Economic research and trade policy analysis
Acknowledgements
This report was approved by Marion Jansen (Director, Trade and Agriculture Directorate, OECD) and Ralph Ossa (Director, Economic Research and Statistics Division, WTO). The authors of the report are Andrea Andrenelli (OECD), Eddy Bekkers (WTO), Javier López González (OECD), Gabrielle Marceau (WTO) and Roger So (WTO). We are grateful for the useful comments received from Julia Nielson, Susan Stone, Clarisse Girot, and Frank Van Tongeren from the OECD, Johanna Hill, Bright Okogu, Ralph Ossa, Marc Bacchetta and Antonia Carzaniga from the WTO, as well as Anabel Gonzalez (IADB) and Robert Teh. We also acknowledge the useful discussions at the: G7 Scientific Roundtable on Digital Policy and Data Governance in the age of AI held in June 2024, and the comments received during the BIICL 2023 Annual WTO Conference on Trade and Technology: Challenges and Opportunities and the 27th GTAP Conference in Bordeaux in 2023.
C.1. Introducing the data flow shocks one by one
The channels of transmission across the different shocks can be gleaned by introducing the shocks one by one, cumulatively, starting from the change in trade costs, followed by the change in willingness to pay (Figure A C.1).
Conclusions
Hydrogen and hydrogen-derived commodities (ammonia, methanol and e-kerosene) are expected to play a crucial role in the energy transition and – in particular – the decarbonisation of many hard-to-abate end uses across industry and heavy-duty transport.
Introduction
Cross-border data flows underpin today’s economic and social interactions. They help people connect with family and friends located in different geographical locations; they support research addressing global challenges (as was the case during the COVID-19 pandemic); they enable the co-ordination of production along global supply chains; and they allow firms, notably smaller ones, and people to access global markets. In sum, cross-border data flows have become the lifeblood of modern day social and economic activities.
Foreword by the WTO Director-General
We live in troubled times. Beyond geopolitical tensions, uncertainty in the global economy, and stalling progress on collective challenges from poverty reduction and hunger to climate change, the world is witnessing the highest level of active conflicts since the end of the Second World War. According to the 2024 Global Peace Index compiled by the Institute of Economics and Peace, a think tank, fewer conflicts are being resolved, while they are becoming more internationalized.
Policy implications
There are manifold reasons economies are reviewing their data policy. These include considerations related to privacy and data protection, national security, regulatory control or audit, digital security, and also new forms of digital industrial policy (Casalini, López González and Nemoto, 2021). While there are legitimate reasons for the diversity in regulations across economies, the regulatory landscape that underpins cross-border data flows and data localisation is becoming increasingly complex.
Executive Summary
The comparison of tariffs across time poses significant challenges when data are expressed in different versions of the Harmonized System (HS).
Conclusions
The study highlights that incorporating NLP techniques into HS transposition processes offers substantial potential to enhance the efficiency and accuracy of tariff analysis, making it an invaluable tool for trade statisticians.
Tariff Verification
Both the simple and complex tariff scenarios discussed above indicate that a level of human verification is still ultimately required to ensure the quality of results after the automated tariff transposition, depending on the quality of the original tariffs datasets.
Introduction
Tariff line level Harmonized System (HS) transposition beyond the harmonized 6-digit level has long been a labor-intensive process in trade statistics.
Motivation
The regular work of the Regional Trade Agreements (RTA) section in the Trade Policies Review Division (TPRD) of the World Trade Organization is one among several statistical work streams that regularly require tariff line HS transposition.
Literature Review
Natural Language Processing (NLP) is one among many sub-branches of artificial intelligence (AI) that specifically deals with text as data.

