WTO: World Trade Report 2010 - World Trade Organization

world trade report 2010
Figure 1: Monthly United States oil production, Jan. 1920-Jan. 2010 (Million barrels)
350
300
250
200
150
100
50
0
Jan-1920
Jan-1925
Jan-1930
Jan-1935
Jan-1940
Jan-1945
Jan-1950
Jan-1955
Jan-1960
Jan-1965
Jan-1970
Jan-1975
Jan-1980
Jan-1985
Jan-1990
Jan-1995
Jan-2000
Jan-2005
Jan-2010
Source: United States Department of Energy, Energy Information Adminstration.
Figure 2: World fisheries production, 1990-2007 (Million tonnes)
160
Aquaculture production Capture production Total fish production
140
120
100
80
60
40
20
0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Source: United Nations Food and Agriculture Organization, AQUASTAT database.
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(b) Uneven distribution across countries
Many natural resources are concentrated in a small
number of countries, while others have limited domestic
supplies. For example, Appendix Table 1 shows that
nearly 90 per cent of the world’s proved oil reserves
are located in just 15 countries (out of slightly more
than 200 in the world today), and 99 per cent of oil
reserves are found in 40 countries. 3 International trade
can help to alleviate these kinds of disparities in natural
endowments by allowing resources to move from areas
of excess supply to areas of excess demand, which
may also serve to promote the most efficient use of
these products. However, since natural resources are
indispensable inputs for production and are also
necessary for maintaining a high quality of human life,
the unequal distribution of resources can cause friction
among nations.
The nature of the friction associated with natural
resources may be different from that observed in the
case of other types of goods. In most trade disputes
involving agricultural or manufactured goods, a country
seeks to restrict imports. Many reasons may be given
for this, including fiscal needs, support for an infant or a
“strategic” industry, public considerations (health,
environment, safety etc.), or as a response to trade
practices that the importing country perceives to be
unfair. Conversely, most importing countries are eager
to obtain natural resources from foreign suppliers. But
exporting countries may be reluctant to allow their
resources to flow freely to other nations, also for a
variety of reasons. These include fiscal needs, the
desire for economic diversification through additional
processing of raw materials, ensuring adequate
domestic supplies, and protecting the environment.
The uneven geographical distribution of traded natural
resources is further illustrated by Maps 1 to 5 in the