RESTRICTEDWORLD TRADE
ORGANIZATIONWT/COMTD/W/65
15 February 2000
(00-0570)
Committee on Trade and Development
PARTICIPATION OF DEVELOPING COUNTRIES IN WORLD TRADE:
RECENT DEVELOPMENTS, AND TRADE OF THE LEAST-DEVELOPED COUNTRIES
Note by the Secretariat
I. INTRODUCTION
1. This note, requested by the Committee on Trade and Development at its 26th Session on
8 July, follows the document1 produced for the Committee in 1997 relating to participation of
developing countries in international trade.
2. Written during the emergence of the world economy from the financial and economic crisis of
1997/98, the paper traces the evolution of developing countries' merchandise trade in threeperspectives:  long term (from the formation of GATT to 1998/9), medium term (the 1990s) and short
term (the situation of developing countries during and immediately succeeding the crisis).  Trends in
overall trade of developing countries, regional developments, and developments in trade of
manufactures are examined, and a special section is devoted to the trade of least-developed countries.
A. O
VERALL TRENDS
3. Long term trends over the fifty year span from 1948 (when developing countries' share of
world trade was at its highest, at a time when world trade as a whole was severely depressed
following the 2nd World War), show a steady decline in the share of developing countries in world
trade up to 1973 (the year before the first oil price rise) and a gradual increase thereafter.  By 1997,
developing countries' share of international merchandise exports had risen to 28 per cent from around
20 per cent in 1973 (the current US$ value of developing countries' exports had risen by 911 billion in
the same period).  However, this growth was very unevenly distributed.  Reflecting the relative pace
of economic growth and development, and of development policies, in different regions, the share of
Asia in developing countries' exports expanded enormously.  The main export growth was from China
and the principal East Asian economies, whose combined share of total exports from developing
countries was some 55 per cent by 1995.
4. Again reflecting a combination of national factor endowments, industrial and trade policy
factors, the share of manufactures in developing countries' trade has grown most rapidly.  Countries
that have succeeded in diversifying their economies towards manufactures in the late 20th century
have gained trade share and become more integrated, regionally and globally, into the world
economy.  Again, Asia was the first beneficiary, beginning with Singapore and Hong Kong, China in
the 1970s and progressing to the ASEAN economies and, in the 1990s, to India as it began to open itspreviously restricted market.  By contrast, economies which have remained tied to exports of raw
materials, or to agricultural products (with a few notable exceptions such as Chile) have lagged
behind both in overall trade development and in international integration.
                                                     
1 WT/COMTD/W/31WT/COMTD/W/65
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5. Natural and structural factors, such as resource endowments, climate, or population structure,
cannot alone explain the reason why, in 30 years, the economic position and level of development and
welfare for example of the Republic of Korea and Côte d'Ivoire have completely changed places.
Domestic policy factors – including the volume, structure and direction of investment, the importance
accorded to infrastructure and human resources development, and stable macro-economic
management and what has become characterized as "governance" no doubt combined to favourdevelopment in some economies as against others.  But external policy factors, including the trends in
multilateral trade negotiations over the half-century and trade policy liberalization efforts, have also
played a significant role.
2
6. The pace of liberalization of trade and investment in manufacturing, both on a multilateral
and on a regional basis, particularly in the late 1980s and in the 1990s, and the parallel development
of regional trade groupings and multilateral liberalization created an upsurge in manufactures trade.
Investment from the 1970s first by Japan (in the phase of the economic "miracle") and then by otherAsian economies, followed in the 1980s and 1990s by the development of multinational corporations
with both a "global reach" and highly integrated production structures, reinforced and strengthened
this trend.  The index for intra-industry trade in manufactures in developing Asia stood at 90 per cent
in 1995.
3
7. By contrast, the policy structure affecting trade in agricultural products, minerals and some
manufactures has evolved slowly, leading to a much slower degree of evolution in international
production and trade structures.  Trade in basic minerals has historically been relatively open, but the
elasticity (both income and price) of demand for such products is low, and the general trend in
manufacturing development has been to reduce the relative intensity of input of minerals per unit of
output, as new processes have developed and new materials have been created.  (The substitution ofoptic fibres for copper cable and the increasing intensity of compression of telecommunications is an
obvious case).
8. Trade in textiles and clothing has historically been severely distorted by bilateral quantitative
restrictions imposed or negotiated under succes sive international agreements concluded in the
framework, or on the fringe, of the GATT (the Short and Long Term Agreements on Cotton Textilesand the Multi-fibre Agreement).  Tariffs in developed markets have also remained high compared to
the general reducing trend in manufactures.  While the MFA may have assisted development of
exports of textiles and clothing from a number of smaller supplies which have been able to benefit
from absence of quotas, its overall structure has been counter to comparative advantage and
international efficiency.  Most developing countries that are textile exporters are impatient to see thefull integration of the sector into the WTO rule s, as laid down in the Agreement on Textiles and
Clothing, by 1 January 2005.
9. The absence, or slow pace, of liberalization in agriculture has also slowed change and
development overall in this sector (see Anderson 1999 and Binswanger and Lutz 1999).  As with
textiles, the conclusion of the WTO Agreement on Agriculture changed the direction of trends in
liberalization, by creating a structure of protection based on tariffs, limiting the scope and dimensions
of domestic support, and laying down a firm commitment to progressive liberalization.  But tariffs(including "tariffied" rates) remain generally high;  tariff escalation is still evident, subsidies and other
trade-distorting supports remain prevalent.  (See UNCTAD 1996).
10. Preferences extended by developed to developing countries, especially where textiles and
agricultural products are concerned, may have assisted in the development of some industries, firms
                                                     
2 For example, see Papageorgiou etal (1991).
3 Source:  National Asia Pacific Economic and Scientific Database, Australian National University and
Victoria University, Australia, [http://napes.anu.edu.au].WT/COMTD/W/65
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or sectors, but may also have helped to perpetuate economic structures in developing countries which
inhibit change and development.  This may be particularly the case in some smaller and more
vulnerable economies where the potential advantages of preferential access for their "traditional"
products – such as sugar or bananas – have not led to the promotion of investment in infrastructure,
diversification and human development.  In these circumstances, sudden changes in the policy
environment (such as the results of the WTO banana case) are bound to create serious shocks to theeconomic structure of developing countries.
11. These policy factors, with others, are reflec ted in the evolution of developing countries'
participation in international merchandise trade.  They are implicit in the relative pace of trade
development in East Asia as compared with Latin America and Africa, and in the pace of growth in
trade in manufactures as compared with agricultural and food products.  Developing countries that
have been able to take advantage of the trends in liberalization of the 1980s and 1990s have also been
those whose development has progressed more rapidly.
B. T
HE EFFECTS OF THE 1997-98 FINANCIAL CRISIS ON DEVELOPING COUNTRIES TRADE
12. Three factors contributed to depress the trade of developing countries during the 1997-98
financial crisis:  the strong negative effect of the decline in output in Asia, difficulties in obtaining
trade finance, and falling commodity prices.  Most developing countries – including some of the
smallest and most vulnerable – suffered in the crisis4.  The balance of import demand and export
capacity was also changed in favour of exports as steep real exchange rate depreciations dampened
import demand.  Focus has often been placed on the robustness of exports, as western markets
remained open, however, while export volumes continued to rise, price effects that in all regions
export values (current US dollar) fell.  Africa and the Middle East were particularly affected by
declining commodity prices.
13. The recovery of 1999, like the crisis, showed itself first in Asia, where economic growth
forecasts have been consistently revised upwards.  Oil-exporting countries, too, have gained from the
recovery in prices stemming from increased demand and successful restriction of supply by OPEC.
But so far prices of non-oil commodities have rema ined stagnant and, combined with problems of
capacity and investment, suggest a slow recovery in the trade of sub-Saharan African and other least-developed and vulnerable economies.
C. T
RADE TRENDS OF LEAST -DEVELOPED COUNTRIES
14. By definition, least-developed countries are the weakest and most vulnerable in their trade
and economic structures.  Between 1980 and 1997, their share of world trade declined almost
continuously to 0.51 per cent.  Generally, contractions in LDC trade have been sharper than in worldtrade overall, while they have been less able to benefit from upswings.  This reflects structural
weaknesses, including the domination of LDC trade by primary commodities (the slowest-growing
and most volatile component of international trade) and low industrial and developmental capacity.
5
The decline in African LDC share of trade has been particularly notable, in contrast to the relativelystronger performance of Asian exporters like Bangladesh, Cambodia and Laos.  Thus, while as a
group, LDCs remain the weakest group in internati onal trade, there are still some significant
differences in performance which can be attributed both to domestic policy factors (such as thesuccess of Bangladesh in diversifying its export structure) and external linkages, including regional
ones (such as the success of Laos and Cambodia, emerging from war economies, in becoming
                                                     
4 The fall in the price of timber in 1997/8, because of lowered demand in Asia, severely affected the
Solomons' trade and economic prospects, including their debt-servicing capacity (see WTO 1999).
5 WT/COMTD/LDC/W/11 (French and Spanish), WT/COMTD/LDC/W/11/Rev.1 (English).WT/COMTD/W/65
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associated with ASEAN).  The major challenge for LDCs in general remains that of building capacity,
resolving severe developmental bottlenecks, and increasing international investor confidence.
II. LONG TERM TRENDS IN THE TRADE OF DEVELOPING COUNTRIES
15. The current U.S. dollar value of developing country merchandise exports increased by a
factor of nearly 69 between 1948, at the time of inception of the GATT, and the establishment of the
WTO in 1995. However, as shown in Chart I, the developing countries' share of world merchandiseexports was at its highest (roughly 33 per cent) in 1948.
Chart I
Developed
CountriesNorth America, EU, EFTA, Australia, Japan and New Zealand. Includes Intra EC Exports
Developing
CountriesLatin America, Africa, Europe less EU and EFTA, the Middle East, Asia less Japan, Australia and New
Zealand
Planned/Transition
EconomiesCentral and Eastern Europe, the Baltic States and the former CIS.
16. This was in part a reflection of the low output in industrialised economies, notably Japan and
Western Europe, in the immediate aftermath of the second World War.  With rapid growth and
increasing economic integration in industrialized co untries over the following 25 years, the share of
world merchandise exports accounted for by developing economies fell to roughly 20 per cent
by 1973;  during this period, intra-European trade grew particularly rapidly.  In the past two and a half
decades, the share of developing countries has again increased, and was approximately 28 per centin 1997,
 largely on account of strong growth in merchandise exports in Newly Industrialised
Economies and China.  In 1998, the share of merchandise exports accounted for by developing
countries fell by 2 per cent, owing to the effects of the economic and financial crisis.
17. The performance of  developing countries' merchandise exports in the period 1948-97 has
been  uneven across regions, as shown in Chart II.WT/COMTD/W/65
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Chart II
Other Middle East, Turkey and Romania
East and South
East Asian NIESChinese Taipei, Hong Kong, China, the Repub lic of Korea, Malaysia, Singapore and Thailand
18. Latin American and Caribbean countries, wh ich with 40 per cent of the value of all
developing country merchandise exports were the most significant group in 1948, saw their share
decline to 20 per cent by 1998.  China and the East and South East Asian NIEs, whose share of
13 per cent of merchandise exports in 1948 was considerably below that of Africa, accounted for thebulk of developing country exports in 1998 with a share of
 nearly 50 per cent.  This was significantly
less, however, than the peak level of 55 per cent in 1995, and reflects the impact of the economic and
financial crisis (see Section II for further discussion)  Growth in merchandise exports from this region
was especially strong in the period since 1973.  The share of merchandise exports accounted for by
Asia, excluding China, and the NIEs  was16 per cent in 1948, and 11 per cent by 1998.
19. During the past thirty years, the structure of  developing countries' exports as a whole has
moved away from commodities towards manufactures. Chart III illustrates that the share of worldexports of manufactures accounted for by developing countries has risen from 4 per cent to
24 per cent  over the period 1963 to 1998 .WT/COMTD/W/65
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Chart III
Country groups defined as before
Manufactures are defined following SITC revision 3, Section 5 (Chemicals and Related Products); Section 6 (Manufactures
classified according to material, i.e. leather, rubber, cork  and wood, paper, textiles, non metallic minerals, iron and steel,
manufactures of metals. Non ferrous materials are excl uded); Section 7 (Machines and transport equipment); Section 8
(Miscellaneous manufactured material , excluding arms and ammunition).
20. However, as with total merchandise exports, growth in exports of manufactures from
developing countries has been extremely uneven across regions (Chart IV).  By 1995, China and theSouth East and East Asian NIEs accounted for nearly  67 per cent of developing countries' exports of
manufactures, compared to below 42 per cent in 1963. This share fell between 1995 and 1998 as a
result of the recent crisis.  The share accounted for by Asia excluding China and the NIEs declined
markedly from nearly 30 per cent to about 4 per cent between 1963 and 1983, and then rose somewhat
to 7 per cent by 1995
6.
                                                     
6 Detailed data for 1997 for the regional clas sifications used here are not yet available.
WT/COMTD/W/65
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Chart IV
21. The increase in the share of developing country merchandise exports accounted for by
manufactures, from 7 per cent in 1963 to 65 per cent in 1995 and 1998, reflects a shift in the export
structure of developing countries away from prim ary products and raw materials (Chart V).  Again,
regional differences are very marked: the share of merchandise exports from China and the NIEs
accounted for by manufactures rose from 25 per cent to 92 per cent between 1963 and 1995, while theshare of manufactures in African merchandise exports rose from 2 per cent to 25 per cent over the
same period (Chart VI).
Chart V
WT/COMTD/W/65
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Chart VI
III. THE TRADE OF DEVELOPING COUNTRIES IN THE 1990's
A. TRENDS IN THE PERIOD 1990-98
22. Following strong growth in the period 1990-97, the merchandise trade of developing
countries as a group has been significantly affected by the global financial and economic crisis that
began in South-East Asia in 1997.  In value terms7 exports from developing countries grew at an
annual average rate of 9.5 per cent in the period 1990-97, while imports increased by 11 per cent over
the same period.  In 1998 total exports fell by 7.5 per cent in value terms, while imports contracted by
12.5 per cent.  The fall in exports was largely the result of declines in dollar prices: in volume terms,exports from developing countries grew by 5 per cent in 1998, compared to an annual average rate of
growth of 9.5 per cent in the period 1990-97.  By contrast, imports into developing countries, in
volume terms, contracted by 4 per cent in 1998, against an annual average rate of expansion of
9.5 per cent in the period 1990-97.
23. While a detailed evaluation of the causes which underpinned these trends is not within the
scope of this paper, the following may be posited  as the main factors which affected the trade of
developing countries in 1997 and 1998.  The first was falling output and demand in developing Asia
8
particularly, and a number of developing countries in general, as a consequence of the financial crisis.
As discussed below, this had a strong negative impact on the trade performance of developing Asia,
which had been the largest and fastest growing compone nt of the trade of developing countries in the
period 1990-97.  Intra-developing Asia trade was especially affected. Second, "contagion effects",
notably increased financing constraints, reduced import demand in countries not at first directlyaffected by the crisis.  A third factor was falling fuel and non-fuel commodity prices, which again
appear to have largely been a result of depressed demand in developing Asia and Japan.
9  Finally,
                                                     
7 Measured in current US Dollars.
8 Asia excluding Japan, Australia, and New Zealand.
9 see IMF (1999a).WT/COMTD/W/65
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steep exchange rate depreciations in the main countries affected by the crisis served, along with
depressed demand, to reduce imports.  It is also possible that downward movements in the real
exchange rate, as a result of nominal depreciations (once cost pass-through effects are allowed for)
may have had a positive effect on Asian exports by increasing their competitiveness, particularly in
markets where demand remained relatively robust.10
24. The value of exports from all four developing regions – Africa, developing Asia, the Middle
East and Latin America - fell in 1998 compared to 1997, with declines being particularly strong in the
Middle East and Africa, owing to sharp falls in oi l and non-oil commodity prices, as shown in Table 1
below.  Export volumes increased in all four major regions, but at a much slower pace than in the
period 1990-97 for all regions except the Middle East, where the expansion of export volumes was
greater in 1998, than the average for 1990-97. Asia experienced particularly sharp falls in both
volumes and values of imports - an indicator of the depth of the recession experienced by a number of
countries, notably in East and South East Asia.  A detailed understanding of developments by regions
requires an examination of their respective trade structures and patterns of trade flows vis a vis
different markets; this will be taken up in subsequent sections.
Table 1
25. The overall share of developing countries in international merchandise trade, which was close
to 28 per cent in the early 1980s (Table 2) declined to 21 per cent in 1986 and 1987, due largely to the
adverse effects of the debt crisis and falling commod ity prices (especially oil prices).  From the late
1980's to 1997, the share of developing countries in international merchandise trade increasedsteadily, driven by strong growth in developing Asia.  While the share of 27 per cent accounted for by
developing countries in 1997 was close to the share of international merchandise trade accounted for
by developing countries in 1980, the relative weight of different regions in the trade of developing
countries had changed.  The share accounted for by the Middle East in 1997 was less than a fifth of
the share accounted for by developing Asia in 1997, whereas the two regions had accounted for nearlythe same percentage of developing country trade in the early 1980s.
26. As a result of the recent economic and financial crisis, the share of developing countries in
international merchandise trade fell from 27 per cent to 25 per cent in 1998, mainly as a result of
trends in Asia and the Middle East.  The sharpest contraction came in Asia, and particularly the NICs,
which include some of the countries hit first by the crisis.  The share of Asia, as a whole, ininternational trade fell to pre 1993 levels, while the share accounted for by NICs declined to pre 1991
levels.  The share of Latin America in international trade continued the upward trend it had been
following since 1995, while the share of Africa in international trade remained stagnant at
1.7 per cent.
                                                     
10  Given that export and import values  are measured in current US Dollars, devaluations also had the
effect of reducing the dollar value of the trade of developing countries.WT/COMTD/W/65
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Table 2
27. The crisis had a proportionately greater effect on the trade of developing countries with
developing countries, than on their trade with developed countries (Graphs 1 and 2). During the
period 1990-97, the share of developing country exports accounted for by developing countries
increased from 30.2 per cent to 38.9 per cent, while the share of developing country exports accountedfor by developed markets declined from 67.9 per cent to 59.3 per cent.  While exports to both
developed and developing markets declined in 19 98 compared to 1997, exports to developed markets
fell less, proportionately, than exports to developing markets (minus 2.5 per cent compared to
minus 12.5 per cent). Consequently, the share of exports accounted for by developed markets rose to
61.9 per cent, while the share accounted for by developing markets fell to 36.5 per cent, a lower levelthan in 1995.
Graph 1
28. A similar story can be told on the import side, though the change in relative shares was less
pronounced.  The share of imports into developing countries accounted for by developed countriesdeclined from 66.6 per cent in 1990 to 60.8 per cent in 1997, while the share of imports accounted for
by developing countries rose from 30.3 per cent to 37 per cent over the same period.  In 1998,
compared to 1997, imports from developing countries fell by 12.4 per cent, while imports from
developed countries fell by 10.5 per cent. Consequently, the share of imports to developing countries
accounted for by developed countries rose to 61.3 per cent, while the share accounted for bydeveloping countries fell to 36.6 per cent.WT/COMTD/W/65
Page 11
Graph 2
29. The greater impact of the crisis on the trade of developing countries amongst themselves was
a reflection of developments in regional patterns of trade.  Specifically, trade flows to, from and
within developing Asia, the region hit earliest and hardest by the crisis, had during the 1990s become
the dominant influence on the trade performance of developing countries as a group.  In 1990,
developed North America11 and Western Europe jointly were the markets for 26 per cent of
developing country exports, while developing Asia accounted for roughly 18 per cent.  By 1997,
developing Asia purchased 27 per cent of developi ng country exports, and North America 26 per cent,
while the share accounted for by Western Europe had fallen to 19 per cent.  In the same period,
developing Asia's share of imports into developing countries rose from 18 per cent to 25 per cent,
with the bulk of the increase coming in the period 1990-95.  The share accounted for by Western
Europe fell from 29 per cent to 24 per cent, while the share accounted for by North America remained
constant, lying between 19 and 20 per cent. Regarding trade within developing countries, growth inintra-Asian trade averaged 16 per cent on an annual basis in the period 1990-97.  The share of the
total trade of developing countries accounted for by intra-Asian trade rose from 14 per cent in 1990,
to 21.5 per cent by 1995, and remained at that level till 1997.
30. Most of these trends were reversed in 1998 following the financial crisis.  The value of
developing countries' exports to all developing regions (and to Japan) fell, but the decline was greatestin both absolute and relative terms for exports to developing Asia.  The share of developing country
exports to developing Asia fell from 27 per cent to 24 per cent, while the shares of exports to
developed North America and Western Europe respectively rose to 28 per cent and 21 per cent,
against their 1997 values.  Moreover, the values of exports to these two regions rose in 1998 over
1997, reflecting their positive economic performance and continuing open markets, while exports todeveloping Asia fell by 17 per cent.  The value of imports from all regions into developing countries
fell from 1997 to 1998.  Developing Asia's share of developing country imports stagnated at
24 per cent, while the shares accounted for by North America and Western Europe increased
respectively from 20.5 to 22 per cent, and 24 per cent to 24.5 per cent.
                                                     
11 Canada and the USA.WT/COMTD/W/65
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B. THE STRUCTURE OF DEVELOPING COUNTRIES ' TRADE
31. Graph 3 illustrates the growing importance of manufactures in the exports of developing
countries.  Over the period 1990-1997, exports of manufactures were the fastest growing component
of developing country trade, growing at an average annual rate of nearly 13 per cent.  World exports
of manufactures grew at an average of 7.6 per cent over the same period.  Developing country exports
of manufactures grew particularly rapidly in the period 1993 to 1997, driven by the strong economicperformance of Latin America and Asia 
(see subsequent sections).
Graph 3
32. The share of manufactures in developing country exports rose from 52.1 per cent in 1990 to
64.8 per cent in 1997 (Table 3)  Even though the value of manufactures exports declined in 1998 by
1.7 per cent, the share of manufactures in developing countries exports continued to increase,reflecting the sharp decline in the value of fuels, mining, and agricultural exports.  Developing
countries accounted for 17.2 per cent of world manufactures exports in 1990, and by 1997 this share
had increased to 24 per cent, before falling in 1998 to 23 per cent.
Table 3
33. Throughout the 1990s developing countries were the fastest growing markets for exports of
manufactures from developing countries: exports of manufactures from developing countries to
developed countries grew at an annual average rate of 11 per cent from 1990-97, while trade in
manufactures amongst developing countries grew at an annual average rate of 17 per cent over the
same period, reflecting growing economic linkages in Latin America and Asia.  As a consequence, theeconomic and financial crisis affected developing country exports of manufactures to developing
countries more than to developed countries. In 1998, the value of developing country exports ofWT/COMTD/W/65
Page 13
manufactures to developed markets increased, as did the share accounted for by these markets, which
increased to 62 per cent.  Exports of manufactures by developing countries to other developing
countries fell by 9 per cent in 1998, bringing down the share of developing country manufactures
exports accounted for by developing countries to 34.6 per cent.
34. The primacy of manufactures in the overall trade of developing countries notwithstanding,
bulk primary commodities and fuels account for more th an 50 per cent of export earnings in nearly
two-thirds of low and middle income countries.12  Developing countries overall also account for
between 47 to 50 per cent of global exports of mining and fuel products. Export earnings in these
sectors have been particularly unstable, falling at an annual average rate of 3.8 per cent between
1990 and 1994, increasing at an annual average rate of 13 per cent between 1994 and 1997, and then
collapsing by 24 per cent in 1997-98.  This last event was due largely to falls in the value of fuel
exports, especially oil, which declined by 32 per cent from 1997 to 1998 to their lowest level in
24 years.  Metals prices fell by nearly 17 per cent in the same year, with aluminium, copper and zincrecording particularly sharp declines, again reflecting the decline in world demand.
35. Driven by increases in the price of certain key commodities, notably cash crops, the value of
developing country exports of agricultural products rose rapidly in the period 1993-1996, levelling off
in 1996 to 1997. These trends were reversed in 1998 when the sharp fall in commodity prices,
stemming from declining world demand, led to a decline in 6 per cent in the value of their exports.Market prices for food exports fell by 13 per cent, beverages by 15.2 per cent, and agricultural raw
materials by 16.2 per cent.  Amongst individual item s of export interest to developing countries,
timber fell by 13 per cent, cotton by 17.3 per cent, rubber 30 per cent, and coffee by 22 per cent.
C. T
ENDENCIES IN 1999: SIGNS OF RECOVERY ?
36. Preliminary data for 1999 suggest a degree of recovery for the trade of some developing
countries, especially in Asia, following the shocks of 1998.  Economic growth forecasts have been
revised upwards for 1999 and 2000, especially for Newly Industrialised Asian economies, which are
jointly expected to have grown by 5.2 per cent in 1999.  Brazil is also expected to be at or near the
trough of its recession.  Recovery in Asian economies should have a beneficial impact on the trade of
developing countries, especially in that region. 13
37. Preliminary trade flow data for 1999 indicate that  the contraction in the values of exports and
imports in some regions has bottomed out, and that recovery in trade flows is well under way.
However, in other regions, significant weaknesses remain.  Data for 1999 suggest that exports from
the six NICs rose by 6.2 per cent on a year-on-year basis, compared to a fall of 7.5 per cent in the year
of 1998, owing to very strong growth in the 3rd and 4th quarters.  Imports rose by 7.6 per cent on a
year on year basis, compared to a fall of 21.1 per cent in 1998, owing –as with exports – to very
strong growth in the 3rd and 4th quarters.  Short term prospects for Latin America – outside Mexico –
are much more mixed.  Three of the largest economies in the region – Brazil, Argentina and
Venezuela – recorded sharp contractions in their exports in the first half of 1999, but there were some
signs of improvement in the last months of the year.  Exports from Brazil fell by 6.1 per cent on a year
by year basis in 1999, with positive growth in the 4th quarter attenuating the falls of the first three
quarters.  Exports from Argentina for the first 9 months of 1999 fell by 19.9 per cent on a year on yearbasis, while exports for the first 9 months from Venezuela rose by 4.1 per cent on a year on year basis,
owing to rapid growth in the 3
rd quarter.  Imports into the three economies declined steeply in 1999.
Imports contracted by 14.8 per cent in Brazil, though the rate of decline slowed in the last quarter of
1999.  Imports into Argentina and Venezuela fell by respectively 22.7 per cent and 33.1 per cent in
the first 9 months of 1999. In contrast to these developments, Mexico recorded robust export growth
                                                     
12  As defined in World Bank (1999).
13  see IMF 1999 (b).WT/COMTD/W/65
Page 14
(14.2 per cent on a year on year basis in the first half of 1999), on account of continuing economic
expansion in North America, while its imports rose by 11 per cent over the same time-period.
38. The differences in prospects for trade performance in 1999 are closely linked to differences in
growth prospects as between Asia and Latin America, as well to the geographic pattern of the regions'
trade.  These aspects are discussed below.
39. Recent data for Africa and the Middle East are not available.  Much will depend, for these
regions, on movements in the prices of commodities and raw materials.  Oil prices have risen by
nearly 100 per cent between their low point in December 1998 and August 1999.  This is liable to
have an upward impact on the trade of oil exporting countries in these two regions.  Prices of non-fuel
commodities have remained stagnant overall, with food and beverages continuing their declines,
while agricultural raw materials recorded a slight increase.  The divergence in trends between oil and
non-fuel commodities is likely to have a significant negative impact on the terms of trade and trade
balances of net-oil-importing Sub-Saharan African countries that are heavily dependent on the exportof a few commodities.
IV. DEVELOPMENTS BY REGION
A. A
SIA
40. As indicated above, developing Asia accounts for the bulk of developing country merchandise
trade with the world.  As shown in Graphs 4 and 5 below, exports from developing Asia to all majortrading regions increased rapidly in the period 1990-97, driven mainly by the performance of the
six NICs and China, which together accounted for 81 per cent of all exports from developing Asia.
Graph 4
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Graph 5
41. A striking feature is the rapid increase in intra-Asian trade over the period 1990-97.  In 1990,
the share of exports from developing Asia accounted for by developing Asia was 27 per cent, while
the share accounted for by developed North America was 26 per cent.  By 1997, the share accounted
for by developing Asia had risen to 36.7 per cent, which was more than the joint share of North
America and Japan (35.8 per cent).  Trends on the export side were matched on the import side, withimports from developing Asia rising to 35.2 per cent of all imports into developing Asia by 1997,
more than the shares accounted for jointly by North America and Japan.
42. Alongside the expansion of trade flows to and wi thin Asia, flows of foreign direct investment
(FDI) into Asia increased substantially in the period 1990-97, with overall inflows reaching
US$96 billion in 1997.
14  FDI flows also had their influence on the pattern of trade, and particularly
on intra-Asian trade.  For example, sales within south, south east and east Asia accounted for
75 per cent of all sales of the affiliates of Japanese transnational companies established in the region.Of developing Asia's total stock of outward FD I, over 50 per cent was accounted for by other
developing Asian countries, of which Chin a was the most important host country. 
15
43. As previously observed, the economic and financial crisis appears to have had an asymmetric
regional impact on the trade of developing Asia.  Exports to all developing regions and Japan
contracted, while exports to developed North America and Western Europe continued to increase,albeit at a somewhat diminished rate (respectively 7 and 4 per cent) in 1997-98.  Exports to
developing Asia were the hardest hit, falling by 15 per cent in 1998 
(compared to an annual average
rate of increase of 16 per cent in 1990-97).  Consequently, the share of developing Asia's exports
going to the region fell from 37 per cent to 33 per cent, while the shares of developed North America
and Europe increased to 25 per cent and 19 per cent.
44. Developments on the import side were markedly different, with imports from all sources
falling.  While the contraction in absolute terms was greatest in imports from developing Asia, the
relative decline in these imports, at 15.3 per cent, was smaller than the relative decline in imports
from developed North America (17.5 per cent), Western Europe (22.3 per cent) and Japan
(24 per cent).
                                                     
14 see UNCTAD 1999.
15 see UNCTAD 1998.WT/COMTD/W/65
Page 16
45. In keeping with the pattern for developing countries as a whole, exports of manufactures were
the fastest growing component of developing Asia's merchandise exports over the period 1990-97,
with an average annual rate of growth of 13.3 per cent.  Exports of manufactures from China alone
increased at an annual average rate of 19.6 per cent over the same period.  Within the manufactures
sector, exports of office and telecommunications e quipment were the fastest growing sub-sector.  The
share of total merchandise exports accounted for by manufactures rose from 75 per cent to81.6 per cent over 1997-98 for developing Asia as a whole, while if China, Chinese Taipei, Korea,
Hong Kong, China and Singapore are excluded, the share of manufactures increased from 54 per cent
to 70 per cent.  Exports of manufactures to developing regions grew faster than to developed regions,
at average rates of 17.8 and 10 per cent per annum.
46. The 1997-99 recent crisis affected exports of manufactures relatively less than other sectors.
Whereas exports of agricultural and mining products, and fuels declined by 8.5 per cent and
14.5 per cent respectively, exports of manufactures declined by only 4 per cent.  Exports ofmanufactures to developed markets in fact conti nued to grow in 1998, driven principally by modest
growth in exports to North America and Europe. Manufactures account for respectively 94 and
84 per cent of merchandise exports from developing Asia into these two regions, and the continuing
growth of exports of manufactures in these two re gions provides some explanation for the observed
increase in the two region's share of total exports from developing Asia 1998.
47. The crisis reduced FDI inflows into Asia by 11 per cent in 1998 as compared to 1997, though
overall inflows remained higher than in 1996.  The overall result hides wide disparities in individual
performances.  Thus, while Indonesia suffered from net divestment, inflows into Korea, Thailand and
the Philippines increased to unprecedented levels.  This is in part a reflection of the fact that lower
asset prices and costs of production serve to attract export-oriented investment by transnational firmsoperating systems of integrated international production.  This in turn may have helped to attenuate
the contraction of developing Asia's trade consequent to the crisis. 
16
B. LATIN AMERICA
48. The main features in the pattern of trade of Latin American countries are: a rapid increase in
trade with North America owing principally, but not exclusively, to trade between Mexico anddeveloped North America; a rapid increase in trade wi thin the Latin American region;  and, as in Asia,
an increase in the share of total merchandise exports accounted for by manufactures.
49. Over the period 1990-97, exports from Latin Amer ica to developed North America grew at an
average annual rate of 11.5 per cent - with part icularly strong growth in the period 1994-97 when
exports grew at an average annual rate of 17. per cent (Graph 5).  Imports by Latin America fromdeveloped North America grew at an annual average rate of 13 per cent, without a noticeable
acceleration after 1994.  Both exports and imports within the Latin American region grew at an
average annual rate of 16.5 per cent, in the period 1990-97. (Graph 6).
                                                     
16  see UNCTAD 1999.WT/COMTD/W/65
Page 17
Graph 6
Graph 7
50. These trends have changed the regional distribution of market shares amongst
Latin America's main trading partners.  In 1990, developed North America accounted for
46.5 per cent of Latin American exports, Western Europe for 21.3 per cent, and Latin America for
14.3 per cent.  In 1997, developed North America accounted for 51.4 per cent of Latin American
exports, Latin America for 20.8 per cent, and Western Europe for 14.6 per cent.  The story is similar,
though less marked, on the import side: in 1990 developed North America accounted for 43.3 per cent
of imports to Latin America, Western Europe for 21 per cent and Latin America for 15.9 per cent. ByWT/COMTD/W/65
Page 18
1997, developed North America accounted for 46 per cent of imports, Europe for 18.7 per cent, and
Latin America for 20 per cent.
51. Growth in trade between Latin America and developed North America in the 1990s has been
dominated by Mexico, though developed North Amer ica's trade with other Latin American countries
has also been expanding rapidly.  In the period 1992-97, exports from Latin America (excluding
Mexico) to developed North America grew by 9 per cent on an average annual basis, while imports bythe region increased at an annual average rate of 11 per cent.  At the same time exports from Mexico
to developed North America grew at an average annual rate of 15 per cent, while its imports from the
region grew at an average annual rate of 12 per cent.
17
52. Excluding Mexico, the data point to the rela tive importance of intra-Latin American trade
compared to trade with North America.  Intra-Latin American trade (excluding Mexico) has, since
1995, accounted for the highest share of Latin American exports (excluding Mexican trade), at
33 per cent in 1998 (as against 29 per cent for North America)  Intra-Latin American trade (excludingMexican trade) accounted for 30 per cent of all Latin American imports, as against between 27 to
29 per cent for North America.
53. Growth in intra-Latin American trade has been driven to some extent by strong growth in
intra-regional trade in the context of regional trad ing agreements.  Thus intraregional trade in the
Mercosur and the Andean Community grew at annual average rates of 26 per cent and 24 per cent,respectively, in the period 1990-97.
54. As in the case of Asia, the recent crisis has had an asymmetric impact between Latin
America's trade with developed regions, on one hand, and developing regions on the other. Among
developed country partners, expo rts to North America increased by 3.3 per cent in 1998, while
exports to Western Europe remained flat.  Imports from all developed regions to Latin Americaincreased.  On the other hand, exports to and imports from all major developing regions stagnated or
fell.  In particular, intra-Latin American trade fell by 5 per cent.  However, the effects vary widely:
Mexican trade has been relatively less affected by the crisis owing to the magnitude of its trade with
North America.
55. The product structure of Latin American trade also differs depending on whether or not
Mexican trade is included.  Manufactures have, as in Asia, been the fastest growing component of for
Latin America overall, increasing at an average annual rate of 9.8 per cent in the period 1990-1997.
The share of manufactures in total merchandise exports thus rose from 38.2 per cent to 57.2 per cent
in the period 1990-98.  However, if Mexican trade is excluded, agriculture was the fastest growing
export sector of Latin America, with an annual average rate of growth of 11.5 per cent, and its sharefluctuated between 35 and 37 per cent, roughly the same level as manufactures.  In the period
1992-97, the share of agriculture in exports from Latin America 
(excluding Mexico) to developed
North America fluctuated between 21 and 23 per cent, and between 52 and 55 per cent in the case of
exports to Western Europe.  Though exports of manufactures to both regions from Latin American
countries other than Mexico have increased, they have done so at less than half the rate of exports
from Mexico.
56. Manufactures trade within Latin America has also grown significantly, especially in 1994-97,
when the average annual rate of growth was 18 per cent.  The share of manufactures in intra-Latin
American trade stood at 55 per cent, regardless of whether Mexico is excluded or not.  Latin America
accounted for only 21 per cent of all manufactures exports from Latin America, compared to
                                                     
17 Trade figures for Mexico used in this paper include trade generated by maquiladoras, which in 1996
represented 40 per cent of Mexico's total exports and imports, and 47 per cent of manufactured exports (see
WTO 1997).WT/COMTD/W/65
Page 19
69 per cent for developed North America, if Mexican trade was included.  If Mexican trade is
excluded, however, intra-regional trade accounted for 45 per cent of all Latin American exports of
manufactures.
57. The recent crisis has affected Latin American exports of agricultural products, mining and
fuels products, harder than it has affected manufactures.  The value of agricultural exports declined by
4 per cent in 1997-98, and fuels and mining declined by 19 per cent in the same year; fuels wereparticularly badly hit, with a decline of 23 per cent.  Manufactures exports grew at 6 per cent
(compared to an average annual growth rate of 14 per cent in 1990-97).  The result for manufactures
hides an important discrepancy, namely that exports to developed regions increased by 11 per cent in
1997-98, while exports to developing regions fell by 5.5 per cent.  This is attributable on one hand to
continued strong demand in developed North Amer ica, which has sustained manufactures exports
from Mexico, and to faltering manufactures trade within Latin America.  If Mexican trade is
excluded, exports of manufactures from Latin America fell by 2 per cent in 1998 as compared to1997.
C. A
FRICA
58. African trade in the period 1990-98 was characterised by two outstanding features: the
continued, but weakening, predominance of Western Europe as a trading partner and the continued
predominance of primary commodities (agricultural products, mining and fuels) in the exportstructure of Africa.
59. Western Europe's share of African exports to all regions declined from 62 per cent in 1990 to
52 per cent in 1997, while at the same time the share of African exports to developing Asia rose from
5 per cent to 10 per cent, while the share of African exports to Africa (excluding South Africa) rose
from 5 to 8 per cent.  The share of Western Europe in exports of Africa to developed countries as agroup fluctuated between 70 and 75 per cent.
Graph 8
60. The value of exports to Africa's major trading partner, Western Europe, is very closely
correlated with movements in commodity prices.  The period 1990-93 was one of falling commodityWT/COMTD/W/65
Page 20
prices world-wide.  This fall bottomed out by 1993-1994, following which the price of certain non
fuel commodities, especially, increased sharply.  Commodity prices peaked by 1996, before falling
sharply in 1998, principally owing to the slump in oil prices.
Graph 9
61. Western Europe's share of Africa's imports declined over 1990-97 from 61 to 50 per cent.
This was due to increased imports from Asia, whose share rose from 7.7 per cent to 10.8 per cent, and
to increased imports from "other developed countries" (essentially South Africa), whose share
increased from 5.5 to 8.6 per cent.
62. As alluded to above, primary commodities continue to dominate Africa's export structure,
with their share of total exports falling slightly  from 79 per cent in 1990 to 75 per cent in 1997.
Exports of fuel, principally petroleum, were the largest single sub-component. It is worth noting, at
this juncture, that only a handful of African countries are oil exporters18.  Exports of manufactures
account for 20 per cent of African exports overall, though the share of manufactures in intra-African
trade increased from 11 per cent in 1990 to nearly 40 per cent in 1997, largely due to exports of iron
and steel, chemicals, and other semi-manufactures.
63. The predominance of primary commodities in African exports provides a sharp contrast to the
predominance of manufactures, accounting for between 68 and 70 per cent of its total imports.  Theshare of manufactures in Africa's imports from Western Europe lay between 78 and 79 per cent, while
the share of manufactures in imports from Japan lay between 98 to 99 per cent.  The asymmetric
composition of African trade renders the region particularly vulnerable to shocks in commodity
prices.
64. The main impact on African trade in 1998 appears to have been via falling oil prices and other
commodity prices.  The effects of oil price declines seems to have been much larger, overall, than that
of other commodity price developments.  Total exports from Africa fell by 17 per cent in 1998
compared to 1997, while the value of exports excluding fuels, remained flat.  The implication is that
                                                     
18  Principally,  Algeria, Angola, Congo, Egypt,  Gabon, Libya,  and Nigeria.WT/COMTD/W/65
Page 21
adverse developments in 1998 will have had a disproportionately large impact on the trade of net oil
exporters.  On the other hand, it is likely that developments in 1997-98 have had a broadly neutral
effect on the trade balances of net oil importing African countries, given that the terms of trade effects
resulting from falling commodity (non-fuel) prices are likely to have been offset by falling oil prices.
D. THE MIDDLE EAST
65. The main development regarding the regional composition of Middle Eastern trade in the
period 1990-98 has been the emergence of developing Asia as the single largest market for Middle
Eastern exports, while exports to the three other major markets (developed North America, Western
Europe, and Japan) remained broadly constant in 1990-97, before declining in 1998 owing to
slumping oil prices (Graphs 9 and 10).
Graph 10
Graph 11WT/COMTD/W/65
Page 22
66. Developing Asia's share of Middle Eastern exports rose from 18 to 30 per cent in 1990-97.
At the same time the share of developed North America declined from 14 to 12 per cent, that of
Western Europe from 25.5 to 19 per cent, while the share accounted for by Japan remained constant at
20 to 21 per cent.  This development has not been entirely matched on the import side: the share of
imports into the Middle East from developing Asia rose from 11 to 16 per cent over 1990-97, but
remains well behind Western Europe's share of 42 per cent (down from 45 per cent in 1990).  North
America's share rose from 13 to 16 per cent in 1990-97, while the share accounted for by Japan fell
from 14 to 8 per cent over the same period.
67. The export structure of Middle Eastern economies continues to be dominated by exports of
oil.  However, exports of manufactures grew qu ite rapidly in the period 1990-97, pushing down the
share accounted for by fuels from 79 per cent in 1990 to 70 per cent in 1997 (even though the absolutevalue of fuel exports in 1997 was 20 per cent higher in 1997 than in 1990).  Manufactures exports are
mainly composed of chemicals, other semi-manufactures, and machinery and transport equipment,
with approximately two-thirds of these exports destined for North America and Western Europe.
68. The major impact on Middle Eastern trade in 1997-98 was the slump in oil prices, which
caused the total value of fuels exports to fall by 29 per cent.  As might have been expected,contraction in trade with developing Asia and Japan was the sharpest, with exports falling by
29 per cent and 33 per cent respectively.  By contrast, imports into Middle Eastern economies grew
slightly, though at a slower rate than in previous years.
V. THE TRADE OF LEAST DEVELOPED COUNTRIES
69. After falling at an average annual rate of 4 per cent in the period 1980-86, the value of LDC
exports grew at an average annual rate of 6.8 per cent in 1996-90.  The value of LDC imports
followed a similar pattern, declining by 3 per cent per year on average in 1980-86, and then increasingat an average annual rate of 5.2 per cent between 1986 and 1997. The growth in both LDC exports
and imports notwithstanding, the share of LDCs in international trade has declined almost
continuously between 1980, when LDCs accounted for 0.9 per cent of total trade, and 1997, when
LDCs accounted for 0.5 per cent.  This is due to the fact that the growth in exports from and import to
LDCs has been slower than grow th in international trade, which over the period 1986-87 averaged
9 per cent per annum.WT/COMTD/W/65
Page 23
70. The decline in the LDC's overall share of world trade is a reflection of the fact that the trade
of LDCs over the period 1980-97 was susceptible to contractions were on average stronger than
global contractions, while upswings in the trade of LDCs were on average far less pronounced in
comparison with global upswings, or even trends among developing countries.  This pattern can be
explained to an extent by the fact that the structure of exports of many LDCs remains dominated by
primary commodities, which in all but a handful of LDCs account for 80 per cent or more of totalmerchandise exports.
 19  At the same time manufactures have been the fastest growing component of
world trade, while commodity prices have exhibited a significant degree of volatility.
71. The LDCs form a heterogeneous group in terms of the magnitude of their trade value, and
their trade performance.  Thus, in 1998, the 15 biggest exporters of the 48 LDCs accounted for nearly
80 per cent of all exports of the group.  While the share of world merchandise trade accounted for by
LDCs has been declining continuously, there have also been significant disparities in trade growth
within the LDC grouping, with a few countries experiencing rates of growth in trade above the worldaverage, as shown in Graph 12.
Graph 12
72. Countries which are exporters of manufactures have (with the exception of Madagascar)
performed above average, with Cambodia having the fastest  average annual rate of growth of exports
in the period 1987-97 (nearly 32 per cent). At the same time, a few countries whose exports are
dominated by primary commodities have also performed above average.  Countries in the negativequadrant (i.e. negative export and import growth) are all countries which have been suffering from
prolonged civil strife.
73. While Africa accounted for 69 per cent of all LDCs trade in 1980, it accounted for 57 per cent
in 1997, with almost the entirety of this relative decline coming in the period 1990-1997.  At the same
time, the share of LDC trade accounted for by Asia has nearly doubled from 17 to 33 per cent, withthe bulk of the growth coming in the period 1989-97. This is in part due to strong performance of
certain exporters of manufactures, such as Bangladesh, which over the period 1988 to 1997 more than
                                                     
19  Exceptions are: Bangladesh,  Cambodia, Lao PDR, Myanmar and Madagascar.WT/COMTD/W/65
Page 24
tripled its exports and nearly doubled it imports; Cambodia, whose exports increased by a factor of
nearly 10 and imports by a factor of 4.5 over the same time-period; and Lao PDR whose exports
quintupled and imports tripled over the same period.  Pacific Island LDCs accounted for 1.2 per cent
of LDC trade, though their level of exports nearly tripled between 1990 and 1997.WT/COMTD/W/65
Page 25
VI. REFERENCES
Anderson, K.(1999), Globalization, WTO and Development Strategies for Poorer Countries , Center
for International Economic Studies, Adelaide 1999
Binswanger, H. and E. Lutz, Agricultural Trade Barriers, Trade Negotiations and the Interests of
Developing Countries .  Paper prepared for the UNCTAD X High Level Round Table on
Trade and Development, Bangkok, Febr uary 2000, (UNCTAD document TD(X)/RT.1/8,
9 December 1999).
IMF (1999a), World Economic Outlook , May 1999, (Washington D. C.:  IMF).
IMF (1999b), World Economic Outlook, October 1999, (Washington D. C.:  IMF).
Papageorgiou, D., M. Michaely and A. Choksi (eds), Liberalising foreign trade , The World Bank,
Washington 1991
UNCTAD (1996), Strengthening the Participation of Developing Countries in World Trade and the
Multilateral Trading System , (New York and Geneva: United Nations).
UNCTAD (1998), World Investment Report , (New York and Geneva: United Nations).
UNCTAD (1999), World Investment Report , (New York and Geneva: United Nations).
The World Bank (1999), World Development Indicators , (Washington D. C.: The World Bank Group)
WTO (1997), Trade Policy Review: Mexico , (Geneva: the World Trade Organisation)
WTO (1999), Trade Policy Review, Solomon Islands , (Geneva: the World Trade Organisation)WT/COMTD/W/65
Page 26
ANNEX I
Definitions of Country Groups and Regions used in this paper
A. COUNTRY GROUPS
Developed economies:  North America, EU, EFTA , Japan, and other developed countries (South
Africa, Australia, and New Zealand).
Developing economies:  Latin America, Africa less  South Africa, Europe less EU and EFTA, the
Middle East, and Asia less Australia, Japan and New Zealand.
Economies in transition:  Central and Eastern Europe, the Baltic States and the Commonwealth of
Independent States, i.e. Albania, Bulgaria, Czech Republic, Hungary, Poland, Romania and the
Slovak Republic; the Baltic States : Estonia, Latvia and Lithuania; and the Commonwealth of
Independent States (CIS) : Armenia, Azerbaijan, Belarus, Geor gia, Kazakhstan, Kyrgyzstan, Republic
of Moldova, Russian Federation, Tajikistan, Turkmenistan, Ukraine and Uzbekistan. The grouping
former USSR  refers to the Baltic States and the CIS.
Least developed Countries:  As defined by the United Nations.
NB:  The WTO does not maintain an official definition of developing countries.
B. REGIONS
Developed North America:
Canada, United States of America, a nd territories in North America n.e.s.
Latin America and the Caribbean:
Antigua and Barbuda, Argentina, Bahamas, Barbados, Belize, Bolivia, Brazil, Chile, Colombia, Costa
Rica, Cuba, Dominica, Dominican Republic, Ecuador,  El Salvador, Grenada, Guatemala, Guyana,
Haiti, Honduras, Jamaica, Mexico, Netherlands Antilles, Nicaragua, Panama, Paraguay, Peru, Saint
Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Suriname, Trinidad and Tobago,
Uruguay, Venezuela and other countries and territories in Latin America n.e.s.
Western Europe:
o/w developed Western Europe: the EU and EFTA
o/w developing Western Europe: Turkey, Bosnia and Herzegovina, Croatia, former Yugoslav
Republic of Macedonia, Slovenia, Yugoslavia (the last five countries mentioned comprise the former
Yugoslavia), and Malta.
Africa:
o/w:  South Africa
o/w:  Algeria, Egypt, Libyan Arab Jamahiriya , Morocco and Tunisia; Benin, Burkina Faso, Cape
Verde, Côte d'Ivoire, Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Mauritania, Niger,
Nigeria, Senegal, Sierra Leone and Togo; Bur undi, Cameroon, Central African Republic, Chad,
Congo, Democratic Republic of the Congo, Equatorial Guinea, Gabon, Rwanda, and Sao Tome and
Principe;  Comoros, Djibouti, Eritrea, Ethiopia, Kenya, Madagascar, Mauritius, Seychelles, Somalia,
Sudan, United Republic of Tanzania and Uganda; : Angola, Botswana, Lesotho, Malawi,
Mozambique, Namibia, Swaziland, Zambia, Zimbabwe and territories in Africa n.e.s.WT/COMTD/W/65
Page 27
The Middle East:
Bahrain, Cyprus, Iraq, Islamic Republic of Iran, Is rael, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi
Arabia, Syrian Arab Republic, United Arab Emirates, Yemen and other countries and territories in the
Middle East n.e.s.
Asia:
o/w Developed Asia: Japan, Australia and New Zealand
o/w Developing Asia:  Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri
Lanka; Brunei Darussalam, Cambodia, China, Fiji,  Hong Kong, China Special Administrative Region
of China (Hong Kong, China), Indonesia, Kiriba ti, Lao People's Democratic Republic, Macau,
Malaysia, Mongolia, Myanmar, Papua New Guinea, Philippines, Republic of Korea, Samoa, SeparateCustoms Territory of Taiwan, Penghu, Kinmen a nd Matsu Chinese Taipei, Singapore, Solomon
Islands, Thailand, Tonga, Tuvalu, Vanuatu, Viet Nam and other countries and territories in Asia and
the Pacific n.e.s.WT/COMTD/W/65
Page 28
ANNEX  II
Definitions of Product Groups used
A. PRIMARY PRODUCTS
1. Agricultural products
Food: food and live animals; beverages and tobacco; animal and vegetable oils, fats and
waxes; oilseeds and oleaginous fruit (SITC sections 0, 1, 4 and division 22).
Raw materials: hides, skins and furskins, raw; crude rubber (including synthetic and
reclaimed); cork and wood; pulp and waste paper; textile fibres and their wastes; crude animal and
vegetable materials, n.e.s. (SITC divisions 21, 23, 24, 25, 26, 29).
2. Mining products
Ores and other minerals: crude fertilizers (other than those classified in chemicals) and crude
minerals; metalliferous ores and metal scrap (SITC divisions 27, 28).
Fuels: (SITC section 3).
Non-ferrous metals: (SITC division 68).
B. MANUFACTURES : (SITC SECTIONS 5, 6, 7, 8 MINUS DIVISION 68 AND GROUP 891)
(i) Iron and steel: (SITC division 67).
(ii) Chemicals: organic chemicals (SITC divisi on 51); plastics (SITC divisions 57, 58);
inorganic chemicals (SITC division 52);  pharmaceuticals (SITC division 54); other
chemicals (SITC divisions 53, 55, 56, 59).
(iii) Other semi-manufactures: leather, leather manufactures, n.e.s., and dressed furskins;
rubber manufactures, n.e.s.; cork and wood manufactures (excluding furniture);paper, paperboard and articles of paper pulp, of paper or of paperboard; non-metallic
mineral manufactures, n.e.s.; manufactures of metals, n.e.s. (SITC divisions 61, 62,
63, 64, 66, 69).
(iv) Machinery and transport equipment: power generating machinery; other non-
electrical machinery; office machines and telecommunications equipment; electricalmachinery and apparatus; automotive products; other transport equipment (SITC
section 7).
(v) Textiles: (SITC division 65).
(vi) Clothing: (SITC division 84).WT/COMTD/W/65
Page 29
(vii) Other consumer goods:  household articles , travel goods, footwear, instruments and
apparatus, photography, optical goods, watches and clocks, and other manufactured
articles, n.e.s. (SITC divisions 81, 82, 83, 85, 87, 88, 89 excluding group 891, arms
and ammunition).
C. OTHER PRODUCTS
Commodities and transactions not classified elsewhere (including gold); arms and
ammunition (SITC section 9 and group 891).
__________