Why Are Tariffs Used?

Importing and exporting takes place in nearly every country across the world. Everything from petroleum products to agriculture can be an import or an export, depending on the resources a country has and the resources it requires. The free trade of goods can be beneficial to consumers, but it can also hurt a nation’s economy.

If a country can undercut wages and prices by exporting cheap goods to a country with higher wages and prices, the country receiving those goods may not be able to compete. The result can be that employers in the country receiving the cheaper goods will go out of business, less tax money is collected and the exporting country grows richer.

Tariffs as a Solution

One way to try to balance this equation is to impose tariffs on imported goods. A tariff is a tax that is paid by the importer of foreign goods. In the United States, this tax is collected by the U.S. Customs and Border Patrol, but in other countries, it will be collected by an equivalent agency.

Export-import (exim) data is used to gauge how a tariff will affect trade. Exim data can also demonstrate the effectiveness of tariffs over time. Consumers generally end up paying more for imported goods that are subject to a tariff. The goal of this approach is to encourage companies to do business domestically instead of importing.

If a company can purchase goods from a domestic producer cheaper than they can from a foreign producer because a tariff pushes the price higher, the expectation is that both consumers and domestic companies will want to do business with domestic producers. This usually plays out when examining exim data.

Escalating a Trade War

Tariffs do have a chance to create a trade war in some cases. This can happen when one country imposes tariffs on certain goods from another country. To retaliate, the country receiving the tariff may introduce equal or more harsh tariffs on the first country. This can go on as both countries attempt to outdo one another, potentially resulting in higher prices for everyone in both countries.

Read a similar article about global import export data here at this page.

How Did the Dollarization of Ecuador Affect Trade?

In 2000, the Ecuadorian Sucre collapsed. The country stopped producing its currency and officially adopted the US dollar. While that did have some positive and negative impacts on the economy, how did the dollarization of Ecuador affect trade?

Transaction Costs

One of the most notable benefits of utilizing the US dollar is decreased transaction costs for international trades. The United States is already Ecuador's largest trade partner. Usually, transaction costs occur when exchanging one currency for another. But because Ecuador now uses USD, that issue is not part of the equation.

The lower transaction costs had a rippling effect throughout Ecuador. The stability encourages long-term investment and trade agreements. According to Ecuador trade intelligence, the lower costs have resulted in more businesses between the United States and Ecuador. Exports have increased significantly since dollarization. Meanwhile, neighboring countries' trade activity remained stagnant.

Inflation

Some experts say that dollarization and its effect on inflation helped boost trade activity, too. By switching to the US dollar, Ecuador enjoys a lower inflation risk. Confidence that inflation of the dollar will remain low provides assurance. Economists predict that long-term inflation will remain consistent with the United States.

There are still risks. Ecuador is a developing country, and the lack of economic stability can cause issues. However, the predictability of inflation helps maintain trade activity and continued economic growth.

Potential Disadvantage

The biggest problem with dollarization is that Ecuador doesn't have its own monetary policy or the means to control the economy. As a result, the Ecuadorian government can't intervene during a recession.

A weaker domestic currency spurs exports, which is why Ecuador saw a significant boom after dollarization. But according to Ecuador trade intelligence, exports were less competitive on a global scale when the US dollar experienced recent appreciation. That resulted in the country's non-oil export value dropping almost six percent.

Assistance for a Developing Economy

Ultimately, Ecuador's dollarization is considered a positive shift. While there are setbacks, the improvements to trade have done a lot to help Ecuador's economy flourish.

Read a similar blog about impex trade data here at this page.

Economic Overview of Chile

According to Chile trade statistics, the country’s economic freedom score is at 75.2. This score makes the country’s economy the 19th freest based on the 2021 index. According to Chile trade statistics, the country’s overall rating fell by 1.6 points, mainly due to a slight drop in investment freedom.

Within 32 countries located in the Americas, Chile has a number two ranking. The country’s overall score is higher than regional and global averages.

Economic Freedom in Decline

Since 2013, the country’s economic freedom has been experiencing a general decline. The year 2013 was when the country’s economy was attempting to join the free ranks. Currently, Chile is a firm participant in the mainly free economic category.

If the country establishes a new constitution, then this may threaten Chile’s future economic freedom. In this case, the country could enforce higher taxes, increase government spending and implement additional regulations that would negatively impact the country’s index markers.

Chile’s Background

Chile is a world leader in the production of copper, and its main GDP growth is from exporting minerals, seafood, wine, wood and fruit. Sebastian Pinera is the country’s president, and as a center-right politician, he is dealing with tough left-leaning parties in Congress.

There have been violent protests in the country, which is causing people to call for more protection. This has negatively impacted Chile’s economy.

According to Chile trade statistics, the country has 29 special trade agreements in effect. Its average tariff rate is at 6%. Since the country has implemented a secure and transparent investment platform, foreign investors are comfortable trading in Chile.

The Impact of COVID

Like other countries, COVID-19 has impacted Chili. As of December 1, 2020, the country has experienced 15,430 deaths due to the virus. The pandemic is causing economic forecasters to predict a contraction to the economy by about 6% in 2022.

Less Corruption

Chile recognizes its citizen’s secured interests in owned property. Expropriation rarely occurs, and there is a dependable system in place for recording mortgages and other liens. Chile’s judiciary system is independent, and it has a competent court system. The country is the second least corrupt country in South America, making it a country where people generally enjoy economic freedom.

Read a similar article about India trade statistics here at this page.

How to Find High-Quality International Suppliers

Picking the right international suppliers is about more than just finding the lowest price. While many buyers prioritize price above all else, you have to consider the overall level of service you're getting. Issues related to factors like shipping and scalability could cost you more in the long run.

So how do you find international suppliers that meet your needs? Check out our tips below.

Analyze Import Trade Data

You'd be surprised by how much information you can gain from looking at trade data. You can look at a supplier's shipping activities worldwide with just a simple search!

Use it to understand the supplier's shipping processes. Are they on time? Do they use locations that work with your needs? What about on-time delivery rates? All of that information makes a huge difference.

By looking into import trade data, you can quickly determine which supplier provides top-notch service and which ones don't. Go beyond quotes and use this data to see what to expect when you're a paying customer.

Review Certifications

Certifications exist for a reason. They give you some insight into the supplier's capabilities and quality standards. Don't assume that a supplier will provide top-notch products all the time. Look for those certifications that meet your needs.

Some suppliers make it difficult to find certifications, let alone verify them. Be vigilant, and learn to walk away when suppliers are intentionally vague.

Understand Manufacturing Capabilities and Scalability

When you're interested in working with a supplier, make sure you do your due diligence and assess their overall capabilities. Is the supplier a small company, or do they have multiple warehouses in strategic locations that benefit you?

Don't forget to determine scalability. You never know when you'll need a high volume of orders to meet a sudden surge of interest. It pays to have a flexible supplier that can fulfill those orders quickly and efficiently when that happens.

Do Your Homework

Finding a high-quality supplier should be a lengthy process. Don't be afraid to ask questions and do your research. Contact references, look at import data, and gauge financial stability. Those seemingly minor details make a big difference in the long run.

Read a similar article about trade data for importers here at this page.

Leveraging Trade Data for Better Investments

There's always risk involved when investing. However, the days of putting money down on a whim or gut instincts are over. Data is available to help you make strategic decisions that protect your bottom line.

Trade data, in particular, can help gauge company or market health. This blog will go over some ways you can use trade intelligence for investing.

Analyze Individual Shipping Trends

What better way to see how a company or market is doing than by examining its shipping trends? In-depth import data can be very telling. It gives you insight into order strategies and overall stability. You can scrutinize order volume, frequency, and more.

Best of all, you can take a look at both historical and real-time data. Identify trends and determine if your target's shipping habits align with your investment goals.

View Broader Market Data

Not sure where to invest? Take a look at the bigger picture to understand a company's market share. In the past, figuring out a company's role in the market was a big undertaking. It involved examining massive datasets that contained shipping information, sales, and more.

With trade intelligence for investing, all of that information is available to you instantly. Take advantage of advanced analytics to create reports and easy-to-read charts. The data can give you a quick glimpse at which companies dominate and which ones are slowly falling by the wayside.

Follow Datasets and Strike at the Right Time

Investments aren't a one-and-done deal. Sometimes, you have to wait until just the right time to make your move. Trade data can help you become an efficient investor. View datasets to analyze the market and follow companies that spark an interest. You can even set up alerts and notifications. Be the first to know when new shipments arrive and customize your reports to see the information you want to follow.

Making the Most of Trade Data

Trade data is a valuable yet often overlooked tool. Use it to your advantage! Stay current on shipping trends and follow companies or markets worldwide to make strategic investments that pay off.

Read a similar article about container import intelligence here at this page.

What are Bolivia's Major Export Destinations?

The South American country of Bolivia might not be a major exporter, but its contribution to global trade is important nonetheless. Bolivia trade data shows that the country shipped approximately $7 billion worth of goods around the world.

But where are Bolivian exporters sending products? In this blog, we'll break down the country's trade destinations and go over some of its most profitable goods.

Major Bolivian Export Destinations

Bolivia sends goods to many different countries. However, its most significant partner is its neighbor to the north and east. Brazil makes up approximately 17.3 percent of its total global exports. Next up on that list is another neighboring country: Argentina in the south. Roughly 15.5 percent of exports go to Argentina.

Other major destinations include the United Arab Emirates, India, and Japan. Those countries make up around 9.7 percent, 8.4 percent, and 8.2 percent of all Bolivian exports, respectively.

The remaining 40.9 percent of all exports include nations like the United States, Peru, and South Korea.

What Does Bolivia Export?

In the past, Bolivia was a significant player in the metal export business. However, the collapse of tin in the 1980s changed all that. Bolivia trade data shows that the country's biggest export is now natural gas. Metals, petroleum, and natural gas account for most of the country's exported goods.

For agriculture, Bolivia trades soybeans the most.

How Trade Works in Bolivia

Bolivia is a landlocked country with challenging geography. Pair that with seasonal flooding, and the country's economic growth potential experiences continual challenges.

Fortunately, agreements with neighboring countries are bringing improvements to this sector. Railway connections and duty-free shipping from river ports are giving Bolivia easier access to international trade routes.

Many exports go through Pacific and Atlantic ports, which Bolivia has access to thanks to agreements with Chile, Paraguay, and Peru.

Bolivia's presence in international trade is continually growing. While the country is still trying to find its footing, recent improvements to infrastructure and trade routes are bound to help with economic growth moving forward.

Read a similar article about Colombia customs data here at this page.

What to Know About the Ecuadorian Economy

Located in South America, Ecuador counts itself among the top ten GDPs per capita in South America. Ecuador’s economy is supported by several primary industries, and their industries have been steadily growing since the 1950s. In this blog, we’ll go over what you need to know about the Ecuadorian economy and where you can find useful Ecuador export data.

Ecuador’s Economy Over the Years

Ecuador’s economy didn’t really stand out too much on the global stage until around 1950. Before the 1950s, Ecuador primarily engaged in agricultural processing, textile manufacturing, and leather goods. Their primary export was straw hats.

In the 1970s, mining and exporting oil became a more primary economic contributor for Ecuador. In addition to oil and petroleum, Ecuador also counts cocoa and bananas as a primary export. In fact, Ecuador is actually the largest exporter of bananas in the world.

In the 1990s, Ecuador faced an economic crisis when natural disasters and global petroleum price declines crashed their economy. In 2000, they began to accept the US dollar as legal tender, helping them to stabilize their declining local currency. As petroleum prices rose, Ecuador was able to stabilize but their economy is still vulnerable to swings in petroleum prices overall.

Ecuador’s Top Exports

For more context about Ecuador’s economy and how their exporting affects their overall GDP, here are their top exports from last year listed in order of sales volume and percentage of total goods:

• Crude Petroleum
• Crustaceans
• Bananas
• Processed Fish
• Refined Petroleum

As you can see from these top exports and as we outlined earlier, the Ecuadorian economy is highly dependent on petroleum, fishing, and agricultural food products.

Where to Find More Ecuador Export Data

If you’re interested in staying up to date with Ecuador export data and customs data, you can use a database to learn everything you’d want to know. With the right database, you can find opportunities with new customers, see how your competitors supply chain is related to Ecuador export data, and identify new supplier opportunities. You can also see information such as arrival dates, product descriptions, shippers, transportation types, and more. This kind of insight is invaluable, and with a searchable database you can find this information for Ecuador and many more countries.

Read a similar article about Peru export data here at this page.