Trade glossary · data
Merchandise trade
Trade in physical goods that cross customs borders. Excludes services, intellectual property licensing, and digital goods. CEPII BACI covers merchandise trade only.
Merchandise trade is the slice that's easy to measure: customs offices stamp every shipment. It's also the slice covered by traditional industrial policy, tariffs, and most trade agreements. Modern economies derive a growing share of GDP from non-merchandise exports — services, software, royalties — that don't pass through customs.
Examples
- A Toyota Corolla exported from Japan to USA: merchandise.
- A Toyota engineering license sold by Japan to a Vietnamese factory: services trade, not merchandise.