./.WORLD TRADE
ORGANIZATIONG/SCM/103/Add.2
21 May 2003
(03-2723)
Committee on Subsidies
and Countervailing Measures
SUBSIDIES
Request to the Secretariat from the UNITED STATES
Note by the Secretariat
Addendum
1. A "Note by the Secretariat" responding to the United States request for calculations
concerning India's export competitiveness in textile and apparel products was circulated in
G/SCM/103/Add.1, dated 12 March 2003.
2. At the 8 May 2003 regular meeting of the SCM Committee, India requested clarification from
the Secretariat concerning the calculations in G/SCM/103/Add.1, as follows:
"We would like to seek a clarification from the Secretariat whether the figures for
world trade contained in this computation includes trade under RTAs, FTAs and GSP
schemes."
3. The Secretariat accordingly provides the fo llowing response to India's request for
clarification.
4. As indicated in the methodological note in G/SCM/103/Add.1:
"The data were sourced from the United Nations Statistics Division (UNSD),
COMTRADE database.  This data base contains official trade statistics notified by
governments to the UN.
…
To determine World exports the following methodology was used:
Export data at 4-digit level for reporter countries available were aggregated. Those
data were  supplemented by reporters available only in the preceding or the
succeeding year to arrive at a maximum coverage.
Export data at 4-digit level for countries and territories which did not report were
estimated using the mirror (import) statistics of countries whose data were in
COMTRADE.  Despite the relatively low share of this block of countries and
territories, which account for around 4 per cent of total world export trade (if EU intra
exports are excluded) or about 3 per cent of world trade (if EU intra exports are
included) on average, their exports are included in the calculations in order to ensurethe maximum coverage of trade flows at 4-digit level.G/SCM/103/Add.2
Page 2
To obtain total world exports at 4-digit le vel,  the aggregate mentioned in (2) was
added to the data for the reporter aggregate mentioned in (1) above.
Finally, 4-digit level data were aggregated to 2-digit level, in accordance with the
United States’ request.…".
5. The United Nations International Trade Statistics, Concepts and Definitions, Series M, N° 52,
Revision 2, which provides concepts and definitions guiding countries' in their compilation of
international merchandise trade statistics, states in respect of the coverage of goods in international
trade statistics:
"1   Coverage .  As a general guideline, it is recommended  that international
merchandise trade statistics record all goods which add to or subtract from the stock
of material resources of a country by entering (imports) or leaving (exports) its
economic territory."
6. The data in the COMTRADE database, from which the data in G/SCM/103/Add.1 were
sourced, is guided by this recommendation, which does not envisage any exclusion for trade flows
under RTAs, FTAs or GSP schemes.
7. It is further recalled that the methodological note in G/SCM/103/Add.1 also states:
"World exports, both including and excluding intra-EU(15) exports, India’s exports,
as well as India’s share in world exports, both including and excluding intra EU(15)
exports, are provided.  The Secretariat frequently reports trade statistics on both bases
(inclusive and exclusive of intra-EU trade).  Article 27.6 contains no guidance on this
issue, and therefore its implications for de terminations of export competitiveness in
the sense of Article 27.6 are not clear."
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