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Economic Commission for Latin America and the Caribbean (ECLAC)
The LAC region followed the same tendency although there was a more pronounced difference between growth in imports from China and those from other markets. Between 2001 and 2018, imports from China rose at an average annual rate of 19%, five times faster than imports from the United States (4%) and three times as fast as those from EU (6%). In 2018, LAC countries imported 32% of its goods from the United States, 19% from China and 13% from EU. A comparison between LAC subregions shows that the import shares of China and EU were nearly the same for both subregions in 2018. The difference is in the United States’ import share: Northern LAC imported almost half of its goods (46%) from that market, while South America only obtained 18% from that source. Another difference was the importance of intraregional imports. Northern LAC imported 5% of its products from the LAC region and almost one quarter (24%) from South America. Finally, with respect to EAEU, imports trended similarly to exports and South America imported three times more from that group (1.3%) than Northern LAC did.
B.
Trade patterns: sectors
In 2018, most goods exported from EAEU to its main markets are primary goods and naturalresource-based manufactures (NRBM), as shown in table II.1. This pattern differs with respect to its intraregional trade and its exports to the LAC region, where exports of low-, medium-, and high-technology manufactures are notable.9 In this document, manufactured products with low, medium and high technological content are grouped into the category of «technology manufactures»”. Almost half of LAC’s exports are primary goods and NRBM, while the other half consist of technology manufactures. However, that distribution varies according to the LAC subregion and destination market. EAEU specializes in mineral fuels and oil production; consequently, more than half of its overall exports are related to mineral fuels (52.7%). Other relevant export goods are semifinished products of iron and steel; precious metals like gold, platinum, diamonds, or silver and cereals, especially wheat and barley. Except for iron and steel products, most of these products are classified as primary goods or NRBM, accounting for 71% of its total exports. EAEU technology manufactures include iron and steel products, as well as mechanical machinery, articles of wood, fertilizers, aluminium products, electrical machinery, vehicles and chemicals. Those goods accounted for 17% of its total exports. Globally, the main LAC exports are vehicles; mineral fuels; mechanical and electrical machinery; ores like copper, iron, zinc and aluminium; oil seeds like soya or sunflower; precious metals; and fruits. LAC and EAEU export structures are thus quite alike, with an emphasis on primary goods. However, as noted above, the export structure within LAC is heterogeneous. Northern LAC specializes in technology manufactures that are part of the United States’ value chain. Its main exports are vehicles, electrical and mechanical machinery, medical instruments and appliances, plastics and furniture. Together, those goods accounted for 75% of the entire subregion’s exports. South America’s export structure is just the opposite with primary goods and NRBM accounting for 71% of its exports. Among those kinds of products are 9
The trade classification indicator by technology intensity was developed by ECLAC to determine technology intensity in the manufacturing exports of developing countries. The classification is structured using the levels of the groups of the SITC at a three-digit level, defining five product categories. The primary products category includes fresh fruits, meat, rice, cocoa, tea, coffee, timber, coal, crude oil, gas, concentrated minerals and scrap. MBRN includes products based on agriculture and forest products, basic metals (except steel), petroleum derivatives, cement, precious stones and glass. Manufacturing with low technology contains textile and fashion cluster, ceramics, simple metal structures, furniture, jewellery, toys and plastic products. Manufacturing with medium technology includes automotive products, synthetic fibres, chemicals and paints, fertilizers, plastic, iron and steel, pipes and tubes, and industrial engineering with medium technology. Finally, manufacturing with high technology incorporates electrical and electronic products, pharmaceutics, aerospace, optical/precision instruments and cameras (Duran, 2016).
