Market Access Map Market Research from a tariff barrier perspective

Trade and Business Promotion in SADC

Market Access MapMarket Research from a tariff barrier perspective

Training of Trainers in Market Analysis

Agenda

• Background – market access issues today

• Presentation – Market Access Map

• Practical Exercises


Are tariff barriers still a problem?

Source: 2004 UN Report of the implementation of the Millennium Development Goals – (estimates from UNCTAD, World Bank & WTO)


Market Access Trends


Note

• The average developing country belongs to 5 separate regional trade agreements (Global Economic Prospects, Trade Regionalism and Development, World Bank, 2005) – eg EU, NAFTA, COMESA

• Hard to keep track of what tariffs your own country applies and faces as well as the tariffs faced by your competitors

• Need for greater transparency on tariffs and rules of origin


8

9

10

11

12

13

14

15

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Source: Spinanger, Dean “Misuse of AD measures and NTBs”, 2002

Average number of antidumping measures per year

AverageAPECTariff Rate %




• Increase in use of non-tariff measures

• Eg: Environmental measures include measures covering:– Food and Plant health standards– Production regulations– Testing requirements – Certification procedures

• US$ 300 billion of world imports are potentially affected by environmental protectionism, of which less than 10 per cent manages to reach the requested standards.

Source: An Assessment of Environmentally-Related Non-Tariff Measures, Lionel Fontagné, Friedrich von Kirchbach, Mondher Mimouni, considering data for 2001


A quick tariff

search for companie

s


Start typing your product name or code & select a match from the

drop-down list of possible options

Choose whether you wish to see

the most detailed

product codes (national tariff line) or at the

HS 6 digit level


Harmonised System - Quick Revision

• International• 08 Edible fruit and nuts; peel of citrus fruits or melons

– 0804 Dates, figs, pineapples, avocados, guavas, mangoes and mangosteens, fresh or dried

• 080450 Guavas, mangoes and mangosteens, fresh or dried

• National (e.g. USA)

– 08045040 Guavas, mangoes and mangosteens, fresh

– 08045080 Guavas, mangoes and mangosteens, dried


Preferences are displayed (if

applicable) as well as the MFN or general rate

See trade regimes that a

country applies or faces and

rules of origin for many

tradeagreements

Click to see

rules of origin


Rules of Origin - NAFTA

Which trading partners offer

the best market access for

Ghana’s cocoa beans?

Scroll through the importing countries alphabetically….

or

Click on the heading “level of protection” to sort by those offering

the lowest tariff

Or use the filter to show all the records in

one page


Create a variety of useful reports on

your country or on one of your trading

partners

Training of Trainers in Market AnalysisTop 200 export transactions, the

import partner per transaction and the

top 3 exporters to the partner

Imagine we want to compare the tariffsof several products

exported to several markets

And we’d like to see our country’ssituation relative to our competitors


Click on the “Detailed Analysis” tab – it will

expand to reveal 3 sub tabs. Select “Applied

Tariffs”

Compare the protection levels using AVEs.


Types of tariff barriers…

• Ad valorem tariffs: – levied on the basis of the value– Eg: 20% of the value of the imported product (majority of countries)

• Specific tariffs:– levied on the basis of volume or weight or unit– Eg: $2 per kilogram (Switzerland, USA, EU, Japan)


MAcMap Features: Ad Valorem Equivalents

• Ad valorem equivalent tariffs for – specific tariffs, tariff quotas and anti-dumping measures

• AVE = Specific tariff per unit • Unit Value

• AVEs allow us to aggregate tariffs at the sector or regional level; and

• AVEs allow us to compare the protection levels of different countries

• Total AVE – sum of each of the ad valorem equivalents


Example – why is this is an issue?

Imagine Switzerlandapplies a tariff of $100 per ton to imports of fish fillets from South Africa &Ghana

If Ghana’s exported fish fillets were worth $200 per ton

If South Africa’s exported fish fillets were worth $100 per ton

the equivalent tariff would be 100%

the equivalent tariff faced would be only 50% !

Compare exporters

AVEs make it easy to

compare the protection applied to different exporters

Additional support material

A glossary to look up tariff terminology

Search the Glossary for the term you with to learn more

about

Read about the Market Access

Map methodology for calculating

AVEs


Sources of Data• Market Access Map is updated as new tariff data becomes available. Data is

sourced from:

– 2005 data currently available for 25 EU countries, USA, Canada, Switzerland and Tunisia

– Tariff data reported to the UN Tariff and Market Access Database (UN TARMAC) of ITC and UNCTAD

– Bound tariff data from the Consolidated Tariff Schedule of the WTO

– Tariff quota data from WTO (agricultural notification of tariff quota) and national sources for bilateral and regional tariff quota agreements

– Notifications from member countries of the WTO regarding anti-dumping duties and ITC collection directly from some countries.

– Trade data from national sources, IDB (integrated database) /WTO and the COMTRADE database of the United Nations Statistics Division (UNSD).


Summary: features of MacMap

• WIDE GEOGRAPHICAL COVERAGE: tariffs applied by 170 countries to the products exported by over 200 countries and territories.

• WIDE COVERAGE OF INSTRUMENTS: Covers: ad-valorem tariffs; specific tariffs; tariff quotas; and antidumping duties

• PREFERENCES: Covers most bilateral and regional agreements. Rules of Origin and Certificates of origin are also included for many agreements.

• ANALYTICAL FLEXIBILITY: Permits analysis by region, by economic sector or by measure

Market Access Map Market Research from a tariff barrier perspective

Documents

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