traditional measures of trade recording gross flows of goods and services across borders may not accurately reflect trade patterns
trade in value-added is a statistical approach used to estimate the source(s) of value (by country and industry) that is added in producing goods and services for export and import
this page has more info on value added stats and this document has the headlines for the UK which in summary are:
- UK-US bilateral trade is stronger on value-added terms than in gross terms.
- UK bilateral trade deficit is smaller with France and China in value-added than in gross terms
- 60% of the value of UK gross exports originate from services industries. (one of the highest %'s for countries in the database) with significant services content in manufacturing export
- US remains main destination for UK exports on a value-added basis and has a much higher share of exports (16% vs 21%) than when trade is evaluated in gross terms
- trade with the US also appears stronger in value-added terms, with the United States displacing Germany as the UK’s main supplier.