HS Code:
The 'Valued less than $1.20/kg' category typically includes low-cost bulk commodities or raw materials under specific Harmonized System (HS) codes, often related to agricultural products, basic minerals, or low-value manufactured goods. These products are traded in large volumes globally, often as essential inputs for industries or for basic consumption. Due to their low unit value, trade in this category is highly sensitive to transportation costs, tariffs, and trade policies. This category is critical for developing economies that rely on exporting such goods as a primary source of revenue, while importers often use these as raw materials for further processing.
Total Trade Volume
Approximately $150 billion USD
Data from 2022
Source
United Nations Comtrade Database and World Trade Organization (WTO) Reports
$25 billion USD
16.7% of total trade of total trade
Increasing
$18 billion USD
12.0% of total trade of total trade
Stable
$15 billion USD
10.0% of total trade of total trade
Increasing
$12 billion USD
8.0% of total trade of total trade
Stable
$10 billion USD
6.7% of total trade of total trade
Increasing
Average Rate
5.2% ad valorem
Highest Rate
15% (imposed by certain protective markets like the European Union on specific goods)
Lowest Rate
0% (under free trade agreements or for least developed countries under schemes like GSP)
Rising demand for low-cost raw materials in Asia
Increased export volumes from developing countries to manufacturing hubs like China and Vietnam, driving up trade by 8% annually
2021-2022
Fluctuating commodity prices due to geopolitical tensions
Price volatility has led to supply chain disruptions, affecting trade stability for low-value goods
2022
Sustainability push affecting bulk commodity trade
Stricter environmental regulations in importing countries are increasing compliance costs for exporters
2020-2022
A regional trade pact among Mercosur countries has reduced tariffs on low-value goods to boost intra-regional trade.
March 2023
Expected to increase trade volume by 5% among member countries, benefiting exporters like Brazil and Argentina.
India imposed temporary export bans on certain low-value agricultural products to ensure domestic supply amidst global food security concerns.
June 2022
Led to a 3% drop in global trade volume for the category as alternative suppliers struggled to meet demand.
The European Union introduced stricter sustainability criteria for importing low-value raw materials, requiring certification of environmental compliance.
January 2023
Increased costs for exporters from developing countries, potentially reducing their market share in the EU by 2-4%.