Exports from developed economies decelerated
sharply from 4.9 per cent in 2011 to 0.4 per cent in
2012 due to a contraction in export volumes in the
European Union (−0.2 per cent) and Japan (−1.0 per
cent). In Japan, exports dropped 11 per cent in the
last two quarters of the year, presumably owing to
the territorial dispute with China and its adverse
effect on the trade between the two countries (WTO,
2013). Exports from the United States fared better,
with shipments increasing by 4.1 per cent, albeit at a
slower pace than 2011.