Trade
Vanuatu is greatly dependent on its international trade due to its relatively undeveloped industry. The country’s economy is opening as imports are growing and exports (although there has been a strong decline due to the 2008 depression) are also generally on a growing path (see Graph 1).
9
Graph 1: Vanuatu imports and exports growth (in million €)
0
200
400
600
800
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Import ExportImports
Imports total up to $242 million, commodities include machinery and equipment, foodstuffs, fuels. The country’s main import goods are refined petroleum, passenger and cargo ships and packaged medicaments. Vanuatu’s main import arrivals are from China (48%), Japan (19%), Oceania (11%),
Singapore (9%), Australia …show more content…
Actually their non-fillet frozen fish exports are quite big (regarding the size and population of the country) giving
0.84% of the total world export in 2012. Other commodities are copra, beef, cocoa, timber, kava, coffee
Vanuatu’s main export destinations are Thailand (73%) and Japan (17%).
Just as in the imports, the main destination is the relatively nearby countries, easily accessible by sea.
The Instruments and Impact of Trade Policy
As the 2012 Vanuatu Trade Policy Framework states: “The limited size of
Vanuatu’s domestic market implies that in order to find its way out of poverty
12and into development Vanuatu must necessarily export increased quantities of goods and services. In other words, increasing Vanuatu’s export competitiveness represents the key strategy to boost Vanuatu’s development.” The other important area that this document emphasises is tourism.
The country implemented a series of policies to expand their …show more content…
In 2007 their net exports were 291 Million USD, while in
2008 it was 523 Million USD. Even though the main part of the incredible growth in 2008 was probably an order on special purpose ships as they made up
53.5% of the country’s exports, while in the previous year it only took up an insignificant amount.
Let’s take a look on the import side. In 2006 the net value of imports was
219 Million USD. In the next year it grew to 266 Million USD and in 2008 the value increased even further to 305 Million USD. In the following years the import continued to gradually increase (with a huge spike in 2010).
Overall we can say that the popularizing of traditional economy in
Vanuatu had no adverse effects on the foreign trade balance of the country in the short-run, even though it was probably saved by the huge exports of 2008.
15Summary
While Vanuatu was classified as the Least Developed Country by the
United Nations, and that seems to be true in a capitalistic sense, their economy is working as it is. Also it should be mentioned that Vanuatu was declared
Vanuatu is greatly dependent on its international trade due to its relatively undeveloped industry. The country’s economy is opening as imports are growing and exports (although there has been a strong decline due to the 2008 depression) are also generally on a growing path (see Graph 1).
9
Graph 1: Vanuatu imports and exports growth (in million €)
0
200
400
600
800
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Import ExportImports
Imports total up to $242 million, commodities include machinery and equipment, foodstuffs, fuels. The country’s main import goods are refined petroleum, passenger and cargo ships and packaged medicaments. Vanuatu’s main import arrivals are from China (48%), Japan (19%), Oceania (11%),
Singapore (9%), Australia …show more content…
Actually their non-fillet frozen fish exports are quite big (regarding the size and population of the country) giving
0.84% of the total world export in 2012. Other commodities are copra, beef, cocoa, timber, kava, coffee
Vanuatu’s main export destinations are Thailand (73%) and Japan (17%).
Just as in the imports, the main destination is the relatively nearby countries, easily accessible by sea.
The Instruments and Impact of Trade Policy
As the 2012 Vanuatu Trade Policy Framework states: “The limited size of
Vanuatu’s domestic market implies that in order to find its way out of poverty
12and into development Vanuatu must necessarily export increased quantities of goods and services. In other words, increasing Vanuatu’s export competitiveness represents the key strategy to boost Vanuatu’s development.” The other important area that this document emphasises is tourism.
The country implemented a series of policies to expand their …show more content…
In 2007 their net exports were 291 Million USD, while in
2008 it was 523 Million USD. Even though the main part of the incredible growth in 2008 was probably an order on special purpose ships as they made up
53.5% of the country’s exports, while in the previous year it only took up an insignificant amount.
Let’s take a look on the import side. In 2006 the net value of imports was
219 Million USD. In the next year it grew to 266 Million USD and in 2008 the value increased even further to 305 Million USD. In the following years the import continued to gradually increase (with a huge spike in 2010).
Overall we can say that the popularizing of traditional economy in
Vanuatu had no adverse effects on the foreign trade balance of the country in the short-run, even though it was probably saved by the huge exports of 2008.
15Summary
While Vanuatu was classified as the Least Developed Country by the
United Nations, and that seems to be true in a capitalistic sense, their economy is working as it is. Also it should be mentioned that Vanuatu was declared