International trade

It is an exchange of capital, goods, and services across international borders or territories. In most countries, it represents a significant share of gross domestic product. International trade has been maintained since the dawn of time. Trading goods were transported on the backs of tradesmen across tribal boundaries, and bartered and sold among neighboring, and, hopefully, accommodating tribesmen. The Silk Road between Europe and Asia is one example of the sometimes beneficial, sometimes troubling essentials of international trade. Asian silks and spices were traded for European technology and weapons, with varying benefits and consequences. There is a somewhat cyclical nature to international trade. Poorer nations, able to provide cheap labor and lower production costs, are subservient to richer and more consumer-oriented nations. As the productive nations gain wealth through their productivity, the consumer nations are forced to become productive themselves through the transfer of their capital to the productive nation. Thus, the process is reversed. The burgeoning imbalance of trade between the United States and China is one example of the cycle where the consumer nation is becoming economically beholden to the producing nation. According to "Global Policy Forum", till 2030, 60% of the world economy be exchanged internationally. That is the share of the rest of the world in each national economy will be more than the share of its own domestic economy. Many current evidences are in line with this prediction. For example, either country in the world is now member of, at least, one international trade agreement. In such circumstances, domestic economy will be affected more and more by the world economy. That is, the level of income, employment, wages, growth, and development in a country is not only a result of its domestic policies, but also determined by its position in the world economy. No market is spared by this fact. Consequently, a good knowledge of International Economics becomes vital for any economist. Sometimes, a good economic policy regarding his international relations is more beneficial than any policy arranging domestic economic issues of that country.

Drivers for the International Trade

Industrialization, advanced transportation, globalization, multinational corporations, and outsourcing are all having a major impact on the international trade system. Increasing international trade is crucial to the continuance of globalization. Without international trade, nations would be limited to the goods and services produced within their own borders.

Difference between Domestic and International Trade

Domestic trade is the purchase and sale of products and services within a particular nations borders, and is inherently limiting to a modern national economy. International trade, conversely, raises national gross domestic product (GDP) by providing vastly expanded economic opportunity International trade is in principle not different from domestic trade as the motivation and the behavior of parties involved in a trade do not change fundamentally regardless of whether trade is across a border or not. The main difference is that international trade is typically more costly than domestic trade. The reason is that a border typically imposes additional costs such as tariffs, time costs due to border delays and costs associated with country differences such as language, the legal system or culture. Another difference between domestic and international trade is that factors of production such as capital and labor are typically more mobile within a country than across countries. Thus international trade is mostly restricted to trade in goods and services, and only to a lesser extent to trade in capital, labor or other factors of production. Then trade in goods and services can serve as a substitute for trade in factors of production. Instead of importing a factor of production, a country can import goods that make intensive use of the factor of production and are thus embodying the respective factor. An example is the import of labor-intensive goods by the United States from China. Instead of importing Chinese labor the United States is importing goods from China that were produced with Chinese labor.

What is G-7?
The G7 (also known as the G-7) is the meeting of the finance ministers from a group of seven industrialized nations.

History of G-7
The origins of the G7 can be traced back to the informal meetings that occurred between leaders of major industrialized countries that began in 1975. The G7 is the meeting of the finance ministers from a group of seven industrialized nations. It was formed in 1975 as the Group of Six: France, Germany, Italy, Japans United Kingdom, and United States. The following year, Canada was invited to join. The finance ministers of these countries meet several times a year to discuss economic policies. Their work is supported by regular, functional meetings of officials, including the G7 Finance Deputies. At the 1986 G7 Leaders Summit in Tokyo, a process of regular meetings of Finance Ministers and Central Bank Governors of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States was instituted. Since then, the G7 has served to improve communication and cooperation on matters that fall under the mandate of Finance Ministers and Central Bank Governors, including economic and financial growth and stability, inflation and currency developments. When crises arise, the G7 has played an important role in maintaining global macroeconomic stability. In the late 1980s, the Plaza and Louvre Accords helped ensure the alignment and stability of globally important exchange rates. At the height of the financial crisis in October 2008, the G7 issued a five-point action plan which stabilized financial markets. The work done by the Finance Ministers and Central Bank Governors at the Washington meeting laid the groundwork for the action plan adopted by G20 Leaders in their subsequent summits. Canada assumes the G7 chairmanship at a time of continued uncertainty in the global economy and change in the global economic governance structure. While the G20 has become the premier global economic forum, the G7 will continue to focus on areas where it can promote global economic growth and stabilityfrom fiscal responsibility to cooperation in financial sector regulation.

Important Terms in the Assignment Export

A function of international trade whereby goods produced in one country are shipped to another country for future sale or trade. The sale of such goods adds to the producing nation's gross output. If used for trade, exports are exchanged for other products or services. Exports are one of the oldest forms of economic transfer, and occur on a large scale between nations that have fewer restrictions on trade, such as tariffs or subsidies.

Imports
In reference to international trade, these are goods brought into one country from another.

Balance of Payment
A record of all transactions made between one particular country and all other countries during a specified period of time. BOP compares the dollar difference of the amount of exports and imports, including all financial exports and imports. A negative balance of payments means that more money is flowing out of the country than coming in, and vice versa.

Balance of Trader
Balance of trade is the difference between a country's imports and its exports. Balance of trade is the largest component of a country's balance of payments. Debit items include imports, foreign aid, domestic spending abroad and domestic investments abroad. Credit items include exports, foreign spending in the domestic economy and foreign investments in the domestic economy. A country has a trade deficit if it imports more than it exports; the opposite scenario is a trade surplus. It is also referred to as "trade balance" or "international trade balance"

United States of America Major Imports of USA

y y y y y y y y y y y y Passenger cars Sporting goods and toys Medicinal preparations Fuel oil Crude oil Industrial machinery Computer and its accessories Gold and other Metals Petroleum products Electric apparatus Nuclear fuels Telecommunication Equipment

Major Exports of USA

y y y y y y y y y y y y Civilian Aircrafts Semi Conductors Passenger Cars Pharamaceutical Preparation Automative Acessories Other Industrial Machinery Fuel Oil Organic Chemicals Plastic Materials Corn Medical Equipments Electric apparatus

International Trade of America and trade deficit

In 1975, U.S. exports had exceeded foreign imports by $12,400 million, but that would be the last trade surplus the United States would see in the 20th century. By 1987, the American trade deficit had swelled to $153,300 million. The trade gap began sinking in subsequent years as the dollar depreciated and economic growth in other countries led to increased demand for U.S. exports. But the American trade deficit swelled again in the late 1990s. Once again, the U.S. economy was growing faster than the economies of America's major trading partners, and

Americans consequently were buying foreign goods at a faster pace than people in other countries were buying American goods. What's more, the financial crisis in Asia sent currencies in that part of the world plummeting, making their goods relatively much cheaper than American goods. By 1997, the American trade deficit $110,000 million, and it was heading higher. The deficit reached $225 billion in the fourth quarter of 2005, up from $185.4 billion in the third. For the year 2005 the deficit was $805 billion, equivalent to 6.4 percent of gross domestic product. Total US exports would need to increase by 70 percent to eliminate the payments gap. This is clearly not going to happen, Ashworth continued. Instead it will require big dollar depreciation alongside much weaker domestic demand for imports. In other words, the only way the deficit would start to fall is through a major recession in the US. On the one hand, big dollar depreciation would almost certainly lead to a sharp interest rate rise, as international banks and financial institutions demanded bigger compensation for placing their funds in dollar assets. And a significant interest rate rise would bring a downturn in the economy. On the other hand, weaker domestic demand for imports could be achieved only by a severe contraction of the US economy. This is because the very structure of the US economy, in which imports of goods and services are some 59 percent higher than exports, means that normal economic growth automatically increases the deficit. The only way the US could export its way out of the crisis would be if economic growth in the rest of the world proceeded at a significantly higher rate than the American economy. But here a vicious circle is in operation because economic growth in the rest of the world is itself highly dependent on an expanding US market. This is especially the case in Asia where economic growth is increasingly being fuelled by exports to China where goods are manufactured for the American market. Apart from the ever-widening gap on traded goods, the balance of payments data contained other reasons for concern. The US has long benefited from a situation where the income received from investments overseas is higher than the income received by foreigners investing in America. But this positive balance has started to turn around. Foreign earnings on US assets rose to $132.3 billion in the fourth quarter, up from $115.9 billion in the previous three months. Income on overseas assets held by US investors rose to $129.8 billion, up from $120.8 billion. This left a deficit of $2.4 billion on investment income, compared to the $4.9 billion surplus in the third quarter. In fact, the US is becoming increasingly dependent on foreign sources to support its current account and budget deficits. Foreign lenders have been financing 80 percent of the increase in the federal budget deficit, and foreign holdings of treasury securities increased by $108 billion in the last quarter of 2005.

Last 20 Years Import, Export and Balance of Payment of America

Exports of goods, services and income (US$) Year Amount 1989 6.48353E+11 1990 7.07008E+11 1991 7.27577E+11 1992 7.5063E+11 1993 7.78935E+11 1994 8.69771E+11 1995 1.00466E+12 1996 1.07776E+12 1997 1.19128E+12 1998 1.19501E+12 1999 1.2598E+12 2000 1.42152E+12 2001 1.2957E+12 2002 1.25841E+12 2003 1.34035E+12 2004 1.57231E+12 2005 1.81645E+12 2006 2.135E+12 2007 2.47827E+12 2008 2.63554E+12 2009 2.159E+12 Imports of goods and services (US$) Year Amount 1989 7.21679E+11 1990 7.593E+11 1991 7.34627E+11 1992 7.65601E+11 1993 8.23907E+11 1994 9.51148E+11 1995 1.08015E+12 1996 1.15947E+12 1997 1.28694E+12 1998 1.35686E+12 1999 1.51017E+12 2000 1.77924E+12 2001 1.62837E+12 2002 1.65154E+12 2003 1.78923E+12 2004 2.11444E+12 2005 2.45827E+12 2006 2.84616E+12 2007 3.08082E+12 2008 3.18237E+12 2009 2.41249E+12 Current account balance (BoP US$) Year Amount 1989 -99506000000 1990 -78952000002 1991 2851000000 1992 -51605050000 1993 -84782800000 1994 -1.21642E+11 1995 -1.13561E+11 1996 -1.24727E+11 1997 -1.40725E+11 1998 -2.15037E+11 1999 -3.008E+11 2000 -4.16374E+11 2001 -3.97158E+11 2002 -4.58076E+11 2003 -5.2067E+11 2004 -6.3049E+11 2005 -7.47595E+11 2006 -8.0264E+11 2007 -7.18095E+11 2008 -6.68859E+11 2009 -3.78435E+11

United Kingdom
British Exports

y y y y y y y y y y

Medicinal, dental & pharmaceutical preparations New & used passenger cars Other petroleum products Crude oil Civilian aircraft engines Goods returned to U.S. then reimported Collectibles (e.g. artwork, antiques, stamps) Materials handling equipment Precious metals other than gold Alcoholic beverages other than wine

British Imports
y y y y y y y y y Non-monetary gold Civilian aircraft engines Computer accessories Civilian aircraft parts Precious metals other than gold Collectibles (e.g. artwork, antiques, stamps Telecommunications equipment Minimum value shipments Medicinal equipment

International Trade of United Kingdom and trade deficit

Britain is the world's fifth largest trading nation. Since the 1970s, oil has contributed significantly to Britain's overseas trade, both in exports and a reduced need to import oil. The UK's pharmaceuticals industry is the world's third largest exporter of medicines. Britain is also a major supplier of plastics, cars, motorbikes, films, music aerospace products, alcohol, and finally, electrical and electronic equipment such as chips in Ipods, military equipment, food products, and clothes. Britain is responsible for 10 per cent of the world's export of services, including banking, insurance, stockbroking, consultancy and computer programming. Over 60 per cent of imports into Britain are finished manufactured goods, while just under three per cent are basic materials. Food, beverages and tobacco are major non-manufactured imports, whilst machinery and transport equipment accounted for just under half of all imports in 2000. Other major imports include chemicals, fuels, clothing and footwear. In 2009 Britain became the world's first nation to recycle any electrical product, no matter what it is. If it has a plug, it can be recycled. Every plug, screw, bolt, electrical board, and all components inside are stripped out and recycled in new products, then the leftover casing is shredded and recycled to make new electrical products. This is now a large export. You can sift through all of the shredded plastic and not find one piece of metal. Everything is recycled. The UK is the 7th leading importer and the 11th leading exporter in the world. Accordingly, the UK holds a massive trade deficit with the rest of the world, second only to the US. In 2010, UK imports were worth US$546.5 billion with exports valued at only US$405.6 billion. Despite recent attempts by the government to reduce the trade deficit, the latest data from UKs Office of National Statistics points to an ever-widening trade gap. Since the beginning of 2011, UKs monthly trade deficit has hit record levels of more than 4 billion per month. The monthly deficit in the UK for 2011 is also exceeding the previous record level of 3.5 billion per month reached in 2007. Two commonly cited reasons for the UKs record trade deficits have been its high inflation rate and budget deficit. The high inflation rate has caused real depreciation of the Pound to be a lot smaller than the nominal depreciation. Furthermore pushing real interest rates below those of other countries has encouraged borrowing and discouraged savings counteracting any little real depreciation.

Last 20 years Import, export and balance of payment of England

Exports of goods, services and income (US$) Year Amount 1989 3.18351E+11 1990 3.79063E+11 1991 3.73474E+11 1992 3.70863E+11 1993 3.55072E+11 1994 3.91088E+11 1995 4.61092E+11 1996 4.96009E+11 1997 5.41078E+11 1998 5.56965E+11 1999 5.53641E+11 2000 6.06331E+11 2001 5.94184E+11 2002 5.99721E+11 2003 6.69523E+11 2004 8.01755E+11 2005 9.30695E+11 2006 1.12213E+12 2007 1.31713E+12 2008 1.2515E+12 2009 8.64969E+11 Imports of goods and services (US$) Year Amount 1989 3.54195E+11 1990 4.0908E+11 1991 3.90307E+11 1992 3.84216E+11 1993 3.64934E+11 1994 3.92958E+11 1995 4.62586E+11 1996 4.98909E+11 1997 5.32806E+11 1998 5.4836E+11 1999 5.77195E+11 2000 6.30375E+11 2001 6.15087E+11 2002 6.1432E+11 2003 6.83524E+11 2004 8.28347E+11 2005 9.68468E+11 2006 1.18227E+12 2007 1.36109E+12 2008 1.26617E+12 2009 8.79234E+11 Current account balance (BoP US$) Year Amount 1989 -43108544486 1990 -38810922317 1991 -19021852919 1992 -23204209131 1993 -17721103947 1994 -10025834772 1995 -13436363557 1996 -10328612316 1997 -1402652031 1998 -5272998683 1999 -35407438068 2000 -38800261343 2001 -30280821611 2002 -27858154620 2003 -30001962146 2004 -45414941412 2005 -59406046454 2006 -81957621059 2007 -71079401612 2008 -41159056643 2009 -37050488123

France
Major Exports of France
Capital goods y y y y Machinery Heavy electrical equipment Transport equipment Aircraft

Consumer goods y y y Automobiles Textiles Leather

Semi-finished products y y Chemicals Iron steel

Major imports of France

y y y y Fuels Machinery and equipment Chemicals and paper goods Consumer goods.

International Trade of France

France's trade is one of the largest in the world. France exports and imports various raw materials, automobiles and electronic products. The country ranks sixth in the world in terms of export volumes and 6th when it comes to imports. The French trade balance was favorable in 1961 the first time since 1927, but after 1961 imports rose at a higher rate than exports. Trade deficits generally increased until the 1990s. From 1977 to 1985, the trade deficit nearly tripled. Among factors held responsible were heavy domestic demand for consumer products not widely produced in France, narrowness of the range of major exports, and a concentration on markets not ripe for expansion of exports from France, notably the EU and OPEC countries. In the following years a growing change in the trade balance

developed, and the deficit narrowed appreciably in 1992. By 1995, France had a trade surplus of $34 billion. In all, France is the world's fourth largest exporter of goods and the second largest provider of services and agriculture. France is the largest producer and exporter of farm products in Europe. Garnering the highest revenues of export commodities from France are transport machinery, including automobiles, vehicle parts, and aircraft (12.5%). French wine, perfumes, and cosmetics represent about a quarter each of the world market in their respective categories.

Last 20 Years Import, Export and Balance of Payment of France

Exports of goods, services and income (US$) Year Amount 1989 2.73412E+11 1990 3.41125E+11 1991 3.59042E+11 1992 4.06803E+11 1993 3.84413E+11 1994 3.47892E+11 1995 4.07899E+11 1996 4.12925E+11 1997 4.23992E+11 1998 4.54648E+11 1999 4.54249E+11 2000 4.54255E+11 2001 4.52325E+11 2002 4.62819E+11 2003 5.52872E+11 2004 6.55457E+11 2005 7.17802E+11 2006 8.13933E+11 2007 9.52012E+11 2008 1.03833E+12 2009 8.15125E+11 Imports of goods and services (US$) Year Amount 1989 2.70399E+11 1990 3.4287E+11 1991 3.58079E+11 1992 3.93928E+11 1993 3.69222E+11 1994 3.29552E+11 1995 3.87892E+11 1996 3.8444E+11 1997 3.73374E+11 1998 4.03817E+11 1999 3.95377E+11 2000 4.20809E+11 2001 4.14076E+11 2002 4.30323E+11 2003 5.20553E+11 2004 6.22735E+11 2005 7.00979E+11 2006 7.99152E+11 2007 9.46216E+11 2008 1.05817E+12 2009 8.29186E+11 Current account balance (Bop US$) Year Amount 1989 -4671010644 1990 -9944228234 1991 -6518255442 1992 3893429895 1993 8989785411 1994 7415274027 1995 10840336631 1996 20560612392 1997 37801148627 1998 37698545877 1999 45864577901 2000 19674078611 2001 23602520685 2002 18007404679 2003 12860125405 2004 11030415595 2005 -10260220352 2006 -12988244366 2007 -26610486267 2008 -54794570385 2009 -51857465293

Italy
Major Exports of Italy
y y y y y y y y y

Engineering products Textiles and clothing Production machinery Motor vehicles Transport equipment Chemicals Food Beverages and tobacco Minerals and nonferrous metals

Major Imports of Italy

y y y y y y y

Chemicals Transport equipment Energy products Minerals and nonferrous metals Textiles and clothing Food and Beverages Tobacco

International Trade of Italy

Italy recorded a trade deficit for several decades, largely due to the fact that the country lacked energy resources and was entirely dependent on imports for its supply. However, the 1990s brought a change of fortune, beginning with the devaluation of the lira in 1992 which allowed many businesses to compete in overseas export markets, particularly in Asia markets and the United States. The reduction of oil and gas prices in the
Trade (expressed in billions of US$): Italy exports 1975 1980 1985 1990 34.988 78.104 76.717 170.304 38.526 100.741 87.692 181.968 Imports

Trade (expressed in billions of US$): Italy exports 1995 1998 233.998 242.332 206.040 215.887 Imports

SOURCE: International Monetary Fund. International Financial Statistics Yearbook 1999.

mid-1990s gave a further boost to small and medium-size companies, as did their aggressive promotion of their products, which enabled them to penetrate foreign markets. Today, "Made in Italy" is in many countries a well-regarded indication of quality. In 1998, Italy recorded a trade surplus, with imports totaling US$215.887 billion against exports worth US$242.332 billion. That surplus has since been trimmed, with export of US$241.1 billion in 2000 against imports of US$231.4 billion. Italy benefits from the EU free market, which is not subject to any trade barriers or tariffs , and 56.8 percent of Italian exports went to other EU countries in 1999. Italy's main export destinations within Europe are Germany (16.4 percent), France (12.9 percent), the United Kingdom (7.1 percent), Spain (6.3 percent), and the Netherlands (2.9 percent). The country's biggest commercial partner outside Europe is the United States, which takes 9.5 percent of Italy's export goods. Recently, a number of Asian countries have become important buyers of Italian products, and exports, particularly of clothes and shoes, to Japan, South Korea, and China are increasing. Italy's major exports are transport equipment, electrical machinery, textiles and clothing, chemicals, and food and beverages. The single largest export is transport equipment, with FIAT the main supplier. FIAT not only exports the motor cars (including Ferraris) for which it is known worldwide, but also a number of other vehicles ranging from train carriages and metro cars to trucks and motorcycles. The products of its EU partners also dominate Italy's imports. In 1990, over 61 percent of total imports came from EU countries: Germany (19.3 percent), France (12.6 percent), the Netherlands (6.3 percent), and Spain (4.4 percent). Outside the EU, the United States contributes 5 percent of imports. The composition of imported goods is evidence of the lack of energy resources and raw materials from which the country suffers. Thus, metal represents 9.9 percent of total imports, and petroleum represents 4.5 percent. Transport equipment also figures prominently, as do chemicals and food. All of the most important multinational businesses, across all sectors, operate in Italy, either directly or through subsidiaries. A number of them invested quite heavily in the country, particularly after the liberalization of the European market in 1987, under the auspices of the EU.

Read more: Italy International trade, Information about International trade in Italy http://www.nationsencyclopedia.com/economies/Europe/Italy-INTERNATIONALTRADE.html#ixzz1OUzfpqgx

Last 20 years Import, export and balance of payment of Italy

Exports of goods, services and income (US$) Year Amount 1989 1.86931E+11 1990 2.38967E+11 1991 2.38307E+11 1992 2.65457E+11 1993 2.53281E+11 1994 2.73702E+11 1995 3.29785E+11 1996 3.5784E+11 1997 3.53129E+11 1998 3.61439E+11 1999 3.41005E+11 2000 3.357E+11 2001 3.41182E+11 2002 3.56361E+11 2003 4.18665E+11 2004 4.89813E+11

Imports of goods and services (US$) Year Amount 1989 1.96246E+11 1990 2.52282E+11 1991 2.55905E+11 1992 2.87133E+11 1993 2.38265E+11 1994 2.5338E+11 1995 3.00131E+11 1996 3.10627E+11 1997 3.1669E+11 1998 3.33956E+11 1999 3.27538E+11 2000 3.37206E+11 2001 3.36055E+11 2002 3.60226E+11 2003 4.29976E+11 2004 4.9598E+11

Current account balance (BoP US$) Year Amount 1989 -1.281E+10 1990 -1.648E+10 1991 -2.446E+10 1992 -2.922E+10 1993 7.802E+09 1994 1.321E+10 1995 2.508E+10 1996 4E+10 1997 3.24E+10 1998 2E+10 1999 8.111E+09 2000 -5.781E+09 2001 -651956614 2002 -9.369E+09 2003 -1.941E+10 2004 -1.645E+10

2005 2006 2007 2008 2009

5.22915E+11 5.89408E+11 7.01706E+11 7.66844E+11 5.7205E+11

2005 2006 2007 2008 2009

5.40324E+11 6.20522E+11 7.33585E+11 8.21794E+11 6.21297E+11

2005 2006 2007 2008 2009

-2.974E+10 -4.783E+10 -5.157E+10 -7.814E+10 -6.62E+10

Japan
Major Imports of Japan
y y y y y y y y y y Foodstuffs Fuels Chemicals Textiles Raw materials Machinery and equipment Transport equipment Motor vehicles Semiconductors Electrical machinery and chemicals.

Major Exports of Japan

The primary export items of Japan are as follows:
y y y

Transport equipment Motor vehicles Semiconductors

y y y

Electrical machinery Chemicals Oil

Japan has amassed large trade surpluses since the early 1980s because of 2 factors. Its diversified manufacturing sector has produced high-quality products such as electronics and cars, which are much in demand in many international markets. Also, the post-war Japanese economy was largely closed to foreign competition through restrictive regulations and high tariffs aimed at protecting domestic industries. Under heavy pressure of its trading partners and competitors such as the United States, Japan began to open its economy to foreign competition late in the 1980s. That resulted in a higher rate of imports, which lowered trade surpluses until early in the 1990s. The economic decline following the bubble economy era significantly reduced demands for imports, resulting in the return of large trade surpluses in the 1990s, which reached $144.2 billion in 1994 before falling to $131.8 billion in 1995 and $83.6 billion in 1996. By 1998, with the economic slowdown, the trade surplus had risen to $122.4 billion, but it declined again to $95 billion in 2000. The return of large trade surpluses in the 1990s has restarted trade disputes between Japan and its main trading partners, including the United States and the European Union (EU). Two major trading partners of Japan the United States and the EUhave negotiated with Japan since the 1980s to remove barriers preventing their extensive access to the Japanese market. These negotiations have resulted in relaxed regulations on the imports of foreign consumer goods, like foodstuffs, by Japan, but
Trade (expressed in billions of US$): Japan Exports 1975 1980 1985 1990 1995 1998 55.819 130.441 177.164 287.581 443.116 387.927 Imports 57.860 141.296 130.488 235.368 335.882 280.484

SOURCE: International Monetary Fund. International Financial Statistics Yearbook 1999.

they have failed to remove barriers in many other areas. Nevertheless, the Japanese government's economic deregulation policy has made the Japanese market more open to foreign imports, especially in the field of consumer goods. In 2000, the values of Japan's exports and imports were $450 billion and $355 billion, respectively. This registered a significant increase in both exports and imports from 1998, when their respective values were $374 billion and $251 billion. Major exports of Japan include electrical equipment and machinery, electronics, telecommunication and computer devices and parts, transport equipment and motor vehicles, non-electrical machinery, chemicals, and metals. Its imports are mainly machinery and equipment, raw materials, including minerals and fuel (oil, liquefied natural gas, and coal), agricultural products, and fishery products. Japan's major trading partners are the Asian Pacific countries, the United States, the EU, and the Persian Gulf countries. The United States is Japan's largest single trading partner. In 1999, it accounted for 30.7 percent of Japan's exports, an increase from its share of 27.3 percent in 1995, and 21.7 percent of its imports, a decrease from its 1995 share of 22.4 percent. As a group of countries, the Asian Pacific countries (South Korea, Taiwan, Hong Kong, China, Singapore, Thailand, and Malaysia) form the largest collective trading partner of Japan. In 1999, they accounted for 37.2 percent of its exports, a decrease from their 1995 share of 43.2 percent, and 39.6 percent of its imports, an increase from their 1995 share of 36 percent. The Asian financial crisis of the 1990s resulted in a decline in Japan's exports to these countries. The slowdown in the Japanese economy was the main factor in lowering the share of imports from the United States and the EU. The EU (especially Germany and the United Kingdom) is Japan's third largest trading partner, accounting for a 17.8 percent share of Japan's exports and 13.8 percent of its imports in 1999, compared to its 1995 shares of 15.9 percent and 14.5 percent, respectively. As the main oil suppliers to Japan, the United Arab Emirates and Saudi Arabia accounted for 5.5 percent of Japan's imports in 1999, a small decrease from their share of 5.9 percent in 1995. Japan's economic slowdown of the 1990s reduced its fuel requirements and therefore lowered its imports.

Read more: Japan International trade, Information about International trade in Japan http://www.nationsencyclopedia.com/economies/Asia-and-the-Pacific/Japan-INTERNATIONALTRADE.html#ixzz1OUy2FWxE

Last 20 years Import, export and balance of payment of Japan

Exports of goods, services and income (US$) Year Amount 1989 4.13489E+11 1990 4.46336E+11 1991 4.93931E+11 1992 5.24498E+11 1993 5.53711E+11 1994 5.99185E+11 1995 6.86437E+11 1996 5.80437E+11 1997 5.90369E+11 1998 5.36791E+11 1999 5.5674E+11 2000 6.2595E+11 2001 5.51203E+11 2002 5.5277E+11 2003 6.21951E+11 2004 7.49942E+11 2005 8.18843E+11 2006 8.98913E+11 2007 1.00667E+12 2008 1.10733E+12 2009 8.48834E+11

Imports of goods and services (US$) Year Amount 1989 3.47101E+11 1990 3.97458E+11 1991 4.13688E+11 1992 4.08092E+11 1993 4.1697E+11 1994 4.62821E+11 1995 5.67717E+11 1996 5.05638E+11 1997 4.84721E+11 1998 4.092E+11 1999 4.29998E+11 2000 4.96459E+11 2001 4.55501E+11 2002 4.35401E+11 2003 4.78222E+11 2004 5.70008E+11 2005 6.45487E+11 2006 7.17712E+11 2007 7.84663E+11 2008 9.37651E+11 2009 6.94243E+11

Current account balance (BoP US$) Year Amount 1989 6.321E+10 1990 4.408E+10 1991 6.82E+10 1992 1.126E+11 1993 1.316E+11 1994 1.303E+11 1995 1.11E+11 1996 6.579E+10 1997 9.681E+10 1998 1.187E+11 1999 1.146E+11 2000 1.197E+11 2001 8.78E+10 2002 1.124E+11 2003 1.362E+11 2004 1.721E+11 2005 1.658E+11 2006 1.705E+11 2007 2.105E+11 2008 1.566E+11 2009 1.422E+11

Germany
German Exports

1. New and used passenger cars 2. Medicinal, dental and pharmaceutical preparations 3. Other industrial machinery 4. Other scientific, medical and hospital 5. Automotive parts and accessories 6. Engines and engine parts 7. Industrial compressors, engines, generators and pumps 8. Pulp and paper machinery 9. Electric apparatus and parts 10. Measuring, testing and control instruments

German Imports 1. 2. 3. 4. 5. 6. 7. 8. Civilian aircraft engines Computer accessories Civilian aircraft parts Vehicle parts and accessories Other chemicals Measuring, testing and control instruments Fuel oil Coal

Trade history of Germany

West Germany has been one of the world's major trading nations, almost from the first days of the economic miracle that began in the early 1950s (see The Economic Miracle and Beyond, ch. 5). It also had high trade and current-account surpluses during most of these years, especially during the latter half of the 1980s (see table 20, Appendix). It was the world's largest exporter in 1988, second largest after the United States in 1989, and first again in 1990 if East German exports before monetary unification in mid-1990 are included. West Germany was also consistently one of the world's largest importers. Ludwig Erhard set the tone for the future of German trade policy and practice when he was minister for economics in the early days of the Federal Republic. He made his own

sentiments very clear, saying in 1953 that "foreign trade is not a specialized activity for a few who might engage in it, but it is the very core and even the precondition of our economic and social order." Commentators and authors on the German economy speak of a German "export mystique," of deliberate domestic underconsumption to facilitate exports and increase competitiveness, and of an "almost unconscious" German mercantilism. The export sector has a powerful voice in German economic and commercial policy making, including a special Foreign Trade Advisory Council located in the Ministry for Economics. Senior German political figures rarely make visits abroad without including select German businesspeople in their official delegations. The German economy has failed to heed the export mystique only once, when the Hitler regime (1933-45) sought autarchy, or economic independence from the global economy. Between 1910 and 1913, exports accounted for 17.8 percent of Germany's GDP. Their share declined to 14.9 percent in the second half of the 1920s and fell to only 6 percent in the second half of the 1930s, but by 1950 accounted for 9.3 percent of West Germany's GDP. Once the postwar economic boom got under way, exports rose to 17.2 percent of GDP in 1960, to 23.8 percent in 1970, to 26.7 percent in 1980, and to approximately 33 percent in 1990. Investment goods produced by West German industry were the most successful export items and contributed most heavily to the country's large trade surplus, although West Germany was competitive across a wide range of goods. The country imported more agricultural and processed food products than it exported (see table 21, Appendix). A number of West German industries dedicated significant percentages of their production for export: shipbuilding, 62 percent; air and space, 59 percent; automotive products, 48 percent; machine tools, 45 percent; chemicals, 44 percent; iron and steel, 37 percent; and precision mechanics and optics, 31 percent. Several of the industries with a high export share, such as shipbuilding and airframes, were heavily subsidized in West Germany and have continued to be subsidized in united Germany. They are competitive in world markets on the basis of those subsidies. The subsidies demonstrate the extent of the German export commitment. West Germany would have had a substantial trade surplus even without the subsidized products of those industries, but it did not wish to sacrifice their global market share. After German unification, Germany's trade surplus shrank for several years. Whereas West Germany had shown a dramatically high trade surplus during the late 1980s until 1990, reaching almost US$80 billion in 1988, united Germany by 1991 was showing a much smaller surplus. Nonetheless, it was widely expected that large surpluses would return by the mid-1990s as the Lnder of the former East Germany began to export more and required fewer imports. Especially crucial to the future foreign trade position of united Germany will be the competitiveness of industry in the new Lnder of the former East Germany, which could not be predicted with any reliability in the years immediately following unification. During

1993 only 2 percent of German exports came from the new Lnder . It was unclear whether this area's competitiveness had been destroyed, or whether the West German producers that had bought East German firms had decided to continue to export from their western firms instead of from their newly acquired eastern firms. Whatever happened, it is worth remembering that the new Lnder , like the western Lnder , had generated a consistent trade surplus in capital and transport equipment, industrial consumer goods, and chemicals before unification. They could be expected to return to competitiveness in at least some of those areas. East Germany also suffered from several major shortages before unification, having trade deficits in fuels, raw materials, semimanufactures, agricultural products, and processed foods. Most of those deficits would persist even after unification. With Germany united, the government expects trade with Eastern Europe to increase well over the levels West Germany had enjoyed and ultimately to exceed the level of separate East German and West German trade with Eastern Europe before unification. In fact, Germany's most important and most consistent policy since 1990 has been to improve its connections to Eastern Europe without loosening its links to the West and thus to bring Eastern Europe and Western Europe together. After the fall of communism, German business representatives began visiting Eastern Europe in large numbers to establish or reestablish trade connections and to inspect potential investment sites or joint ventures. German economic links and outposts are being reestablished in Central Europe and Eastern Europe. The Czech Republic is again becoming an integral part of the industrial complex centered in Bavaria and Saxony, as Bohemia and Moravia were before World War I. The frontier region between Poland and Germany is already one of the most active border investment and trading centers in the world, beginning to emulate the Mexico-United States border and the Hong Kong hinterland as a place where Western capital meets non-Western labor and where goods are processed and exchanged freely. Cross-border traffic in goods and persons is burgeoning. German trade and investment being planned for the countries of the former Soviet Union and for Eastern Europe will make united Germany by far the largest single Western trading partner as well as the largest Western creditor of those states. Germany has provided more aid and investment to the former Soviet republics than any other West European state, contributing US$52 billion in aid to Russia and other members of the former Soviet Union between 1989 and 1993 as well as US$25 billion to the states of Central and Eastern Europe. More than one-half of East European and Baltic trade with the EU is with Germany. Other types of economic activities are also becoming common. For example, by 1994 the Deutsche Bank had opened a branch office in Prague and planned to open others throughout Eastern Europe. As part of that effort to speed the East's integration with Western Europe, Germany has not only endorsed but has often sponsored association agreements with the EU for the states of Eastern Europe and the former Soviet Union. It has also sponsored several East European applications for EU membership. Kohl himself told Hungarians and

Czechs in April 1994 that the EU without their countries would be a "torso." A month earlier, he told the Baltic states that they belonged in the EU as much as the Mediterranean states. Kohl also strongly advocated Russian membership in the annual Group of Seven (G-7) meetings--at least for political discussions. The credits that Germany has been giving to its Eastern trading partners are not without risk. Russian and East European debt has been accumulating for several decades. Virtually every East European state had trouble servicing its debts during the early 1990s, and special arrangements had to be made to reschedule Poland's debt. Nonetheless, the German government and German banks were prepared to extend further credits despite nagging doubts about when the credits would be repaid. German determination to increase trade with Eastern Europe and to invest more in that area reflects tradition as well as economic and political interest. Moreover, Germany is better located than any other West European state to trade with Eastern Europe, especially because Berlin remains one of the most attractive potential production, assembly, service, and transportation centers for East European trade.

Last 20 years Import, export and balance of payment of Germany

Exports of goods, services and income (US$) Year Amount 1989 4.39786E+11 1990 5.45604E+11 1991 5.41768E+11 1992 5.78453E+11 1993 5.17804E+11 1994 5.63558E+11 1995 6.82213E+11 1996 6.87401E+11 1997 6.72697E+11 1998 7.07297E+11 1999 7.14739E+11 2000 7.34514E+11 2001 7.45793E+11 2002 8.1297E+11 2003 9.89773E+11 2004 1.22552E+12 2005 1.34976E+12 2006 1.58264E+12 2007 1.90751E+12 2008 2.07248E+12 2009 1.60916E+12

Imports of goods and services (US$) Year Amount 1989 3.63223E+11 1990 4.7599E+11 1991 5.29325E+11 1992 5.67258E+11 1993 5.0209E+11 1994 5.56283E+11 1995 6.71342E+11 1996 6.65497E+11 1997 6.50277E+11 1998 6.90908E+11 1999 7.15196E+11 2000 7.40817E+11 2001 7.21328E+11 2002 7.46247E+11 2003 9.11208E+11 2004 1.06314E+12 2005 1.17074E+12 2006 1.35962E+12 2007 1.60905E+12 2008 1.77593E+12 2009 1.39708E+12

Current account balance (BoP US$) Year Amount 1989 5.803E+10 1990 4.766E+10 1991 -2.305E+10 1992 -2.158E+10 1993 -1.756E+10 1994 -2.963E+10 1995 -2.79E+10 1996 -1.192E+10 1997 -7.817E+09 1998 -1.381E+10 1999 -2.704E+10 2000 -3.228E+10 2001 400895396 2002 4.111E+10 2003 4.693E+10 2004 1.28E+11 2005 1.428E+11 2006 1.891E+11 2007 2.546E+11 2008 2.461E+11 2009 1.655E+11

CANADA Major Exports of Canada

y y y y y y y y y y y y y Motor vehicles and parts Industrial machinery Aircraft Telecommunications equipment Chemicals Plastics Fertilizers Wood pulp Timber Crude petroleum Natural gas Electricity Aluminum.

Major Imports of Canada

y y y y y y Machinery and equipment Motor vehicles and parts Crude oil Chemicals Electricity Durable consumer goods

Trade History of Canada

Canada's economy is dependent on international trade. Roughly 59 percent of its economy is based on trade. In 1999 Canada exported US$277 billion worth of goods and services and imported US$259.3 billion. While the overwhelming majority of the country's trade is with the United States, the Canadian government supports the expansion of foreign trade through international treaties and agreements. In 1989, Canada and the United States signed the Free Trade Agreement (FTA) which eliminated many tariffs and taxes on goods that were traded between the 2 nations. As a result, trade increased by 50 percent before NAFTA superceded the FTA in 1994. In 1999, trade between the 2 nations equaled US$365 billion. When investments and services are included, the total rises to US$450 billion. Canada now has a trade surplus with the United States that in 1999 was US$32.1 billion. With NAFTA, trade between Canada and Mexico

Trade (expressed in billions of US$): Canada Exports 1975 1980 1985 1990 1995 1998 34.074 67.734 90.950 127.629 192.197 214.327 Imports 36.106 62.544 80.640 123.244 168.426 206.233

SOURCE: International Monetary Fund. International Financial Statistics Yearbook 1999.

also increased substantially. Canada's major export partners are the United States, Japan, the United Kingdom, Germany, South Korea, the Netherlands, and China. The majority of the country's imports come from the United States, Japan, the United Kingdom, Germany, France, Mexico, Taiwan, and South Korea. Because of the success of the FTA and NAFTA, Canada has sought to enter into similar agreements with other nations. It has started negotiations with nations including Costa Rica, Israel, and Singapore. In 1997, it initiated a version of the FTA with Chile. This agreement is designed to prepare Chile for entry into NAFTA. Canada is a member of a number of international economic organizations including the WTO, the Free Trade Area of the Americas, and the Asia-Pacific Economic Cooperation (APEC) forum. While the United States and Canada generally cooperate on trade issues, there are a number of areas where the 2 countries have disagreements. When disputes arise between the 2 nations, they are usually submitted to international bodies for resolution. The WTO and NAFTA are the most common forums to arbitrate controversies. The main areas of dispute most commonly involve agriculture and cultural industries. A major fisheries dispute that centered around the Gulf of Maine was settled by the International Court of Justice in 1984. In 1990 the United States and Canada signed the Fisheries Enforcement Agreement that was designed to discourage illegal fishing. This was followed by the 1999 Pacific Salmon Agreement that settled disagreements over salmon fishing. One of the main areas of contention between the United States and Canada is over trade with Cuba. Since the 1960s, the United States has maintained a trade embargo on Cuba. However, Canada conducts trade with Cuba. In fact, Americans who want to travel to Cuba often go to Canada and then depart from there, since direct travel between the United States and Cuba is prohibited by the U.S. government.

The most significant barriers Canada has to free trade are restrictions on the ownership of companies that are headquartered in the country. Foreign individuals and companies are limited to 25 percent ownership in Canadian airlines and 20 percent ownership of telecommunications companies. They are also restricted to 49 percent stakes in commercial fishing ventures. Furthermore, Prince Edward Island, Nova Scotia, and Saskatchewan limit real estate sales to people or companies from outside of the province. Because of the potential influence of American culture, Canada has taken steps to try to preserve its culture from being overwhelmed by the United States. For instance, the Canadian government exempted cultural industries such as movies, music, or literature from the provisions of NAFTA. In addition, Quebec requires that all products marketed in the province be labeled in French, and throughout Canada both French and English are used in packaging and labels. While 90 percent of all goods enter Canada without any form of tax or tariff, certain products face tariffs that range from 0.9 percent to 13 percent. The highest level of tariff is applied to goods such as vegetables, cut flowers, sugar, wine, textiles, clothing, footwear, and boats. These tariffs apply to 35 different countries. In addition, Canada uses 300 percent tariffs to protect the dairy and poultry industry from competition, although in 1999 the WTO agreed with the United States and New Zealand that such tariffs were in violation of WTO regulations.

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