The concentration index of exports estimates a country’s reliance on a limited group of commodities as its primary source of foreign exchange income. Ranging from 0 (perfect diversification) to 1 (concentrated on a single product)*, a comparison of index scores to the contribution of natural resources to GDP worldwide shows that countries that are resource-rich tend to have less diversified export bases.
Export concentration is a concern for economic planners worldwide but less so in most developed economies which tend to maintain more diversified export profiles. In fact, the world's leading exporters of particular products are not concentrated on the export of those same products, decreasing their vulnerability to changes in global demand and the corresponding ebb and flow of export earnings that bring in foreign exchange.
*The index is calculated as a sum of squared shares of products constituting a country's exports.
To date in 2017, the United States has averaged more than 900,000 barrels per day (b/d) of crude oil exports while sustaining an average import volume of 8.1 million b/d. From 1975 until late 2015, a ban on the export of US crude oil severely restricted crude oil exports from the US to all countries except Canada. In the years leading up to the US shale oil boom in the early years of this decade, the US exported less than 30,000 b/d to Canada. While Canada remains the predominant destination for US crude oil, the repeal of the crude oil ban allowed US exporters to expand to nearly 30 countries last year and an export total of 591,000 b/d. In...
2 digits, 4 digits, 6 digits products
The WTO General Council meets as the Trade Policy Review Body to undertake trade policy reviews of Members under the TPRM and to consider the Director-General's regular reports on trade policy developement. The TPRB is thus open to all WTO Members. The current chair is Ms. Irene B. K. YOUNG (Hong Kong, China). Event Holder: World Trade Organization Source of data: Merchandise trade matrix, imports and exports of total all products, annual, 1995-2014, WTO statistical data sets, 1948-2014
Trade Policy Reviews are an exercise, mandated in the WTO agreements, in which member countries' trade and related policies are examined and evaluated at regular intervals. Significant developments that may have an impact on the global trading system are also monitored. All WTO members are subject to review, with the frequency of review depending on the country's size. Date: 20-22 February 2018 Event holder: World Trade Organization