Global Value Chains and Development
Jonathan T. Fried
Ambassador and Permanent Representative of Canada to the WTO
Regional and Global Supply Chains
Total
$179
Korea: $23
(13%)
Germany: $30
(17%)
Others: $48
(27%)
Value of Components and Labour of an iPod
Assembled in China
Total
$179
Japan: $61
(34%)
Korea: $23
(13%)
Others: $48
(27%)
Germany: $30
(17%)
China: $7
(3.6%)
Supply Chain for Airbus A400M Belgium
France
Germany
Spain
Turkey
UK
1
Regional and Global Supply Chains
2
Initial destinations of Asia’s exports
Asia45.5%
Elsewhere55.5%
More than half of Asia’s exports go
directly to the rest of the world
Initial destinations and uses of Asia’s
exports
Regional and Global Supply Chains
2
Asia final demand13.3%
Elsewhere final demand26.0%
Inputs for further production32.2%
Inputs to further production28.5%
But exports within Asia are often inputs for further production
Regional and Global Supply Chains
2
Finaldestinations of Asia’s exports
Ultimately, almost ¾ of Asia exports are destined for non-
Asian markets
Asia final demand28.9%
Non-Asia final demand71.1%
Supply Chains and Vertical Specialization
Vertical Specialization of G20 (1995 vs. 2009)
3
Trade and Development: Aid for Trade
0
10
20
30
40
50
60
2002-05avg.
2006-08avg.
2009-11avg.
2012 2013 2006-08avg.
2009-11avg.
2012 2013
USD billion(2013 constant)
Trade Policy & Regulations Economic Infrastructure Building Productive Capacity
Commitments Disbursements
Source: OECD‐DAC/CRS aid activity database
4
Trade and Development: Aid for Trade
Development Finance to Developing and Transition Economies
(USD Billions)
5
Aid for Building Productive Capacity(USD Millions, 2011 Constant Prices)
Source: UNCTAD: World Investment Report (2014)
Source: Aid for Trade at a Glance 2013 (OECD and WTO), 2013
6
Regional and Bilateral FTAs
Regional and Bilateral FTAs
6
A World of Regional Blocs…
7
… or a Multilateral World
8