Promoting Trade and Connectivity in LDCs: ESCAP s Perspective

Transcription

1 Promoting Trade and Connectivity in : ESCAP s Perspective High-Level Asia-Pacific Policy Dialogue on the Implementation of the Istanbul Programme of Action for the Least Developed Countries for the Decade Dr Mia Mikic, OiC, a.i. Trade and Investment Division mikic@un.org Trends in Trade (LDC s Trade with World) 1 Imports and 8 exports values up 6 4 But net trade deficit growing 2 Post-crisis acceleration of -2 trade values -4 United States Dollars (billions) Balance of Trade LDC's Exports to World LDC's Imports from World *Source: ESCAP s calculation based on data from the Statistical Yearbook for Asia and the Pacific 214 1

2 Trends in Trade (LDC s Shares) Since the crisis shares in AP trade grow faster than in world trade Opposite was happening before the crisis- role of trade structure? 1.4% 1.2% 1.%.8%.6%.4%.2%.% LDC's Imports (Share of Asia- Pacific) LDC's Exports (Share of Asia- Pacific) LDC's Imports (Share of World) LDC's Exports (Share of World) *Source: ESCAP s calculation based on data from the Statistical Yearbook for Asia and the Pacific 214 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % Destinations of LDC s Exports China India Other Asia-Pacific European Union (27) United States Rest of World Trends in Trade (Geographic Composition) 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % Origins of LDC s Imports China India Other Asia-Pacific European Union (27) United States Rest of World *Source: ESCAP s calculation based on data from UNCOMTRADE available from WITS 2

3 2.52% (Stone and Glass) 3.27% (Footwear) 4.55% (Vegetable) 5.52% (Wood) 8.97% (Fuels) Export Portfolio Composition (Export Structure) 62.58% (Textiles and Clothing) Textiles and Clothing Fuels Wood Vegetable Footwear Stone And Glass Animal Metals Minerals Plastic OR Rubber Food Products Hides And Skins *Source: ESCAP s calculation based on data from UNCOMTRADE available from WITS (Markets and Products) 12 Number of Markets 12 Number of Products Asia-Pacific Samoa Asia-Pacific Samoa *Source: ESCAP s calculation based on data from Tariff Outcomes Indicators available from WITS 3

4 (HH-Index)# and have highly diversified products and markets and are more diversified than the average The other have highly concentrated markets and products # A country with a perfectly diversified export portfolio will have an index close to zero, whereas a country which exports only one export will have a value of 1 (least diversified) Asia-Pacific *Source: ESCAP s calculation based on data from Tariff Outcomes Indicators available from WITS (95% Crude oil) (29% Copper) (13% Gold) (35% Natural gas) (6% Iron/Steel) Share of commodities in total GDP (%) 14% 12% 1% 8% 6% 4% Solomon Islands 2% *Source: UNESCAP Trade Insights No. 6 (Commodity Dependency) / % % 2% 4% 6% 8% 1% Share of commodities in total exports (%) 4

5 represent a negligible share in GVC-related trade Low-value added segments Raw materials and primary commodity Low-value added final assembly of apparel and footwear Enhancing supply capacity Aid for Trade programmes; Financial and technical assistance Participation in GVCs LDC s Intermediate-Goods Exports (28-213) *Source: ESCAP s calculation based on data from UNCOMTRADE available from WITS Challenges for High transaction costs of doing business High transport and logistics costs Limited telecommunication infrastructure and weak trade services Expensive, unreliable energy supply and other utilities (e.g. electricity) Shallow and inefficient financial markets Lack of human resources Explicit and implicit barriers to trade 5

6 Free-Trade Agreements (Can FTAs help?) LDSs did not sign many bilateral FTAs Who are the partners and impact on usefulness of FTA Trade coverage sometimes very limited Level of liberalization is shallow Non-tariff barriers often not covered Exclusion lists Rules of origin Rules are not coherent across different agreements Overlapping of FTAs cause extra transaction costs Trade share with PTA partners, Samoa 1% 2% 3% 6% 1% 16% 13% 18% 29% 4% 43% 47% 63% 6% 56% 63% 61% 74% 84% 88% 94% 89% 92% 95% % 2% 4% 6% 8% 1% Export % Import % *Source: UNESCAP Asia-Pacific Trade and Investment Report, 214 Areas for Intervention Investment in hard and soft infrastructure Transportation, logistic, telecommunication, public utilities Education and skill formation systems Efficiency and scope of financial sector Improve business climate to facilitate the ease of doing business and movement of goods and services Trade facilitation Trade and investment liberalization Institution building Assistance to SMEs SMEs access to finance Networking between potential buyers and suppliers Capacity building programs to SMEs 6

7 Areas for AfT Trade policy reform Trade adjustment AfT and development of (tradable) services sector Private sectors could play important roles Aid for Trade (ODA) Private sector as operational arm of AfT contractual basis (infrastructure building) Private sector as lever of AfT (joint financing) Private sector as productive investor (VC management) Private sector as donor Private sector as trade integration facilitator (improving regulation) Private sector as trade capacity building business Source: Adopted from World Bank, 211 For more information please visit 7