CEFTA Conference on Transparency on Trade Policy and Measures

- Means to Address Non-Tariff Measures –

Sarajevo, 29 October 2013

Transparency Tools and methodologies for addressing trade related barriers

Samuel Munyaneza and Ralf Peters, UNCTAD

UNCTAD focal point in UN for integrated treatment of trade and development

• UNCTAD promotes the development-friendly integration of developing countries and economies in transition into the world economy.

• Focus on ensuring that domestic policies and international action are mutually supportive in bringing about sustainable development.

• Three key functions• consensus building• research, policy analysis and data collection• technical assistance tailored to the specific

requirements of countries

UNCTAD programme on NTM

• The entire value chain

Conceptualizing (classification; data selection)

Data collection (Identifying sources,

Classifying regulations, Quality control and data

cleaning)

Dissiminating data (making data

freely available)

Research and analysis

Providing support to

Policy Makerse.g. Regional

integration

Purposes of the NTM Data at UNCTAD

• For Transparency– To better understanding on the use of NTMs (what

types, where, on what)– To contribute to raise awareness/importance of

NTMs – To show deficiencies in notification mechanisms

• For Research– Quantification of the effects of NTMs

• For Policy– Ultimately to inform the policymaking process

4datainformation

knowledge

wisdom

Transparency needed …

• Need for systematic mapping and comparable data

• Data collected by UNCTAD since early 1980s but substantial improvements required to keep up with the increasing complexity of and need for NTM data

• Expert meeting 2005– Methodology, classification, quantification and impact on

development on NTM

• Set up of Group of Eminent Persons– MAST (Multi-Agency Support Team)

in charge of technical work• FAO, IMF, ITC, OECD, UNIDO, UNCTAD, WB y WTO

… led to a new approach

• Pilot Project (2007-2009)– Test data collection method and validate classification– Brazil, Chile, Philippines, India, Thailand, Tunisia, Uganda

• Agreed classification SPS, TBT, …, Export restrictions

• Official NTM data are collected jointly with partners - International effort coordinated by UNCTAD

NTM classification: Which data are collected? A way to better understand the phenomenon

A SPS

B TBT

C Pre-shipment clearance and other formalities

D Price control

E Licenses, quotas, prohibition & other quantity control m.

F Charges, taxes and other para-tariff measures

G Finance

H Anti-competitive

I Trade-related Investment

P Export-related Measures

J Distribution Restrictions

K Post-Sales Services

L Subsidies

M Government Procurement

N Intellectual Property

O Rules Of Origin

Technical Measures

Impo

rt m

easu

res

Non-Technical Measures

Exp

ort

mea

sure

s

CLASSIFICATION ADOPTED by UNCTAD, ITC and WTO

MAST Members:FAOIMFITCOECDUNCTAD UNIDOWorld BankWTO

Suited for:TRANSPARENCY ANALYSISCOLLECTION

Contingent trade protective measures

Transparency in Trade

www.tntdata.org

• OBJECTIVEProvide free access to the trade and trade policy data– Increase transparency– Facilitate research and analysis– Improve awareness– Create capacity building by Incentivize self sustaining data

reportingSupport by Russia

Three types of data Not to be mixed or mistaken

• 1. "Official Measures"

• Requirements enacted within a legal text or regulation issued officially by a country.

(Notifications to WTO)

• 2. Survey data

• Complaints from exporters Could be compiled by governments

• 3. Voluntary

• Private standards or international std

How is data collected?

Regulation 1Regulation 1 Measure 1 Countries Affected

Products Affected

Objectives mentioned

Measure 2 Countries Affected

Products Affected

Objectives mentioned

Measure 3 Countries Affected

Products Affected

Objectives mentioned

Regulation

Measure

Law, decree, etc. issued officially by a government

One official regulation could bear several NTM

Examples

• One prod per country

Part 2country ntminitial.year

initial.month

regulation hs6tv 1000

Usd

European Union A120 Geographical restrictions on eligibility 2009 10Health control of products of animal origin for human

consumption. (Doc: 'heaahc'2013000 1,181,140

European Union A210Tolerance limits for residues of or

contamination by certain substances2009 10

Health control of products of animal origin for human consumption. (Doc: 'heaahc'

2013000 1,181,140

European Union A400 Hygienic requirements 2009 10Health control of products of animal origin for human

consumption. (Doc: 'heaahc'2013000 1,181,140

European Union A630 Food and feed processing 2009 10Health control of products of animal origin for human

consumption. (Doc: 'heaahc'2013000 1,181,140

European Union A700 Regulation of foods or feeds derived from 2009 10Health control of products of animal origin for human

consumption. (Doc: 'heaahc'2013000 1,181,140

European Union A830 Certification requirement 2009 10Health control of products of animal origin for human

consumption. (Doc: 'heaahc'2013000 1,181,140

European Union A840 Inspection requirement 2009 10Health control of products of animal origin for human

consumption. (Doc: 'heaahc'2013000 1,181,140

European Union A850 Traceability information requirements 2009 10Health control of products of animal origin for human

consumption. (Doc: 'heaahc'2013000 1,181,140

European Union B310 Labelling requirements 2009 10Health control of products of animal origin for human

consumption. (Doc: 'heaahc'2013000 1,181,140

European Union E100 Non-automatic licence 2009 10 Import licence for agricultural products. (Doc: 'trdagric' 2013000 1,181,140 European Union G110 Advance import deposit 2009 10 Import licence for agricultural products. (Doc: 'trdagric' 2013000 1,181,140 European Union A310 Labelling requirements 2009 10 Labelling for foodstuffs. (Doc: 'lblfood' 2013000 1,181,140 European Union A700 Regulation of foods or feeds derived from 2009 10 Labelling for foodstuffs. (Doc: 'lblfood' 2013000 1,181,140 European Union B310 Labelling requirements 2009 10 Labelling for foodstuffs. (Doc: 'lblfood' 2013000 1,181,140 European Union B140 Authorization requirement for TBT reasons 2009 10 Products from organic production. (Doc: 'sporgan' 2013000 1,181,140 European Union B310 Labelling requirements 2009 10 Products from organic production. (Doc: 'sporgan' 2013000 1,181,140

Japan A110 Temporary geographic prohibition for SPS 2005 10 Domestic Animal Infectious Disease Control Law 20329010 3,119,261 Japan A140 Special Authorization for SPS reasons 2005 10 Domestic Animal Infectious Disease Control Law 20329010 3,119,261

Japan A190Prohibitions or restrictions of products or substances because of SPS reasons n.e.s.

2005 10 Domestic Animal Infectious Disease Control Law 20329010 3,119,261

Japan A640 Storage and transport conditions 2005 10 Domestic Animal Infectious Disease Control Law 20329010 3,119,261 Japan A830 Certification requirement 2005 10 Domestic Animal Infectious Disease Control Law 20329010 3,119,261 Japan A840 Inspection requirement 2005 10 Domestic Animal Infectious Disease Control Law 20329010 3,119,261 Japan A890 Conformity assessment related to SPS n.e.s. 2005 10 Domestic Animal Infectious Disease Control Law 20329010 3,119,261 Japan A110 Temporary geographic prohibition for SPS 2009 6 Food Sanitation Law 20329010 3,119,261

Japan A210Tolerance limits for residues of or

contamination by certain substances 2009 6 Food Sanitation Law 20329010 3,119,261

Japan A220Restricted use of certain substances in foods

and feeds2009 6 Food Sanitation Law 20329010 3,119,261

Japan A310 Labelling requirements 2009 6 Food Sanitation Law 20329010 3,119,261 Japan A630 Food and feed processing 2009 6 Food Sanitation Law 20329010 3,119,261 Japan A640 Storage and transport conditions 2009 6 Food Sanitation Law 20329010 3,119,261 Japan A820 Testing requirement 2009 6 Food Sanitation Law 20329010 3,119,261 Japan A830 Certification requirement 2009 6 Food Sanitation Law 20329010 3,119,261 Japan D600 Safeguard duties 2009 3 20329010 3,119,261

Mauritius A140 Landing Permit 1925 Animal Disease Act (Ministry Agro Industry, Food) 2044300 11,304 Mauritius A130 Pre-Market Approval Certificate 1998 Food Act (Ministry of Health and Quality of Life) 2044300 11,304 Mauritius A150 Food & Drugs Permit 1998 Food Act (Ministry of Health and Quality of Life) 2044300 11,304

Data Availability

(more countries in the pipeline)

Latin America and the Caribbean

North America

Europe and Central Asia

Middle East and North Africa

Sub-Saharan Africa

South Asia

East-Asia and the Pacific

Argentina E.U. Egypt Burkina Faso Afghanistan China

Bolivia   Kazakhstan Lebanon Cote d’Ivoire India Japan

Brazil     Morocco Guinea Nepal Lao PDR

Chile     Tunisia Madagascar Pakistan  

Colombia       Mauritius Sri Lanka  

Costa Rica     Namibia    

Cuba       Senegal    

Ecuador       Tanzania    

Mexico            

Paraguay            

Peru            

Uruguay            Venezuela          

12

How to access data

http://wits.worldbank.org/wits/

Historical data

How do NTM affect trade

• No information on restrictiveness of measures, or which country is more protective– Frequency index or coverage data do not say how

restrictive is a measure

• Still, even without a complete, exhaustive, detailed and comparable across countries and products database is very difficult to say anything– This demand for information has driven the TNT

project

What analysis can be made

• Based on existing data– Compare through time, across products or countries

• Look for external data to complement some cases– e.g. Assess certification burden or cost for a

product across countries (combo of NTM+HS6)

• Match with trade flows– To assess the impact using econometrics, general

or partial equilibrium models

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Addressing NTBs: Example Doha Round NAMA negotiations

• Facilitation of solutions on NTBs (horizontal)• Electronics• Automotive products• Chemical & substances • Textiles, clothing, footwear & travel goods• Forestry products in building construction• Remanufactured goods • Fireworks / lighter products • Unilateral trade measures • Export taxes / export licensing

(Vertical)

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TBT Agreement

• Technical regulation, standards & conformity assess.

• Transparency• Non-discrimination (MFN/NT)• Necessity test – legitimate objectives & risks

– National security, deceptive practices, human, animal, plant life safety or health, environment

• Harmonization – International standards – TR “based on” IS = Rebuttable presumption– Body unspecified (<> SPS)

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Example: Electronics - Electrical safety & EMC (EU/CH)

• Objective - Increased use of suppliers’ declaration of conformity (SDoC) for low-risk ICT & consumer electronics

• ISO/IEC/ITU as relevant ISSBs >> harmonization of national TRs through regular review

• Greater choice of testing laboratories if required– Based on certain accreditation schemes (IECEE CB

etc) – No requirement for them to be in importers’

territories• Prohibit or discourage (list & reduce)

mandatory third-party certification

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(cont.) Electronics - Electrical safety & EMC (US)

• No a priori determination of ISSB (TBT Com Dec)

• Innovation / time-to-market important in the sector

• Enhanced transparency (>TBT)• Non-discrimination of CABs in accreditation• SDoC – to be based on relevant IS, may be

refused• Third-party certification allowed for

scheduled products