The changing landscape of export diversification. 15 July 2016
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1 The changing landscape of export diversification 15 July 2016 PRESENTATION Export Diversification and Linking into Global Value Chains: Tangible Solutions and Strategies By Rashmi Banga, Head and Advisor, Trade Competitiveness Section, Trade Division, Commonwealth Secretariat The views expressed in this document are those of the author(s) and do not necessarily reflect the views of the UNCTAD secretariat.
2 Export Diversification and Linking into Global Value Chains: Tangible Solutions and Strategies Rashmi Banga Head and Adviser Trade Competitiveness UNCTAD 14, Global Commodity Forum, Nairobi, July 2016
3 Export Diversification Add value to Exports Link into Regional and Global Value Chains -imperative for export-oriented growth; triggering structural change; lowering vulnerability to external shocks; and create productive employment and resilience. Question is - How?
4 Commonwealth Secrétariat through its Trade Division provides an answer to `How?` Technical Assistance in four major areas: How to Diversify Exports and link into Regional/Global value chains to improve market access How to boost exports of services How to overcome domestic supply side constraints and add value to exports How to improve trade facilitation
5 Technical assistance provided to 24 countries including- Barbados, Belize, Botswana, COMESA, EAC, Grenada, India, Jamaica, Kenya, Lesotho, Mauritius, Mozzambique, Nigeria, Papua New Guinea, Pakistan, Rwanda, Sierra Leone, Solomon Islands, Sri Lanka and St Kitts and Nevis. Share experience of Jamaica, Pakistan, India and COMESA on Export Diversification; Adding value to Exports; Linking into Regional/Global Value Chains
6 Jamaica- Highly Concentrated Exports Jamaica s top-10 export adds up to 90 per cent of total value of exports 3 countries account for over 60% of its export and imports. The US by far is its largest trading partners, comprising of 45% of its exports. Other major export destinations are Canada (12%) and Netherland (6%). Urgent need for Export Diversification both products and markets
7 Designed New Product New Market Scheme for Jamaica 23 New products identified in existing markets. Exports in new products can rise by USD 90 mn per annum. Examples of new products- spices, nutraceutical products, extracts and concentrates of coffee, essential oils, boards & panels, electric lamps and lighting fittings, etc. New Markets- 29 New Markets identified for Existing Exports, including India, Malaysia, Japan, Thailand and Hong Kong. Jamaica can increase its exports by US$ 9.7 billion per annum in these markets, while its current exports are US$ 0.8 billion.
8 Strategic Action Plan for Export Diversification for Jamaica Market-specific plans Product-specific plans Support to exporters Successful experiences from other countries How to fit these in National Export Strategy of Jamaica
9 Pakistan- Textiles and Clothing Exports to EU Highly concentrated exports- mainly from textiles sector to EU 17 New Products identified for EU and UK with Potential Market Share of $ 1.4 Billion per annum. 14 New markets identified in ASEAN and Central Asian Republics for Textiles and Clothing with potential market share of $ 2.1 billion per annum.
10 COMESA Leather Sector- Adding Value To Exports Technical Assistance for Adding Value to Exports of Leather An important supply side constraint identified- Limited Designing Capacity Commonwealth COMESA/ LLPI Regional Design Studio Launched. Training of African Designers by International Designers
11 Linking Into Global Value Chains India- Own Global Value Chains under Make in India Campaign 35 Lead Products with 71 product-market combinations identified which can increase India s exports by $ 23 billion per annum 20 LDCs identified which can exports 52 inputs/intermediate products to India and get market access of $12 billion. Limited supply capacity in LDCs can be overcome by regional investments and Indian investments- these areas are identified India s Commonwealth SME Association Launched
12 All anayses are finalised only after industry endorsements Private Sector is a key partner. Market specific and product- specific strategies are designed Trade Express Strategies for Success
13 Thank You for your kind attention
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