16 ratio of EU-directed exports to imports (from 45 in 1993 to 49% in 1997 and 58% in 1998) points to the growing role of CEEC as suppliers of parts. The increase occurred at the expense of intraCEEC exchanges (less than a twofold increase) as well as trade with NAFTA and East Asia (less than a twofold increase). However, the share of the latter in CEC imports increased in 1998 probably because of the growing presence of MNCs from Korea and Japan.

Table 6: **Direction of trade of** CEEC in 1993, 1997 and **1998** (in million of US dollars and percent)

|Region/Group|Imp<br>($|orts of P<br>Million)|arts<br> <br>I|Share<br>mports o|s in Tot<br>f Parts (|al<br>%)|Expo<br>($|rns of Pa<br>Million)|rts<br> <br>|Share<br>Exports o|s in Tota<br>f Parts (|l<br>%)|
|---|---|---|---|---|---|---|---|---|---|---|---|---|
||1993|<br>1997|<br>1998|<br>1993|19971|1998|1993|1997|1 1998|<br>1993|1997|1998|
|Intra-CEEC|376|1,183|1,212|<br>10.6|7.2|6.2|354|1,071|1,085|<br>12.7|12.1|9.1|
|EU15:|4,404|13,384|16,107|<br>75.6|81.0|81.8|1,982|6,569|9,431|71.1|74.5|79.4|
|of which Germany|2,029|7,183|7,753|<br>34.9|43.5|39.4|1,200|4,484|5,903|43.0|50.8|49.7|
|NAFTA|337|<br>653|<br>756|5.8|4.0|3.8|156|395|<br>491|5.6|4.5|4.1|
|East Asia (incl.|302|<br>623|<br>877|5.2|3.8|4.5|52|102|<br>110|1.9|1.2|0.9|
|Japan)|||||||||||||
|Other|403|<br>677|<br>750|2.8|4.1|3.8|245|686|<br>759|8.8|7.8|6.4|
|Total|5,822|16,520|19,702|<br>100|100|100|2,789|8,823|11,876|<br>100|100|100|

Note: For 1993 intra-CEEC imports for Latvia, Lithuania and Slovakia are based on the 1994 data. Source: Computations based on partners' data from UN COMTRADE Statistics.

Among EU countries Germany has emerged as the most important trading partner in parts. It takes around half of CEEC total exports of parts and accounts for 39 percent of their total imports of parts. It is not clear whether the contraction in the share of Germany in CEEC trade in 1998 indicates the increase in geographical diversification. Austria, a very important trading partner of CEEC before the collapse of central planning, has been loosing its position. Its share in CEEC trade in parts fell by almost half between 1993 and 1997. These two countries accounted for 74 and 76 percent of CEEC exports to the EU in 1993 and 1997 and 58 and 62 percent of imports of parts.

CEECs have become significant suppliers as well as markets for parts produced in the EU. EU imported about US $33 billion of parts in 1993-CEECs with exports of US $2 billion accounted for 6 percent of EU external imports. EU imports of parts from CEECs increased to US $60 billion and so did CEEC exports to US $6.6 billion in 1997-their share in EU imports increased to 11 percent. CEECs accounted for 10.8 percent of EU exports (US $41 billion) in 1993, and almost 17 percent of EU exports of parts in 1997.

Hence, CEECs' geographical concentration of trade in parts increased. And so it did within the EU with Germany's becoming the major market for parts originating in CEEC-the share of Germany in EU imports of parts grew from 60 to 68 percent between 1993 and 1997. This was mainly at the expense of NAFTA whose share in CEEC imports of parts fell from 6 percent in 1993 to 4 percent in 1997 and in exports from 5.6 percent to 4.5 percent. It is