WORLD TRADE REPORT 2010 D. Merchandise and services trade, value (nominal) terms, 2009 1. Merchandise trade The US dollar value of world merchandise trade fell 23 per cent in 2009 to US$ 12.1 trillion, down from US$ 16.1 trillion in 2008 (see Appendix Table 1). Some of this decline was due to changes in trade volumes, while much of the rest can be explained by falling commodity prices in 2009, particularly for oil. After rising to record levels in 2008, world crude oil prices plunged 37 per cent in 2009, from US$ 95 per barrel to US$ 60 per barrel on average. As a result, nominal trade developments for particular countries and regions may differ substantially from developments in volume terms, particularly for oil exporters on the export side and oil importers on the import side. North America's merchandise exports fell 21 per cent in 2009, from US$ 2.0 trillion to US$ 1.6 trillion, while imports dropped 25 per cent from US$ 2.9 trillion to US$ 2.2 trillion. The percentage declines on both the export and import sides were roughly in line with the overall drop in world trade, as were those for South and Central America. Exports of the latter fell 24 per cent to US$ 461 billion while the region's imports dropped 25 per cent to US$ 444 billion. The story for Europe was similar, with exports falling 23 per cent to US$ 5.0 trillion and imports shrinking by 24 per cent to US$ 5.1 trillion. Oil-producing regions recorded declines in exports that were much larger than the overall decline in world trade, including the CIS, which saw its exports fall more than any other region (-36 per cent to US$ 452 billion). The CIS also had the largest percentage decline on the import side, as purchases from the rest of the world fell 33 per cent to US$ 332 billion. Africa's exports dropped by 32 per cent to US$ 379 billion, but the decline in the continent's imports was smaller than any other region's (-16 per cent to US$ 400 billion). Results for the Middle East were similar to those for Africa, with exports falling 33 per cent to US$ 691 billion and imports dropping 18 per cent to US$ 493 billion. Asia's exports were down 18 per cent in 2009, from US$ 4.7 trillion to US$ 3.6 trillion, the smallest nominal decline of any region. Asia's imports also fell less than the world average, 21 per cent to US$ 3.4 trillion. This relatively strong performance rested on China's ability to minimize the impact of the economic crisis on its trade flows. The country's exports fell 16 per cent to US$ 1.2 trillion last year, while its imports declined by just 11 per cent to US$ 1.0 trillion. As many observers had predicted, China overtook Germany as the world's leading exporter in 2009 with a 9.6 per cent share in world trade (see Appendix Table 3). The other top exporters were Germany (9.0 per cent), the United States (8.5 per cent), Japan (4.7 per cent), and the Netherlands (4.0 per cent). Among major economies, the country that advanced the most in world export rankings was the Republic of Korea, which moved from 12th to 9th place. The country that fell furthest was the Russian Federation, which dropped from 9th to 13th position. The United States remained the leading merchandise importer with a 12.7 per cent share in world trade. China (8.0 per cent) took over second place from Germany (7.4 per cent), which fell to third place. France (4.4 per cent) and Japan (4.4 per cent) exchanged places, with France taking over the fourth position and Japan dropping to fifth. Appendix Table 4 shows rankings in world trade excluding EU intra-trade, which places the European Union atop the rankings on both the export and import sides. 2, Commercial services trade World commercial services exports fell 13 per cent in 2009, from US$ 3.8 trillion to US$ 3.3 trillion (see Table 3). Although smaller than the 23 per cent drop in merchandise trade, it was the largest decline ever recorded for services in a data series going back to 1980. It was also the first time since 1983 that trade in commercial services declined year on year. Transport recorded the largest drop among services categories, followed by travel and other commercial services (see Table 4). The drop in transport services is unsurprising since this category is closely linked to trade in goods, which fell by a similar amount. One might have expected a larger decline in other commercial services, since this category includes financial services that were at the centre of the recent crisis. However, these trade flows are often based on long-term contractual relationships with suppliers, possibly making them less sensitive to short-term fluctuations in the business cycle. Value Annual percentage change 2009 2005-09 2007 2008 2009 Merchandise 12147 4 16 15 -23 Commercial services 3312 7 20 12 -13 ■Source: WTO Secretariat. I - THE TRADE SITUATION IN 2009-10 4 Value Annual percentage change 2009 2005-09 2007 2008 2009 Commercial services 3312 7 20 12 -13 Transport 704 5 20 16 -21 Travel 854 6 15 11 -11 Other commercial services 1754 10 23 12 -10 Source: WTO Secretariat All countries and regions in Appendix Table 2 recorded negative growth in commercial services trade in 2009 with two exceptions (China's imports were unchanged from 2008, while Morocco was the only country to report a rise in imports of services). Regional declines in exports were led by the CIS (-18 per cent to US$ 69 billion), followed by Europe (-14 per cent, US$ 1.6 trillion), Asia (-13 per cent, US$ 751 billion), Middle East (-12 per cent, US$ 96 billion), Africa (-11 per cent, US$ 78 billion), North America (-10 per cent, US$ 542 billion) and South and Central America (-8 per cent, US$ 100 billion). On the import side, the CIS again had the biggest decline (-21 per cent, US$ 91 billion), followed by the Middle East (-13 per cent, US$ 162 billion), Europe (-13 per cent, US$ 1.5 trillion), Africa (-11 percent, US$ 117 billion), Asia (-11 percent, US$ 776 billion), North America (-10 per cent, US$ 430 billion) and South and Central America (-8 per cent, US$ 111 billion). The United States was the largest exporter of commercial services in 2009 with a 14.2 per cent share of world trade, followed by the United Kingdom (7.2 per cent), Germany (6.5 per cent), France (4.2 per cent) and China (3.9 per cent). The United States also retained top spot on the import side (10.6 per cent of world trade), with Germany (8.2 per cent), the United Kingdom (5.1 per cent), China (5.1 per cent) and Japan (4.7 per cent) being the other countries in the top five (see Appendix Table 5). WORLD TRADE REPORT 2010 Exports Imports Value Annual percentage change Value Annual percentage change 2009 2005-09 2007 2008 2009 2009 2005-09 2007 2008 2009 World 12147 4 16 15 -23 12385 4 15 16 -24 North America 1602 2 11 11 -21 2177 -1 6 8 -25 United States 1057 4 12 12 -18 1604 -2 5 7 -26 Canada 316 -3 8 g -31 330 1 9 7 -21 Mexico 230 2 9 7 -21 242 1 10 10 -24 South and Central America a 461 6 14 21 -24 444 10 25 30 -25 Brazil 153 7 17 23 -23 134 15 32 44 -27 Other South and Central America a 308 6 13 20 -24 311 9 23 25 -25 Europe 4995 3 16 11 -23 5142 3 16 12 -25 European Union (27) 4567 3 16 11 -23 4714 3 16 12 -25 Germany 1121 4 19 9 -22 931 5 16 12 -21 France 475 1 11 9 -21 551 2 14 14 -22 Netherlands 499 5 19 16 -22 446 5 18 18 -23 United Kingdom 0 351 -2 -2 5 -24 480 -2 4 2 -24 Italy 405 2 20 8 -25 410 2 16 8 -26 Commonwealth of Independent States (CIS) 452 7 21 35 -36 332 11 35 32 -33 Russian Federation c 304 6 17 33 -36 192 11 36 31 -34 Africa 379 5 18 28 -32 400 12 23 27 -16 South Africa 63 5 20 16 -22 72 4 12 12 -28 Africa less South Africa 317 5 17 31 -33 328 14 27 32 -13 Oi! exporters d 204 3 17 34 -40 129 16 29 39 -11 Nlon oi! exporters 113 9 16 23 -17 199 13 27 28 -14 Middle East 691 6 16 33 -33 493 10 25 28 -18 Asia 3566 6 16 15 -18 3397 6 15 21 -21 China 1202 12 26 17 -16 1006 11 21 18 -11 Japan 581 -1 10 9 -26 551 2 7 23 -28 India 155 12 23 30 -20 244 14 29 40 -24 Newly industrialized economies (4) e 853 4 11 10 -17 834 4 11 17 -24 Memorandum items: Developing economies 4697 7 17 19 -22 4432 8 19 22 -20 MERCOSUR* 217 7 18 24 -22 186 13 31 41 -28 ASEAN S 814 6 12 14 -18 724 5 13 21 -23 EU (27) extra-trade 1525 4 17 13 -21 1672 3 16 17 -27 Least Developed Countries (LDCs) 125 11 25 32 -27 144 13 24 29 -11 a Includes the Caribbean. For composition of groups see the Technical Notes of WTO International Trade Statistics, 2009. b The 2007 annual change is affected by a reduction in trade associated with fraudulent VAT declaration. For further information, refer to the special notes of the monthly UK Trade First Release (www.statistics.gov.uk/StatBase/Product.asp?vlnk=1119). c Imports are valued f.o.b. d Algeria, Angola, Cameroon, Chad, Congo, Equatorial Guinea, Gabon, Libya, Nigeria, Sudan. e Hong Kong, China; Republic of Korea; Singapore and Taipei, Chinese. f Common Market of the Southern Cone: Argentina, Brazil, Paraguay, Uruguay. g Association of Southeast Asian Nations: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Viet Nam. Source: WTO Secretariat. I - THE TRADE SITUATION IN 2009-10 Exports Imports Value Annual percentage change Value Annual percentage change 2009 2005-09 2007 2008 2009 2009 2005-09 2007 2008 2009 World 3310 7 20 12 -13 3115 7 19 13 -12 North America 542 6 15 9 -10 430 4 9 7 -10 United States 470 7 16 10 -9 331 4 8 8 -9 South and Central America b 100 9 18 16 -8 111 12 22 21 -8 Brazil 26 15 26 27 -9 44 18 28 28 -1 Europe 1675 7 21 12 -14 1428 6 19 11 -13 European Union (27) 1513 7 21 11 -14 1329 6 19 11 -13 United Kingdom 240 4 20 2 -16 160 0 15 1 -19 Germany 215 8 18 11 -11 255 5 16 11 -10 France 140 4 16 10 -14 124 4 16 10 -12 Spain 122 7 20 12 -14 87 7 23 9 -17 Italy 101 3 13 7 -15 114 6 21 8 -11 Commonwealth of Independent States (CIS) 69 13 27 28 -18 91 11 30 26 -21 Russian Federation 42 14 27 30 -17 60 12 32 29 -19 Ukraine 13 10 26 27 -23 11 11 29 43 -32 Africa 78 9 19 19 -11 117 14 28 27 -11 Egypt 21 10 24 25 -15 14 9 27 25 -17 Morocco 12 13 24 12 -5 6 20 27 24 13 South Africa 11 0 13 -8 -9 14 4 16 3 -16 Middle East 96 11 16 20 -12 162 14 32 18 -13 Israel 22 6 10 14 -9 17 6 20 13 -12 Asia 751 9 22 14 -13 776 8 18 14 -11 China a 129 15 33 20 -12 158 17 29 22 -0 Japan 124 5 10 15 -15 146 4 11 10 -11 Hong Kong, China 86 8 16 9 -6 44 7 15 11 -6 India 86 25 18 74 21 26 Singapore 74 8 26 3 -11 74 8 16 6 -6 Korea, Republic of 56 6 28 20 -25 74 6 21 12 -19 Taipei, Chinese 31 5 7 11 -10 29 -2 8 0 -15 a Preliminary estimate. b Includes the Caribbean. For composition of groups see Chapter IV Metadata of WTO International Trade Statistics, 2009. Wore: While provisional full year data were available in early March for 50 countries, accounting for more than two-thirds of world commercial services trade, estimates for most other countries are based on data for the first three quarters. Source: WTO Secretariat. WORLD TRADE REPORT 2010 Rank Exporters Value Share Annual per cent change Rank Importers Value Share Annual per cent change 1 China 1202 9,6 -16 1 United States 1604 12.7 -26 2 Germany 1121 9.0 -22 2 China 1006 8.0 -1:1 3 United States 1057 8.5 -18 3 Germany 931 7.4 -21 4 Japan 581 4.7 -26 4 France 551 4.4 -22 5 Netherlands 499 4.0 -22 5 Japan 551 4.4 -28 6 France 475 3.8 -21 6 United Kingdom 480 3.8 -24 7 Italy 405 3.2 -25 7 Netherlands 446 3.5 -23 8 Belgium 370 3.0 -22 8 Italy 410 3.2 -26 9 Korea, Republic of 364 2.9 -14 9 Hong Kong, China 353 2.8 -10 - retained imports 3 91 0.7 -8 10 United Kingdom 351 2.8 -24 10 Belgium 351 2.8 -25 11 Hong Kong. China 330 2.6 -11 11 Canada 330 2.6 -21 - domestic exports 3 15 0.1 -9 - re-exoorts 3 314 2.5 -11 12 Canada 316 2.5 -31 12 Korea, Republic of 323 2.6 -26 13 Russian Federation 304 2.4 -36 13 Spain 290 2.3 -31 14 Singapore 270 2.2 -20 14 Singapore 246 1.9 -23 - domestic exports 138 1.1 -21 - retained imports b 114 0.9 -26 - re-exports 132 1.1 -19 15 Mexico 230 1.8 -21 15 India 244 1.9 -24 16 Spain 218 1.7 -23 16 Mexico 242 1.9 -24 17 Taipei, Chinese 204 1.6 -20 17 Russian Federation c 192 1.5 -34 18 Saudi Arabia a 189 1.5 -40 18 Taipei, Chinese 175 1.4 -27 19 United Arab Emirates a 175 1.4 -27 19 Australia 165 1.3 -17 20 Switzerland 173 1.4 -14 20 Switzerland 156 1.2 -15 21 Malaysia 157 1.3 -21 21 Poland 147 1.2 -30 22 India 155 1.2 -20 22 Austria 144 1.1 -22 23 Australia 154 1.2 -18 23 Turkey 141 1.1 -30 24 Brazil 153 1.2 -23 24 United Arab Emirates a 140 1.1 -21 25 Thailand 152 1.2 -14 25 Thailand 134 1.1 -25 26 Austria 137 1.1 -24 26 Brazil 134 1.1 -27 27 Poland 134 1.1 -21 27 Malaysia 124 1.0 -21 28 Sweden 131 1.0 -29 28 Sweden 119 0.9 -29 29 Norway 121 1.0 -30 29 Czech Republic 105 0.8 -26 30 Indonesia 120 1.0 -14 30 Saudi Arabia a 92 0.7 -20 Total of above d 10244 82.2 _ Total of above ^ 10323 81.6 - World 6 12461 100.0 -23 World d 12647 100.0 -23 a Secretariat estimates. b Singapore's retained imports are defined as imports less re-exports, c Imports are valued f.o.b. d Includes significant re-exports or imports for re-export. Source: WTO Secretariat. I - THE TRADE SITUATION IN 2009-10 Annual per cent Annual per cent Rank Exporters Value Share change Rank Importers Value Share change 1 Extra-EU (27) exports 1525 16.2 -21 1 Extra-EU (27) imports 1672 17.4 -27 2 China 1202 12.8 -16 2 United States 1604 16.7 -26 3 United States 1057 11.2 -18 3 China 1006 10.5 -11 4 Japan 581 6.2 -26 4 Japan 551 5.7 -28 5 Korea, Republic of 364 3.9 -14 5 Hong Kong, China 353 3.7 -10 - retained imports 3 91 0.9 -8 6 Hong Kong, China 330 3.5 -11 6 Canada 330 3.4 -21 - domestic exports ä 15 0.2 -9 - re-exports 3 314 3.3 -11 7 Canada 316 3.4 -31 7 Korea, Republic of 323 3.4 -26 8 Russian Federation 304 3.2 -36 8 Singapore 246 2.6 -23 - retained imports b 114 1.2 -28 9 Singapore 270 2.9 -20 9 India 244 2.5 -24 - domestic exports 138 1.5 -21 - re-exports 132 1.4 -19 10 Mexico 230 2.4 -21 10 Mexico 242 2.5 -24 11 Taipei, Chinese 204 2.2 -20 11 Russian Federation c 192 2.0 -34 12 Saudi Arabia a 189 2.0 -40 12 Taipei, Chinese 175 1.8 -27 13 United Arab Emirates 3 175 1.9 -27 13 Australia 165 1.7 -17 14 Switzerland 173 1.8 -14 14 Switzerland 156 1.6 -15 15 Malaysia 157 1 n -21 15 Turkey 141 1.5 -30 16 India 155 1.6 -20 16 United Arab Emirates a 140 1.5 -21 17 Australia 154 1.6 -18 17 Thailand 134 1.4 -25 18 Brazil 153 1.6 -23 18 Brazil 134 1.4 -27 19 Thailand 152 1.6 -14 19 Malaysia 124 1.3 -21 20 Norway 121 1.3 -30 20 Saudi Arabia 3 92 1.0 -20 21 Indonesia 120 1.3 -14 21 Indonesia 92 1.0 -28 22 Turkey 102 1.1 -23 22 South Africa a 72 0.7 -28 23 Iran, Islamic Rep. of 3 78 0,8 -31 23 Viet Nam 69 0.7 -15 24 South Africa 63 0.7 -22 24 Norway 69 0.7 -23 Bolivarian Rep. of 25 Venezuela 58 0.6 -39 25 Iran, Islamic Rep. of 3 51 0.5 -10 26 Kuwait 3 57 0.6 -35 26 Israel a 49 0.5 -27 27 Viet Nam 57 0.6 -10 27 Philippines 46 0.5 -24 28 Argentina 56 0.6 -20 28 Ukraine 45 0.5 -47 29 Chile 53 0.6 -20 29 Egypt 45 0.5 -7 30 Nigeria 3 53 0.6 -36 30 Chile 42 0.4 -32 Total of above d 8504 90.3 _ Total of above d 8602 89.6 - World d World d (excl. intra-EU (27)) 9419 100.0 -22 (excl. intra-EU (27)) 9605 100.0 -23 a Secretariat estimates. b Singapore's retained imports are defined as imports less re-exports, c Imports are valued f.o.b. d Includes significant re-exports or imports for re-export Source: WTO Secretariat. WORLD TRADE REPORT 2010 Rank Exporters Value Share Annual percentage change Rank Importers Value Share Annual percentage change 1 United States 470 14.2 -9 1 United States 331 10.6 -9 2 United Kingdom 240 7.2 -16 2 Germany 255 8.2 -10 3 Germany 215 6.5 -11 3 United Kingdom 160 5.1 -19 4 France 140 4.2 -14 4 China 158 5.1 0 5 China a 129 3.9 -12 5 Japan 146 4.7 -11 6 Japan 124 3.8 -15 6 France 124 4.0 -12 7 Spain 122 3.7 -14 7 Italy 114 3.6 -11 8 Italy 101 3.0 -15 8 Ireland 104 3.3 -5 9 Ireland 95 2.9 -7 9 Netherlands 87 2.8 -5 10 Netherlands 92 2.8 -11 10 Spain 87 2.8 -17 11 Hong Kong, China 86 2.6 -6 11 Canada 77 2.5 -11 12 India 86 2.6 12 India 74 2.4 13 Belgium 75 2.3 -11 13 Korea, Republic of 74 2.4 -19 14 Singapore 74 2.2 -11 14 Singapore 74 2.4 -6 15 Switzerland 68 2.1 -11 15 Belgium 72 2.3 -12 16 Sweden 60 1.8 -16 16 Russian Federation 60 1.9 -19 17 Luxembourg 60 1.8 -16 17 Denmark 51 1.6 -19 18 Canada 57 1.7 -12 18 Sweden 47 1.5 -14 19 Korea. Republic of 56 1.7 -25 19 Hong Kong, China 44 1.4 -6 20 Denmark 55 1.7 -25 20 Brazil 44 1.4 -1 21 Austria 53 1,6 -13 21 Saudi Arabia :s 43 1.4 22 Russian Federation 42 1.3 -17 22 Australia 41 1.3 -13 23 Australia 41 1.3 -7 23 Thailand 38 1.2 -18 24 Norway 38 1.1 -17 24 Austria 38 1.2 -12 25 Greece 38 1.1 -25 25 Norway 37 1.2 -16 26 Turkey 33 1.0 -6 26 Luxembourg 36 1.2 -13 27 Taipei, Chinese 31 0.9 -10 27 United Arab Emirates b 36 1.1 28 Thailand 31 0.9 -9 28 Switzerland 34 1.1 -6 29 Poland 29 0.9 -19 29 Taipe:, Chinese 29 0.9 -15 30 Malaysia 28 0.8 -8 30 Malaysia 27 0.8 -12 Total of above 2765 83.5 _ 31 Total of above 2540 81.6 - World 3310 100.0 -13 32 World 3115 100.0 -12 a Preliminary estimate, b Secretariat estimate. Note; While provisional full year data were available in early March for 50 couniries accounting for more than two-thirds of world commercial services trade, estimates for most other countries are based on data for the first three quarters. Source: WTO Secretariat.