UNIDO WORKSHOP LAC EURASIAN ECONOMIC UNION - BRICS COUNTRIES

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1 UNIDO WORKSHOP LAC EURASIAN ECONOMIC UNION - BRICS COUNTRIES STRENGTHENING INTERNATIONAL ALLIANCES IN THE GLOBAL MARKET Carlos Chanduvi-Suarez Chief, Latin America and the Caribbean Office UNIDO Quito, 14 July 2015

2 Content I. UNIDO II. The three regions LAC, EEU, BRICS III. The Workshop IV. Objectives of the Workshop V. Invited Participants VI. Workshop Agenda VII. A&Q

3 UNIDO and Trade

4 II. UNIDO Principles Industrial and Inclusive Sustainable Development (ISID) Source:

5 II. UNIDO three thematic priorities 1. Poverty reduction through productive activities 2. Energy and environment 3. Trade capacity-building: Entrepreneurship, growing trade relations, industrial upgrading and technological innovation are key factors to create shared prosperity and advance economic competitiveness between the regions in the global market.

6 II. UNIDO - Trade capacity-building 1. Every country should benefit from the globalization of markets for industrial goods and services to reach higher level of industrialization in their economies. This can be achieve 1. by knowledge and technology exchange combining resources of all relevant development (Strengthening) actors 2. by partnership and South-South cooperation (international alliances), specially of SMEs 2. Entering the global production and value chains is relevant for a successful participation in the global trading system. specially export, manufacture, product certification and investment opportunities for SMEs should be stressed. Nevertheless, three key problem areas have been identified : 1. The lack of marketable products for exports 2. The lack of capacity to conform to international standards 3. The lack of information on rules of trade, markets and procedures to connect with export markets. Specialized assistance is required to enable the expansion and competitiveness of exports! UNIDO s product to market chain approach

7 II. UNIDO Trading through Quality Chains: from compliance to shared value 3 Cs of UNIDO Sources:

8 EEC BRICS LAC Emerging opportunities Some key data

9 III. The three regions The Workshop aims to strengthen a better connectivity between the regions LAC, EEU and BRICS through promoting partnership and South-South-cooperation: Indicators LAC EEU BRICS Population MLN. (2014) 182,1 MLN. (Jan. 2015) 2,998 BN (2012) GDP US$4.764 TN (2014) US$2,2 TN US$ 15,76 TN (2012) Export (goods & services) $955,398,464,037 (2014) 872 BN USD US$ 3,19 TN (2012) Import $955,398,464,037 (2014) 153 BN USD US$ 2,95 TN (2012) Trade Volume 48% (of GDP) (2014) $1,075,7 BN (Foreign Trade in goods) US$ 6,14 TN (2012)

10 III. Latin America and the Caribbean - LAC Population: Mio. (2014) GDP: $4.764 Trillion (2014) Unemployment: 6.6% Merchandise exports: $1,014 BN, 22% food 3.3% GDP on foreign direct investments Source:

11 III. Eurasian Economic Union - EEU Sources: eec.eaeunion.org/en/pages/ses.aspx;

12 III. Eurasian Economic Union - EEU Population: (January 2015): 182,1 MLN people (2,5 % of the world population) Number of economically active population (2014): 92.9 MLN people (2,8 % of the world economically active population) Unemployment rate: 5.3% (World 8.4%) GDP: $2,2 TN (3,2% of the World GDP) Volume of Foreign Trade in Goods (2013): $1,075,7 BN Industrial Production (2014): $1,3 TN Energy superpower: producing over 20.7% of the world's natural gas 14.6% of the world's oil and gas condensate 9% of the world's electrical energy - third 5.9% of the world's coal - fourth

13 III. Russia the largest importer in the EEU 20 highest value Russian Import Products delivered to Russian importers in 2013 Mid-sized automobiles (piston engine): US$8,804,018,000 Miscellaneous medications: $8,462,338,000 Cell phones: $4,737,612,000 Large aircraft $4,119,633,000 Coal (non-agglomerated, bituminous) $3,742,128,000 Small portable digital computers: $2,895,365,000 Large automobiles (piston engine): $2,687,465,000 Motor vehicle body parts, accessories: $2,548,005,000 TV reception/transmission equipment parts: $2,446,726,000 Large spark-ignition engines: $2,363,641,000 Bovine meat cuts (boneless, frozen): $2,348,599,000 Large automobiles (diesel engine): $2,292,731,000 Taps, cocks, valves and similar appliances: $1,830,755,000 Pork cuts (frozen): $1,794,381,000 Motor vehicle transmissions: $1,737,908,000 Cheese: $1,685,482,000 Other machinery (having individual functions): $1,495,391,000 Blood fractions (including antisera): $1,494,357,000 Modems, similar transmission devices: $1,484,456,000 Wheeled toys (tricyles, scooters, pedal cars, doll carriages): $1,416,941,000 Source:

14 Sources: III. BRICS

15 Brazil, Russia, India, China, South Africa Population: 2,88 Billion III. BRICS As of 2014, the BRICS nations represented 18 percent of the world economy. GDP 2013 : 27 % of the World s GDP Nominal GDP: US$ Trillion (20% world GDP) Source:

16 : Global exports more than doubled 8% to 16% Total exports growth of more than 500%, while total global exports grew 195% in the same period estimated US$4 trillion in combined foreign reserves 10 main products imported (2012) Other 36.1% Electrical machines 16.0% Fuels 15.5% III. BRICS Composition of export (in US$) Description Share of total (%) (jan-set) Share of total (%) Electrical machines % % Fuels % % Mechanical machines % % Gold and precious stones % % Textile clothing % % Automobiles % % Iron and steel % % Furniture % % Precision instruments % % Iron/steel products % % Subtotal 2, % 1, % Other 1, % % Total 3, % 2, % Iron/steel products Precision 2.2% instruments 2.4% Furniture 2.5% Iron and steel 2.7% Textile clothing Automobiles 2.9% 2.9% Mechanical machines 13.0% Gold and precious stones 3.9% Prepared by Brasil's Ministry of Foreign Relations (MRE/DPR/DIC - Trade Intelligence Division), based on UN/UNCTAD/ITC/Trademap, May Products listed from higher to lower values, as registered in 2012.

17 III. Economic Development BRICS

18 The Workshop UNIDO in cooperation with the Ministry of Foreign Trade of Ecuador and the Russian Federation Government

19 Objectives Enhance cooperation and partnerships in trade and investments between the three Regions by sharing the information about product import regulations and compliance in EEU and BRICS Strengthening of services of national export promotion agencies on import regulations in EEC for SMEs in the in LAC Identify potential opportunities for South-South cooperation and investment. Establishment of a mechanism (Referral Portal) for regular information exchange with information on export regulations and partnership opportunities in EEU, BRICS and LAC.

20 Participants Experts from Latin America and the Caribbean (LAC) Heads of Export Promotion Agencies Ministries of Industry and Trade form LAC Senior experts in product certifications and import regulations from EEU and BRICS

21 VI. Workshop Agenda Time Mo. 13 July Tu. 14 July We. 15 July 09:00 Opening session Government of Ecuador, Representative UNIDO, Head of Delegation BRICS, Head of Delegation EEU, Representative SELA 10:00 Introduction to the Workshop Mr. Carlos Chanduvi-Suarez, Chief LAC Bureau, UNIDO 10:20 Overview of regulations, technical regulations and requirements to product certification in the Eurasian Economic Commission: Dr. Eugenia Soboleva, UNIDO 11:00 Coffee Break 11: Round Table EAEU Part 1 CONFORM 1. Karamyshev Konstantyn, Head Department Analyses equivalent principles for export of livestock production, Federal Agency for Veterinary and Phitosanitary Control 2. Bokovaia Kseniia, Chief Expert of Division, WTO and OECD cooperation division, Federal Service for Surveillance on Consumer Rights Protection and Human Wellbeing; Moderation: Dr. Eugenia Soboleva (UNIDO)

22 13:00 Lunch 14:00 Round Table EAEU Part 2 CONNECT 1. Aleg Yermalovich, Debuty Director-General for Multilateral Diplomacy, Head of the Department of Economic Cooperation and Sustainable Development, Ministry of Foreign Affairs, Belorussia; 2. Ayamat Zesdauletov, Expert of the bilateral cooperation division, Department of External Economic Cooperation of the Ministry for Investment and Development of Kazakhstan; 3. Mametov Rustam, Secretary of the Department for international Assosiations of the MFA of the Kyrgyz Republic; 4. Sorokina Irina and Natalya Romakina, Ministry of Industry and Commerce; 5. Vagin Maxim, Trade in Goods Unit Department of Trade Negotiations, Ministry of Economic Development of the Russian Federation Moderation: Dr. Eugenia Soboleva (UNIDO) 15:30 Coffee Break

23 15:30 Coffee Break 16:00 Round Table BRICS People Republic China, South Africa, India, Russia and Brazil Overview of regulations, technical regulations and requirements to Product certification, opportunities and challenges for promotion of trade, Recommendations and potential actions Moderation: Mr. Oleg Sepelev (UNIDO) 18:15 Free time 19:00 Reception participants local authorities and Diplomatic corpus Cultural activity organized by the Ministry of Commerce Ecuador National Ballet of Ecuador Saloon FGH Dinner Hotel Marriott

24 Time Th. 16 July 09:00 Round Table CARICOM Antigua and Barbuda, Belize, Dominica, Grenada, Guyana, Jamaica, St. Lucia, St. Vincent and the Grenadines, Suriname, Trinidad y Tobago, Dominican Republic and Cuba Potential areas for export to EUA/BRICS Main Challenges Moderation: Mr. Román Mayorga (SELA) 11:15 Coffee Break 11:45 Round Table CAN Bolivia, Colombia, Ecuador Potential areas for Export to EEU/BRICS and challenges Main Challenges Moderation: Mr. Santiago Segovia (CAN) 12:45 Lunch 14:00 Round Table SIECA (Costa Rica, Guatemala, Honduras, Nicaragua and Panama) + Mexico Potential areas for Export to EUA/BRICS and challenges Main challenges Moderation: Diego Caicedo (Expert) 15:30 Coffee Break 16:00 Round Table MERCOSUR (Argentina, Brazil, Paraguay, Uruguay, Venezuela) and Chile Potential areas for export to EUA/BRICS and challenges Main challenges Moderation: Carlos Chanduvi-Suarez (UNIDO) 17:30 Closure of the session Román Mayorga (SELA), Santiago Segocia (CAN), Diego Caicedo (Expert), Carlos Chanduvi- Suarez (UNIDO) 18:00 Cultural activity organized by the Ministry of Foreign Trade of Ecuador City tour

25 Time Fr. 17 July Sa. 18 Jul 09:00 Plenary Working Group BRICS - EEU LAC Opportunities and challenges for promotion of trade recommendations on potential actions Moderation: Silvana Vallejo, Deputy Minister for Policy and Trade Service and Mr. Carlos Chanduvi- Suarez, Chief LAC Bureau, UNIDO Departure EEU and BRICS participants 11:10 Coffee Break 11:40 Final remarks & Conclusions Certificates and closure of the Workshop 13:00 Lunch Departure for LAC participants

26 Thank you for your attention!

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