Trade between Andean countries returns to record level in 2001

Lima, Jan 26, 2002. Statistics unveiled today by the Andean Community (CAN) General Secretariat revealed that inter-Andean exports in 2001 amounted to 5 billion 680 million dollars, 10 percent more than in 2000 and equivalent to the record level reached in 1997.

The report sees the possibility of more growth in intra-Community trade this year if the trend holds, traditional oil exports among the five countries recover and safeguard measures are reduced.

The CAN Secretariat underscores the sharp contrast in 2001 between the growth of intra-Community trade and the 12 percent drop in sales to the rest of the world.

Other distinguishing characteristics of the trade flows among the Andean countries, according to the CAN, are "their highly diversified nature" (they cover 4 760 Nandina subitems) and "the large percentage of manufactured goods with a greater value added (91 percent)."

Four Andean countries --Bolivia, Colombia, Ecuador and Peru— increased their intra-Community sales in 2001; Venezuela was the exception, with a slump of 19 percent brought on largely by the hefty 57 percent drop in oil sales to its partners in the CAN and only a 1 percent rise in exports of non-traditional products.

Colombia led the way in growth of intra-Community sales, with 26.7 percent, followed by Ecuador with 17.5 percent, Peru with 16 percent and Bolivia with 15.3.

Value-wise, Colombia headed the list also, chalking up 2 billion 774.3 million in sales to its Andean partners. Venezuela occupied second place, with 1 billion 287.9 million dollars, followed by Ecuador with 778.7 million dollars, Peru with 518 million dollars and Bolivia with 350.9 million dollars.

The trade flows that contributed most heavily to the recovery of intra-Community trade were Colombia’s exports to Venezuela (1 billion 727 million dollars, an increase of 33 percent); those of Colombia to Ecuador (691 million dollars or 50 percent more than in 2000); those of Peru to Ecuador (147 million dollars, a rise of 27 percent) and those of Peru to Venezuela (147 million, 32 percent above the previous year’s figure).

The report breaks down subregional Andean trade over the 1991-2001 decade into three clearly differentiated periods.

The distinguishing feature of the first period was heavy growth, starting at 1 billion 797 million dollars in 1991 and ending with 5 billion 628 million in 1997. The second stage, beginning in 1998, was marked by a slight reduction in exports followed by the heaviest decline in 1999.

The third stage saw a recovery of intra-subregional trade as of 2000 and the "encouraging prospect of resuming the upward trend of the first seven years of the 1990s" until, in 2001, it reached the 1997record level.