National Board of Trade Lena Johansson Director-General 2013-10-14

1. National Board of TradeLena JohanssonDirector-General2013-10-14

2. National Board of Trade • Agency for foreign trade and trade policy • Promote free trade and transparent rules • Our main task is to improve opportunities for international trade

3. Objectives • An effective Internal Market • An open trade policy in the EU • A strong multilateral international trading system

4. The Swedish Government: ….. create growth and employment in Sweden by promoting free trade and dismantling of trade barriers

5. Free trade • Trade and welfare • Sweden is very dependant on international trade

6. Developing countries • Analyses of developing countries perspective • Competence and capacity building programmes in developing countries • Open Trade Gate Sweden

8. Ljuset är proportionell mot den ekonomiska aktiviteten

10. International trade: theories and practices • Why do peopletrade? • Situation and developments in worldtrade • Swedish tradepatterns and developments • Tradepolicies • Trade and Climate Change • Development perspective

11. Swedish trade dependance Exports/GDP > 50 % Imports/GDP = almost 50 %

12. Källa: WTO

13. Exports of goods and services,percent of GDP (1960-2007)

14. Exports/GDP 1960 1996 2006 Global 10 % 20 % 30 % Sweden 14 % 35 % > 50 %

15. Källa: UNCTAD

16. Foreign investments/GDP 1995 2005 Global 10 % 24 % Sweden 30 % > 50 %

17. Imports of goods and services increase faster then GDP in almost every country FDI´s grow even faster

18. “Nations do not trade, nor do sectors.It is firms that trade” “… This simple truth makes it clear that understanding the firm-level facts is essential to good policy-making in Europe. The view that it is important to focus on the firm rather than the sector is the single most important message of recent developments in international economics”. Citat från EU-sponsrade forskningsprojektet:European Firms in aGlobal Economy (EFIGE)

19. International trade is still regional • Total trade between North America, Asia and Europé =23 % of world trade • Trade within the three regions= 53 % of world trade-Europe 31 % (single market 25 %)- Asia 14 %- North America 8 %

20. 787mdr $ (6 %) 477mdr $ (4 %) 103 mdr $ (1 %) 4243mdr $ (31%) 1108 mdr $ (8%) 951 mdr $ (7 %) 1889mdr $ (14%) 93,4 mdr $ (1%) 282 mdr $ (2%) 40,5 mdr $ (0,3 %) 122 mdr $ (1 %) 315 mdr $ (2 %) 1148 mdr $ (8%) Intra regional handel Inter-regional handel Källa: WTO International Trade Statistics 2008

21. EU-27:s intra- och extra regional varuhandel som andel av total handel 1962-2008 Källa: UN comtrade database (Wits)

22. Sveriges intra- och extra-handel med varor som procentandel av total handel 1962-2008 Källa: UN comtrade database (WITS)

23. Trends in worldtrade – long term • Global market place • Global Value Chains • Goods and Services • Servicification • e-commerce • Movement of persons • Data flows • Digitalization Other tendencies - short term? • Crises effects, politics • New protectionism • Public procurement, internationally, EU, Sweden, locally • Local production Climate concerns Emerging markets

24. Export by regions (1963 och 2007) 50

25. Global Value Chains and Trade • The traditionalpicture: An industry in one country producesgoods for exports to and final consumption in another country

27. Global Value Chains and Trade • The new reality: The production is fragmentedInputs and componentsareproduced in manycountriesand the product is assembled in manycountries

28. A typical Swedish motor vehicle is only 50 % Swedish… Made in Sweden?

29. Made In The World

30. Källa: Egna beräkningar baserade på SCB:s Input-Outputtabeller

31. Swedish exports are not only made in Sweden OECD-average: 31 %

32. Sectors Tjänstesektorer

33. Exportvärdet jämfört med förädlingsvärdet från exporten

34. En Boeing Dreamliner :Made in America? 43 subcontractors Spread on 135 production facilities in the world Among other things, wings made in Japan, the engines of in the U.S. and Great Britain, the doors in France and Sweden 70 % of the components are manufacturesd outside the U.S. ”Källa: Newhouse, John and A. A, Knopf (2007), Boeing vs Airbus, The inside story of the greatest international competetion in business, New York, USA

35. Over 50 % of world trade is trade in inputs

36. “Everybody is in Services” – The Impact of Servicification in Manufacturing on Trade and Trade Policy

37. Servicification = more and more services as inputs and outputs in manufacturing Increased dependence in the manufacturing industry on • Purchased service inputs • In-house service production • Sales of services integrated into products • Sales of services alongside products • Service import and export …supports competitiveness, productivity and trade

38. Almost 50 % of the employees in Swedish manufactoring have services jobs

39. Services and Global Value Chains

40. 1. Services as enablers Financial services Logistics Services Quality Control Services Marketing Services Source: USITC 2011

41. Minecraft by Mojang AB • Game idea: Mining different blocks to create and build structures of choice • First released: May 2009 • Official release: November 2011 • Original developer: Markus ‘Notch’ Persson • Owner: Notch Development AB • Current Developer: Mojang AB (under license) • Sold copies: 18 million (Dec 2012) – 40,000 copies/day

42. Lessons from video game sector • R&D heavy, cutting edge of ICT-sector • ”Live development” • Digital distribution • Digital tasks outsourced • Digital ecosystems

43. Countries involved in the GVC • USA • Germany • England • Scotland • Holland • Canada • Japan • Denmark • Finland • Sweden Plus: UN Habitat, and othercountries (”Community”, marketing and ”3rd Party Servers) Without order of importance

44. Services provide over 50 % of the valuefrom exports from OECD countries

45. Svensk export mätt i förädlings-värde per sektor (2008)

46. Källa: SCB

47. Var hamnar svensk export? - 2008 Källa: OECD/Kommerskollegiums egna beräkningar

48. Källa: SCB

49. E-commerce • New options • New barriers • Cloud computing

50. “While the nature of global trade has changed, trade regulation in the EU and other OECD economies has remained largely the same.”