Non-Tariff Barriers (NTBs) in SAFTA by Manish Mohan Deputy Director - FICCI.
UNCTAD’s work on on Non-Tariff Barriers ( NTBs)
description
Transcript of UNCTAD’s work on on Non-Tariff Barriers ( NTBs)
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UNCTAD’s work on on Non-Tariff Barriers (NTBs)
Session 1:
Current situation of NTBs information
Short courses for Permanent Missions in GenevaFriday 30 October 2009
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Introduction
• NTBs or NTMs?• UNCTAD uses the term NTMs• Difficult or impossible to assess
whether a measure has protectionist intent or has discriminatory effects.
• NTMs are defined as policy measures that have the effect of limiting trade with no implied judgment on their legitimacy.
• NTBs are a subset of NTMs.
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Presentation outline
1. Background
2. Overview of UNCTAD’s classification of NTMs
3. NTMs data collection
4. Sources of NTMs data
5. NTMs data in UNCTAD‘s TRAINS database
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Background• UNCTAD work on NTMs goes back to
early 1980s when a taxonomy of different types of NTMs was developed.
• Effort led to the establishment of the UNCTAD Coding System of Trade Control Measures (TCMCS) in late 1980s, following several revisions
• Collecting data using TCMCS began in 1988
• Data in the Trade Analysis and information System (TRAINS) database in 1992
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Background
• Disseminated through TRAINS CD-ROM between 1994 and 2001.
• Since 2002 through the World Integrated Trade Solution (WITS) software.
• TRAINS database contains NTM data on 102 countries (some on several years) from 1988 to 2008.
• But only complete information until 2004
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• TCMCS identifies over 100 different types of NTMs at its most detailed level grouped in six broad categories.
• NTMs divided into Core and non-Core measures
• Core Measures: Measures intended to protect local producers.
• Non-Core Measures: Measures intended to protect local consumers.
TCMCS overview
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TCMCS overview
NTMs
Quantity
Control
Measures
Price Control
Measures
Monopolistic
Measures
Automatic
Licensing
MeasuresFinance
Measures
Technical
Measures
Non-Core NTMs Core NTMs
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TCMCS overview
Price Control Measures
Administrative
pricingVoluntary export
price restraintAntidumping
measures Countervailing
measures
Variables
Charges
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TCMCS overview
Finance Measures
Advance
payments
requirements
Multiple
exchange
rates
Restrictive
official foreign
exchange rate
Regulations
concerning
terms of payment
for imports
Transfer
delays,
Queuing
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TCMCS overviewAutomatic Licensing
Measures
Automatic
licenseImport
monitoring
Surrender
requirements
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TCMCS overview
Quantity Control
Measures
Non-Automatic
licensingQuotas
ProhibitionsExport restraint
arrangements
Enterprise
specific
restrictions
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TCMCS overviewMonopolistic
Measures
Single Channel
for Imports
Compulsory
National
Services
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TCMCS overviewTechnical
Measures
Technical
Regulations
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1. Compilation of sources2. Reading and extracting relevant information
from available sources3. Computerized inventory of classified
documents4. Identification of affected products and
measures5. Writing of country notes6. Using country notes for codification (HS
code and NTM code)7. Data Verification8. Data transfer to TRAINS database
Collection of NTMs data: Process
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• Several Sources are used to compile NTMs data.• Most sources are publicly available information
Tariff schedules Government Publications WTO Countries notifications Other International/regional Organizations (IMF,
ESCAP TISNET) Specialized Institutions
• German Foreign Trade Information Office (BFAI)• French International Trade Monitor (MOCI)• Institute for economic research (IFO)• British Business
Collecting NTMs data
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• Collaboration with Regional Organizations
– Latin American Integration Association (ALADI) and Central American Secretariat for Economic Integration (SIECA) with Inter-American Development Bank
– South Asian Association for Regional Cooperation (SAARC)
Collecting NTMs data
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TCMCS coding system3000 PRICE CONTROL MEASURES
3100 ADMINISTRATIVE PRICING
3110 Minimum import prices
3190 Administrative pricing n.e.s.
3200 VOLUNTARY EXPORT PRICE RESTRAINT
3300 VARIABLE CHARGES
3310 Variable levies
3320 Variable components
3330 Compensatory elements
3340 Flexible import fees
3390 Variable charges n.e.s
3400 ANTIDUMPING MEASURES
3410 Antidumping investigations
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TCMCS coding system5000 AUTOMATIC LICENSING MEASURES
5100 AUTOMATIC LICENCE
5200 IMPORT MONITORING
5210 Retrospective surveillance
5220 Prior surveillance
5270 Prior surveillance for sensitive product categories
5700 SURRENDER REQUIREMENT
5900 AUTOMATIC LICENSING MEASURES N.E.S.
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TCMCS coding system: country notes
5. AUTOMATIC LICENSING MEASURES Automatic licence 52.7 Prior surveillance for sensitive product
categories Tunisia is a party to the Convention against
Illicit Traffic in Narcotic Drugs and Psychotropic Substances (1988) under
which it is required to establish and maintain a system to monitor international trade in substances mentioned in Tables I and II of the Convention.
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Converting Country notes into files for TRAINS
• Product (HS 2, 4, or 6 digit, or full national tariff line)• Measure Code (4-digit UNCTAD Coding system of
Trade Control Measures) • Year (for NTM and Product code)• Date of introduction• Source of Information• Footnote (detailed measure and/or product
description)• Affected Countries• Partial coverage indication
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NTM data table
1 2 3 4 5 6 7 8 9 10 11 12 13
H1 788 2002 2938
Glycosides
Prior surveillance 5276 1988 11 *
H1 788 2002 2939
Vegetable alkaloids
Prior surveillance 5276 1988 11
1. Nomenclature
2. Country Code
3. Year
4. Product Code
5. Product description
6. NTM description
7. NTM code
8. Start Year
9. Start month
10. Partial coverage
11. Sources
12. Country List
13. Footnotes
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NTMs data in TRAINS: Structure
Nom
enCode
Reporter_IS
O_N
Year
ProductC
ode
Pro
du
ctDescrip
tion
MeasureN
ame
NT
MC
ode
StartY
ear
StartM
onth
Partial C
overage
Sources
CountryList
FootN
otes
H1 788 2002 01039001
Authorization for human health protection 6171 1997 12 *
IFO August 1999
Products excluded from the liberalized import regime as per decree 97-2515 of 29.12.97
H1 788 2002 01039001
Authorization to protect animal health 6172 1997 12 *
IFO August 1999
Products excluded from the liberalized import regime as per decree 97-2515 of 29.12.97
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NTM data in TRAINS database
• Raw data without additional computation
• No frequency count
• No quantification or AVEs
• User can download the file and use it for analysis
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Accessing TRAINS database
• TRAINS database is currently accessible through the World Integrated Trade Solution (WITS) software.
• WITS was developed by the World Bank in close collaboration with UNCTAD.
• WITS gives access to major market access and trade databases.
• WITS access: http://wits.worldbank.org/witsweb/Register/
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TRAINS: NTMs Current Trend
• Growing importance of Technical Measures as Barriers to Trade in the face of elimination of Core-Measures
1994 (%) 2004 (%)
Core Measures 45 15
Non-core Measures 55 85
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TRAINS: Evolution of NTM use by broad category
TCM description 1994 (%) 2004 (%)
PRICE CONTROL MEASURES 7.1 1.8
FINANCE MEASURES 2.0 1.5
AUTOMATIC LICENSING MEASURES 2.8 1.7
QUANTITY CONTROL MEASURES 49.2 34.8
MONOPOLISTIC MEASURES 1.3 1.5
TECHNICAL MEASURES 31.9 58.5
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Types of NTMs applied by region
TCM description 1994 2004
Dvped (%)
Dping (%)
Dvped (%)
Dping (%)
PRICE CONTROL MEASURES 9.4 6.1 2.9 1.7FINANCE MEASURES 0.1 3.1 0.3 1.6AUTOMATIC LICENSING MEASURES
5.3 1.5 7.4 1.1
QUANTITY CONTROL MEASURES
45.8 53.1 34.7 35.2
MONOPOLISTIC MEASURES 1.1 1.4 0.7 1.6TECHNICAL MEASURES 21.9 34.4 50.0 58.6
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Analyzing TRAINS NTM data: Tunisia Example
Data compiled in 2002. Data classified according to HS 1996 revision. Out of 16,163 Tariff lines (HS10 digits), 11,533 are
affected by at least one type of NTMs i.e 71% of Tariff lines in 2002.
In terms of HS-6 digit, 3566 HS codes out of 5113 (70%). 88 chapters out of 96 chapters of the HS system (91%). 26 distinct types of NTMs.
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Tunisia NTMs: SOURCES
• Foreign Agricultural Service/USA: Country Report 2000 (Food and Agricultural Import Regulations) USDA
• German Institute for Economic Research (IFO)• Journal Officiel de la Republique Tunisienne (JORT)• French International Trade Monitor (MOCI)• United Nations Convention against Illicit Traffic in
Narcotic Drugs and Psychotropic Substances (Nov. 1998)• WTO publications
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Tunisia: NTMs Broad Categories:Frequency
84%
12%
4%0%
Technical Measures
Quantity Control Measures
Monopolistic Measures
Automatic Licensing Measures
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Analyzing NTM data: Distribution of NTMs per HS chapter
HS chapter ProductDescription Share
85 Electrical mchy equip parts thereof; sound record 11
22 Beverages, spirits and vinegar. 9
20 Prep of vegetable, fruit, nuts or other parts of 7
02 Meat and edible meat offal 7
29 Organic chemicals. 6
03 Fish & crustacean, mollusc & other aquatic invert 4
15 Animal/veg fats & oils & their cleavage products; 4
04 Dairy prod; birds' eggs; natural honey; edible pr 4
62 Art of apparel & clothing access, not knitted/cro 3
23 Residues & waste from the food indust; prepr ani 3
08 Edible fruit and nuts; peel of citrus fruit or me 3
16 Prep of meat, fish or crustaceans, molluscs etc 2
17 Sugars and sugar confectionery. 2
19 Prep.of cereal, flour, starch/milk; pastrycooks' 2
01 Live animals 2
61 Art of apparel & clothing access, knitted or croc 2
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NTM frequency
NTMCode MeasureName N Share
8111Product characteristics req. to protect human
health 14319 46%
8131 Labelling requirements to protect human health 2882 9%
8141 Packaging requirements to protect human health 2882 9%
6320 Suspension of issuance of licences 1816 6%
7110 State trading administration 1295 4%
8159 Testing, inspection etc. req. for purposes n.e.s. 1144 4%
8139 Labelling requirements for purposes n.e.s. 1144 4%
8153 Test, inspection and quarantine for plant health 681 2%
6376 Prohibition to control drug abuse 609 2%
8169 Information requirements for purposes n.e.s. 599 2%
8112 Prod characteristics req. to protect animal health 534 2%
8151 Test, inspection and quarantine for human health 497 2%
8152 Test, inspection and quarantine for animal health 497 2%
6179 Authorization, n.e.s. 493 2%
8190 Technical regulations n.e.s. 446 1%
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NTMs data in TRAINS: Limitations
• Some Measures apply to all products without a clear justification. e.g. Automatic Licensing
• Products can not be identified easily. Such products are indicated by an artificial code ‘000000’
• No end date indicated• Coverage in terms of measures/countries collected.• Outdated classification missing some very important
new types of measures
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NTM data in TRAINS: Limitations
• Time series analysis not possible• Data not updated on regular basis (has not been
updated regularly since 2004)
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CONCLUSION
• TRAINS is considered to be the most comprehensive database on NTMs today
• NTMs data TRAINS is far from being perfect.• A lot needs to be done to improve the situation.
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Additional Information
• http://www.unctad-trains.org/
• http://wits.worldbank.org/witsweb/Register/
Thank you!