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Steps towards developing an FTA negotiating Plan for goods

Steps towards developing an FTA negotiating Plan for goods. Tamanna Chaturvedi Consultant Indian Institute of Foreign Trade New Delhi. The confusion begins… …..so many products..so many markets !!. Group A: Analyzing your Country’s position.

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Steps towards developing an FTA negotiating Plan for goods

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  1. Steps towards developing an FTA negotiating Plan for goods Tamanna Chaturvedi Consultant Indian Institute of Foreign Trade New Delhi

  2. The confusion begins… …..so many products..so many markets!!

  3. Group A: Analyzing your Country’s position • Identify the sectors of Export interest • Identify major ASEAN market for each product • Check out the consumer preference in the importing Country • At what price are you entering that market? • What import duty rates is your product facing in each of these markets? • What is the final landing price of your product in that market?

  4. Group B: Analyzing competition • Who are the other competing suppliers? • Are they WTO members? • Are they Developed/developing/LDC • Do they have any RTA with that Country? • What is the duty rate faced by your competing suppliers? • At what price is your competing supplier entering into that market? If for a particular product, your competing supplier in any ASEAN market is a WTO member and is an LDC, then you need to consider that product under Priority sector for tariff reduction. Since the benefit that your country gets as LDC, you will get under RTA.

  5. Group 3: Analyzing Import status • Identify 5 major sectors/products of Import interest to your country • From which ASEAN market are you importing? Since these are the sectors of import interest to your country, you will not require negotiating tariff duty reduction on these tariff lines with these markets.

  6. Exploring Intra EWEC Trade prospects Vietnam Thailand Myanmar Lao

  7. Identify 5 major sectors/products of Import surge in your country • What is the import duty that you have decided as of now for other ASEAN countries? • From which ASEAN market are you importing • What is the import growth from these markets for last five years? Note: For products where the import growth has been very high from the ASEAN markets, you will like to keep it in negative/sensitive list.

  8. Some additional tips

  9. Rice from Lao PDR Vietnamese Rice Thai rice Look for products in which you have Comparative advantage?

  10. ……….Current GI list from Vietnam PHAN THIET FISH SAUCE THANH HA LITCHI HAI HAU TAM XOAN RICE

  11. Thanh Ha Lychee from Hai Duong Province, Lai Vung Mandarin Orange from Dong Thap Province Hoa Loc Mango from Tien Giang Province. Mangosteen from Cai Mon Durian from Cai Mon Plum Hau from Bac Ha Grapefruit from Doan Hung Grapefruit from Canh Dien Grapefruit from Phuc Trach Longan Long from Hung Yen Litchi Thieu from Thanh Ha Sapodilla from Canh Dien Dragon fruit from Binh Thuan Vegetables from Dalat Perfumed rice Tam Thom (Xoan) from Hai Hau

  12. NPC as a competitive measure

  13. Where can I look for this information?

  14. www.trademap.org www.macmap.org www.aric.adb.org www.adb.org www.intracen.org www.standardsmap.org Centre for the Promotion of Imports from developing countries (CBI): www.cbi.nl CIA Factbookwww.odci.gov/cia/publications/factbook Country Watch www.countrywatch.com www.economist.com/countries

  15. First Step Find out the HS CODE of the products identified by you for your country/province?

  16. List of HS Code [2 digit level] • 01-05  Animal & Animal Products • 06-15  Vegetable Products • 16-24  Foodstuffs • 25-27  Mineral Products • 28-38  Chemicals & Allied Industries • 39-40  Plastics / Rubbers • 41-43  Raw Hides, Skins, Leather, & Furs • 44-49  Wood & Wood Products • 50-63  Textiles • 64-67  Footwear / Headgear • 68-71  Stone / Glass • 72-83  Metals • 84-85  Machinery / Electrical • 86-89  Transportation • 90-97  Miscellaneous • 98-99  Service

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