OECD/WTO TRADE IN VALUE ADDED (TIVA) INDICATORS

BELGIUM
Belgiums domestic value added content of its exports was 65% in 2009, below the OECD average (76%)
(Fig. 5). This was higher than the 58% recorded in 2005 and marginally higher than the 61% recorded in 1995;
partly reflecting increased specialisation in exports of business services. Belgium's relatively low share,
amongst the lowest in the OECD, reflects its high degree of integration within global value chains.
Figure 1: Domestic value added content of gross exports, %

(EXGRDVA_EX)

100%

2009

1995

80%
60%
40%

20%

LUX
SVK
IRL
KOR
HUN
CZE
ISL
NLD
BEL
SVN
FIN
SWE
EST
CHN
PRT
DNK
AUT
ISR
MEX
CHE
POL
DEU
FRA
GRC
IND
TUR
ESP
ITA
CAN
CHL
NZL
GBR
ZAF
NOR
JPN
IDN
AUS
USA
BRA
RUS

0%

The foreign content of exports at the industry level (Fig. 2) was broadly similar in 2009, compared to
2005. In the goods sector, the foreign content of Transport equipment fell by 8 percentage points (pp) between
1995 and 2009 but remained at a relatively high 48%. Falls of around 5 pp were also seen in a number of other
sectors, such as Food products, Textiles and apparel, Machinery and Electrical equipment, mirroring falls in
the relative importance of each of these industries to overall value added exports in Belgium. The foreign
content of Business services was largely unchanged in 2009 compared to 1995 but the contribution of exports
in direct business services to overall exports of value added almost trebled over the period to 14% in 2009.
Figure 2: Foreign value added content of gross exports, by industry, %
2009

(EXGR_FVASH)

1995

60%
50%
40%
30%
20%

Total

Other services

Business
services

Finance &
insurance

Transport &
telecoms

Wholesale &
retail

Other
manufactures

Transport
equipment

Electrical
equipment

Machinery

Basic metals

Chemicals &
minerals

Wood & paper

Textiles &
apparel

Food products

Mining

0%

Agriculture

10%

Over half (56%) of all intermediate imports in Belgium were used in the production of exports in 2009,
little changed compared to 1995, including at the detailed product level (Fig. 3). The shares are high,
compared to other OECD economies, across all imported goods, with over 80% of Transport equipment
imported intermediates used in the production of exports, and around two-thirds in Agriculture, Mining,
Textiles and apparel, Chemical and minerals, Basic metals, Machinery, Electrical equipment and Other
manufactures.
Figure 3: Share of imported intermediate inputs that are exported, by import category, % (REI)

2009

1995

100%
80%

60%
40%

Total

Other services

Business
services

Finance &
insurance

Transport &
telecoms

Wholesale &
retail

Utilities

Other
manufactures

Transport
equipment

Electrical
equipment

Machinery

Basic metals

Chemicals &
minerals

Wood & paper

Textiles &
apparel

Food products

Mining

0%

Agriculture

20%

Around half (48%) of the total value of Belgian exports of transport equipment in 2009 reflected foreign
content, despite the 8 pp fall compared to 1995 (Fig. 4). This largely reflects a 5 pp fall in the content
provided by other upstream European transport equipment manufacturers. The share provided by upstream
business services providers increased marginally in 2009 compared to 1995.
Figure 4: Foreign value added in Transport equipment, by originating region and industry, %

East and S.E. Asia

Europe

North America

Other regions

South America

16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
1995 2009 1995 2009 1995 2009 1995 2009 1995 2009 1995 2009 1995 2009 1995 2009 1995 2009 1995 2009
Mining

Chemicals
& minerals

Basic
metals

Electrical Transport Wholesale Transport & Finance &

equipment equipment and retail telecoms insurance

Business
services

Other

[Figure 4 illustrates how the TiVA infrastructure can be used to focus on the origins of foreign value added in the
output of a particular sector in a particular country].

France was Belgium's main export market in 2009 in both gross and value added terms (Fig. 5).
However, in value added terms the United States was a significantly more important partner than apparent in
gross terms, both as a market for Belgian exports, reflecting Belgian value added present in other countries
exports to the United States; and, as a source of Belgian imports. This partly reflects the integrated nature of
European value chains, which also helps to explain lower exports and imports in value added from other
neighbouring countries such as Germany and the Netherlands.

Figure 5a: Exports, partner shares, in gross and value added terms (as a % of total), 2009

Gross exports (EXGRSH)

20.0

Domestic value added in foreign final demand (FDDVASH)

15.0
10.0

5.0
0.0
FRA

USA

DEU

GBR

ITA

NLD

ESP

CHN

JPN

IND

RUS

SAU

SWE

CHE

POL

Figure 5b: Imports, partner shares, in gross and value added terms (as a % of total), 2009
Gross imports (IMGRSH)

Foreign value added in domestic final demand (FDFVASH)

20.0
15.0
10.0
5.0
0.0
DEU

FRA

NLD

USA

GBR

ITA

CHN

ESP

JPN

IRL

RUS

NOR

CHE

SWE

IND

These various flows, domestic value added embodied in exports and intermediate imports embodied in
exports, combine to reveal notable differences in Belgium's trade balance positions with some of its major
trading partners (as recorded in the OECD-WTO TiVA database). Belgium's trade surplus with the United
States for example is larger in value added terms, reflecting the proportionally higher Belgian value added
exported by third-countries to the United States, compared to higher imports from the United States (Fig. 6).
At the same time Belgium's trade deficit with the Netherlands decreases considerably as does its deficit with
Ireland, reflecting in large part Irish content in Belgian exports.
Figure 6: Bilateral trade balances, USD million, 2009
2009 Gross Trade surplus/deficit (TSGR)

2009 Value Added surplus/deficit (TSVAFD)

10,000
5,000
0
-5,000
-10,000
-15,000

ITA

FRA

GBR

USA

SAU

IND

TUR

NOR

JPN

DEU

IRL

NLD

In value added terms over half (55%) of Belgium's exports in 2009 reflected services, the seventh
highest in the OECD, and 10 pp higher than the share in 1995, partly reflecting the growing specialisation in
direct services exports (Fig. 7). But it also partly reflects increases in the services content of many goods
industries. The contribution of services rose in nearly all industries between 1995 and 2009. Between 3040% of all goods exports reflected services content in 2009, with the foreign services content contributing
about half of total services content in goods (Fig. 8).
Figure 7: Services content of gross exports, 2009
90.0

Domestic content

80.0

Foreign content

(EXGR_*_SV; SERV_VAGR)

Total 1995

70.0
60.0
50.0
40.0

30.0
20.0
10.0

Foreign service contents

LUX

GRC

ISL

IRL

GBR

BEL

ESP

DNK

FIN

IND

PRT

SWE

ISR

Figure 8: Services content of gross exports, by industry, 2009

AUT

EST

FRA

CHE

USA

ITA

DEU

NZL

TUR

SVN

NLD

POL

JPN

HUN

CZE

AUS

SVK

ZAF

KOR

BRA

CAN

RUS

NOR

CHL

MEX

IDN

CHN

0.0

(EXGR_*_SV; SERV_VAGR)

Domestic service contents

1995 Total

50%

40%
30%

20%

Other
manufactures

Transport
equipment

Electrical
equipment

Machinery

Basic metals

Chemicals &
minerals

Wood & paper

Textiles & apparel

Mining

Agriculture

0%

Food products

10%

The information included in this note is based on the May 2013 release of the Trade in Value added (TiVA)
database. The data can be accessed from www.oecd.org/trade/valueadded. For further information, please
contact us (tiva.contact@oecd.org).