Assembled in Europe: The role of processing trade in EU export performance

Lucian Cernat, Michaël Pajot, 17 September 2012

Processing trade has been credited as a key driver of Chinese export performance but has been largely overlooked in Europe. This column argues that, despite its rather low profile in trade debates, EU inward-processing exports accounted for around 10% of total extra-EU exports in 2011. Processing trade may thus require further reflection on how best to maximise its benefits for EU's external competitiveness.

The global economic crisis has been accompanied by a heightened debate about the benefits or perils of globalisation, offshoring, particularly vis-à-vis China, exchange rates, and the relapse into protectionist tendencies.

Topics: International trade
Tags: processing trade, production fragmentation, value chains

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