Moving up the Value Chain - International Trade Forum - The quarterly magazine of the International Trade Centre

Moving up the Value Chain

International Trade Forum - Issue 2/2007, © International Trade Centre

© Still Pictures/ R. Beliel

Branding

Investing in trademarks, geographic indicators of origin and other intellectual property initiatives can help countries add value to a variety of commodities, manufactured goods and services. Brazil is seeking to protect its national drink cachaça by negotiating agreements with the WTO and the European Union on intellectual property rights and national indicators of origin. While only 500,000 litres of cachaça were exported in 1995, 20 million litres were exported to more than 60 countries in 2003 and sales are expected to rise to 38 million litres by 2010. (Source: Brazilian Cachaça Development Program)

© Reuters/Sheng Li



High-end manufacturing
China moves up: Over time, entire industry sectors and even national economies can move up the value chain. While low-end exports are losing momentum in China, high end exports are expected to grow by 30–40% annually in the next three to five years, with auto and software industries likely to increase even more, according to Deutsche Bank.



Aspirations
“Fair trade is good but countries have to produce something they sell. But it is also important to note that developing countries don’t want to remain basket weavers. They don’t just want to sell cocoa and coffee. They don’t just want to sell cotton. They want to sell higher-value products.”
Kandeh K. Yumkella, Director-General, UNIDO



© Photo Bianco

© Still PicturesS/ M. Harvey



High-end services
Build export sectors that target affluent consumers, such as specialized eco-, business- or agro-tourism services. The award-winning eco-resort at Chumbe Island in Zanzibar (Tanzania) is preserving the natural resources of the island through income from tourism, while raising environmental awareness among visitors and the local population through its various educational programmes and activities.



Meeting business needs
“In the region, efforts have been made in training human resources in recent years, to be sure. But what can we do to improve this in the future, to have even more concrete results, to overcome problems of infrastructure, access to credit and access to technology?” Judit Guerrero, First Secretary, Nicaraguan Mission to the United Nations Office in Geneva

© Photo Bianco




© Reuters/ P. Whitaker



From cocoa beans to Easter eggs
Brazil produced 21,400 tonnes of Easter eggs in 2007. Here, a worker prepares a chocolate Easter egg at a factory in São Paolo.



New applications
“At the moment we export raw sugar. Now we are going to refine it to add value to our sugar and also produce ethanol. We already have companies in Swaziland who are distilling the sugar.” Absalom Themba Dlamini, Prime Minister of Swaziland

© Photo Bianco




© Reuters/STR New



From sugar cane to ethanol
Swaziland is looking at ways to add value to sugar, its biggest industry.