Economic research and trade policy analysis
Results
After running both transposition methods, the final output is a transposed tariffs table ("TC" table, in WTO IDB parlance) providing the full set of correlated HS codes in two HS nomenclatures, with each preferential tariff line allocated a corresponding MFN duty code.
Further Work
In future, further refinement and testing on diverse datasets is recommended to optimize these methods for broader application. For instance, other models such as OpenAI's Text Embedding model could be compared with SBERT to compare performance rates.
D.1. Introducing the data localisation shocks one by one
Figure A D.1 displays the projected change in real exports and real GDP for the four scenarios with the three types of costs (trade costs, WTP, and data management costs) entered one at a time. In Scenario A No data localisation, there is a small contribution of trade cost reductions, because the interaction of data flow and data localisation policies on trade costs is considered. Lifting data localisation policies would for some regions with less restrictive data flow policies imply a reduction in the costs of transferring data and thus an expansion of trade. At the global level the impact is marginal, because this only happens in isolated cases. The contribution of WTP/trust is larger to the expansion of real GDP and real exports, since the isolated regions would move to a safeguards regime with higher levels of trust when restrictive data localisation policies are lifted.
Identifying the potential economic impact of different broad approaches to data regulation
Modelling the economic impacts of data regulation can help support the policy debate by presenting stakeholders with information on the potential and relative opportunity costs associated with different types of data-related measures. This information can help policy makers think about different regulations that can successfully meet public policy objectives, including privacy and data protection, in a way that imposes the least possible burden on, or trade-offs in terms of, economic activity.
Abstract
This paper explores the application of Natural Language Processing (NLP) techniques to automate Harmonized System (HS) tariff line transposition, employing a three-stage process: unique 1:1 tariff code matching (Round 1), exact description matching (Round 2), and “smart” description matching (Round 3) using Artificial Intelligence (AI) and lexical similarity methods paired with harmonized 6-digit concordance and cosine similarity.
General note and abbreviations
The statistics related to applied tariffs and imports are calculated using data which are based on the HS nomenclature adopted by the country for the reference year. For statistics on bound tariffs, the calculations are based on the approved schedule of concessions of the WTO member.
Introduction
The World Tariff Profiles is a joint publication of the WTO, ITC and UNCTAD devoted to market access for goods.
Acknowledgements
The publication “Pathways to Sustainable Trade and Peace” was prepared under the general responsibility and guidance of Maika Oshikawa, Director of the Accessions Division.
Foreword
I am delighted to present the World Trade Organization Secretariat’s first comprehensive report on artificial intelligence (AI) and international trade. This report marks a milestone in our efforts to understand the impacts AI is having, and will continue to have, on global trade.
How domestic policies can shape the trade and AI relationship to favour inclusive economic growth
Trade policies are a necessary part of any relationship between trade and AI that results in inclusive economic growth.
Foreword by the WTO Director-General
Rapid advances in artificial intelligence (AI) are transforming the world economy, reshaping how work is defined, how value is created, and how opportunities are distributed across societies. Given these far-reaching effects, AI is also transforming world trade.
Introduction
With the launch of ChatGPT in November 2022, artificial intelligence (AI), and in particular generative AI – capable of generating high-quality text, images and other content based on the data on which it is trained – entered into public consciousness and has been experiencing rapid adoption.
Acknowledgements
The World Trade Report 2025 was prepared under the general responsibility and guidance of Johanna Hill, WTO Deputy Director-General, and Ralph Ossa, Chief Economist and Director of the Economic Research and Statistics Division. Director-General Ngozi Okonjo-Iweala, Senior Advisor to the Director-General Uyama Tomochika, and Trineesh Biswas from the Office of the Director-General provided valuable advice and guidance.