Increase in South-South trade - UNCTAD

GENEVA: World merchandise exports have more than tripled over the past two decades and reached US$18.3 billion in 2012, with a quarter of the trade comprising exports among developing countries - so-called 'South-South' trade - which reached a record $4.7 billion, according to the UNCTAD Handbook of Statistics 2013(1), released last week.

Total developing economies' exports now account for 45 percent of the world total, with half of the increase in global exports between 1995 and 2012 accounted for by developing countries.

The share of South-South trade in total world exports has doubled over the past 20 years, to over 25 percent. Fuel and manufactured goods now account for roughly 25 percent and 58 percent of South-South trade.

The Handbook helped to document that the South-South trend has been led by developing Asia, followed by developing America. Intra-regional trade within developing Asia amounted to $3.5 billion in 2012. The Handbook also reported that the growth of South-South commerce was higher in developing Africa between 1995 and 2012 than in the developing regions of Asia and America.

Moreover, South-South trade from least developed countries (LDCs) in Africa climbed significantly in value over the figure for 1995. African LDCs have increasingly benefited from commercial exchanges with developing Asia.

China's exports to other developing countries, recorded $970 million last year, representing more than 20 percent of developing countries' intra-trade.

Apart from China and major petroleum and gas exporters, Vietnam, Egypt, India, Turkey, Peru, Colombia, Brazil, Mexico, and Chile are among the economies that have expanded the most in South-South trade during past two decades.

Manufactured goods classified chiefly by material and miscellaneous manufactured articles hold the second highest share, 19 percent of total South-South trade, after fuel (25 percent), followed by parts and components for electrical and electronic goods, which accounts for 15 percent.

Developing economies have also been gaining market share in international trade in services, Handbook figures showed.

The share of exports from developing countries grew from 22 percent of the world total in 1995 to 30 percent in 2012.

Services-sector exports from these countries increased by almost 8 percent in 2012, while they expanded by 6 percent in the transition economies. No growth was observed in services exports from developed countries last year.

In construction and travel exports, developing economies now hold over 40 percent of the global market. Their importance is also growing in transport and in computer services trade.

However, developing and transition countries do not account for much of global trade in financial services or in trade related to intellectual property (royalties and licence fees).

Along with providing detailed statistics on international merchandise and services trade, the updated Handbook covers investment, commodity prices, maritime transport, and other economic and social data, for all individual economies for which data is available. In addition, it includes figures for geographical regions, various economic groupings, and world totals.

Each year the Handbook provides data for the analysis and evaluation of world trade, investment, international financial flows, and development.