Total Western Hemisphere exports to the world increased by 5 percent in 2003, according to preliminary estimates released by the Inter-American Development Bank. This marks a reversal of a two-year trend that saw exports from the hemisphere decline by more than 12 percent between 2000-2002.
The return to growth in 2003, facilitated by a modest recovery in world demand, was led by Latin American exports, which increased by an estimated 8 percent during 2003, while U.S. exports grew at a much slower rate of 3 percent. Export growth was positive for all but one Latin American country and was particularly strong in Brazil, where it reached 21 percent according to the IDB’s preliminary estimates.
Brazil’s strong export performance is the main reason behind the impressive 19 percent growth in exports from the South American Common Market, Mercosur. Argentina, too, recorded strong export growth, as did the other Southern Cone countries. Exports from the Central American Common Market (CACM) also witnessed strong growth, estimated at 12 percent, with all five members contributing to that growth. Andean Community exports grew at a much slower rate of just 3 percent during the year. This, however, was mainly a result of negative export growth in Venezuela, offsetting very strong export performances by Bolivia, Ecuador and Peru. The countries of the North American Free Trade Agreement (NAFTA) increased their combined exports by 4 percent during the year. Among the three NAFTA partners, Mexico witnessed the smallest increase in sales.
For the Western Hemisphere as a whole, and for most subregions, growth of sales to extraregional markets was higher than growth in intraregional trade, in contrast to the trend prevailing in the 1990s. Exports among Latin American countries grew by 5 percent (compared to an 8 percent increase in the region’s total exports). Similarly, intra-CACM exports expanded by 7 percent, compared to the group’s 12 percent growth in exports to the world. The difference is most striking in the Andean Community, where intra-Andean exports declined by 11 percent, while the group’s total exports showed modest growth. Both Colombia and Venezuela, which have traditionally dominated intra-Andean trade, saw deep declines in their exports to Andean partners. In NAFTA, too, intragroup exports grew at a somewhat slower pace than exports to the world. The one exception to the above trend was Mercosur, where intragroup exports exceeded sales to extraregional markets by two percentage points, reflecting signs of economic recovery in the subregional market.
These and other data on the hemisphere’s recent trade performance will be published this week in the December 2003 issue of the IDB Integration Department’s Periodic Note on Integration and Trade in the Americas.
Argentina, Brazil, Paraguay and Uruguay
Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua