Transcript FTAA.ecom/inf/147 June 5, 2002 Latin America / Trade

Public
FTAA.ecom/inf/147
June 5, 2002
Original: English
Latin America
Trade, Tariffs and Competitiveness
I. Growth Competitiveness
II. Economic Creativity
III. Trade and Tariffs
IV. Impact of Trade Barriers
V. ITA - one way to eliminate tariffs
VI. Benefits of lowering tariffs
VII. Econometric Studies
February 2002 - Part One
Submitted to the FTAA Joint Working Group on Electronic Commerce
by CCC & CCIB's Telecom / E-Com Working Group
Shirley-Ann George
Canadian Industry Delegate
Vice-Chair Canadian Council for International Business, ECom Working Group
Government Programs, IBM Canada Inc.
[email protected]
Latin America: Trade, Tariffs and Competitiveness
Explores link between trade, tariffs and competitiveness
ƒ focus on Information Technology and Latin America
ƒ Combines data from various international sources
–World Economic Form and Harvard University
–World Trade Organization (WTO)
–IMF World Economic Outlook (WEO) Database
Econometric Studies - Country specific
ƒ Brazil
–Federacao das Industries do Rio de Janeiro (Firjan)
–LCM Consultores Associados
ƒ Argentina
–Fundacion de Investigaciones Economicas Latinoamericas (FIEL)
I. Growth Competitiveness Ranking for 59 Countries
World Economic Forum and Harvard University Report for 2000
Measures factors contributing to rapid growth in GDP per capita
Macroeconomics and microeconomics determinants
Index composed of:
ƒ Economic Creativity Index
– measures emergence of new businesses
– technology innovation or technology transfer - does it matter?
ƒ Finance Index
–efficient financial system, high rates of savings and investment
ƒ International Index
–economic integration with the global economy
Build on the Competitiveness Index of prior years
Source: Global Competitiveness Report 2000
Growth Competitiveness Rankings for 2000
Advanced Economies in blue
Latin American Economies in red *
Other Developing Economies in green *
1
US
21
Japan
41
China
2
Singapore
22
France
42
Egypt
3
Luxembourg
23
Portugal
43
Mexico
4
Netherlands
24
Iceland
44
Indonesia
5
Ireland
25
Malaysia
45
Argentina
6
Finland
26
Hungary
46
Brazil
7
Canada
27
Spain
47
Jordan
8
HK
28
Chile
48
Peru
9
UK
29
Korea
49
India
10
Switzerland
30
Italy
50
El Salvador
11
Taiwan
31
Thailand
51
Bolivia
12
Australia
32
Czech Rep.
52
Colombia
13
Sweden
33
S. Africa
53
Vietnam
14
Denmark
34
Greece
54
Venezuela
15
Germany
35
Poland
55
Russian Fed.
16
Norway
36
Mauritius
56
Zimbabwe
17
Belgium
37
Philippines
57
Ukraine
18
Austria
38
Costa Rica
58
Bulgaria
19
Israel
39
Slovak Rep.
59
Ecuador
20
NZ
40
Turkey
* IMF World Economic Outlook definition of advanced and developing countries
Source: Rankings from Global Competitiveness Report 2000
Growth Competitiveness Rank vs.
Average Tariffs for all Goods
countries are clustered in groups of 5
Average for all 59
is 7.9% countries
source: Global Competitiveness Report 2000
Growth Competitiveness Rank vs. IT Tariffs
countries are clustered in groups of 5
source: Global Competitiveness Report 2000; www.ita.doc.gov
II. Economic Creativity Index
measuring emergence of new businesses
Technology
Innovation
Technology Index
Technology
Transfer
Economic
Creativity Index
Ease of Activating
New Businesses
Venture Capital
Availability
Start Up Index
Obtain Loan with
little Collateral
Source: World Economic Forum Competitiveness Report for 2000
Economic Creativity Index 2000
for selective countries
Source: World Economic Forum Competitiveness Report for 2000
Economic Creativity Index vs. IT Tariffs for Selected Countries
Source: World Economic Forum Competitiveness Report for 2000
Technology Innovation or Transfer - does it matter?
Primary Source of Technology for 20 Largest Economies
Rank
Country
IT tariff
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
US (Nafta)
JAPAN
GERMANY
UK
FRANCE
ITALY
CHINA
CANADA (Nafta)
BRAZIL
SPAIN
MEXICO (Nafta)
INDIA
KOREA
AUSTRALIA
NETHERLANDS
TAIWAN
ARGENTINA
SWITZERLAND
BELGIUM
SWEDEN
0%
0%
0%
0%
0%
0%
18%
0%
34%
0%
0%
40%
8%
0%
0%
10%
10%
0%
0%
0%
National
Innovation
X
X
X
X
X
X
Technology
Transfer
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Source: World Economic Forum Competitiveness Report for 2000 and
International Trade Administration, US Depart. of Commerce