Introduction

As the global tariff landscape faces escalating tensions, trade movements continue to play a serious role across prominent manufacturing industries all over the world. Considering the complex mechanisms of the global flow of goods and services is an integral component of strategic planning initiatives. However, properly interpreting trends both across products and time in trade can prove to be a difficult endeavor while navigating various data sources. Understanding how trade data is organized, where it is reported and how to best utilize these diverse data sources can provide valuable insights into how trade dynamics may affect your organization.

How is trade data organized?

While different trading organizations have varying means of identifying the specific goods and services present in trade flows, the most common identifier remains the Harmonized Tariff System codes. Codes with granular data, at 10-digit lengths, are referred to as HTS codes, while shorter codes are commonly abbreviated as HS codes. Trade reporting agencies typically allow searching for HS codes at various digit-lengths, with longer codes being associated with the most granular product descriptions. The following is an example of how HTS codes are segmented.

The first two digits of the code refer to very broad product categories

• As digits increase, the products covered become more granular

• The 10-digit level is the most specific, but is not available through most trade databases. Other codes, such as Standard International Trade Classification (SITC) or Combined Nomenclature (CN), may be used in some databases as alternative means of searching for applicable products. However, HS codes tend to be ubiquitous across data sources.

Once you’ve identified your product of interest, you must determine which trade flows you would like to capture through your data source. Most databases allow you to select a reporting country (which records the trade flow) and a partner country. Additionally, you must select the direction of the trade flow. For instance, to capture the trade of goods from the US to India, you would select the US as the reporter, India as the partner, and the flow as exports. If you instead wanted to examine the flow of goods from India to the US, you would select India as the partner and the flow as imports.

Most sources will allow for the retrieved data to be reported in either volume terms (this can vary by weight or square footage) or value terms (often US dollars). Users should critically review both sets of figures to identify potential reporting issues, although reported values tend to be more reliable. The available options in reporting differ significantly by data source, and some may provide fewer options for reporting than others. In addition to our ability to analyze data sources, we can execute in-depth primary research to get a deeper understanding of the mechanics and impacts of trade. Also as per the demand of new digital age trade analysts, Using Trade Data in Strategic Decision Making is the need of an hour which is must for every successful venture.