EPA Review Annex Documents - DFID

Table 1 Similarity of EAC countries with selected partners (2008)
All goods (1)
R
Non-Agricultural (2)
BD KE W U
TZA* I N A GA TZA BDI KEN RWA UGA
TZA 1
BDI
0.31
5 1 0.353 1
0.16 0.1
KEN 1 33 1 0.107 0.047 1
0.09 0.2 0.2
RWA 7 63 72 1 0.022 0.090 0.056 1
0.26 0.3 0.2 0.2
UGA 1 33 31 34 1 0.097 0.047 0.277 0.050 1
0.11 0.0 0.1 0.0 0.1
EAS 7 60 02 50 01 0.047 0.022 0.055 0.017 0.048
ECOW 0.07 0.0 0.0 0.0 0.0
AS
4 32 38 11 51 0.060 0.035 0.043 0.009 0.044
SADCn 0.11 0.0 0.1 0.0 0.1
oSA 7 46 12 37 56 0.064 0.042 0.135 0.020 0.211
0.11 0.0 0.1 0.0 0.1
SSA 3 70 21 36 06 0.075 0.059 0.108 0.027 0.085
CARIF 0.04 0.0 0.0 0.0 0.0
ORUM 5 39 46 14 34 0.031 0.028 0.041 0.009 0.030
0 0 0 0 0
. . . . .
0 0 1 0 0
ASEAN 0.05 0.0 0.1 0.0 0.0 5 6 4 3 8
3
2 56 08 17 56 1 3 6 0 5
0.05 0.0 0.1 0.0 0.0
EU25 2 64 39 25 73 0.052 0.068 0.192 0.034 0.101
EURO 0.08 0.0 0.1 0.0 0.0
MED12 3 66 30 24 73 0.092 0.073 0.191 0.029 0.118
0.04 0.0 0.0 0.0 0.0
GCC 5 44 26 04 20 0.044 0.045 0.025 0.004 0.025
0.07 0.0 0.1 0.0 0.0
NAFTA 2 77 15 24 63 0.070 0.085 0.156 0.030 0.090
0.09 0.0 0.1 0.0 0.0
SAARC 2 40 21 29 73 0.074 0.033 0.145 0.023 0.076
Source: own calculations, 6-digits, Comtrade
*Values for Tanzania are 2007.
EAC
EPA
RoW
To complement the above analysis, we can also look at the degree of Intra-Industry Trade
(IIT) as a metric of current fragmentation of production structures between countries. 145 The
indicator measures the actual overlap of trade flows, across 6-digit categories, between two
countries. A value of 1 implies that exports and imports to and from a partner are equal,
whilst a value of zero implies that there are no simultaneous exports and imports between
two partners. In table 2 we consider the degree of IIT for Burundi and Kenya both with
respect to regional partners, non-regional ACP partners, the EU and other interesting
145 IIT can be used as a proxy for fragmentation, but it does not capture the essence of fragmentation.
The bilateral exchange of parts and components across similar tariff lines points to fragmentation but
it is also possible that IIT captures exchange in final goods of different or same quality.
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