Production sharing in Latin American trade: a research note

The recent literature on industry globalisation and global production sharing has called attention to the changing nature of world trade with the predominance of trade in manufactures, the fragmentation of the production process and contractual relations between firms. Even when those changes do not question the most fundamental notion of trade and production specialisation according to factor services endowments, the literature points to a specialisation within a narrow set of activities and likely to be more fragmented. Enterprises may select labour intensive activities from a number of predominantly labour as well as from capital intensive industries initially located in industrial countries to relocate them in developing countries. Nevertheless, those activities can be reconverted to industrial countries if and when technological change makes their consolidation more profitable. Mexico has a history of integrating its economy with that of the United States and of full adoption of production sharing as a strategy of integrating its economy into the world economy. On the other extreme, Brazil has been oriented towards its domestic market and more recently towards the regional market. Even though imported inputs have increased after trade liberalisation, proportion to domestically produced inputs is still moderate. The contrasting experience of the two countries is an open field for research.Product sharing: International trade: vertical specialisation: trade patterns

On the Normalized Herfindahl-Hirschman Index: A Technical Note

We compare the application of two different normalization procedures for the Herfindahl-Hirschman Index. We show that structural differences exist between the two indices and derive the conditions for which these differences are more or less substantial

Trade agreements by Colombia, Ecuador and Peru with the United States: effects on trade, production and welfare

The Computable General Equilibrium model, based on the Global Trade Analysis Project (GTAP) model, is used to evaluate the impact of separate bilateral free trade agreements by Colombia, Ecuador and Peru with the United States of America (USA). As the Andean Trade Promotion and Drug Eradication Act (ATPDEA) is to expire shortly, a number of different scenarios have been analyzed: full liberalization, liberalization excluding sensitive products and non-conclusion of agreements. Signature of the agreements would lead to a widespread increase in trade among the negotiating countries to the detriment of their Andean partners. While the effects on welfare would benefit only the United States and Peru, from the capital accumulation standpoint they are clearly positive for all countries. Research shows that, while these agreements would not be enough on their own to trigger a process of sustained development, an active economic and social policy could usefully tap their potential.Treaties, Free trade, Trade negotiations, Social welfare, Economic analysis, Andean region, United States

Panorama de la producción y el comercio de autobuses eléctricos en el mundo y en América Latina y el Caribe

La electrificación del transporte público es una estrategia crecientemente utilizada para avanzar hacia la descarbonización de las economías a nivel mundial. En el presente documento se examina el comercio mundial de autobuses, con especial énfasis en los autobuses eléctricos y sus insumos, con el objetivo de determinar el potencial existente para desarrollar su producción en América Latina y el Caribe. Cuatro países de la región se encuentran entre los principales productores mundiales de autobuses, pero ninguno de ellos ha incursionado en la producción de autobuses eléctricos a gran escala. El análisis permite concluir que el Brasil y México poseen la capacidad para producir vehículos eléctricos, para lo que podrían desarrollar cadenas de suministro con un conjunto de países de la región como la Argentina, Chile, Colombia, el Ecuador y algunos países de Centroamérica. Para que esto se concrete es necesario contar con políticas industriales y tecnológicas específicas tendientes a impulsar la integración productiva a nivel regional.Introducción .-- I. La producción y el comercio mundial de vehículos y buses .-- II. Encadenamientos locales y con el exterior en el sector automotriz .-- III. El comercio de buses en América Latina y el Caribe y análisis del potencial de producción de buses eléctricos .-- IV. Conclusiones y recomendaciones

Economic analysis based on input-output tables: Definitions, indicators and applications for Latin America

This manual summarizes the theoretical bases of the input-output model applied in the economic analysis of countries and groups of countries (subregions). The input-output tables developed by the Regional Integration Unit of the International Trade and Integration Division of the Economic Commission for Latin America and the Caribbean (ECLAC) will be of use to government experts for conducting their own calculations and analyses, following and adapting the guidelines and recommendations contained the manual to design specific public policies. Some indicators suggested in the document include the intensity of imported inputs in production and exports, forward and backward production linkages, import dependency analyses, the domestic value added in exports or imported content by trade partner, and extensions and applications related to export employment and CO2 emissions. This manual can also serve as a useful aide for academics, researchers and students in understanding sometimes elusive and complex literature.Introduction .-- I. The Input-Output Table as a tool for economic analysis .-- II. Basic indicators .-- III. Vertical specialization .-- IV. Value Added Indicators .-- V. Extensions and applications of input-output tables .-- VI. Conclusions

Acuerdo de asociación Centroamérica-Unión Europea: evaluación utilizando equilibrio general computable y equilibrio parcial

Incluye Bibliografí

Production sharing in Latin American trade: a research note

Includes bibliographyAbstract The recent literature on industry globalisation and global production sharing has called attention to the changing nature of world trade with the predominance of trade in manufactures, the fragmentation of the production process and contractual relations between firms. Even when those changes do not question the most fundamental notion of trade and production specialisation according to factor services endowments, the literature points to a specialisation within a narrow set of activities and likely to be more fragmented. Enterprises may select labour intensive activities from a number of predominantly labour as well as from capital intensive industries initially located in industrial countries to relocate them in developing countries. Nevertheless, those activities can be reconverted to industrial countries if and when technological change makes their consolidation more profitable. Mexico has a history of integrating its economy with that of the United States and of full adoption of production sharing as a strategy of integrating its economy into the world economy. On the other extreme, Brazil has been oriented towards its domestic market and more recently towards the regional market. Even though imported inputs have increased after trade liberalisation, proportion to domestically produced inputs is still moderate. The contrasting experience of the two countries is an open field for research

Bilateralism and regionalism: re-establishing the primacy of multilateralism a Latin American and Caribbean perspective

Includes bibliographyThe slow advancement of the multilateral trading system has led to a wave of preferential trade agreements (PTAs) in Latin America and the Caribbean resulting in a web of bilateral and plurilateral PTAs, with countries both within and outside the region. More than 40 trade agreements now exist in the hemisphere, in addition to other arrangements that are now being negotiated or that will be negotiated before 2006. These agreements and their negotiation processes have generated centripetal and centrifugal forces that tend to unify and divide the regional integration process. While these agreements emerge as an opportunity for signatory countries, they also generate concerns in relation to such aspects as their consistency with multilateral commitments and the broadening and deepening of trade rules and disciplines beyond those being assumed in WTO. The disciplines contemplated in the areas of interest to industrialized countries tend to be WTO-plus, while the issues that affect Latin American and Caribbean signatories are often remitted to the multilateral negotiating forum. Hence, the multilateral level of negotiations cannot be simply replaced by a mix of bilateral and plurilateral negotiations. There is a call for a strong, complementary, mutually reinforcing process among the three (lateral, regional and multilateral) routes to liberalization and regulation. Bilateral agreements between countries or sub-regions could serve as building blocks when and if the precedents they establish are consistent with a comprehensive, balanced WTO that takes due account of the smaller economies' vulnerabilities. This is also true in cases where the commitments made in certain disciplines included in bilateral and sub-regional agreements facilitate the adoption of multilateral rules in the same disciplines. Otherwise, bilateral agreements could impede the construction of a development-oriented WTO, leaving the region with too extensive a web of hub-and-spoke agreements, with high associated costs of administration, transparency and efficiency

Evaluación de los efectos de un posible acuerdo comercial entre el Ecuador y la Alianza del Pacífico: efectos en la senda de recuperación pos-COVID-19

El rápido crecimiento del mercado de vehículos eléctricos es un fenómeno global e irreversible, y una estrategia clave de los gobiernos para cumplir con las metas de reducción de emisiones de gases de efecto invernadero, aprovechar la mayor eficiencia energética que ofrece la motorización eléctrica y mejorar la calidad del aire en los centros urbanos, entre otros objetivos. Al mismo tiempo, el creciente número de vehículos eléctricos presenta un desafío para la gestión de residuos de sus baterías. Por ello, este trabajo explora el estado actual de las técnicas que se aplican para la reutilización y reciclaje de baterías de la movilidad eléctrica, y los desafíos que ésta plantea. Se incluye una perspectiva de los mercados de vehículos eléctricos, de las baterías, y de los posibles usos de sus residuos y materiales a recuperar, así como una revisión del mercado de dichos materiales. Existe evidencia de que las baterías en los vehículos eléctricos pueden durar largos períodos, según sus cuidados y el uso que le den los conductores. Al cabo de su primer uso, éstas pueden ser reutilizadas en aplicaciones menos exigentes, típicamente para acumulación estacionaria de energía. De no ser factible una segunda vida, el reciclaje de las baterías usadas puede presentar una oportunidad, al ser una valiosa fuente secundaria de materiales, siendo parte así de una estrategia de economía circular. Además, se estudia la situación regulatoria actual al respecto de los residuos de baterías, en algunos países y regiones, donde tienden a enmarcarse en regulaciones previas sobre manejo de residuos en general, invocando el principio de responsabilidad extendida del productor y apuntando hacia la economía circular. Se concluye con algunas recomendaciones para la formulación de nuevas regulaciones y políticas sobre la gestión integral de estas baterías, particularmente enfocándose en la situación y desafíos concretos de América Latina.Introducción .-- I. Evolución de los flujos comerciales de Ecuador y los países de la Alianza del Pacífico .-- II. Protección arancelaria .-- III. Medidas no arancelarias .-- IV. Metodología aplicada para la simulación de efectos económicos tras un posible acuerdo comercial con la Alianza del Pacífico .-- V. Análisis de resultados .-- VI. Conclusiones y recomendaciones

Latin America and Asia Pacific trade and investment relations at a time of international financial crisis

Includes BibliographyThe global economic crisis has put an end to a period of worldwide expansion and halted the integration of Latin America and developing Asia with the international economy. Current and expected economic weakness in the advanced economies has led us to look elsewhere for sources of growth. Emerging economies in Asia and Latin America have increased their contributions to world production, finance, and trade in the past decades. In doing so, the two regions have deepened their economic ties with significant implications for the recovery of their respective economies. In this paper we discuss the impact of the crisis on the commercial patterns inside and outside the Forum for East Asia Latin American Cooperation (FEALAC) bloc. We describe the FEALAC economy and identify existing trade and investment structures, and find important structural shortcomings such as a high dependence on inter-industry trade between Asia and Latin America. We argue that this is also an opportunity for greater integration into bi-regional value-added chains and that trade and cooperation between the two regions can be an effective means to counterbalance the adverse effects of the current financial turmoil