The emergence of global value chains(GVCs) and their rapid expansion over the past two decadeshas transformed the global trade environment. GVCs involvetask-based trade across multiple stages of the productionprocess that take place across a number of differentcountries, in which multiple inputs and exports ofintermediate goods and services are necessary to produce afinal good, which may also be exported. GVC-oriented tradeis seen to offer significant opportunities for developingcountries, especially smaller ones, to benefit from globalintegration by changing the nature of competitiveness. Withcompetition for GVC investment taking place in a trulyglobal market, factor competitiveness relative to othercountries matters a lot. In this context, the purpose ofthis note is to shed some light for policymakers, in thiscase specifically in the Southern African Customs Union(SACU) countries, on where to focus efforts to drivecompetitiveness for GVC participation. This is adata-intensive exercise that requires indicators torepresent underlying capabilities, disaggregatedinternational trade data, and finally, a classification ofwhich products are likely to be trade within GVCs.
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