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sustainable development 20 years on from the ... - José Eli da Veiga

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213<br />

The high proporti<strong>on</strong> of Latin American and Caribbean exports entering developed-country<br />

markets duty-free mainly reflects <strong>the</strong> fact that <strong>the</strong> main products exported by <strong>the</strong> regi<strong>on</strong> to those countries<br />

are raw materials or natural resource-based manufactures, although <strong>the</strong>re are pockets of protecti<strong>on</strong> in<br />

sectors of special interest for <strong>the</strong> regi<strong>on</strong>. Since <str<strong>on</strong>g>20</str<strong>on</strong>g>00, preferential tariffs have trended downwards more<br />

sharply in all of <strong>the</strong>se sectors, partly owing to <strong>the</strong> trade agreements signed between developed and<br />

developing countries (see figure V.8).<br />

Figure V.8<br />

LATIN AMERICA AND THE CARIBBEAN (SELECTED COUNTRIES): AGRICULTURAL,<br />

TEXTILE AND CLOTHING PRODUCTS SUBJECT TO AVERAGE CUSTOMS DUTIES,<br />

MOST-FAVOURED-NATION (MFN) TREATMENT AND PREFERENTIAL TARIFFS<br />

APPLIED BY DEVELOPED COUNTRIES, 1996-<str<strong>on</strong>g>20</str<strong>on</strong>g>08<br />

(Percentages)<br />

A. Agricultural products B. Textiles and clothing<br />

<str<strong>on</strong>g>20</str<strong>on</strong>g><br />

14<br />

12<br />

15<br />

10<br />

10<br />

8<br />

6<br />

5<br />

4<br />

2<br />

0<br />

0<br />

1996<br />

1997<br />

1998<br />

1999<br />

<str<strong>on</strong>g>20</str<strong>on</strong>g>00<br />

<str<strong>on</strong>g>20</str<strong>on</strong>g>01<br />

<str<strong>on</strong>g>20</str<strong>on</strong>g>02<br />

<str<strong>on</strong>g>20</str<strong>on</strong>g>03<br />

<str<strong>on</strong>g>20</str<strong>on</strong>g>04<br />

<str<strong>on</strong>g>20</str<strong>on</strong>g>05<br />

<str<strong>on</strong>g>20</str<strong>on</strong>g>06<br />

<str<strong>on</strong>g>20</str<strong>on</strong>g>07<br />

<str<strong>on</strong>g>20</str<strong>on</strong>g>08<br />

1996<br />

1997<br />

1998<br />

1999<br />

<str<strong>on</strong>g>20</str<strong>on</strong>g>00<br />

<str<strong>on</strong>g>20</str<strong>on</strong>g>01<br />

<str<strong>on</strong>g>20</str<strong>on</strong>g>02<br />

<str<strong>on</strong>g>20</str<strong>on</strong>g>03<br />

<str<strong>on</strong>g>20</str<strong>on</strong>g>04<br />

<str<strong>on</strong>g>20</str<strong>on</strong>g>05<br />

<str<strong>on</strong>g>20</str<strong>on</strong>g>06<br />

<str<strong>on</strong>g>20</str<strong>on</strong>g>07<br />

<str<strong>on</strong>g>20</str<strong>on</strong>g>08<br />

Developing countries<br />

(MFN)<br />

Developing countries<br />

(preferential)<br />

Latin America and<br />

<strong>the</strong> Caribbean (MFN)<br />

Latin America and<br />

<strong>the</strong> Caribbean (preferential)<br />

Source: Ec<strong>on</strong>omic Commissi<strong>on</strong> for Latin America and <strong>the</strong> Caribbean (ECLAC), <strong>on</strong> <strong>the</strong> basis of figures <strong>from</strong> <strong>the</strong> Internati<strong>on</strong>al<br />

Trade Centre (ICT)/United Nati<strong>on</strong>s C<strong>on</strong>ference <strong>on</strong> Trade and Development (UNCTAD)/World Trade Organizati<strong>on</strong><br />

(WTO) <strong>da</strong>tabase [<strong>on</strong>line] http://www.mdg-trade.org.<br />

Comparing <strong>the</strong> situati<strong>on</strong> of <strong>the</strong> regi<strong>on</strong> with that of developing countries as a whole, average tariffs<br />

are very similar in <strong>the</strong> case of agriculture, (see figure V.8). In c<strong>on</strong>trast, <strong>the</strong> regi<strong>on</strong> has a much greater<br />

margin of preference than developing countries generally in <strong>the</strong> case of textile products and garments.<br />

This is because <strong>the</strong> latter group includes major exporters in those sectors, mainly Asian countries (for<br />

example China, India, Pakistan and Ind<strong>on</strong>esia). As exports <strong>from</strong> those countries represent direct<br />

competiti<strong>on</strong> in certain segments (generally those of lesser value-added) of <strong>the</strong> textile and garment<br />

industries in industrialized countries, <strong>the</strong>y face higher tariffs than Latin America and <strong>the</strong> Caribbean in<br />

those markets.<br />

The regi<strong>on</strong> still relies <strong>on</strong> a small group of products as a stable source of export earnings, and thus<br />

faces <strong>the</strong> challenge of developing a l<strong>on</strong>g-term strategy to diversify both its export basket and<br />

destinati<strong>on</strong> markets, to reduce dependency <strong>on</strong>, and vulnerability to, fluctuating export earnings<br />

(ECLAC/FAO/IICA, <str<strong>on</strong>g>20</str<strong>on</strong>g>10).

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