, the Agreement of Technical Barriers to
Trade, the Agreement on Import Licensing Procedures, the Agreement of Textiles
and Clothing, the Agreement on Agriculture and the Agreement on Rules of
Origin.
The Seattle Round of multilateral negotiations was launched in November
1999. The objective of the Seattle meeting was to set the WTO’s agenda for
the next five-year period. Following protest marches through the streets of
Seattle and arguments between developed and developing countries over how to
proceed with the formulation of a new international trade dispensation without
further marginalising developing countries, the talks were suspended.
The WTO Director General, Mike Moore issued a statement after the failed
talks to the effect that despite the temporary setback in Seattle, WTO
objectives remain unchanged:
- To continue to negotiate the progressive liberalization of international
trade.
- To put trade to work more effectively for economic development and poverty
alleviation.
- To confirm the central role that the rules-based trading system plays for
Member governments in managing their economic affairs cooperatively.
- To organize the WTO on lines that more truly represent the needs of all
Members
The WTO is not able to give a date for resumption of talks. In January 2000
the EU Trade Commissioner, Pascal Lamy, announced plans to launch a new round
of world trade talks before the end of the year. The South African Minister of
Trade and Industry, Mr Alec Erwin has, along with other developing countries,
recently launched an initiative aimed at restarting the Seattle round
reiterating the commitment of developing countries to a rules-based
international trading system.
During the past decade, world trade has been characterised by the move
towards the creation and strengthening of regional trade blocs and agreements.
Trade blocs are groups of countries that have established special preferential
trading conditions amongst member states. Although the preference given to
fellow member states are often greater than those given to non-member states,
the ultimate purpose of trading blocs is to encourage trade between member
states.
Source: World Development Report 2000, World
Bank
Note: Click on the names of a trade bloc for
more information.
