1 / 18

MADE IN THE WORLD

Facts and Implications for Trade Policy. MADE IN THE WORLD. THE CASE OF COSTA RICA. Anabel González Minister of Foreign Trade, Costa Rica WTO Public Forum September 19, 2011. THE LATIN AMERICAN CONTEXT. Source: COMEX, using data from the WTO Statistics Database.

charlenew
Download Presentation

MADE IN THE WORLD

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Facts and ImplicationsforTradePolicy MADE IN THE WORLD THE CASE OF COSTA RICA Anabel González Minister of Foreign Trade, Costa Rica WTO Public Forum September 19, 2011

  2. THE LATIN AMERICAN CONTEXT Source: COMEX, using data from the WTO Statistics Database.

  3. THE LATIN AMERICAN CONTEXT Source: COMEX, using data from the WTO Statistics Database.

  4. THE LATIN AMERICAN CONTEXT Source: COMEX, with data from the World Bank

  5. COSTA RICA: EXPORTS AND FDI Source: COMEX, using data from PROCOMER. Source: COMEX, using data from BCCR. Source: COMEX, using data from PROCOMER and BCCR.

  6. COSTA RICA: EXPORTS AND EPZ Source: Monge-Ariño (2011). Source: COMEX, using data from BCCR and PROCOMER. Source: COMEX, using data from BCCR. Source: COMEX, using data from BCCR.

  7. COSTA RICA: COMPOSITION OF EXPORTS Source: COMEX, using data from BCCR and PROCOMER. Source: PROCOMER.

  8. COSTA RICA: TOWARDS INCREASED SOPHISTICATION OF PRODUCTION PROCESS Low cost labor Access to highly Skilled labor pool Manufacturing and Assembly Design and Engineering Research & Development Assembly Sub-assembly Increasing sophistication • Extrusion • Injection • Thermoforming • Precision engineering • Product assembly • Packaging • Parts and components assembly • Sub-assembly of components • Textile maquila • Devices class I • Product assembly • Re-design of products • Devices class II and III • Product validation • Re-design of processes • Automatization • New products design • Design of new processes (BTCa/) • Prototype testing • Pre-clinical and clinical studies Source: CINDE, 2011. Notes: a/Business Transformation Center.

  9. COSTA RICA: EVOLUTION OF FDI CR was consolidated as one of the main FDI locations in Latin America Contact Centers started to arrive Agroindustrial Sector 1986 1960 1982 1995 1990 2000 2004 2010 Blue-Chip companies 1st Leading Medical Devices Company CR 1st high-tech exporter in Latin America Pioneer of the Industrial Sector Source: CINDE

  10. COSTA RICA: PARTICIPATION IN GVC

  11. COSTA RICA: PARTICIPATION IN GVC Source: Monge-Ariño (2011) *Includes only exports of goods. The Aeronautic/Aerospace GVC has in addition exports of services that were worth US$41,7 million in 2009.

  12. COSTA RICA’S PARTICIPATION IN GVC: KEY DRIVERS Strategic vision Proactive and coordinated approach Sound business environment Solid export platform Educated work force Privileged geographical location • Political and economic stability • Export processing zone regime • WTO + 12 PTAs • Robust air transportation network • Quality of educational system -1st in LA (WEF) • Cost competitive • Middle of the Americas • Proximity to US market • Attraction of FDI • Interagency execution

  13. Diversify Strengthen Upgrade COSTA RICA: WHAT NEXT IN GVC? Participate in more GVC The role of innovation, science and technology Increase local content Increase tasks performed Promote backward linkages to local suppliers Expand number of firms Increased focus on high-skilled tasks

  14. OPPORTUNITIES AND CHALLENGES AHEAD • Increased links • between Asia and • Latin America • Expansion of GVC • Off-shoring services • Growth dynamics of • emerging markets • How to increase participation in GVC in the absence of a regional production system? • What growth potential for US- centered GVC? • What role for Costa Rica in GVC centered in Asia? • What role for Costa Rica in GVC producing for emerging markets? opportunities challenges

  15. THE DOMESTIC AGENDA • Securing preferential access to international markets and deepening trade liberalization • Reducing the cost and time to trade at the border and securing trade flows • Simplification, rationalization and digitalization of customs and trade-related regulations and procedures • Improved logistics • Enhancing and expanding the human • resource base • Technical education • Engineering and science-based careers • Language skills

  16. THE DOMESTIC AGENDA • Moving towards an innovation-driven economy • Increased investment in innovation • Enhancing indigenous capacity • Promoting innovation-based FDI • Upgrading infrastructure • Improving physical and communication infrastructure • Feeding the manufacturing base • Guarantee capacity, cost and security of energy supply • Better understanding Costa Rica’s participation in GVC • Joint study with IDE-Jetro

  17. WHAT ROLE FOR TRADE POLICY IN ENHANCING COSTA RICA’S PARTICIPATION IN GVC? • Trade liberalization • The role of PTAs • Removal of non-tariff barriers • Increased competition in trade-related services • Exploring new ideas • Eg. an International Digital Economy Agreement? • Trade facilitation • Simplification and harmonization of trade regulations and procedures • Other • Protection of IPRs • A multilateral investment framework?

  18. Facts and ImplicationsforTradePolicy MADE IN THE WORLD THE CASE OF COSTA RICA Anabel González Minister of Foreign Trade, Costa Rica WTO Public Forum September 19, 2011 /comexcr www.comex.go.cr

More Related