Analysis of Wales’ comparative advantage in exporting goods: 2015 to 2017 average
Methodology and results from analysis of Wales’ comparative advantage in goods exports for 2015 to 2017 average.
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The results from this analysis have been used as part of the evidence base underpinning the Export Action Plan published on 15 December 2020.
Background
To better understand Wales’ strengths in the export of goods, trade data was analysed to establish areas of comparative advantage i.e. where Wales outperformed the world average in terms of goods exports in specific sectors. A lack of detailed services data for Wales meant this analysis focused solely on Wales’ exports of goods. This analysis was conducted using HMRC Regional Trade Statistics for Wales’ exports and UN COMTRADE for world imports(a), with a three year (2015 to 2017) average used to counteract trade data volatility.
Wales’ export performance across sectors and markets was also compared to countries with a similar comparative advantage to Wales.
The economic theory of comparative advantage based on David Ricardo’s work draws links between productivity and exports. It argues that countries should focus their resources on producing goods for which they have a comparative cost advantage. The theory states that trade patterns between countries are governed by differences in productivity. Although it has limitations, this theory provides a basis from which trade data can be examined to reveal these differences in productivity and the relative advantage or disadvantage a country has in a certain class of goods. Annex 1 contains more information on the theory of comparative advantage.
(a) Import data is used to measure the trade flowing between countries, from which the value of exports is calculated. Import data is considered to be recorded with more accuracy by countries as imports may generate tariff revenue whereas exports generally don’t, more information on the use of COMTRADE data is available from The World Bank: World Integrated Trade Solution.
Methodology
Data
This analysis was undertaken using publically available data, HMRC Regional Trade Statistics for Wales’ exports and UN COMTRADE for world imports. A three year average was used to counteract trade data volatility. Originally undertaken in 2019, the analysis was based on the latest available data at the time, and doesn’t reflect more up to date data that has since become available. However, volatility checks undertaken based on a longer pre-2017 time-series suggest changes in comparative advantage over time are minimal.
The UN comtrade data is reported in US dollars ($), therefore the following exchange rates were used to convert to £ sterling.
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| £/$ | 1.529 | 1.354 | 1.289 |
Source: Bank of England
Approach
The analysis involved two stages, the first to identify Wales’ comparative advantage (with a focus on exporting strengths) and the second identifying export value gaps and modelling potential opportunities for increasing Wales’ goods exports.
Revealed comparative advantage analysis
Wales’ export performance compared to the world average of that sector to identify key areas of strength for Wales’ exports. The analysis makes use of international trade value data.
The revealed comparative advantage (RCA) index for good i in Wales was constructed using the following formula:
RCA(i) = [(Wales’ exports of good i to world)/(Wales’ exports of all goods to the world)]/ [(World’s exports of good i to world)/(World’s exports of all goods to the world)]
From here, a normalised version of the RCA (called NRCA) was constructed using the following formula:
NRCA(i) = (RCA(i) – 1)/(RCA(i) + 1)
This allowed the results to be easily interpreted as a positive value indicated a comparative advantage whilst a negative value indicated a comparative disadvantage.
Export value gap model
Wales’ export performance across sectors and markets compared to that of specified comparator countries to identify an ‘export value gap’, i.e. the additional value of exports that Wales could achieve, should they improve their performance to match that of the comparator country in that sector and market.
The Export Value Gap model takes Wales level data and matches it to international trade data collected by UN COMTRADE. This matching makes it possible to compare Wales’ exports to those of a competitor country across different sectors and countries. Where Wales underperforms a similar competitor country, the model quantifies an ‘export value gap’ i.e. the additional value that could be achieved if Wales were to improve its export performance to that of the competitor.
The model is calculated across 66 goods sectors and 99 countries using a three year average (2015 to 2017).
Choice of comparator countries
The model requires a selection of similar international comparator countries to compare Wales’ exports against. The comparators were chosen based on having a similar population, export mix and current trading arrangements with other countries. They are also chosen based on their geographical location; the economic literature strongly supports the notion that the geographical distance between two countries is a major determinant of the amount they trade, so all countries picked are in Europe.
Due to difficulties in identifying comparators of a similar size to Wales, those chosen were done so based primarily on export mix and trading conditions. To ensure fair comparison, the export value gaps were adjusted to account for size differentials between Wales and the chosen comparator country.
The most similar competitor was selected from a group of comparators by identifying the country with the most similar NRCA to Wales for each product group. Comparator countries with a substantially greater comparative advantage then Wales were not considered. This was one step in ensuring the value gaps identified remained realistic and comparison wasn’t made to countries with a significant advantage over Wales.
This analysis has been completed using the following as comparator countries:
- Norway
- Finland
- Denmark
- Ireland
- Scotland
| Country | GDP, 2017 (£bn) | Size difference compared to Wales |
|---|---|---|
| Wales | 70.3 | 1.0 |
| Finland | 176.9 | 2.5 |
| Norway (a) | 215.4 | 3.1 |
| Denmark | 217.2 | 3.1 |
| Scotland | 156.2 | 2.2 |
Source: Eurostat
(a) Latest available data is for 2016.
To make sure that the comparison with each chosen competitor is fair, the choice of competitor is screened to remove contiguous pairs (e.g. it would be an unfair comparison to compare Wales’ exports to Germany to those of Denmark, as Denmark shares a land border with Germany). In the case that the chosen competitor and target market are contiguous, the second-best choice competitor is chosen instead. Information on the competitor country chosen for each product group is available in Annex 5.
Export value gap calculation
The ‘export value gap’ is defined as the difference in value between Wales’ exports to a certain market and the exports of the chosen competitor to that same market. Export value gaps’ are calculated for each sector-country pair. These can then be aggregated by summing over countries or sectors.
The value gaps identified by the model do not simply look at how much extra value the most similar competitor exports to a particular market. The relative size of total exports between the competitor and Wales are also considered and the value gap adjusted accordingly. For example, Wales’ most similar competitor for Iron & Steel is Finland. However, Finland has a larger economy than Wales, so despite having a similar NRCA, Welsh exports of Iron and Steel are only 35% of Finland’s. To account for this difference in sector size the value gap between Wales and Finland is reduced to the same percentage. The adjusted value gaps are put into context in the model by presenting the increase in total Welsh sector exports required to close the adjusted value gap.
Factors to consider and limitations
The results of this analysis should be viewed within the context of wider factors that are not directly captured in this work. These are briefly outlined below.
Global growth
Global trade growth has slowed in recent years, partly driven by trade protectionism and an associated rise in global uncertainty, which has been further exacerbated by the Covid-19 pandemic. WTO estimates show that trade was already slowing; merchandise trade volumes fell by 0.1% in 2019, whilst the pace of expansion in global services trade slowed to 2% (down from 9% in 2018). Slower world growth would suggest a weaker demand for exports overall, therefore dampening the potential for Wales to deliver the improved export performance outlined in Table 2.
Sector growth
The growth trajectories within the specific sectors identified need to be considered, as a sector experiencing stable or declining growth indicates that the scope for growing Welsh exports in this sector may be limited.
Substitution effect
Wales is a smaller country relative to some of its competitors, in both size of population and economy. These limits on Wales’ capacity mean the scope to deliver a large increase in exports in a short time frame may be challenging. Given this, it’s likely that to capitalise on the opportunities identified, some substitution may occur whereby exporters may shift their focus towards specific sectors and away from others. In doing this, the value added of these sectors in terms of Gross Value Added (GVA) and employment should be considered to maximise the impact of these opportunities on the domestic economy.
Trading conditions
The ability of Welsh exporters to enhance their performance will depend on the terms of their trading relationships with other countries i.e. what trade barriers they face. This is a key factor to consider when establishing the true potential of the opportunities identified, particularly in the context of EU Exit.
Elasticities of demand
Analysis by BEIS shows that elasticities of demand differ across products and countries, therefore this will need to be considered when interpreting the true value of the potential opportunities for Welsh goods exports.
Stability over time
Welsh level goods trade data is available from 2007, however HMRC changed its methodology in 2013. Therefore whilst we know that Wales’ comparative advantage has remained stable over the last 5 years (2013 to 2017), we know little about how stable it is over a longer time period.
Caveats
Whilst this analysis provides useful information about Wales’ export strengths 2015 to 2017, there are numerous caveats that mean these findings are only indicative. These caveats include:
Analysis is based on HMRC regional trade statistics which apportion UK goods trade to regions based on employment, the limitations around the apportionment method can mean Wales’ strength in certain sectors may be over- or underestimated.
Despite compiling the indices based on a 3 year average to minimise the impact of trade volatility, the fact that Welsh goods exports are based on a relatively small number of companies means that Wales’ comparative advantage in some sectors may be closely linked to the activities of a few firms.
Analysis only provides insight into Wales’ past comparative advantage, it provides little indication of what Wales’ future comparative advantage may be, although further analysis does indicate that comparative advantage is relatively stable over time.
The analysis is defined at the SITC2 classification level for goods, which is the most detailed level of available data for Welsh goods exports. While this does provide a reasonable level of disaggregation, the categories still contain a range of sometimes quite different products. This implies that it would be possible for the analysis to use a competitor that is somewhat similar to Wales at the broader sector level, but that actually produces goods within that sector code that are quite different to those that Welsh businesses produce. For example, ‘79 - Other transport equipment’ covers trade in railway vehicles, aircraft, ships and boats amongst others. It is therefore important to understand the products a competitor is trading within each SITC2 classification.
Given these crucial limitations, it is important to note that this analysis is intended to point out potential opportunities for growing goods exports from Wales, which should be considered alongside other evidence.
Results
Product groups with a comparative advantage
According to the first step of this analysis, Wales had a comparative advantage in 8 out of the 66 broad product groups over the 2015 to 2017 period. Annex 2 contains the complete list of product groups and their comparative advantage (or disadvantage) score.
The largest comparative advantage was within ‘Coin (other than gold), not being of legal tender’ and ‘other transport equipment’. A full list of Wales’ comparative advantage is detailed in Table 2.
| Product groups | Normalised Revealed Comparative Advantage (2015 to 17 average) (a) |
|---|---|
| 96 Coin (other than gold coin), not being of legal tender | 0.91 |
| 79 Other transport equipment | 0.86 |
| 71 Power generating machinery & equipment | 0.66 |
| 67 Iron & steel | 0.41 |
| 35 Electric current | 0.20 |
| 02 Dairy products & birds' eggs | 0.19 |
| 58 Plastics in non-primary forms | 0.15 |
| 82 Furniture & parts thereof; bedding, mattresses etc | 0.12 |
| 00 Live animals other than animals of division 03 | 0.12 |
Source: WG analysis of HMRC Regional Trade statistics and UN comtrade
(a) A normalised version of comparative advantage was used to aid interpretation, a positive value indicated a comparative advantage, growing stronger as it approaches 1. To avoid misidentification of comparative advantage, only product groups with NRCA scores of > 1.10 were highlighted as having a comparative advantage. The data limitations and caveats outlines mean these results should to be interpreted using sector and market knowledge to examine their credibility.
Export value gaps
The second part of the analysis involved comparing Wales’ goods export performance across individual sectors and markets with that of similar comparator countries based on factors including trading relationships, geographical location and export mix. Wales’ relative uniqueness across these factors made choosing suitable comparator countries challenging however the most suitable comparator countries identified were Norway, Finland, Denmark, Ireland, and Scotland. From this group of comparator countries the most similar competitor was selected. This being the country with the closest NRCA to Wales.
The analysis covered 66 goods sectors and 99 (b) countries and enabled the identification of goods export value gaps for Wales (i.e. the additional value of goods exports that a country could secure within a specific sector and market should they improve their performance to match that of their closest competitor country). This helped to identify potential areas of opportunity for growing Welsh goods exports.
(b) Data for 13 of these countries was suppressed, Annex 3 includes the complete list of countries included in the analysis for which data was available.
Given the difficulty in identifying suitable comparator countries for Wales, a comparison of relative sector sizes between the comparator countries and Wales were added into the model, adjusting the gap to give a more realistic estimate of the potential value that Wales’s exports could increase by, based on the relative size of the economy. The percentage increase needed in Wales’ goods export performance to close the gap was also calculated to provide further context.
The opportunities identified for increasing Wales’ goods exports can be broken down by country or sector. The top 20 export gaps by value are shown in Table 3 and Annex 4 includes a summary of export value gap analysis for key markets.
As an example, this analysis showed that Wales’ largest export value gap was Iron & Steel to the Netherlands. In matching Finland’s performance (the comparator country) in exporting iron & steel to the Netherlands, Wales could have added an additional £280m to its exports. To achieve this, the Welsh Iron & Steel sector would need to increase its exports by 35%.
| Product groups (b) | Market | Most similar competitor | Adjusted value gap with competitor (£millions) | Increase in Welsh sector exports to close adjusted value gap |
|---|---|---|---|---|
| 67 Iron and steel | Netherlands | Finland | 280.6 | 35% |
| 77 Electrical machinery, apparatus & appliances, n.e.s & electrical parts thereof. | United States | Ireland | 266.2 | 37% |
| 79 Other transport equipment | Norway | Scotland | 232.9 | 6% |
| 33 Petroleum, petroleum products & related materials | Netherlands | Finland | 166.6 | 12% |
| 77 Electrical machinery, apparatus & appliances, n.e.s & electrical parts thereof. | China | Ireland | 153.7 | 21% |
| 67 Iron & steel | Germany | Finland | 128.9 | 16% |
| 33 Petroleum, petroleum products & related materials | Belgium | Finland | 116.6 | 8% |
| 79 Other transport equipment | United States | Scotland | 101.5 | 3% |
| 33 Petroleum, petroleum products & related materials | Latvia | Finland | 87.3 | 6% |
| 79 Other transport equipment | Saudi Arabia | Scotland | 75.1 | 2% |
| 77 Electrical machinery, apparatus & appliances, n.e.s & electrical parts thereof. | Israel | Ireland | 73.9 | 10% |
| 33 Petroleum, petroleum products & related materials | Germany | Finland | 68 | 5% |
| 71 Power generating machinery & equipment | Singapore | Scotland | 64.7 | 4% |
| 71 Power generating machinery & equipment | India | Scotland | 62.8 | 3% |
| 71 Power generating machinery & equipment | Malaysia | Scotland | 62.2 | 3% |
| 79 Other transport equipment | India | Scotland | 62.1 | 2% |
| 33 Petroleum, petroleum products & related materials | Estonia | Finland | 59.7 | 4% |
| 71 Power generating machinery & equipment | Canada | Scotland | 52.4 | 3% |
| 72 Machinery specialized for particular industries | Norway | Scotland | 51.8 | 17% |
| 68 Non-ferrous metals | Republic of North Macedonia | Scotland | 51.2 | 15% |
Source: WG analysis of HMRC Regional Trade statistics and UN comtrade
(a) To ensure fair comparison, the export value gaps were adjusted to account for size differentials between Wales and the chosen comparator country.
(b) n.e.s = not elsewhere specified.
Annex 1: Ricardian model
The economic theory of comparative advantage based on David Ricardo’s work provides an argument in favour of countries focusing their resources on producing goods for which they have a comparative cost advantage and export these to the rest of the world. They should, in turn, import those goods which it has a comparative disadvantage in producing. This should, in theory, lead to increases in total trade and welfare gains, as production is located where it is most efficient.
The Ricardian Model assumes that there are two countries, producing two goods, using one factor of production, usually labour. The model is a general equilibrium model in which all markets are perfectly competitive and all goods produced homogenous across countries. Labour is homogeneous and fully mobile within a country but may have different productivities and is immobile across countries. Full employment of labour is assumed. Goods can be shipped between countries without any transportation costs.
Key limitations of this theory include unrealistic assumptions around costs i.e. all non-labour production costs are not accounted for, with no consideration given to the role of transport costs. Costs are assumed constant, therefore failing to account for economies of scale effects as production levels increase.
Annex 2: normalised revealed comparative advantage (NRCA) (2015 to 2017 average)
| Product Group (SITC 2) (a) | Normalised Revealed Comparative Advantage |
|---|---|
| 00 Live animals other than animals of division 03 | 0.12 |
| 01 Meat & meat preparations | -0.09 |
| 02 Dairy products & birds' eggs | 0.19 |
| 03 Fish, crustaceans, molluscs & aq.inverts & preps thereof | -0.61 |
| 04 Cereals & cereal preparations | -0.37 |
| 05 Vegetables & fruit | -0.94 |
| 06 Sugar, sugar preparations & honey | -0.64 |
| 07 Coffee, tea, cocoa, spices & manufactures thereof | -0.80 |
| 08 Feeding stuff for animals (not inc.unmilled cereals) | -0.48 |
| 09 Miscellaneous edible products & preparations | -0.07 |
| 11 Beverages | -0.46 |
| 12 Tobacco & tobacco manufactures | -1.00 |
| 21 Hides, skins & furskins, raw | -0.05 |
| 22 Oil seeds & oleaginous fruits | -1.00 |
| 23 Crude rubber (including synthetic & reclaimed) | -0.61 |
| 24 Cork & wood | -0.95 |
| 25 Pulp & waste paper | -0.85 |
| 26 Textile fibres not manufactured & their waste etc | -0.79 |
| 27 Crude fertilizers & crude minerals (exc fuels etc) | -0.82 |
| 28 Metalliferous ores & metal scrap | -0.22 |
| 29 Crude animal & vegetable materials n.e.s. | -0.78 |
| 32 Coal, coke & briquettes | -0.83 |
| 33 Petroleum, petroleum products & related materials | 0.07 |
| 34 Gas, natural & manufactured | -0.85 |
| 35 Electric current | 0.20 |
| 41 Animal oils & fats | -0.67 |
| 42 Fixed vegetable fats & oils, crude, refined, fractionated | -0.97 |
| 43 Animal or vegetable fats & oils, processed, & waxes | -0.87 |
| 51 Organic chemicals | -0.16 |
| 52 Inorganic chemicals | -0.52 |
| 53 Dyeing, tanning & colouring materials | 0.05 |
| 54 Medicinal & pharmaceutical products | 0.08 |
| 55 Essential oils & perfume materials; toilet preps etc | 0.02 |
| 56 Fertilizers (other than those of group 272) | -0.83 |
| 57 Plastics in primary forms | -0.11 |
| 58 Plastics in non-primary forms | 0.15 |
| 59 Chemical materials & products n.e.s. | 0.09 |
| 61 Leather, leather manufactures n.e.s & dressed furskins | -0.92 |
| 62 Rubber manufactures n.e.s. | 0.02 |
| 63 Cork & wood manufactures (excluding furniture) | -0.72 |
| 64 Paper, paperboard & manufactures thereof | -0.07 |
| 65 Textile yarn, fabrics, made up articles etc | -0.70 |
| 66 Non-metallic mineral manufactures n.e.s. | -0.32 |
| 67 Iron & steel | 0.41 |
| 68 Non-ferrous metals | 0.07 |
| 69 Manufactures of metal n.e.s. | -0.02 |
| 71 Power generating machinery & equipment | 0.66 |
| 72 Machinery specialized for particular industries | -0.08 |
| 73 Metalworking machinery | -0.32 |
| 74 General industrial machinery & eqp. & machine pt.n.e.s. | -0.39 |
| 75 Office machines & adp machines | -0.50 |
| 76 Telecomms & sound recording & reproducing app. & eqp. | -0.76 |
| 77 Ele machinery, app & appliances & ele pt thereof n.e.s. | -0.35 |
| 78 Road vehicles (including air cushion vehicles) | -0.44 |
| 79 Other transport equipment | 0.86 |
| 81 P/fab buildings; sanit., plumbing, heating &lighting fixt. | -0.35 |
| 82 Furniture & parts thereof; bedding, mattresses etc | 0.12 |
| 83 Travel goods, handbags & similar containers | -0.66 |
| 84 Articles of apparel & clothing accessories | -0.57 |
| 85 Footwear | -0.65 |
| 87 Professional, scientific & controlling ins & app n.e.s. | 0.01 |
| 88 Photographic & optical goods, n.e.s.; watches & clocks | -0.40 |
| 89 Miscellaneous manufactured articles n.e.s. | -0.15 |
| 93 Special transactions and commodities not classified according to kind | -0.70 |
| 96 Coin (other than gold coin), not being of legal tender | 0.91 |
| 98 Military arms and ammunition | … |
Source: WG analysis of HMRC Regional Trade statistics and UN comtrade
(a) n.e.s = not elsewhere specified.
Annex 3: countries included in the export value gap analysis
| Algeria | Dominican Rep | Kuwait | Russia |
| Angola | Ecuador | Latvia | Saudi Arabia |
| Argentina | Egypt | Lithuania | Senegal |
| Australia | Estonia | Luxembourg | Serbia |
| Austria | Ethiopia | Malaysia | Singapore |
| Azerbaijan | Finland | Malta | Slovakia |
| Bahrain | France | Mauritius | Slovenia |
| Bangladesh | Georgia | Mexico | South Africa |
| Belgium | Germany | Morocco | Spain |
| Brazil | Ghana | Netherlands | Sri Lanka |
| Bulgaria | Greece | New Zealand | Sweden |
| Cameroon | Hungary | Nigeria | Switzerland |
| Canada | Iceland | Norway | Republic of North Macedonia |
| Chile | India | Oman | Thailand |
| China | Indonesia | Pakistan | Trinidad and Tobago |
| Hong Kong | Irish Republic | Panama | Turkey |
| Colombia | Israel | Peru | Ukraine |
| Costa Rica | Italy | Poland | UAE |
| Croatia | Japan | Portugal | Uruguay |
| Cyprus | Jordan | Qatar | United States |
| Czech Republic | Kazakhstan | South Korea | Vietnam |
| Denmark | Kenya | Romania |
Annex 4: overview of export value gap analysis for key markets
Wales’ export performance across sectors and markets has been compared with other global competitors to identify potential areas of opportunity for Welsh export, otherwise known as ‘export value gaps’. This analysis can be used to help determine the key priority countries for Welsh exports, for example, looking at the top 10 export markets for 2019, plus those where Welsh Government has an office.
Germany
Top destination for Welsh goods exports (£2.87bn). Value gaps identified across multiple sectors, including Iron & steel, Furniture and Plastics where Wales has a moderate comparative advantage.
France
No. 2 destination for Welsh goods exports (2.81bn). Value gaps identified across multiple sectors, including Power generating machinery where Wales has a strong comparative advantage.
United States of America
No.3 destination for Welsh goods exports (2.74bn). Value gaps identified across multiple sectors, including Other transport equipment where Wales has a strong comparative advantage and Plastics with a moderate comparative advantage.
Ireland
No.4 destination for Welsh exports (£1.69bn). Value gaps identified across multiple sectors, including Other transport equipment and Power generating machinery where Wales has a strong comparative advantage.
Netherlands
No.5 destination for Welsh exports (£0.97bn). Value gaps identified across multiple sectors. Iron & steel exports to The Netherlands has the largest value gap across all market-sector combinations. Power generating machinery, where Wales has a strong comparative advantage, also shows a value gap.
Belgium
No.6 destination for Welsh exports (£0.54bn). Value gaps identified across multiple sectors, including Power generating machinery where Wales has a strong comparative.
Spain
No.7 destination for Welsh goods exports (£0.46bn). Value gaps identified across multiple sectors, including Plastics and Furniture where Wales has a moderate comparative advantage.
United Arab Emirates
No.8 destination for Welsh goods exports (£0.46bn). Value gaps identified across multiple sectors, including Other transport equipment where Wales has a strong comparative advantage and Iron & steel with a moderate comparative advantage.
China
No.9 destination for Welsh goods exports (£0.41bn). Value gaps identified across multiple sectors, including Power generating machinery where Wales has a strong comparative and Iron & steel with a moderate comparative advantage.
Turkey
No.10 destination for Welsh goods exports (0.34bn). Value gaps identified across multiple sectors, including Other transport equipment where Wales has a strong comparative advantage and Iron & steel with a moderate comparative advantage.
Japan
No.11 destination for Welsh goods exports (£0.30bn). Value gaps identified across multiple sectors, including Power generating machinery where Wales has a strong comparative and Iron & steel with a moderate comparative advantage.
Canada
No.14 destination for Welsh goods exports (£0.23bn). Value gaps identified across multiple sectors, including Power generating machinery and Other transport equipment where Wales has a strong comparative advantage.
Qatar
No.17 destination for Welsh exports (£0.20bn). Export performance already exceeds our competitors in sectors where we have a comparative advantage. Multiple other sectors show a value gap against our competitors.
India
No.21 destination for Welsh goods exports (£0.13bn). Value gaps identified across multiple sectors, including Power generating machinery and Other transport equipment where Wales has a strong comparative advantage.
Other countries to consider from export value gap analysis. Looking at selected sectors where Wales has a comparative advantage reveals export value gaps with the following countries:
Iron and steel
Wales has a moderate comparative advantage.
Comparing to Finland, our most similar competitor, reveals export value gaps > £10million for these additional countries; Italy, Russia, Poland, Denmark, Norway.
Power generating machinery
Wales has a strong comparative advantage.
Comparing to Scotland, our most similar competitor, reveals export value gaps > £10million for these additional countries; Singapore, Malaysia, Hong Kong, Thailand, Norway.
Other transport equipment
Wales has a strong comparative advantage.
Comparing to Scotland, our most similar competitor, reveals export value gaps > £10million for these additional countries; Norway, Saudi Arabia, Brazil, Oman, Italy, Malaysia, Turkey.
Annex 5: comparator countries for SITC 2 product groups
| Product Group (SITC 2) (a) | Most similar competitor |
|---|---|
| 00 Live animals other than animals of division 03 | Scotland |
| 01 Meat & meat preparations | Scotland |
| 02 Dairy products & birds' eggs | Finland |
| 03 Fish, crustaceans, molluscs & aq.inverts & preps thereof | Finland |
| 04 Cereals & cereal preparations | Finland |
| 05 Vegetables & fruit | Norway |
| 06 Sugar, sugar preparations & honey | Scotland |
| 07 Coffee, tea, cocoa, spices & manufactures thereof | Scotland |
| 08 Feeding stuff for animals (not inc.unmilled cereals) | Finland |
| 09 Miscellaneous edible products & preparations | Norway |
| 11 Beverages | Finland |
| 12 Tobacco & tobacco manufactures | Norway |
| 21 Hides, skins & furskins, raw | Scotland |
| 22 Oil seeds & oleaginous fruits | Norway |
| 23 Crude rubber (including synthetic & reclaimed) | Finland |
| 24 Cork & wood | Scotland |
| 25 Pulp & waste paper | Scotland |
| 26 Textile fibres not manufactured & their waste etc | Norway |
| 27 Crude fertilizers & crude minerals (exc fuels etc) | Scotland |
| 28 Metalliferous ores & metal scrap | Finland |
| 29 Crude animal & vegetable materials n.e.s. | Finland |
| 32 Coal, coke & briquettes | Ireland |
| 33 Petroleum, petroleum products & related materials | Finland |
| 34 Gas, natural & manufactured | Finland |
| 35 Electric current | Denmark |
| 41 Animal oils & fats | Finland |
| 42 Fixed vegetable fats & oils, crude, refined, fractionated | Scotland |
| 43 Animal or vegetable fats & oils, processed, & waxes | Ireland |
| 51 Organic chemicals | Finland |
| 52 Inorganic chemicals | Denmark |
| 53 Dyeing, tanning & colouring materials | Denmark |
| 54 Medicinal & pharmaceutical products | Scotland |
| 55 Essential oils & perfume materials; toilet preps etc | Denmark |
| 56 Fertilizers (other than those of group 272) | Finland |
| 57 Plastics in primary forms | Finland |
| 58 Plastics in non-primary forms | Denmark |
| 59 Chemical materials & products n.e.s. | Denmark |
| 61 Leather, leather manufactures n.e.s & dressed furskins | Norway |
| 62 Rubber manufactures n.e.s. | Finland |
| 63 Cork & wood manufactures (excluding furniture) | Scotland |
| 64 Paper, paperboard & manufactures thereof | Denmark |
| 65 Textile yarn, fabrics, made up articles etc | Norway |
| 66 Non-metallic mineral manufactures n.e.s. | Denmark |
| 67 Iron & steel | Finland |
| 68 Non-ferrous metals | Scotland |
| 69 Manufactures of metal n.e.s. | Scotland |
| 71 Power generating machinery & equipment | Scotland |
| 72 Machinery specialized for particular industries | Scotland |
| 73 Metalworking machinery | Denmark |
| 74 General industrial machinery & eqp. & machine pt.n.e.s. | Ireland |
| 75 Office machines & adp machines | Scotland |
| 76 Telecomms & sound recording & reproducing app. & eqp. | Norway |
| 77 Ele machinery, app & appliances & ele pt thereof n.e.s. | Ireland |
| 78 Road vehicles (including air cushion vehicles) | Denmark |
| 79 Other transport equipment | Scotland |
| 81 P/fab buildings; sanit.,plumbing, heating &lighting fixt. | Norway |
| 82 Furniture & parts thereof; bedding, mattresses etc | Norway |
| 83 Travel goods, handbags & similar containers | Scotland |
| 84 Articles of apparel & clothing accessories | Finland |
| 85 Footwear | Finland |
| 87 Professional, scientific & controlling ins & app n.e.s. | Denmark |
| 88 Photographic & optical goods, n.e.s.; watches & clocks | Denmark |
| 89 Miscellaneous manufactured articles n.e.s. | Scotland |
| 93 Special transactions and commodities not classified according to kind | Scotland |
| 96 Coin (other than gold coin), not being of legal tender | Finland |
| 98 Military arms and ammunition | None |
Source: Source: WG analysis of HMRC Regional Trade statistics and UN comtrade
(a) n.e.s = not elsewhere specified.
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Articles are subject to the release practices as defined by the release practices protocol, and so, for example, are published on a pre‑announced date in the same way as other statistical outputs.
Missing value symbols used in the article follow the standards used in other statistical outputs, as outlined below.
.. The data item is not available
. The data item is not applicable
- The data item is not exactly zero, but estimated as zero or less than half the final digit shown
* The data item is disclosive or not sufficiently robust for publication
Contact details
Statistician: Matt Evans
Tel: 0300 0252032
Email: stats.trade@gov.wales
Media: 0300 025 8099