<!-- Start of picture text --> Figure 17. Buyer-driven Networks: Argentina vs Comparators<br>T&C Exports T&C Imports<br>100 2,000,000 100 3,000,000<br>8060 1,500,000 8060 2,500,0002,000,000<br>40 1,000,000 40 1,500,0001,000,000<br>20 500,000 20 500,000<br>0 0 0 0<br>1992 1994 1996 1998 2000 2002 2004 2006 1992 1994 1996 1998 2000 2002 2004 2006<br>T&C share CHL T&C share BR T&C share AR BR T&C share CH T&C share AR T&C share<br>T&C US$ mil CHL T&C US$ mil BR T&C US$ mil AR BR T&C US$ mil CH T&C US$ mil AR T&C US$ mil<br>Footwear Exports Footwear Imports<br>60 2,500,000 20 400,000<br>40 2,000,0001,500,000 1510 300,000200,000<br>20 1,000,000500,000 5 100,000<br>0 0 0 0<br>1992 1994 1996 1998 2000 2002 2004 2006 1992 1994 1996 1998 2000 2002 2004 2006<br>Footw are share CHL Footw are share BR Footw are share AR BR Footw are share CH Footw are share AR Footw are share<br>Footw are US$ Mil CHL Footw are US$ Mil BR Footw are US$ Mil AR BR Footw are US$ Mil CH Footw are US$ Mil AR Footw are US$ Mil<br>Furniture Exports Furniture Imports<br>40 1,500,000 20 400,000<br>30 1,000,000 15 300,000<br>20 10 200,000<br>10 500,000 5 100,000<br>0 0 0 0<br>1992 1994 1996 1998 2000 2002 2004 2006 1992 1994 1996 1998 2000 2002 2004 2006<br>Furniture share CHL Furniture share BR Furniture share AR BR Furniture share CH Furniture share AR Furniture share<br>Furniture US$ Mil CHL Furniture US$ Mil BR Furniture US$ Mil AR BR Furniture US$ Mil CH Furniture US$ Mil AR Furniture US$ Mil<br><!-- End of picture text --> Source: Comtrade and author’s calculations (SITC version 2).

T **he producer-driven networks are far more important than buyer-driven networks for Argentina.** Automobiles are the most important network, with a share of almost 100 percent in the producer-driven network’s exports (Figure 18). Automobile exports have increased at an average rate of 38 percent over the 2003-2006 periods (29 percent in 2007-08). ICT exports seem negligible, however the graph does not show that they have experienced an increase of 56 percent in 2006 (up from a meager 2 percent in 2005). On the other hand, imports have increased in both networks after a drop in 2002, so that the trade balance would be in deficit in both sectors.<sup>13</sup> The automobile network is the most important also for the two comparators (as shown by the high share in producer-driven network), but Brazil seems to be the only net exporter, even though its imports have increased at a high speed over the last years. In fact Brazil’s share in world export in 2006 was 1.35 percent, compared to 0.4 percent in Argentina. So regional competition in the automobile sector is fierce, but it also indicates an important regional market, as shown by the great importance of Brazil as a partner in trade of vehicles. It would be interesting to analyze more in depth the value and dynamics of intraindustry trade and the scope for more regional cooperation. ICT grew in importance for Brazil over 2000-02, however none of the three countries is a net exporter of ICT, so there is still scope for further

> 13 However, Business Monitor International forecasts that by the end of 2012, Argentina will turn into a net exporter of automobiles (http://www.businessmonitor.com/argentina_autos.html).

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