Looking to reduce trade tensions between countries, the OECD and WTO formulate a new method to...

|By:, SA News Editor

Looking to reduce trade tensions between countries, the OECD and WTO formulate a new method to measure trade flows by taking into account the origin countries of the parts and services involved in the manufacture of a product. E.g., an iPhone made in China in 2010 included components from multiple nations, so its export value would have been much less than the factory gate price of $187.51. Using this method, the U.S.'s deficit to China would have been 25% lower.