International Trade and Integration of the Economic Commission for Latin America and the Caribbean (ECLAC)
Total Page:16
File Type:pdf, Size:1020Kb
ISSN 1680-872X INTERNATIONAL SERIES TRADE Trade integration and production sharing A characterization of Latin American and Caribbean countries’ participation in regional and global value chains Dayna Zaclicever 137 Trade integration and production sharing A characterization of Latin American and Caribbean countries’ participation in regional and global value chains Dayna Zaclicever This document has been prepared by Dayna Zaclicever, Economic Affairs Officer of the Division of International Trade and Integration of the Economic Commission for Latin America and the Caribbean (ECLAC). The views expressed in this document, which has been reproduced without formal editing, are those of the author and do not necessarily reflect the views of the Organization. United Nations publication ISSN: 1680-872X (electronic version) ISSN: 1680-869X (print version) LC/TS.2017/161 Copyright © United Nations, December 2017. All rights reserved Printed at United Nations, Santiago, Chile S.17-01271 Applications for authorization to reproduce this work in whole or in part should be sent to the Economic Commission for Latin America and the Caribbean (ECLAC), Publications and Web Services Division, [email protected]. Member States and their governmental institutions may reproduce this work without prior authorization, but are requested to mention the source and to inform ECLAC of such reproduction. ECLAC - International Trade Series No. 137 Trade integration and production sharing: a characterization… Contents Abstract ..................................................................................................................................................... 7 Introduction ............................................................................................................................................... 9 I. Vertical specialization-related intermediate exports ................................................................ 11 II. Latin American and Caribbean countries’ participation in international production networks .................................................................................................................... 13 A. Trends and patterns of countries’ vertical specialization ....................................................... 13 B. Latin America and the Caribbean’s forward participation in GVCs ............................................. 17 1. Current linkages ............................................................................................................. 17 2. Trade agreements and GVC participation ...................................................................... 24 3. Potential further integration into GVCs ......................................................................... 26 III. Intra-regional production networks in Latin America ............................................................. 31 A. Current linkages ..................................................................................................................... 31 1. Argentina ........................................................................................................................ 31 2. Brazil .............................................................................................................................. 33 3. Chile ............................................................................................................................... 35 4. Colombia ........................................................................................................................ 37 5. Costa Rica ...................................................................................................................... 38 6. Mexico ........................................................................................................................... 40 7. Peru ................................................................................................................................ 42 B. Intra-regional export potential ................................................................................................ 44 IV. Concluding remarks..................................................................................................................... 57 References ................................................................................................................................................ 63 Annex Aditional tables and figures ....................................................................................................... 65 International Trade Series: issues published ........................................................................................ 82 3 ECLAC - International Trade Series No. 137 Trade integration and production sharing: a characterization… Tables Table 1 Latin America and the Caribbean: preferential trade agreements with members of GVCs ......................................................................................................... 24 Table 2 Latin America and the Caribbean: RCAs in intermediate exports to GVCs, 2010-2011 ............................................................................................................. 27 Table 3 Latin America and the Caribbean: RCAs in intra-regional intermediate exports, 2010-2011 ................................................................................................................ 45 Table A.1 Industry breakdown of OECD’s ICIO tables ........................................................................ 66 Table A.2 List of countries covered by the OECD’s ICIO tables .......................................................... 66 Table A.3 Selected Latin American countries: intra and extra-regional preferential trade agreements .................................................................................................................... 69 Table A.4 Latin America and the Caribbean: share in imported intermediate goods embodied in Latin American countries’ gross manufacturing exports by source industry, 2011 .......... 78 Figures Figure 1 Imported intermediates embodied in gross manufacturing exports, 1995, 2008, 2009 and 2011 ................................................................................................... 14 Figure 2 Selected country groupings: main imported intermediates embodied in gross manufacturing exports, 1995 and 2011 ................................................................................. 15 Figure 3 Selected country groupings: imported intermediate goods embodied in gross manufacturing exports by trade agreement status with origin countries, 1995 and 2011 ....................................................................................................................... 17 Figure 4 Selected importing regions: origin-country composition of vertical specialization-related intermediate imports from Latin America and the Caribbean, 2011 ..................................... 18 Figure 5 Selected country groupings: Herfindahl-Hirschman indices of destination market and sector concentration of vertical specialization-related intermediate exports, 1995-1996 and 2010-2011 .................................................................. 19 Figure 6 Factory North America: geographical origin of main imported inputs embodied in gross manufacturing exports, 1995 and 2011 .................................................................... 21 Figure 7 Factory Europe: geographical origin of main imported inputs embodied in gross manufacturing exports, 1995 and 2011 ................................................................................. 22 Figure 8 Factory Asia: geographical origin of main imported inputs embodied in gross manufacturing exports, 1995 and 2011 ................................................................................. 23 Figure 9 Argentina: imported intermediates embodied in gross manufacturing exports by exporting industry, 1995 and 2011 ................................................................................... 32 Figure 10 Argentina: composition of imported intermediate goods embodied in gross manufacturing exports, 1995 and 2011 ................................................................................. 33 Figure 11 Brazil: imported intermediates embodied in gross manufacturing exports by exporting industry, 1995 and 2011 ................................................................................... 34 Figure 12 Brazil: composition of imported intermediate goods embodied in gross manufacturing exports, 1995 and 2011 ................................................................................. 35 Figure 13 Chile: imported intermediates embodied in gross manufacturing exports by exporting industry, 1995 and 2011 ................................................................................... 36 Figure 14 Chile: composition of imported intermediate goods embodied in gross manufacturing exports, 1995 and 2011 .................................................................... 36 Figure 15 Colombia: imported intermediates embodied in gross manufacturing exports by exporting industry, 1995 and 2011 ...................................................................... 37 Figure 16 Colombia: composition of imported intermediate goods embodied in gross manufacturing exports, 1995 and 2011 .................................................................... 38 Figure 17 Costa Rica: imported intermediates embodied in gross manufacturing exports by exporting industry,