Your SlideShare is downloading. ×
0
Introduction ITC's Market Analysis Tools and trade analysis
What is ITC? <ul><li>Mission </li></ul><ul><ul><li>ITC  enables small business export success in developing countries by p...
ITC activities One Micro, Small and Medium-Sized Exporters ITC Beneficiaries Export Impact for Good Generating sustainable...
ITC organisational chart
MAR activities I. Market Analysis Tools Trade Map Market Access Map Investment Map Trade Competitiveness Map Trade Competi...
Workshop objectives <ul><li>Understand some of the main trends in the current global trade environment </li></ul><ul><li>I...
Some trends... ...of the current trading environment
Trade is enormous... $13,700,000,000,000 Trade in goods in 2007 or $420,000 per second <ul><li>Globalization has accelerat...
...and it's more dynamic than the economy... World Trade vs. GDP Growth 1960-2007 Source: WTO
... but it's not immune to the downturn... Source: ITC Trade Map Annual Growth of Imports by Level of Development of Count...
...although downturn is not uniform... Source: WTO GDP and merchandise trade by region, 2005-07 Annual % change at constan...
... and 2009 will be a tough year World trade Developing country exports Source: World Bank, Global Economic Prospects 200...
Global trade patterns are changing... <ul><li>Trade flows within regions account for a higher share of world trade than fl...
...with developing countries gaining ground... Source: ITC analysis based on world trade statistics Share of Global Trade ...
...and &quot;south-south&quot; trade growing fast... Top 25 markets for developing countries Source: ITC Trade Map
… but mostly intra-region… $ 66bn  $ 50bn $ 45bn  $ 16bn  $ 6bn $ 12bn   $ 8bn   $ 109bn   $ 7bn  $ 10bn   $ 256bn   Intra...
The mix of products traded is changing... Source: ITC Trade Map Global trade by type of commodity % of total trade
... but not all sectors are equally successful  The best performing exports from developing country exporters tend to be m...
… partly due to commodities prices… Real prices of internationally traded commodity prices in developing countries CPI-def...
Trade in services grows quickly... Trade in Services as % of GDP 1975 – 2007 Source: World Development Indicators, World B...
...significantly due to FDI...  <ul><li>In spite of quick growth in traded value, over the past 30 years the share of serv...
… which is ever more important Source: World Development Indicators, World Bank FDI as % of World GDP 1985 – 2007
Market access issues are changing: <ul><li>Trade agreements proliferate... </li></ul>Source: WTO Number of Existing Trade ...
…  reducing tariffs… Applied MFN Tariffs, All Products, By Level of Income Source: World Trade Indicators, World Bank
…  and making NTMs more important NTM Frequency By Level of Income, 2001 Source: World Trade Indicators, World Bank
Business environment matters… Source: World Bank Doing Business Report 2009
...because it affects trade,  inter alia Source: World Trade Indicators 2008, World Bank
Register to access ITC’s Market Analysis Tools
Free to users from developing countries T hanks to financial contributions from ITC's Global Trust Fund and the World Bank...
 
 
Free to users from developing countries
Trade Map A web-based trade flow analysis tool
Introduction <ul><li>An exporter of pineapples is looking to diversify its client base…Which country should be targeted? <...
Trade Map <ul><li>Online application to produce reports on international trade flows </li></ul><ul><ul><li>Every product (...
Key  characteristics  <ul><li>Where does the data come from?  </li></ul><ul><ul><li>National Authorities </li></ul></ul><u...
Data classification <ul><li>The Harmonized System (HS)  </li></ul><ul><ul><li>Is used as a basis for the collection of Cus...
Data classification <ul><li>The  Harmonized System  ( HS ) </li></ul><ul><ul><li>Is a numerical classification system of p...
Data classification <ul><li>National Tariff Lines  ( NTL ) codes </li></ul><ul><ul><li>Classification of goods after the 6...
Data classification Australia   08.04.50 .00 Fresh or dried guavas,  mangoes  and mangosteens Japan 08.04.50 .01.1 Mangoes...
Market Access Map Information on tariffs and other market access conditions
Market Access <ul><li>Information on market access conditions allows exporters to:  </li></ul><ul><ul><li>Evaluate the com...
Types of tariffs <ul><li>Ad valorem  tariffs:   </li></ul><ul><ul><li>Levied on the basis of the value </li></ul></ul><ul>...
Ad valorem  tariffs E.g. Australian tariff of 5% on imported wine (22.04.21.20.70) Tariff per unit = Price * Rate <ul><li>...
Types of tariffs <ul><li>Ad valorem  tariffs:   </li></ul><ul><ul><li>Levied on the basis of the value </li></ul></ul><ul>...
Specific tariffs change relative prices E.g. Switzerland's tariff on beef of CHF18 / kilo (02.01.30)  Before border CHF3 /...
Types of tariffs <ul><li>Ad valorem  tariffs:   </li></ul><ul><ul><li>Levied on the basis of the value </li></ul></ul><ul>...
Compound tariffs <ul><li>Chocolate from  Switzerland: USD 6,356 / ton </li></ul><ul><li>Chocolate from  Brazil: USD 3,181 ...
Types of tariffs <ul><li>Mixed tariffs: </li></ul><ul><ul><li>Minimum or maximum of two kinds of tariffs </li></ul></ul><u...
Mixed tariffs <ul><li>Manolo Blahnik shoes: USD1,000 /pair </li></ul><ul><li>Clark's shoes: USD30 /pair </li></ul>Tariff: ...
Types of tariffs <ul><li>Mixed tariffs: </li></ul><ul><ul><li>Minimum or maximum of two kinds of tariffs </li></ul></ul><u...
Types of tariffs <ul><li>Mixed tariffs: </li></ul><ul><ul><li>minimum or maximum of two kinds of tariffs </li></ul></ul><u...
MAcMap includes  ad valorem  equivalents <ul><li>Ad Valorem  Equivalents – AVE: </li></ul><ul><ul><li>Are a common measure...
Common types of trade agreements <ul><li>Partial Scope Agreement : reduces trade restrictions between partner countries fo...
Proliferation of FTAs Source: World Trade Organization Number of Free Trade Agreements 1960 – 2007
EU existing trade regimes Australia Canada Hong Kong Japan New Zealand Singapore Taiwan Korea, Rep. Micronesia Belarus* Ch...
Implications <ul><li>Almost every country in the world is member to an ever increasing number of trade agreements </li></u...
Features of MAcMap <ul><li>Wide geographical coverage:  </li></ul><ul><ul><li>tariffs applied by 169 countries to the prod...
MAcMap: sources of data <ul><li>Market Access Map is continuously updated. Data is sourced from: </li></ul><ul><ul><li>App...
 
Investment Map For an improved identification of opportunities for FDI attraction
What is it? <ul><li>An interactive tool that combines statistics on FDI, international trade, tariffs and information on f...
Main features <ul><li>Integrates data on  </li></ul><ul><ul><li>FDI flows and stocks </li></ul></ul><ul><ul><li>Trade flow...
Geographic coverage <ul><li>Total FDI flows and stocks for around 80 countries and territories </li></ul><ul><li>FDI flows...
Sources of Data <ul><li>Foreign Direct Investment: UNCTAD and ITC </li></ul><ul><li>Trade data: Trade Map (ITC) </li></ul>...
Data limitations <ul><li>FDI </li></ul><ul><ul><li>International reporting practices (IMF BOPMV; OECD,2004) are not follow...
<ul><li>Different data classifications: </li></ul><ul><ul><li>FDI data cannot always be allocated accurately to a given in...
Measuring FDI <ul><li>FDI flows </li></ul><ul><li>Are the total amount of FDI undertaken over a given period of time (quar...
Measuring FDI <ul><li>FDI stocks </li></ul><ul><li>Are the total accumulated value of foreign-owned assets at a given time...
<ul><li>Stocks and flows are related over time: </li></ul><ul><ul><li>Stock t  = Stock t-1  + Flow t </li></ul></ul><ul><u...
<ul><li>Flows are named according to the OWNERSHIP or Origin of the money,  not  the direction of the flow: </li></ul><ul>...
Structure of tool <ul><li>Module 1: Identify industries for inward investment </li></ul><ul><ul><li>Foreign Direct Investm...
When in doubt...  http://www.intracen.org/MAT <ul><li>Contains: </li></ul><ul><li>Video tutorials </li></ul><ul><li>User g...
Workshop evaluation http://www. intracen .org/ mas / usersfeedback . htm And click on  Online Survey Or go directly to  ht...
Upcoming SlideShare
Loading in...5
×

Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

740

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
740
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
20
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • For the 2000-07 period, exports grew by 2.7 percentage points faster than real gross domestic product (GDP).
  • Comments: -Asia trades more within its region than with other regions -However, Africa, South and Central America, the Middle East and CIS regions trade more with other regions than within their regions
  • Under recession pressure, commodities (or stocks or bonds) move in cycles, with highs and lows coming at periodic intervals.
  • Regional and bilateral trade agreements have proliferated and the complexity of these agreements and multilateral negotiations has increased substantially
  • leaving non-tariff measures (NTMs) and other barriers as the major obstacles to trade
  • Example of a mixed tariff. If we face a mixed tariff where we pay the maximum of 10% or $2 then if we export cheese worth $100 /kg, then the tariff we’d pay would be $10. If the cheese were worth $10 /kg then instead of the 10% tariff, we’d pay the specific $2 tariff.
  • Example of a mixed tariff. If we face a mixed tariff where we pay the maximum of 10% or $2 then if we export cheese worth $100 /kg, then the tariff we’d pay would be $10. If the cheese were worth $10 /kg then instead of the 10% tariff, we’d pay the specific $2 tariff.
  • Example of a mixed tariff. If we face a mixed tariff where we pay the maximum of 10% or $2 then if we export cheese worth $100 /kg, then the tariff we’d pay would be $10. If the cheese were worth $10 /kg then instead of the 10% tariff, we’d pay the specific $2 tariff.
  • Imagine if you are trying to find out the tariffs that your country faces in the EU relative to your competitor countries. Well, here are all the countries in the world (except the 27 Member States of the EU). Some of them are members of the WTO and therefore get the MFN rate.   Some of them are developing countries. So they benefit from the Generalized System of Preferences (GSP), which is a non-reciprocal preference granted by the EU to developing countries. Within this framework some countries benefit of the General GSP, others of the GSP+ and least-developed countries (LDC) of the Everything But Arms (EBA) schemes. Under the GSP+ countries receive better preference than under the general GSP; in this framework countries part of the Andean Community –CAN (Bolivia, Colombia, Ecuador, Peru) and the Central American Common Market –CACM ( Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua) have preferential access to the EU market. LDCs are granted duty-quota-free to all products except arms and ammunitions (chapter 93 of the HS), and rice and sugar were special rules apply. In addition to that the EU grants bilateral and non-reciprocal preferences to another sub set of developing countries; preferences that are even more important than under the GSP+. Countries benefiting of these are Moldova, Serbia, Kosovo, Bosia and Montenegro (the last two also have a free trade agreement with the EU) In top of the above a sub set of GSP beneficiaries can also request preferential access under the interim EPA (European Partnership Agreement), signed after the expiration of the Cotonou Agreement (31 December 2007). Although EPA negotiations have take place with the different country groups part of the African Caribbean and Pacific (ACP) region, The agreement has only been signed by some countries.. For most countries the final EPA is still under negotiation. And then there are 7 countries that can decide to request preferences under the GSP or in the framework of bilateral trade agreements that they have sign with the EU under the umbrella of the Euro-Mediterranean Partnership. These countries are Morocco, Algeria, Tunisia, Egypt, Jordan, Lebanon and Syria. Other countries with which the EU has bilateral agreements and that are part of the Euro-Med are Israel, the Palestinian Authority, and Turkey t(he EU-Turkey is an agreement to become a custom union) Other countries having the possibility to request preferentuial access under a different regime than the GSP are México and South Africa. The countries have signed, individually, free trade agreements with the EU and are still part of the general GSP. Beside these agreements, and outside the framework of the GSP, the EU has bilateral trade agreement with Bosnia, Chile, Croatia, and many other countries. In the developed world, the EU has a free trade agreement with Switzerland and is an integral part of the European Economic Area which includes Norway, Iceland and Liechtenstein .   And that is just the EU and the systems of preferences. So imagine the complexity when we look to the whole world…
  • Transcript of "Slide 1 - UNCTAD Virtual Institute on Trade and Development ..."

    1. 1. Introduction ITC's Market Analysis Tools and trade analysis
    2. 2. What is ITC? <ul><li>Mission </li></ul><ul><ul><li>ITC enables small business export success in developing countries by providing, with partners, trade development solutions to the private sector, trade support institutions and policy-makers </li></ul></ul>The UN body for design of policy recommendations to achieve economic and social development through trade and investment. ITC works with local and regional institutions and businesspeople to promote exports and trade. The forum to negotiate multilateral trade rules, monitor their implementation and handle trade disputes
    3. 3. ITC activities One Micro, Small and Medium-Sized Exporters ITC Beneficiaries Export Impact for Good Generating sustainable incomes and livelihoods especially for poor households, by connecting enterprises to global markets ITC Development Outcomes Policy Makers Trade Support Institutions Business Community ITC Clients Business and Trade Policy Export Strategy Trade Intelligence Trade Support Institution Exporter Competitiveness Activities One Many
    4. 4. ITC organisational chart
    5. 5. MAR activities I. Market Analysis Tools Trade Map Market Access Map Investment Map Trade Competitiveness Map Trade Competitiveness Assessment Export Potential Assessment Export Opportunity Scan Sector Competitiveness Scan Customised analyses II. Tailored Analysis Introduction to Market Analysis Preparation of Market Profiles Training–of–Trainers Face-to-face and E-training III. Capacity Building and Training Mentoring for Tailored Analyses Customised training
    6. 6. Workshop objectives <ul><li>Understand some of the main trends in the current global trade environment </li></ul><ul><li>Introduce ITC's Market Analysis Tools and become knowledgeable in their use </li></ul><ul><li>Gain an insight into how these tools can facilitate trade analysis </li></ul>
    7. 7. Some trends... ...of the current trading environment
    8. 8. Trade is enormous... $13,700,000,000,000 Trade in goods in 2007 or $420,000 per second <ul><li>Globalization has accelerated over the last 20 years </li></ul><ul><li>The volume of trade as a percentage of global GDP has more than doubled since 1960 </li></ul>
    9. 9. ...and it's more dynamic than the economy... World Trade vs. GDP Growth 1960-2007 Source: WTO
    10. 10. ... but it's not immune to the downturn... Source: ITC Trade Map Annual Growth of Imports by Level of Development of Countries 2002-2007
    11. 11. ...although downturn is not uniform... Source: WTO GDP and merchandise trade by region, 2005-07 Annual % change at constant prices
    12. 12. ... and 2009 will be a tough year World trade Developing country exports Source: World Bank, Global Economic Prospects 2009 Growth of trade volumes Annual % change
    13. 13. Global trade patterns are changing... <ul><li>Trade flows within regions account for a higher share of world trade than flows between regions </li></ul><ul><li>Asia Pacific & EU trade more within the region </li></ul><ul><li>However many regions trade more with other regions than internally: Africa, South and Central America, Middle East and CIS </li></ul>
    14. 14. ...with developing countries gaining ground... Source: ITC analysis based on world trade statistics Share of Global Trade by Level of Development % of Total Trade
    15. 15. ...and &quot;south-south&quot; trade growing fast... Top 25 markets for developing countries Source: ITC Trade Map
    16. 16. … but mostly intra-region… $ 66bn $ 50bn $ 45bn $ 16bn $ 6bn $ 12bn $ 8bn $ 109bn $ 7bn $ 10bn $ 256bn Intra-Trade: $126bn or 6% of S-S Trade Latin America Intra-Trade: $62bn or 3% of S-S Trade Middle East and Arab Asia Pacific Intra-Trade: $ 1’121bn or 55% of S-S Trade $ 109bn Intra-Trade: $27 bn or 1% of S-S Trade Africa Source: ITC Total 2007 S-S Trade: $2’157 billion
    17. 17. The mix of products traded is changing... Source: ITC Trade Map Global trade by type of commodity % of total trade
    18. 18. ... but not all sectors are equally successful The best performing exports from developing country exporters tend to be manufactured products, as opposed to commodities Nickel and articles thereof Footwear, gaiters, parts thereof Coffee, tea, mate and spices Ships, boats Cocoa & cocoa preparations Toys, games, sports requisites Cereals Furniture, lighting, prefab buildings Raw hides, skins, leather Copper and articles thereof Edible fruits, nuts, melons Articles of iron and steel Edible vegetables, roots & tubers Organic chemicals Fish, crustaceans, mulluscs Plastics and articles thereof Other made textile articles, worn clothing Precision instruments Wood and art of wood, wood charcoal Machinery, boilers, etc. Cotton Electrical, electronic equipment Top export industries for struggling developing countries (but not from struggling developing countries) Top export industries for high-performance developing countries (but not from struggling developing countries)
    19. 19. … partly due to commodities prices… Real prices of internationally traded commodity prices in developing countries CPI-deflated Indices, Jan. 2000=100 Source:World Bank, Global Economic Prospects 2009 Food Metals and minerals Energy
    20. 20. Trade in services grows quickly... Trade in Services as % of GDP 1975 – 2007 Source: World Development Indicators, World Bank
    21. 21. ...significantly due to FDI... <ul><li>In spite of quick growth in traded value, over the past 30 years the share of services, excluding Mode 3 (commercial presence), in global trade has been quite stable around 20% </li></ul><ul><li>BUT , Mode 3 is not captured in current trade in services statistics </li></ul><ul><li>FDI data shows that more than half of FDI flows are in the services sector </li></ul><ul><li>FDI keeps on growing globally... </li></ul>
    22. 22. … which is ever more important Source: World Development Indicators, World Bank FDI as % of World GDP 1985 – 2007
    23. 23. Market access issues are changing: <ul><li>Trade agreements proliferate... </li></ul>Source: WTO Number of Existing Trade Agreements 1960 – 2007 All countries, all types of agreements
    24. 24. … reducing tariffs… Applied MFN Tariffs, All Products, By Level of Income Source: World Trade Indicators, World Bank
    25. 25. … and making NTMs more important NTM Frequency By Level of Income, 2001 Source: World Trade Indicators, World Bank
    26. 26. Business environment matters… Source: World Bank Doing Business Report 2009
    27. 27. ...because it affects trade, inter alia Source: World Trade Indicators 2008, World Bank
    28. 28. Register to access ITC’s Market Analysis Tools
    29. 29. Free to users from developing countries T hanks to financial contributions from ITC's Global Trust Fund and the World Bank, as of the 1st January 2008, all users from developing countries and territories may access ITC's market analysis tools free of charge. http://www.intracen.org/mat
    30. 32. Free to users from developing countries
    31. 33. Trade Map A web-based trade flow analysis tool
    32. 34. Introduction <ul><li>An exporter of pineapples is looking to diversify its client base…Which country should be targeted? </li></ul><ul><li>A shoe exporter needs an overview of trade barriers he/she would face for exports to Malaysia… </li></ul><ul><li>A trade mission needs to know our top export products to Germany… </li></ul><ul><li>Where could you import automotive components from? Who are the largest suppliers in your region? </li></ul><ul><li>What is the current trade between your country and the United States? </li></ul>Initial answers to these questions and many more are easily found in Trade Map
    33. 35. Trade Map <ul><li>Online application to produce reports on international trade flows </li></ul><ul><ul><li>Every product (HS-6) to and from (almost) every country </li></ul></ul><ul><li>Based on probably the largest trade flow database in the world </li></ul><ul><li>User-friendly interface, report-ready outputs </li></ul><ul><li>Flexibility for customising reports, analysis </li></ul><ul><li>Graphic presentation of outputs to facilitate analysis </li></ul>
    34. 36. Key characteristics <ul><li>Where does the data come from? </li></ul><ul><ul><li>National Authorities </li></ul></ul><ul><ul><li>COMTRADE , produced by the United Nations Statistics Division database </li></ul></ul><ul><li>What is Trade Map’s geographical coverage? </li></ul><ul><ul><li>Information for over 220 countries and territories using data reported by 160 countries and territories </li></ul></ul><ul><ul><li>Data for non-reporting countries is spawned from mirror statistics </li></ul></ul><ul><li>What is Trade Map’s product coverage? </li></ul><ul><ul><li>For the Harmonized System </li></ul></ul><ul><ul><ul><li>over 5,300 products at the 6 digit level </li></ul></ul></ul><ul><ul><li>For the National Tariff Line </li></ul></ul><ul><ul><ul><li>up to 30,000 products for 90 countries (~84% of world trade) </li></ul></ul></ul><ul><li>What is Trade Map’s time horizon? </li></ul><ul><ul><li>Yearly, quarterly and monthly data </li></ul></ul>
    35. 37. Data classification <ul><li>The Harmonized System (HS) </li></ul><ul><ul><li>Is used as a basis for the collection of Custom duties and international trade statistics by almost all countries, representing about 98% of world trade </li></ul></ul><ul><ul><li>Developed by the World Customs Organisation – WCO ( www.wcoomd.org ) </li></ul></ul><ul><ul><li>Implemented late 1980s. </li></ul></ul><ul><ul><li>Harmonised different existing nomenclatures </li></ul></ul><ul><ul><li>Adopted by almost all countries in the world </li></ul></ul><ul><ul><li>Basis for all trade conversations internationally </li></ul></ul><ul><ul><li>Main revisions in 1996 and 2007 </li></ul></ul>
    36. 38. Data classification <ul><li>The Harmonized System ( HS ) </li></ul><ul><ul><li>Is a numerical classification system of products used as a basis for international trade statistics by almost all countries. </li></ul></ul><ul><ul><li>is harmonized up to six digits ( HS-6 ) - You can compare HS data between countries. </li></ul></ul><ul><ul><li>Is broken down into 3 clusters: </li></ul></ul><ul><ul><ul><li>HS-2: the chapter of the good (sector) </li></ul></ul></ul><ul><ul><ul><ul><li>E.g. 09 = Coffee, Tea, Mate and Spices </li></ul></ul></ul></ul><ul><ul><ul><li>HS-4: groupings within the chapter (sub-sector) </li></ul></ul></ul><ul><ul><ul><ul><li>E.g. 0902 = Tea, whether or not flavoured </li></ul></ul></ul></ul><ul><ul><ul><li>HS-6: product(s) within the grouping (product level) </li></ul></ul></ul><ul><ul><ul><ul><li>E.g. 090210 = Green tea (not fermented) </li></ul></ul></ul></ul>HS-2 HS-4 HS-6 More and more specific
    37. 39. Data classification <ul><li>National Tariff Lines ( NTL ) codes </li></ul><ul><ul><li>Classification of goods after the 6 digit level of the Harmonized System classification. </li></ul></ul><ul><ul><li>National Tariff Lines go from 8 digits to 12 digits. </li></ul></ul><ul><li>Why use the HS and NTL classification? </li></ul><ul><ul><li>The HS classification is standardised internationally </li></ul></ul><ul><ul><li>The NTL classification is not standardised internationally . </li></ul></ul><ul><ul><li>Each country decides its own further classification after the Harmonized System. Hence, National Tariff Line codes can be different from a country to another. </li></ul></ul>More and more specific HS-2 HS-4 HS-6 NTL
    38. 40. Data classification Australia 08.04.50 .00 Fresh or dried guavas, mangoes and mangosteens Japan 08.04.50 .01.1 Mangoes , fresh 08.04.50 .01.9 Guavas and mangosteens, fresh United States: 08.04.50 .40.40 Mangoes , fresh, if entered during the period from September 1, in any year, to the following May 31, inclusive 08.04.50 .60.80 Guavas and mangosteens, fresh, if entered during the period from June 1 to August 31, of the following year, inclusive 08.04.50 .80.00 Guavas, mangoes and mangosteens, dried 08 Edible fruit and nuts; peel of citrus fruit or melons. 08.04 Dates, figs, pineapples, avocados, guavas, mangoes and mangosteens, fresh or dried. 08.04.50 Guavas, mangoes and mangosteens. HS ( International standard ) NTL ( NON standard )
    39. 41. Market Access Map Information on tariffs and other market access conditions
    40. 42. Market Access <ul><li>Information on market access conditions allows exporters to: </li></ul><ul><ul><li>Evaluate the competitiveness of the product relative to suppliers from other countries under different tariff schemes </li></ul></ul><ul><ul><li>Select markets/market segments in which the product has the best prospects </li></ul></ul><ul><ul><li>Adapt, where necessary, the product to conform to the target market’s import regulations </li></ul></ul>
    41. 43. Types of tariffs <ul><li>Ad valorem tariffs: </li></ul><ul><ul><li>Levied on the basis of the value </li></ul></ul><ul><ul><li>Used by most countries; more than 87% of tariffs worldwide are ad valorem </li></ul></ul>
    42. 44. Ad valorem tariffs E.g. Australian tariff of 5% on imported wine (22.04.21.20.70) Tariff per unit = Price * Rate <ul><li>New Zealand wine: </li></ul><ul><li>AUD 6 / litre </li></ul><ul><li>French wine: </li></ul><ul><li>AUD 8 / litre </li></ul>Tariff paid: AUD 0. 30 /litre Tariff paid: AUD 0. 40 /litre
    43. 45. Types of tariffs <ul><li>Ad valorem tariffs: </li></ul><ul><ul><li>Levied on the basis of the value </li></ul></ul><ul><ul><li>Used by most countries: more than 87% of tariffs worldwide are ad valorem </li></ul></ul><ul><li>Specific tariffs: </li></ul><ul><ul><li>Levied on the basis of volume or weight </li></ul></ul><ul><ul><li>Users of specific tariffs include (% of MFN tariff lines) : Switzerland (79.8%) , Thailand (21.9%) , Russia (12.2%) , Argentina (12.1%) , Belarus (11.9%) , USA (8.2%) , EU (4.6%) </li></ul></ul>
    44. 46. Specific tariffs change relative prices E.g. Switzerland's tariff on beef of CHF18 / kilo (02.01.30) Before border CHF3 / kg beef CHF12 / kg Argentine prime quality beef The prime beef is 4 times the price of the low quality beef, but also 4 times the quality After the border = 600% ad valorem equivalent CHF21 / kg regular beef CHF30 / kg Argentine prime quality beef The prime beef is now only 1.4 times the price of the low quality beef, but still 4 times the quality =150% ad valorem equivalent CHF18 specific tariff per kilo At border
    45. 47. Types of tariffs <ul><li>Ad valorem tariffs: </li></ul><ul><ul><li>Levied on the basis of the value </li></ul></ul><ul><ul><li>Used by most countries: more than 87% of tariffs worldwide are ad valorem </li></ul></ul><ul><li>Specific tariffs: </li></ul><ul><ul><li>Levied on the basis of volume or weight </li></ul></ul><ul><ul><li>Users of specific tariffs include (% of MFN tariff lines) : Switzerland (79.8%) , Thailand (21.9%) , Russia (12.2%) , Argentina (12.1%) , Belarus (11.9%) , USA (8.2%) , EU (4.6%) </li></ul></ul><ul><li>Combined tariffs: </li></ul><ul><ul><li>Contain both ad valorem and specific rates </li></ul></ul><ul><ul><li>Eg: 10% of the value + $2 per kilogram (Japan, EU, Canada) </li></ul></ul>
    46. 48. Compound tariffs <ul><li>Chocolate from Switzerland: USD 6,356 / ton </li></ul><ul><li>Chocolate from Brazil: USD 3,181 / ton </li></ul>Tariff: 4.3% Ad Valorem USD273 Tariff + USD528/ton Specific USD528 Tariff Tariff: 4.3% Ad Valorem USD137 Tariff + USD528/ton Specific USD528 Tariff E.g. USA tariff on chocolate of 4.3% and USD528 / ton (18.06.32.08) Tariff = USD801 AVE = 13% Tariff = USD665 AVE = 21%
    47. 49. Types of tariffs <ul><li>Mixed tariffs: </li></ul><ul><ul><li>Minimum or maximum of two kinds of tariffs </li></ul></ul><ul><ul><li>Eg: Min or Max (10%, $2/kg) (Canada, EU, Japan) </li></ul></ul>
    48. 50. Mixed tariffs <ul><li>Manolo Blahnik shoes: USD1,000 /pair </li></ul><ul><li>Clark's shoes: USD30 /pair </li></ul>Tariff: the maximum of 30% Ad Valorem USD300 Tariff Or JPY4,300/pair (USD36) Specific USD36 Tariff Tariff: the maximum of 30% Ad Valorem USD9 Tariff Or JPY4,300/pair (USD36) Specific USD36 Tariff e.g. Japanese tariff on shoes: Max. of 30% or JPY4,300 Yen / pair Tariff = USD36 AVE= 120% Tariff = USD300 AVE= 30%
    49. 51. Types of tariffs <ul><li>Mixed tariffs: </li></ul><ul><ul><li>Minimum or maximum of two kinds of tariffs </li></ul></ul><ul><ul><li>Eg: Min or Max (10%, $2/kg) (Canada, EU, Japan) </li></ul></ul><ul><li>Variable tariffs: </li></ul><ul><ul><li>Levied on the basis of the composition of the products </li></ul></ul><ul><ul><li>Eg: USD5/unit if lead content of paint > 2% on toys </li></ul></ul><ul><ul><li>USD200/unit on fridges if cooling system is not CFC-free </li></ul></ul>
    50. 52. Types of tariffs <ul><li>Mixed tariffs: </li></ul><ul><ul><li>minimum or maximum of two kinds of tariffs </li></ul></ul><ul><ul><li>Eg: Min or Max (10%, $2/kg) (Canada, EU, Japan) </li></ul></ul><ul><li>Variable tariffs: </li></ul><ul><ul><li>Levied on the basis of the composition of the products </li></ul></ul><ul><ul><li>Eg: USD5/unit if lead content of paint > 2% on toys </li></ul></ul><ul><ul><li>USD200/unit on fridges if cooling system is not CFC-free </li></ul></ul><ul><li>Tariff quotas: </li></ul><ul><ul><li>A two tiered tariff. A lower in-quota tariff is applied to the first Q units of imports and a higher over-quota tariff is applied to all subsequent imports. </li></ul></ul>
    51. 53. MAcMap includes ad valorem equivalents <ul><li>Ad Valorem Equivalents – AVE: </li></ul><ul><ul><li>Are a common measure of the effect of the different types of tariff on the product, as if they were all ad valorem . </li></ul></ul><ul><ul><li>Are calculated for specific, mixed, compound or variable tariffs and anti-dumping rates and countervailing duties </li></ul></ul><ul><ul><li>Are calculated by: </li></ul></ul><ul><li>AVE = Particular Tariff per Unit Unit Value </li></ul><ul><ul><li>Allow for regional or sectoral tariffs to be added and compared </li></ul></ul><ul><ul><li>Allow for comparison of effective levels of protection across countries. </li></ul></ul><ul><li>The total AVE is the sum of all individual ad valorem equivalents </li></ul>
    52. 54. Common types of trade agreements <ul><li>Partial Scope Agreement : reduces trade restrictions between partner countries for a few products </li></ul><ul><li>Free Trade Zone/Agreement/Area : eliminates trade barriers within the zone (FTA, RTA, etc.) </li></ul><ul><li>Customs Union : free trade zone + common external tariff </li></ul><ul><li>Common Market : customs union + free flow of factors of production within region (capital, labour) </li></ul><ul><li>Economic Union : unification/harmonization of economic policies: monetary policy, fiscal policy, regulatory regimes… </li></ul>
    53. 55. Proliferation of FTAs Source: World Trade Organization Number of Free Trade Agreements 1960 – 2007
    54. 56. EU existing trade regimes Australia Canada Hong Kong Japan New Zealand Singapore Taiwan Korea, Rep. Micronesia Belarus* China Iran Iraq Libya Palau Russia Tajikistan Turkmenistan Vietnam Yemen Uzbekistan Marshall Is. Nauru Brunei Kazakhstan Malaysia Mali Philippines Laos Afghanistan Nepal Bhutan Cambodia Maldives Myanmar* Bangladesh Congo Dem.Rep. Eq. Guinea Eritrea Ethiopia Kiribati Liberia Samoa Somalia Sudan Tonga Tuvalu Vanuatu Sao Tome Benin Burkina Faso Ctrl. Afr. Rep. Chad Congo Djibouti Gabon Gambia Guinea Guinea-Bissau Malawi Mauritania Nigeria Sierra Leone Togo Angola Bermuda Senegal Niger East Timor Greenland Montserrat Aruba Anguilla Gibraltar Niue Tokelau Cook Is. Norway Liechtenstein Iceland Macao Kyrgyzstan Indonesia Thailand United States Oman Qatar Kuwait Bahrain U.A.E Azerbaijan Guatemala Mongolia Armenia Georgia Pakistan Paraguay Sri Lanka India Costa Rica Nicaragua Honduras El Salvador Bolivia Venezuela Colombia Peru Ecuador Albania Croatia Andorra Moldova Serbia Kosovo Macedonia Montenegro Bosnia San Marino Saudi Arabia Cape Verde Ukraine Brazil Uruguay Argentina Cuba Panama Swaziland Namibia Botswana Lesotho Comoros Cameroon Mozambique Papua NG Madagascar Seychelles Mauritius Zambia Zimbabwe Ghana Fiji Burundi Kenya Tanzania Uganda Rwanda South Africa Mexico Israel Algeria Egypt Lebanon Morocco Syria Tunisia Jordan Palestine Chile Switzerland EAC East African Community EBA Everything but arms EEA European Economic Area SGP Sistema General de Preferecias Euro-Med Euro-Mediterranean Partnership * Belarus and Myanmar (LDC) are temporarily suspended from the GSP regime Guyana St. Kitts Dominican Rep. Antigua Belize Barbados Dominica Grenada Haiti Jamaica St. Lucia St. Vincent Trinidad Suriname Solomon Isl. Turkey Netherlands Antilles Antartica Am. Samoa Bouvet Is. Cocos Is. Cayman Is. N. Mariana Is. New Caledonia Norfolk Is. Christmas Is. Falkland Is. S. Sandwich Is. Guam McDonald Is. B.I.O.T. F. Polynesia St. Piere. Pitcairn St. Helena Turks Wallis Mayotte Bahamas Ivory Coast NMF OMC GSP Bilateral GSP+ EBA Euro-Med Interim EPA EU-CARIFORUM EEA Others non-reciprocal EU-EAC
    55. 57. Implications <ul><li>Almost every country in the world is member to an ever increasing number of trade agreements </li></ul><ul><li>Every trade agreement has its own rules of origin </li></ul><ul><li>It is difficult to keep up-to-date on what tariffs are applied and faced by your country and your competitor countries </li></ul><ul><li>It is confusing to understand what are the best conditions you face to access one specific market </li></ul><ul><li>It is key to have more clarity and transparency on what tariffs and rules of origin apply to specific products in specific markets </li></ul>
    56. 58. Features of MAcMap <ul><li>Wide geographical coverage: </li></ul><ul><ul><li>tariffs applied by 169 countries to the products exported by over 200 countries and territories </li></ul></ul><ul><li>Wide coverage of instruments: </li></ul><ul><ul><li>ad-valorem tariffs; specific tariffs; tariff quotas and antidumping duties </li></ul></ul><ul><li>Preferences: </li></ul><ul><ul><li>Covers most bilateral and regional agreements </li></ul></ul><ul><ul><li>Rules of Origin and Certificates of origin also included for most agreements </li></ul></ul><ul><li>Analytical flexibility: </li></ul><ul><ul><li>Permits any analysis: by region, by economic sector or by measure </li></ul></ul>
    57. 59. MAcMap: sources of data <ul><li>Market Access Map is continuously updated. Data is sourced from: </li></ul><ul><ul><li>Applied tariff data is collected by ITC directly from national customs institutions </li></ul></ul><ul><ul><li>Tariff quota data from WTO (agricultural notification of tariff quota) and national sources for bilateral and regional tariff quota agreements </li></ul></ul><ul><ul><li>Trade data from national sources, IDB (integrated database), WTO and the COMTRADE database of the United Nations Statistics Division (UNSD). </li></ul></ul>
    58. 61. Investment Map For an improved identification of opportunities for FDI attraction
    59. 62. What is it? <ul><li>An interactive tool that combines statistics on FDI, international trade, tariffs and information on foreign affiliates for better investment targeting and promotion </li></ul><ul><li>A joint undertaking </li></ul><ul><ul><li>Between the United Nations Conference on Trade and Development (UNCTAD) and the International Trade Centre (UNCTAD/WTO) </li></ul></ul><ul><ul><li>In partnership with: </li></ul></ul><ul><ul><ul><li>Multilateral Investment Guarantee Agency (MIGA) </li></ul></ul></ul><ul><ul><ul><li>World Association of Investment Promotion Agencies (WAIPA) </li></ul></ul></ul>
    60. 63. Main features <ul><li>Integrates data on </li></ul><ul><ul><li>FDI flows and stocks </li></ul></ul><ul><ul><li>Trade flows </li></ul></ul><ul><ul><li>Tariffs </li></ul></ul><ul><ul><li>Information on activities of foreign affiliates in developing countries </li></ul></ul><ul><li>Presents data and analyses in multi-functional dimensions and graphs </li></ul><ul><li>Links to other related resources: </li></ul><ul><ul><li>UNCTAD World Investment Directory and Investment Compass </li></ul></ul><ul><ul><li>World Bank and third party indicators on business environment </li></ul></ul><ul><ul><li>World Bank privatisation database </li></ul></ul>
    61. 64. Geographic coverage <ul><li>Total FDI flows and stocks for around 80 countries and territories </li></ul><ul><li>FDI flows and stocks partially classified by up to 150 industries (ISIC rev 3) </li></ul><ul><ul><li>covering goods and services in approximately 60 developing and transition economies </li></ul></ul><ul><li>Trade and tariff data covering over 180 countries and territories </li></ul><ul><li>Information on the location, sales, employment and parent company for around 74,000 foreign affiliates in developing countries </li></ul>
    62. 65. Sources of Data <ul><li>Foreign Direct Investment: UNCTAD and ITC </li></ul><ul><li>Trade data: Trade Map (ITC) </li></ul><ul><li>Tariffs: Market Access Map (ITC) </li></ul><ul><li>Activities on Foreign Affiliates: Dun & Bradstreet Database </li></ul>
    63. 66. Data limitations <ul><li>FDI </li></ul><ul><ul><li>International reporting practices (IMF BOPMV; OECD,2004) are not followed uniformly </li></ul></ul><ul><ul><li>Countries that report often do so with considerable time lag </li></ul></ul><ul><ul><li>FDI data are affected by: </li></ul></ul><ul><ul><ul><li>Identification of ultimate owner </li></ul></ul></ul><ul><ul><ul><li>Valuation problems of FDI stocks </li></ul></ul></ul><ul><ul><ul><li>Round-tripped investment and transhipped investment </li></ul></ul></ul><ul><li>Foreign affiliates </li></ul><ul><ul><li>Data on foreign affiliates vary from country to country </li></ul></ul><ul><ul><li>Data available ONLY for developing countries </li></ul></ul><ul><ul><li>Dependant on quality of business registration information </li></ul></ul>
    64. 67. <ul><li>Different data classifications: </li></ul><ul><ul><li>FDI data cannot always be allocated accurately to a given industry or a given country </li></ul></ul><ul><ul><ul><li>Investment flows may fall under multiple activities </li></ul></ul></ul><ul><ul><li>Foreign affiliates are based on the United States nomenclature, US SIC87. </li></ul></ul><ul><ul><li>Its conversion to the ISIC nomenclature can only be approximative </li></ul></ul><ul><ul><li>Trade data (HS 6 digit level) are converted into the ISIC classification. </li></ul></ul>Data limitations
    65. 68. Measuring FDI <ul><li>FDI flows </li></ul><ul><li>Are the total amount of FDI undertaken over a given period of time (quarter, year), and they comprise: </li></ul><ul><ul><li>Net sales of shares with the parent company (10% participation threshold) </li></ul></ul><ul><ul><li>Net intra-company loans (short- and long- term) with the parent company </li></ul></ul><ul><ul><li>Reinvested earnings of a foreign affiliate in the host country </li></ul></ul><ul><li>Sources: Central Banks and/or Statistical offices </li></ul>
    66. 69. Measuring FDI <ul><li>FDI stocks </li></ul><ul><li>Are the total accumulated value of foreign-owned assets at a given time, and they comprise: </li></ul><ul><ul><li>The value of the share of their capital and reserves belonging to foreign companies </li></ul></ul><ul><ul><li>The net indebtedness with the parent companies </li></ul></ul><ul><li>Sources: Balance sheets or enterprise surveys </li></ul>
    67. 70. <ul><li>Stocks and flows are related over time: </li></ul><ul><ul><li>Stock t = Stock t-1 + Flow t </li></ul></ul><ul><ul><li>Flow t = Stock t – Stock t-1 </li></ul></ul>Measuring FDI Flow Flow Stock
    68. 71. <ul><li>Flows are named according to the OWNERSHIP or Origin of the money, not the direction of the flow: </li></ul><ul><ul><li>IN flows = FOREIGN money </li></ul></ul><ul><ul><li>OUT flows = DOMESTIC money </li></ul></ul>Measuring FDI
    69. 72. Structure of tool <ul><li>Module 1: Identify industries for inward investment </li></ul><ul><ul><li>Foreign Direct Investment: e.g. inflows, stocks, changes, etc </li></ul></ul><ul><ul><li>Foreign affiliates: e.g. number of affiliates, number of employees, leading parent company and investor country, addresses, etc </li></ul></ul><ul><ul><li>International Trade: e.g. exports, imports, changes, etc </li></ul></ul><ul><ul><li>Tariffs: Maximum, minimum and average tariff faced and applied, etc </li></ul></ul><ul><li>Module 2: Identify competing locations </li></ul><ul><ul><li>Similar information for competing locations for a specific industry </li></ul></ul><ul><li>Module 3: Identify investor countries </li></ul><ul><ul><li>Similar information for the main investor countries for a specific industry </li></ul></ul><ul><li>Module 4: Analyse investor profile </li></ul><ul><ul><li>Similar information classified per industry for any specific investor country </li></ul></ul>
    70. 73. When in doubt... http://www.intracen.org/MAT <ul><li>Contains: </li></ul><ul><li>Video tutorials </li></ul><ul><li>User guides </li></ul><ul><li>FAQs </li></ul>
    71. 74. Workshop evaluation http://www. intracen .org/ mas / usersfeedback . htm And click on Online Survey Or go directly to http://www. intracen .org/eSurvey/survey. aspx ? surveyid =193
    1. A particular slide catching your eye?

      Clipping is a handy way to collect important slides you want to go back to later.

    ×