HS Code:
The 'Valued less than 70ยข/kg' category typically includes low-value bulk commodities or raw materials under various Harmonized System (HS) codes. These products are often unprocessed or minimally processed goods such as certain agricultural products, raw minerals, or basic industrial materials. Due to their low per-unit value, trade in this category is heavily influenced by transportation costs, regional availability, and trade agreements. This category is critical for industries relying on cost-effective raw inputs but faces challenges like fluctuating commodity prices and stringent quality controls.
Total Trade Volume
Approximately $50 billion USD
Data from 2022
Source
United Nations Comtrade Database & World Trade Organization (WTO) Reports
$10 billion USD
20% of total trade of total trade
Increasing
$8 billion USD
16% of total trade of total trade
Stable
$6 billion USD
12% of total trade of total trade
Increasing
$5 billion USD
10% of total trade of total trade
Stable
$4 billion USD
8% of total trade of total trade
Decreasing
Average Rate
5.2% ad valorem
Highest Rate
15% (imposed by certain protective markets like the EU on specific raw materials)
Lowest Rate
0% (under free trade agreements such as USMCA or ASEAN)
Rising demand for raw materials in developing economies
Increased export volumes from resource-rich countries like Brazil and Australia to meet industrial needs in Asia
2021-2022
Shift towards sustainable sourcing
Countries imposing stricter environmental regulations on mining and agricultural exports, affecting low-cost production
2020-2022
Volatility in global commodity prices
Significant fluctuations in trade profitability for exporters of low-value goods, impacting smaller economies
2019-2022
A recent agreement between Brazil and Argentina has reduced tariffs on low-value agricultural goods, boosting trade in this category.
June 2023
Expected to increase trade volume by 10% in the region over the next two years.
The European Union introduced new quality and sustainability standards for imported raw materials valued under 70ยข/kg, targeting agricultural and mineral products.
March 2023
Likely to reduce exports from non-compliant countries while increasing costs for exporters to meet standards.
Indonesia implemented temporary export bans on certain low-value raw materials to prioritize domestic processing industries.
January 2023
Reduced global supply, causing a price spike in affected commodities and shifting trade to other exporters like Australia.