Global Financial Integrity (GFI) has released a new report, Trade-Related Illicit Financial Flows in 135 Developing Countries: 2008-2017, that found value gaps in reported international trade between 135 developing countries and 36 advanced economies of US$8.7 trillion over the ten-year period, 2008-2017, and a gap of US$817.6 billion in 2017 alone.

Value gaps are mismatches in reported international trade data. GFI bases its research on mismatches in those data contained in official trade reports to the United Nations, the International Monetary Fund and other international organisations that document imports and exports.

Most affected countries

Developing countries that registered the largest average value gaps in their bilateral trade with the 36 advanced economies over the ten-year period 2008-2017 included China with a value gap of US$323.8 billion in its trade with the 36 countries, Mexico with a gap of US$62.9 billion and Russia with a gap of US$56.8 billion.

The report also looks at the value gaps as a percentage of total bilateral trade with the 36 advanced economies over the ten-year period. Gambia registered the largest average value gap of 37.3 per cent of total bilateral trade. Togo’s gap was 30.2 per cent while Maldives registered 27.4 per cent.

Sector analysis

The largest value gaps seen in specific goods traded between the 135 developing countries and the 36 advanced economies over the ten-year period includedelectrical machinery with a value gap of US$7 billion, mineral fuels with a US$113.2 billion gap and machinery with a US$111.7 billion gap.

Developing countries that registered the largest annual average value gaps over the ten-year period included Gambia with a 46.8 per cent gap, Seychelles with a 38.3 per cent gap and Paraguay with a 27.1 per cent gap.

Analysis of the value gaps between the five main developing country regions and the 36 advanced economies over the ten-year 2008-17 period found gaps between the 36 advanced economies and Asia of US$476.3 billion, $167.9 billion with Developing Europe and US$131.5 billion with the Western Hemisphere.

Trade-Related Illicit Financial Flows in 135 Developing Countries: 2008-2017 can be downloaded from here.

Categories: Trade Based Financial crimes News