The Eurasian Economic Union & Latin America and the Caribbean: A Transcontinental Partnership
license from the Ministry of Labour of the Argentine Republic in advance 28. Non-automatic licensing also applies to certain household chemical goods, as well as fertilizers and certain textile bedding for delivery to Paraguay 29 and the supply of certain foodstuffs to Ecuador. 30 When exporting footwear, sewing and textile products to Brazil, enterprises from countries that are non MERCOSUR members face additional monitoring, reinforced by inspection. 31 Thus, a prerequisite for intensifying trade relations between regions is the effort necessary for identifying and reducing existing trade barriers and organizing information and analytical support for potential trade counterparts.
2.
Main patterns of trade in services
Trade in services follows similar patterns in the EAEU and LAC. In 2018, EAEU exported almost US$ 84 billion worth of services, which accounted for nearly 12% of its goods exports and 1.4% of global services exports. LAC exported US$ 190 billion in services, which were equal to 16% of its goods exports and 3.3% of global services exports. The services trade has grown at a slower pace than the goods exports have. EAEU services exports increased an annual average of 7.2% and its services imports rose 3.3% between 2005 and 2018. For LAC, the corresponding rates constituted 5.4% and 2.6%, respectively, during the same period. ECLAC groups services exports into two categories for the purpose of facilitating their analysis: traditional and modern services. Trade in traditional services involves those that have always formed part of trade statistics: services related to goods, transportation, travel, construction, personal, cultural and recreational services, and government services. Modern services refer to services that are marketed mainly through the Internet and other digital media, such as telecommunications, computing and information services, financial services, insurance and pension services, royalties and other business services. This category also refers to knowledge-intensive services (ECLAC, 2017). Most EAEU and LAC services exports are considered traditional services (see figure II.5). In 2018, 71% of EAEU services exports were classified as traditional services and 29% referred to modern services. Most of EAEU exports in services were transport, travel and other business services, 32 making up 36%, 19% and 17% of the region’s total, respectively (see figure II.5). This pattern was like that of LAC services exports, even if travel was its single most valuable service. In 2018, 73% of LAC services exports consisted of traditional services and 27% of modern services. Travel exports made up more than half its total services exports (53%), followed by other business services (17%) and transport (15%). Figures II.5 and II.6 show that the import and export patterns of services are similar in both regions. Both regions see higher imports than exports of other business services, resulting in increased participation of modern services in imports. For EAEU and LAC, modern services make up 37% and 40% of services imports, respectively. Transport and travel are also important category of services imports for both regions.
28
29 30 31 32
See [online] http://servicios.infoleg.gob.ar/infolegInternet/anexos/275000-279999/276625/texact.htm, http://servicios.infoleg.gob.ar/infolegInternet/anexos/305000-309999/305752/norma.htm, http://servicios.infoleg.gob.ar/infolegInternet/anexos/305000-309999/308278/norma.htm, http://servicios.infoleg.gob.ar/infolegInternet/anexos/310000-314999/314238/norma.htm. See [online] http://www.snin.gov.py/publico/. See [online] http://extwprlegs1.fao.org/docs/pdf/ecu154886.pdf. See [online] https://ustr.gov/sites/default/files/files/Press/Reports/2018%20National%20Trade%20Estimate%20Report.pdf (p. 59). Other business services include research and development, professional and management services, and technical, trade related, and other business services.
57
