ABRAHAM ACCORDS EXPECTED TO YIELD IMMEDIATE MIDDLE EAST TRADE DIVIDENDS

Free Trade Agreements, Global Trade Daily, International Trade

ABRAHAM ACCORDS EXPECTED TO YIELD IMMEDIATE MIDDLE EAST TRADE DIVIDENDS

November 4th, 2020 Andrea Durkin Leave a comment

More United Under Abraham

On September 15 at the White House, the United Arab Emirates (UAE), Bahrain and Israel signed the Abraham Accords to normalize relations. It had been more than 25 years since Israel signed a peace deal with a major Arab country, the previous being Jordan in 1994 and Egypt before that back in 1979. One diplomatic breakthrough can beget others. Sudan followed on October 23. Oman and Qatar are reportedly in discussions.

These agreements – and those that may follow – could portend a significant turning point for the Middle East and North Africa region. Greater regional economic integration would be a stabilizing force for peaceful relations. It would enable broader-based prosperity for struggling economies in the region and could become a key ingredient of post-COVID growth that is less dependent on oil as a driver for Gulf state economies (and for Israel to rely less on oil that transits Turkey from Iraq). As European and American companies offer a natural bridge to commercial ties with Israel, Gulf states could reduce their reliance on China.

Through the Abraham Accords, commercial, cultural and personal relationships can take root and blossom. In anticipation of its signing, delegations from the UAE and Israel were deployed to establish direct flights and sign bilateral deals to promote infrastructure and technology investments, tourism, educational and scientific exchange, and to collaborate in advanced healthcare-focused most immediately on coronavirus treatments and vaccination.

The UAE, with its concentration of logistics infrastructure, financial expertise and venture capital, is a good match with Israel, renowned for technological invention and entrepreneurship. Their economies have complementary economic strengths. Speaking at a September 16 Atlantic Council event, UAE Minister of Economy Abdulla bin Touq Al Mari said the agreement could lead to as much as $500 million in new bilateral trade and investment, growing to $4 billion a year.

Science Nerds, Students and Traders as Peacemakers

Scientific inquiry is a common human denominator. The Middle East Desalination Research Center based in Oman was an outgrowth of the 1996 Middle East Peace Process and continues today as a model of cooperation in shared research and capacity-building on transboundary water projects between Israel and Arab states.

The Abraham Accords are likely to yield a more significant surge in joint research in areas such as space exploration, technologies to address common food security challenges in the region, renewable energy, and advances in computing. The Accord opens the door to freer travel by scientists and exchanges of scientific samples and research equipment. Already, the Mohamed bin Zayed University of Artificial Intelligence and the Weizmann Institute of Science signed an agreement to create a joint institute for artificial intelligence.

After prohibitions on travel, the UAE could become an attractive destination for Israelis to experience Arabian culture in a Persian Gulf country. UAE airlines Emirates and Etihad will begin flights to Tel Aviv. Observers think these airlines’ existing connections to global destinations through Dubai and Abu Dhabi could be enticing to Israeli tourists but also for business travelers to deliver professional services.

Another important way to foment integration and understanding is through student exchange. Arab students accounted for 16.1% of undergraduate students in Israeli universities in 2018. The Abraham Accord and diplomatic efforts to implement them will focus on greater student exchange.

Set for Takeoff from Free Zones

Intraregional trade throughout the Middle East – North Africa (MENA) region is today fairly insignificant. The U.S. Chamber of Commerce estimates just 5 percent of exports from MENA countries go to regional neighbors, the lowest rate in the world. It’s difficult to know exactly how much of Israel’s trade is intertwined with Gulf states since trade is transacted through subsidies outside the Middle East. The Tony Blair Institute for Global Change calculates it may be only about $1 billion.

One of the important and relatively quiet ways that more direct trade relations have been established is through free trade zones. As Arab Gulf States Institute scholar Robert Mogielnicki has put it, special economic zones in the Middle East have served as “politically neutral commercial gateways,” a way of dipping a toe in diplomatic relations.

In 1996, the U.S. Congress authorized a Qualifying Industrial Zone (QIZ) program to extend the benefits of the U.S.-Israel Free Trade Agreement. Firms operating in QIZs located in Egypt and Jordan could export to the United States duty-free if the exported products contained inputs from Israel. The opportunity to do so created foundational commercial partnerships among Israeli firms and those in neighboring Arab countries with which Israel had signed peace agreements and provided the basis for extending benefits for those countries to the U.S. market.

As the ink dried on the Abraham Accords, Dubai-based logistics firm, DP World, entered into a partnership with a major Israeli port operator to assess free zone opportunities in Israel and possible direct shipping routes between Eilat and Jebel Ali ports. The Federation of Israeli Chambers of Commerce is also moving quickly to work with major free zone operators in Dubai.

Mogielnicki says the QIZs not only became commercial incubators, they “started to act as bellwethers for the geopolitical and economic reconfigurations underway across the broader Middle East”. Perhaps the flurry of new zones under the Abraham Accord will send similar signals across the region.

And What of Palestine?

Critics of the Abraham Accords cite concerns that Palestine is left out in the cold. Supporters believe the Abraham Accords are a road that leads back to Palestine in a more constructive way.

As the White House recognizes in its seminal proposal from January 2020, Peace to Prosperity: A Vision to Improve the Lives of the Palestinian and Israeli People, “the conflict between the State of Israel and the Palestinians has kept other Arab countries from normalizing their relationships and jointly pursuing a stable, secure, and prosperous region.”

A deeply complex set of issues to resolve, the Trump administration writes that durable solutions must combine political agreements with an “economic vision for investments and government reforms” to create jobs, reduce poverty and create conditions for growth of the Palestinian economy. The administration’s proposal offers support to Palestine to develop property and contract rights (fundamental growth drivers), to put in place anti-corruption measures and infrastructure for capital markets, and to implement a low-tariff scheme for Palestine to make it more attractive to traders.

The plan proposes coupling policy reforms with strategic infrastructure investments to help hospitals, schools, homes and businesses secure reliable access to affordable electricity, clean water, and digital services. Businesses in the West Bank and Gaza should be better connected with key trading partners in Egypt, Israel, Jordan, and Lebanon – including through free zone arrangements. The plan even proposes a U.S. free trade agreement with Palestine to solidify the continuation of duty-free treatment but also undergird economic reforms; it encourages countries in Europe, the Middle East and elsewhere to pursue its own free trade agreements with Palestine.

There’s a lot to be worked out. For example, Palestine doesn’t have direct access to key ports and must enter into more expansive arrangements with Israel regarding use of port facilities. A focus on these kinds of economic details is a good way to keep the conversation going.

A Strategic Agenda

As part of the Abraham Accords, the Parties agreed “to join with the United States to develop and launch a ‘Strategic Agenda for the Middle East’ in order to expand regional diplomatic, trade, stability and other cooperation.” The language is vague but future looking. It’s broad but opens the door to more specific initiatives. Following the October 23 joint statement, Sudan and Israel plan to exchange delegations to negotiate cooperative agreements in agriculture technology and aviation.

Even Saudi Arabia, which is not ready to sign the Abraham Accord, was supportive of the UAE and Bahrain in their decisions to do so and will directly support commercial relations by allowing Israel commercial flights to UAE to cross Saudi airspace. It becomes harder to turn back on peace when relationships begin to proliferate among individuals, companies, universities, institutes, and other entities outside of governments. Economic insecurity is destabilizing. Stronger economic ties induce cooperation. The Abraham Accords will be much more than symbolic if they produce a swell of private commercial activity and stronger trade relations.

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Andrea Durkin is the Editor-in-Chief of TradeVistas and Founder of Sparkplug, LLC. Ms. Durkin previously served as a U.S. Government trade negotiator and has proudly taught international trade policy and negotiations for the last fifteen years as an Adjunct Professor at Georgetown University’s Master of Science in Foreign Service program.

Archives, Global Trade Daily, News

Dubai Customs Announces First-Ever 24/7 Integrated Control System for Trade Security

August 20th, 2020 GT Staff Leave a comment

Thanks to a unique blend of artificial intelligence, drones, a K9 unit, and a rapid intervention team, Dubai Customs has officially launched the first integrated control system in the world. This system has been termed as the “Siyaj (Fence) Initiative” and fully supports efforts against counterfeit trade shipments while progressing trade operations.

“We feel proud today that our borders are more secure and our trade is streamlined following the wise vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai,” said HE Sultan bin Sulayem, DP World Group Chairman & CEO and Chairman of Ports, Customs and Free Zone Corporation.

“This initiative is an embodiment of the team spirit and the honest efforts that everyone at Dubai Customs always strives to maintain. We hope this initiative adds up to our cumulative work in the field to maintain the leading position the UAE enjoys worldwide.”

The Siyaj initiative relies on regularly updated data to effectively deliver the level of security it was designed for. Among the features found within the Siyaj system include a vessel that tracks and controls ships prior to their arrival at the port, inspection systems, and a set of cameras and devices for surveillance.

These features work in tandem with the rapid intervention teams for a faster, more reliable action turnaround time. The continued efforts further reiterate the success of Dubai Customs in halting counterfeit items and protecting the security of trade operations.

“Dubai Customs plays a vital role in thwarting smuggling of drugs and other illegitimate goods. In this regard, we cooperate and coordinate with the relevant authorities worldwide to intercept any suspicious or hazardous shipments before they enter the country.,” Director General of Dubai Customs, Ahmed Mahboob Musabih said.

“Customs authorities in the UAE made 4,450 customs seizures in 2019, and this initiative will cement the security efforts following the vision of Dubai Customs of becoming the leading customs organization worldwide supporting legitimate trade. We highly commend the efforts behind this leading initiative which will not only enhance the security of our borders but will also facilitate trade and supply chains.”

Archives, Global Trade Daily, Imports/Exports

Sugar Market in the Middle East – The Growth Of Consumption Lost Its Momentum

December 20th, 2019 IndexBox Leave a comment

IndexBox has just published a new report: ‘Middle East – Sugar – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

The revenue of the sugar market in the Middle East amounted to $5.9B in 2018, approximately reflecting the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price).

The market value increased at an average annual rate of +3.9% from 2007 to 2018; the trend pattern indicated some noticeable fluctuations being recorded in certain years. The pace of growth was the most pronounced in 2011, when the market value increased by 20% against the previous year. Over the period under review, the sugar market attained its peak figure level in 2018, and is likely to continue its growth in the near future.

Production in the Middle East

In 2018, the amount of sugar produced in the Middle East totaled 4.1M tonnes, picking up by 2.4% against the previous year. The total output volume increased at an average annual rate of +2.2% over the period from 2007 to 2018; the trend pattern remained consistent, with only minor fluctuations being observed over the period under review.

Exports in the Middle East

In 2018, approx. 235K tonnes of sugar were exported in the Middle East; picking up by 4.9% against the previous year. In general, sugar exports continue to indicate a prominent growth. In value terms, sugar exports stood at $111M (IndexBox estimates) in 2018.

Exports by Country

The exports of the two major exporters of sugar, namely Saudi Arabia and the United Arab Emirates, represented more than two-thirds of total export.

From 2007 to 2018, the most notable rate of growth in terms of exports, amongst the main exporting countries, was attained by Saudi Arabia.

In value terms, the United Arab Emirates ($57M) and Saudi Arabia ($54M) were the countries with the highest levels of exports in 2018, together comprising 100% of total exports.

Export Prices by Country

The sugar export price in the Middle East stood at $474 per tonne in 2018, dropping by -4.3% against the previous year. Over the period from 2007 to 2018, it increased at an average annual rate of +1.5%. Average export prices varied noticeably amongst the major exporting countries. In 2018, the country with the highest export price was the United Arab Emirates ($511 per tonne), while Saudi Arabia stood at $439 per tonne.

From 2007 to 2018, the most notable rate of growth in terms of export prices was attained by the United Arab Emirates.

Imports in the Middle East

In 2018, the amount of sugar imported in the Middle East stood at 4.8M tonnes, reducing by -8.1% against the previous year. The total imports indicated a modest growth from 2007 to 2018: its volume increased at an average annual rate of +1.1% over the last eleven year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, the sugar imports decreased by -0.8% against 2014 indices. In value terms, sugar imports stood at $1.6B (IndexBox estimates) in 2018.

Imports by Country

In 2018, the United Arab Emirates (1.2M tonnes), Iraq (1.1M tonnes) and Saudi Arabia (1.1M tonnes) represented the largest importers of sugar in the Middle East, comprising 72% of total import. Iran (698K tonnes) ranks next in terms of the total imports with a 15% share, followed by Yemen (6.4%). Jordan (122K tonnes) and Israel (83K tonnes) followed a long way behind the leaders.

From 2007 to 2018, the most notable rate of growth in terms of imports, amongst the main importing countries, was attained by Iraq, while the other leaders experienced more modest paces of growth.

In value terms, the United Arab Emirates ($353M), Saudi Arabia ($350M) and Iraq ($332M) appeared to be the countries with the highest levels of imports in 2018, together comprising 67% of total imports. Iran, Yemen, Jordan and Israel lagged somewhat behind, together comprising a further 30%.

Import Prices by Country

The sugar import price in the Middle East stood at $324 per tonne in 2018, dropping by -16.7% against the previous year. The import price indicated a modest growth from 2007 to 2018: its price increased at an average annual rate of +1.4% over the last eleven years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Import prices varied noticeably by the country of destination; the country with the highest import price was Israel ($495 per tonne), while Yemen ($289 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of import prices was attained by Iran, while the other leaders experienced more modest paces of growth.

Source: IndexBox AI Platform

Archives, Foreign Trade Zones, Global Trade Daily

The UAE Foreign Direct Investment (FDI) Law

November 18th, 2019 JC Pachakkil Leave a comment

For a great many years, global businesses have viewed the United Arab Emirates as an attractive global investment market. With a strong presence of high-net-worth consumers and a geographically strategic location from which to distribute throughout the Middle East and North Africa, the UAE is rife with opportunity.

Yet, many international corporations could not own companies outright in the UAE and were restricted to a maximum ownership of 49%. Ownership laws, however, are now being revisited to diversify the country’s economy beyond the energy sector, which has been the source of UAE wealth for decades. But precisely the degree to which economic liberalization is taking place is very much based on one’s perspective.

Background

The United Arab Emirates (UAE), a federation of seven Emirates (member states), has served as a global centre for trade for centuries. However, most global businesses had often expressed discomfort with the country’s investment laws which, despite allowing 100 percent foreign ownership of businesses in the country’s Free Trade Zones (FTZs), stipulated that at least 51 percent of a company established within the UAE, and outside a Free Trade Zone, must be owned by UAE citizens, or companies wholly owned by UAE citizens.

In addition, agency and distributor laws require that only a local commercial agent could sell products in the UAE market; and only UAE citizens or companies wholly owned by UAE citizens could register with the Ministry of Economy as commercial agents. Regulations also prevent the termination, or non-renewal, of a commercial agency contract unless the principal has a material reason to justify the termination or non-renewal; and the principal must often approach a court to terminate a contract.

Legislating Economic Diversification

The most recent Trade Policy Statement issued by the UAE through the World Trade Organization’s Trade Policy Review mechanism in 2016 stated the country aims to drive towards economic diversification by being less reliant on the oil sector and to increase its attractiveness to foreign investment.

The UAE enacted Federal Law No. 19, the Foreign Direct Investment Law (FDI Law) in November 2018. To promote and develop the investment environment and attract foreign direct investment in line with the developmental policies of the country, the Law established a framework for the country’s Cabinet to mandate which sectors and activities of the economy would be eligible for 100 percent foreign ownership. However, a list of eligible economic sectors and activities was not published by the UAE Cabinet until July 2019.

The list comprised of 122 economic activities across 13 sectors that would be eligible for up to 100 percent foreign ownership. The decision simultaneously conveyed that each emirate (member state of the UAE) could determine the percentage of foreign ownership under each activity suggesting that foreign ownership levels could vary from emirate to emirate. It was also clarified that oil & gas production and exploration sectors, air transport, and security and military sectors would be excluded from the purview of the FDI Law.

A Method of Recourse

It is also of interest that news reports indicate that for activities that are not included in the list of activities/sectors eligible for 100 percent foreign ownership, companies could approach the government for permission for a higher level of ownership; and that approvals may be granted on a case-by-case basis. The sectors that would allow 100 percent foreign ownership include:

-Space

-Renewable Energy

-Agriculture

–Manufacturing

-Road Transport & Storage

-Hospitality and Food Services

-Information and Communication Services

-Professional, Scientific and Technical activities

-Administration and Support Services

-Education

-Healthcare

-Art & Entertainment; and

-Construction

For those businesses that do qualify under the FDI law, their products will be treated as being of UAE origin and therefore, eligible for such treatment under international agreements to which the UAE is a party. This is a privilege that is not available to goods manufactured by foreign-owned companies based in UAE Free Trade Zones. In addition, they can transfer abroad operating profits and proceeds from sale of investment or other assets.

Measuring Success

The Emirate of Dubai has reported that it has attracted US $12.7 billion in foreign direct investment (FDI) in the first half of 2019 thereby ranking the emirate third globally in FDI capital flows into Greenfield Projects. Also, in October 2019, Dubai assumed the presidency of the World Association of Investment Promotion Agencies (WAIPA), a global entity that works for the smooth flow of cross-border investments.

Although it is still too early to gauge the impact of the FDI Law and other developments, the consensus is that the UAE has taken steps to accelerate foreign direct investment into the country. It remains to be seen whether further steps such as changes to the agency and distributor laws, and changes to regulations related to the termination of agency contracts will be implemented to enhance the attractiveness of the UAE to foreign investors.

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JC Pachakkil is a senior consultant in Global Trade Management at trade services firm Livingston International.

Archives, Global Trade Daily, Imports/Exports

Asia’s Ginger Market 2019: UAE Is Expected to Be the Fastest-Growing Export Market

October 14th, 2019 IndexBox Leave a comment

IndexBox has just published a new report: ‘Asia – Ginger – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

The revenue of the ginger market in Asia amounted to $3.2B in 2018, rising by 14% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price).

In general, ginger consumption continues to indicate a prominent expansion. The growth pace was the most rapid in 2010, with an increase of 56% against the previous year. Over the period under review, the ginger market attained its peak figure level in 2018, and is expected to retain its growth in the near future.

Production in Asia

The ginger production amounted to 2.7M tonnes in 2018, surging by 6.9% against the previous year. The total output indicated a strong increase from 2008 to 2018: its volume increased at an average annual rate of +6.8% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, the ginger production increased by +93.7% against 2008 indices. The growth pace was the most rapid in 2011, with an increase of 24% against the previous year. The volume of ginger production peaked in 2018, and is likely to continue its growth in the near future. The general positive trend in terms of ginger output was largely conditioned by a strong growth of the harvested area and a modest increase in yield figures.

Imports in Asia

The imports amounted to 410K tonnes in 2018, going up by 4.4% against the previous year. The total import volume increased at an average annual rate of +3.3% over the period from 2008 to 2018; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period.

In value terms, ginger imports stood at $385M (IndexBox estimates) in 2018.

Imports by Country

In 2018, Pakistan (93K tonnes), Japan (68K tonnes), the United Arab Emirates (47K tonnes), Malaysia (45K tonnes), Bangladesh (42K tonnes), Saudi Arabia (28K tonnes) and India (24K tonnes) represented the main importers of ginger in Asia, generating 85% of total import.

From 2008 to 2018, the most notable rate of growth in terms of imports, amongst the main importing countries, was attained by the United Arab Emirates, while the other leaders experienced more modest paces of growth.

In value terms, Japan ($103M), Pakistan ($83M) and the United Arab Emirates ($42M) appeared to be the countries with the highest levels of imports in 2018, together accounting for 59% of total imports.

Import Prices by Country

In 2018, the ginger import price in Asia amounted to $939 per tonne, remaining stable against the previous year. The import price indicated a moderate growth from 2008 to 2018: its price increased at an average annual rate of +2.6% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, the ginger import price increased by +25.2% against 2016 indices.

Import prices varied noticeably by the country of destination; the country with the highest import price was Japan ($1,513 per tonne), while Bangladesh ($279 per tonne) was amongst the lowest.

From 2008 to 2018, the most notable rate of growth in terms of import prices was attained by India, while the other leaders experienced more modest paces of growth.

Source: IndexBox AI Platform

Archives, Global Trade Daily, International Trade

Asia’s Apple Market: China Dominates Exports Despite a Slight Contraction

August 1st, 2019 IndexBox Leave a comment

IndexBox has just published a new report: ‘Asia – Apple – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

In 2018, the apple market size in Asia amounted to $62.1B (in wholesale price). The total market indicated a strong increase from 2008 to 2018: its value increased at an average annual rate of +3.1% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, the apple consumption increased by +16.7% against 2014 indices. The pace of growth was the most pronounced in 2014, when the market value increased by 24% against the previous year. Over the period under review, the apple market reached its maximum level in 2018, and is likely to see steady growth in the near future.

Production in Asia

In 2018, the amount of apples produced in Asia amounted to 56M tonnes, going up by 3.5% against the previous year. The total output volume increased at an average annual rate of +3.0% over the period from 2008 to 2018; the trend pattern remained consistent, with somewhat noticeable fluctuations being recorded in certain years. The growth pace was the most rapid in 2011, when the output figure increased by 9% y-o-y. The volume of apple production peaked in 2018, and is likely to continue its growth in the near future.

The general positive trend in terms of apple output was largely conditioned by a noticeable expansion of the harvested area and a modest growth in yield figures.

Exports in Asia

In 2018, approx. 1.3M tonnes of apples were exported in Asia; lowering by -3.7% against the previous year. Over the period under review, apple exports continue to indicate a relatively flat trend pattern. The growth pace was the most rapid in 2013, when exports increased by 26% y-o-y. In that year, apple exports attained their peak of 1.7M tonnes. From 2014 to 2018, the growth of apple exports failed to regain its momentum.

In value terms, apple exports amounted to $1.3B (IndexBox estimates) in 2018. The total export value increased at an average annual rate of +4.1% over the period from 2008 to 2018; the trend pattern indicated some noticeable fluctuations being recorded in certain years. The pace of growth was the most pronounced in 2016, when exports increased by 21% year-to-year. In that year, apple exports attained their peak of $1.4B. From 2017 to 2018, the growth of apple exports failed to regain its momentum.

Exports by Country

China dominates apple exports structure, accounting for 701K tonnes, which was near 55% of total exports in 2018. Turkey (108K tonnes) ranks second in terms of the total exports with a 8.5% share, followed by Iran (8.5%) and Azerbaijan (7.1%). China, Hong Kong SAR (39K tonnes), Afghanistan (38K tonnes), Lebanon (37K tonnes), Japan (34K tonnes), Syrian Arab Republic (20K tonnes) and Israel (20K tonnes) followed a long way behind the leaders.

From 2008 to 2018, average annual rates of growth with regard to apple exports from China stood at -3.3%. At the same time, Turkey (+25.7%), Afghanistan (+16.6%), Iran (+8.7%), Israel (+6.7%) and China, Hong Kong SAR (+1.1%) displayed positive paces of growth. Moreover, Turkey emerged as the fastest growing exporter in Asia, with a CAGR of +25.7% from 2008-2018. Japan and Lebanon experienced a relatively flat trend pattern. By contrast, Azerbaijan (-3.0%) and Syrian Arab Republic (-4.5%) illustrated a downward trend over the same period. While the share of China (22%) and Azerbaijan (2.6%) increased significantly in terms of the global exports from 2008-2018, the share of Afghanistan (-2.3%), Iran (-4.8%) and Turkey (-7.6%) displayed negative dynamics. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, China ($845M) remains the largest apple supplier in Asia, comprising 67% of total apple exports. The second position in the ranking was occupied by Turkey ($79M), with a 6.2% share of total exports. It was followed by Iran, with a 5.1% share.

Export Prices by Country

The apple export price in Asia stood at $1,001 per tonne in 2018, going up by 10% against the previous year. The export price indicated a remarkable growth from 2008 to 2018: its price increased at an average annual rate of +4.9% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, the apple export price increased by +37.4% against 2013 indices. The growth pace was the most rapid in 2014, when the export price increased by 22% year-to-year. The level of export price peaked in 2018, and is expected to retain its growth in the near future.

Export prices varied noticeably by the country of origin; the country with the highest export price was Israel ($1,530 per tonne), while Azerbaijan ($423 per tonne) was amongst the lowest. From 2008 to 2018, the most notable rate of growth in terms of export prices was attained by Afghanistan, while the other leaders experienced more modest paces of growth.

Imports in Asia

In 2018, apple imports in Asia totaled 2.4M tonnes, lowering by -17.3% against the previous year. The total import volume increased at an average annual rate of +3.3% over the period from 2008 to 2018; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The growth pace was the most rapid in 2015, when imports increased by 14% y-o-y. The volume of imports peaked at 2.9M tonnes in 2017, and then declined slightly in the following year.

In value terms, apple imports amounted to $2.3B (IndexBox estimates) in 2018. The total imports indicated a prominent expansion from 2008 to 2018: its value increased at an average annual rate of +3.3% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2010, with an increase of 18% year-to-year. The level of imports peaked at $2.7B in 2017, and then declined slightly in the following year.

Imports by Country

In 2018, India (267K tonnes), Taiwan, Chinese (180K tonnes), China, Hong Kong SAR (167K tonnes), Indonesia (163K tonnes), Saudi Arabia (150K tonnes), Thailand (142K tonnes), the Philippines (134K tonnes), the United Arab Emirates (107K tonnes), Viet Nam (106K tonnes), Kazakhstan (101K tonnes), Iraq (99K tonnes) and Democratic People’s Republic of Korea (94K tonnes) were the largest importers of apples in Asia, achieving 71% of total import.

From 2008 to 2018, the most notable rate of growth in terms of imports, amongst the main importing countries, was attained by Democratic People’s Republic of Korea, while the other leaders experienced more modest paces of growth. In value terms, India ($264M), Taiwan, Chinese ($245M) and China, Hong Kong SAR ($198M) appeared to be the countries with the highest levels of imports in 2018, with a combined 31% share of total imports. These countries were followed by Indonesia, Thailand, the Philippines, Saudi Arabia, the United Arab Emirates, Viet Nam, Kazakhstan, Democratic People’s Republic of Korea and Iraq, which together accounted for a further 43%.

Import Prices by Country

The apple import price in Asia stood at $965 per tonne in 2018, growing by 3% against the previous year. Over the period from 2008 to 2018, it increased at an average annual rate of +2.3%. There were significant differences in the average import prices amongst the major importing countries. In 2018, the country with the highest import price was Taiwan, Chinese ($1,362 per tonne), while Iraq ($194 per tonne) was amongst the lowest.

From 2008 to 2018, the most notable rate of growth in terms of import prices was attained by Democratic People’s Republic of Korea, while the other leaders experienced more modest paces of growth.

Source: IndexBox AI Platform

Archives, Global Trade Daily, Imports/Exports

Margarine Market in the Middle East – Trends, Analysis and Forecast

July 29th, 2019 IndexBox Leave a comment

IndexBox has just published a new report, the Middle East – Margarine And Shortening – Market Analysis, Forecast, Size, Trends and Insights. Here is a summary of the report’s key findings.

The revenue of the margarine and shortening market in Middle East amounted to $1.1B in 2017, growing by 11% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price).

The market value increased at an average annual rate of +2.8% from 2007 to 2017; the trend pattern indicated some noticeable fluctuations being recorded over the period under review. The most prominent rate of growth was recorded in 2011, with an increase of 37% y-o-y. In that year, the margarine and shortening market attained its peak level of $1.4B. From 2012 to 2017, the growth of the margarine and shortening market remained at a somewhat lower figure.