Exports driving Asia Pacific economies
According to a new United Nations Report exports are driving a V
shaped recovery in Asia and the Pacific with developing economies in the
region posting double-digit growth for both exports and imports in 2010.
The Asia-Pacific Trade and Investment Report 2010 released today by
the UN Economic and Social Commission for Asia and the Pacific (ESCAP)
states that in 2010, developing economies in the region posted growth
for exports and imports, at 19.3 per cent and 20.2 per cent
respectively. Exports are expected to grow at a robust rate of 10.5 per
cent in 2011, led by China, India, Turkey and Malaysia.
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Intraregional trade has increased but remains largely
focused on intermediate goods |
“While the stimulation of domestic demand and investment has also
played an important role in reviving many economies, we find that
exports continue to be a major engine of growth in the region,” ESCAP
Trade and Investment Division Director Ravi Ratnayake said.
As a result, Asia’s share in world exports continues to rise.
The report notes that the strong performance of exports and trade in
general, is the result of a vibrant China which imports intermediate
goods from the rest of Asia and exports finished goods to the rest of
the world.
Intraregional trade has increased but remains largely focused on
intermediate goods, while exports in finished goods and services are
still dependent on mostly western markets.
In developed country markets Asia-Pacific exports often face murky
protectionism with measures that are imposed ostensibly for health
reasons or environmental protection purposes but are really hidden
measures to protect domestic industries,” Ratnayake said.
The report identifies several other downside risks for Asia-Pacific
trade, including continued stagnation in consumer demand in Europe,
Japan and the United States coupled with the adoption of austerity
programs in various countries; the debt and euro crisis in Europe; the
risk of regional currency wars; and uncertainties in international trade
rules.
The report warns that while Doha negotiations have stalled, the
number of free trade agreements in the region continues to rise, leading
to less transparency in trade rules.
Currently, about 35 per cent of all trade conducted by Asia-Pacific
economies takes place within the framework of such agreements.
While many countries of the region are trading more, only some are
trading more efficiently, the report says.
China has made impressive progress in reducing its international
trade costs, now ranking along with Germany and Malaysia as one of the
economies with the lowest international trade costs. Ratnayake noted
that there is a lot more to do in streamlining and simplifying trade
procedures in the region.
It still takes three times longer to complete trade procedures in
Asia-Pacific developing economies than in developed economies such as
Australia, Japan and New Zealand. |
