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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.
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CEFTA Conference on Transparency on Trade Policy and Measures - Means to Address Non-Tariff Measures –Sarajevo, 29 October 2013Transparency 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 Data collection (Identifying sources, Classifyingregulations, Quality control and data cleaning) Dissiminating data (making data freely available) Conceptualizing (classification; data selection) Providing support to Policy Makers e.g. Regional integration Research and analysis
Purposes of the NTM Data at UNCTAD wisdom knowledge data information • 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
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 MAST Members: FAO IMF ITC OECD UNCTAD UNIDO World Bank WTO Suited for: TRANSPARENCY ANALYSIS COLLECTION Contingent trade protective measures CLASSIFICATION ADOPTED by UNCTAD, ITC and WTO
Transparency in Trade www.tntdata.org • OBJECTIVE Provide 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 reporting Support 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? Products Affected Regulation 1 Measure 1 Countries Affected Objectives mentioned Products Affected Measure 2 Countries Affected Objectives mentioned Products Affected Measure 3 Countries Affected Objectives mentioned Regulation Law, decree, etc. issued officially by a government Measure One official regulation could bear several NTM
Examples Part 2 One prod per country
How to access data http://wits.worldbank.org/wits/
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
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)
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)
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
(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