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Report of the Joint Study Group on the Feasibility of India-Indonesia ...

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27<br />

II.9.2. Degrees <str<strong>on</strong>g>of</str<strong>on</strong>g> Attractiveness in Each O<str<strong>on</strong>g>the</str<strong>on</strong>g>r’s Markets<br />

An attempt has been made to categorise different products with different degrees <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

attractiveness, measured as a change in shares <str<strong>on</strong>g>of</str<strong>on</strong>g> Ind<strong>on</strong>esia in <strong>India</strong>’s total exports to world<br />

between 2001 and 2005 (Table A.III.1). Similarly, ano<str<strong>on</strong>g>the</str<strong>on</strong>g>r exercise has been undertaken by<br />

calculating changes in share <str<strong>on</strong>g>of</str<strong>on</strong>g> Ind<strong>on</strong>esia in <strong>India</strong>'s total imports from <str<strong>on</strong>g>the</str<strong>on</strong>g> world between 2001<br />

and 2005 (Table A.III.2). In <str<strong>on</strong>g>the</str<strong>on</strong>g> CECA, products with declining attractiveness for both<br />

countries can be given special emphasis including through faster tariff liberalizati<strong>on</strong>, in <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

n<strong>on</strong>-sensitive categories.<br />

Table 8. Bilateral Trade Intensity<br />

Based <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> attractiveness <str<strong>on</strong>g>of</str<strong>on</strong>g> both countries trade, each country has a different rate <str<strong>on</strong>g>of</str<strong>on</strong>g> trade<br />

intensity. Ind<strong>on</strong>esia has highly trade intensity in vegetable product and <strong>India</strong> has been engaged<br />

instensively in foodstuff. Similar structures <str<strong>on</strong>g>of</str<strong>on</strong>g> trade intensity between two countries favor<br />

bilateral trade and fur<str<strong>on</strong>g>the</str<strong>on</strong>g>r trade cooperati<strong>on</strong>.

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