Trends and Evolution of Trade Patterns in East Asia

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Trends and Evolution of Trade Patterns in East
Asia

• Mona Haddad
• Regional Trade Coordinator
• East Asia Region, World Bank

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Emerging East Asian economies have seen share of
global trade more than triple
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Trade with each other growing even faster
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Changing regional patterns of trade(share of
export to trading partner in total export)
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Commodity composition of trade in East
Asia(percentage share in total trade)
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The importance of machinery (share of parts and
components in total export)
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Intra-regional trade is concentratedProduction
networks are major determinantand China is
increasingly a central player
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Export similarity index
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FDI plays a key role in boosting exports
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Chinas processing exports by foreign enterprises
(share in total China exports)
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New developments and challenges

• Growing role of China in the region
• Increasing dependence on production sharing
  networks
• Rise of regional and bilateral trade agreements
  in the region
• Low-income countries trying to catch up

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Regional trading arrangements Elements for
success

• Greatest gains are dynamic
• Deeper integration agenda Agriculture and
  sensitive sectors Services liberalization Trade
  facilitation and logistics
• Bringing along low-income countries
• Keeping RTAs as stepping stone to global
  integration
• Avoiding spaghetti bowl effect

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RTAs in East Asia
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Thank you