Analysis of Agri-Food Trade Structures
To Promote Agri-Food Trade Networks
In the Islamic Countries
17
calculations are based on observed trade flows, which are affected by policy settings within
countries. As a result, subsidization practices could make a region appear to have comparative
advantage based on observed trade patterns, even where it would not necessarily do so in an
undistorted market. For the other regions, East Asia and the Pacific has its strongest
comparative advantage in animal and vegetable fats and oils, as well as crude materials, and
other edible products and cereals. For Europe and Central Asia, the relevant products are dairy,
cereals, and other edible products. For Latin America and Caribbean, it is meat, cereals, and
sugar products. For the Middle East and North Africa, the strongest comparative advantage is in
cereals, sugar products, other edible products, and oils and fats. For North America, there is
evidence of comparative advantage in cereals, live animals, meat, and animal feed. Finally, for
Sub-Saharan Africa, the relevant products are live animals, cereals, and crude materials. From
the point of view of interpretation of these results, it is important to stress that comparative
advantage is a relative concept: it summarizes the extent to which one country relative to
another is better at producing one product relative to another. It is not a measure of absolute or
competitive advantage.
Table 1: TRCA Indices by Region and Product Division, 2016, Index Number
East
Asia &
Pacific
Europe and
Central
Asia
Latin
America &
Caribbean
Middle
East &
North
Africa
North
America
South
Asia
Sub-
Saharan
Africa
Live animals 1.50 1.81 1.67 1.15 2.01 2.35 1.66
Meat 1.44 1.92 2.30 1.18 2.36 7.85 1.55
Dairy products 1.73 2.50 1.93 1.43 1.76 3.93 1.50
Fish and
crustaceans
1.74 1.56 1.77 1.20 1.49 5.70 1.59
Cereals 2.74 2.98 2.90 1.91 3.06 10.23 1.94
Vegetables and
fruit
1.76 1.90 2.14 1.46 1.91 4.88 1.61
Sugar products 1.75 1.75 2.24 1.51 1.44 5.42 1.44
Coffee 1.59 1.63 1.95 1.17 1.24 6.59 1.71
Animal feed 1.50 1.84 2.17 1.10 2.32 4.29 1.60
Other edible
products
2.09 2.32 2.03 1.77 2.08 6.49 1.60
Beverages and
tobacco
1.44 1.76 1.73 1.05 1.47 4.43 1.23
Crude materials 1.95 2.07 2.05 1.26 1.90 6.20 1.80
Oil seeds and
oleaginous
fruits
0.96 0.79 1.06 0.53 1.45 3.33 1.08
Animal and
vegetable fats
and oils
2.20 1.85 2.13 1.51 1.70 6.49 1.69
Source: Authors’ calculations.
From a policy standpoint, the TRCA results considered above can help policymakers identify
sectors where future export growth is likely. They can then concentrate their efforts to improve
market access on those sectors. Although progress in multilateral trade negotiations is
challenging, there is considerable scope to move forward on agricultural trade regionally, as
indeed has already happened in many cases, as discussed further below. Countries naturally
have different market access interests in regional negotiations, but a technical analysis like