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WITS World Integrated Trade Solution Training. Washington March 2004. Program. What is WITS and How to Access WITS for Trade Data Analysis WITS for Tariff data Analysis WITS Simulation Tools. Introduction What is WITS ?; Registration and installation; access to databases Trade Data

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Wits world integrated trade solution training

WITSWorld Integrated Trade SolutionTraining

Washington

March 2004


Program

Program

  • What is WITS and How to Access

  • WITS for Trade Data Analysis

  • WITS for Tariff data Analysis

  • WITS Simulation Tools


Wits world integrated trade solution training

  • Introduction

    • What is WITS ?; Registration and installation; access to databases

  • Trade Data

    • Quick and advanced queries, COMTRADE, TRAINS, IDB

  • Tariff data

    • Tariff statistics, WTO IDB and CTS, UNCTAD TRAINS


What is wits

The WITS

Software

UNSD

COMTRADE

WTO

IDB/CTS

UNCTAD

TRAINS

What is WITS?

WITS is a software, not a database,but it sits on databases.

Databases


Wits world integrated trade solution training

The WITS Technology

WITS is client-server based

Connected

via Internet

The WITSClient

Your computer

No data

The WITS Server

WB – HQ

Hosts the Databases


What is wits1

What is WITS?

The WITS software is both :

  • A gateway to trade and protection statistics

  • An analytical tool :

    • Data extraction and analysis

    • Tariff change simulations


Getting access to wits

Getting Access to WITS

Contractual arrangements


Getting access to wits1

Getting Access to WITS

A 3 step process:

  • Registration is required for first time users

  • Download and install the WITS client software on your machine

  • Connect to WITS server through Internet

    For all information and registration,

    visit our website at: http://wits.worldbank.org/witsweb


Wits information web site

WITS Information Web Site


Wits registration in details

WITS Registration in details

1. Type the WITS web site address in your Internet Explorer browser

2. Click on Registration to open the WITS registration home page


Wits registration in details1

WITS Registration in details

Click on the button to start the registration process


Wits registration in details2

WITS Registration in details

You must check the box to activate the Continue Registration button.


Wits registration in details3

WITS Registration in details

Fill all the fields and click the button to continue with the next registration page.

Use your professional email address rather than a personal one.


Wits registration in detail

WITS Registration in detail

Government

Government offices

Sponsored

Consultants for UNCTAD

or World Bank

Paid by Subscription

All others

New Form is under consideration


Wits registration in details4

WITS Registration in details

Your registration is completed.

Click on the link to close the registration window.


Wits registration in details5

WITS Registration in details

  • Your WITS account is opened immediately for governments and for others as soon as your sponsor confirms it or your payment is received.

  • You then receive a confirmation email with:

    • your password;

    • a link to download the WITS client software.


Wits overview

1

2

3

4

5

WITS Overview

The WITS home page internet address.

The WITS menu bar gives access to all functionalities through 5 menus.


Overview help and information

Overview: Help and information

  • The Help and Information menu gives access to information on:

    • Data availability for each database (4 catalogs)

    • Available product classifications (nomenclatures) and their structure

    • Concordances between classifications

    • WITS client software version (About us)

  • As well as direct access to:

    • WITS online help

    • WITS information website


Overview utilities

Overview: Utilities

  • The Utilities menu offers tools for advanced users:

    • Create country groups

    • Create product groups

    • Define tariff changes

    • Restore queries from server


Overview quick query

Overview: Quick Query

  • The Quick Database Query menu offers the easiest and quickest way for retrieving simple information from the databases

  • TheQuick Database Query menu proposes 8 different options:

    • 2 quick queries from COMTRADE

    • 3 quick queries from TRAINS

    • 3 quick queries from WTO databases

      • 2 from WTO IDB

      • 1 from WTO CTS


Overview advanced query

Overview: Advanced query

  • The Advanced Query menu offers flexibility to advanced users for:

    • Multi-country/period extractions of trade and tariff information mainly from COMTRADE, and TRAINS

    • Calculation of protection statistics

  • Advanced queries can be saved and reused


Overview analytical tools

Overview: Analytical tools

  • The Analytical tools menu offers two options:

    • The Doha proposals module allows users to simulate tariff cut proposals

    • The SMART simulation model allows users to estimate the partial equilibrium impact of tariff reductions for a single market at a time


Trade data

Trade data


Databases with trade data

Databases with trade data

  • Trade data is available in three databases:

    • COMTRADE

    • TRAINS

    • WTO IDB


Databases with trade data1

Databases with trade data

Trade data at a glance:

PROS

CONS

COMTRADE

Best country/period coverage (from 1962 in SITC and 1988 in HS);Imports and Exports (and Re-exports for some cases)

HS 6 digits at the most detailed level

TRAINS

Trade data at national tariff line level.

About 70 countries;Import flows only.

IDB

Trade data at national tariff line level.

About 70 countries only;Import flows only.


Data availability

Data availability

  • In Help & Information, open a catalog and look for availability of data you are interested in;

  • Information is displayed by country, year and product nomenclature.


Data availability comtrade catalog

Data availability: COMTRADE catalog

The catalog shows Country/Period data availability by Nomenclature/Revision.

  • Information box on codes used in the table:

  • I: imports

  • E: Exports

  • R: Re-exports

Use the vertical scroll bar to go through the countries, the horizontal one to go through the years.


Data availability other catalogs

Data availability: other catalogs

  • Information on data availability can be retrieved the same way for the TRAINS and IDB database catalogs.


A word on nomenclatures

A word on Nomenclatures

  • Trade data have been recorded according to several product nomenclatures depending on the database and year:

    • Standard International Trade Classification (SITC)

    • Harmonized Commodity Description and Coding System (HS)

  • Data can be displayed in some other nomenclatures thanks to concordances and up to HS 6 digit level.


Querying comtrade

Querying COMTRADE

  • Quick Query / COMTRADE by country, period generates output for all products for one reporter, one (or all) partner(s) and one year.


Comtrade by country period

COMTRADE by Country/Period

Query specification in details:

1. Select the desired nomenclature (product classification).


Comtrade by country period1

COMTRADE by Country/Period

Query specification in details:

2. Select the level (tier) of the products. In other words, how detailed you would like the system to display the data. The Tier structure depends on the chosen nomenclature.


Comtrade by country period2

COMTRADE by Country/Period

Query specification in details:

3. Select the trade flow.


Comtrade by country period3

COMTRADE by Country/Period

Query specification in details:

4. Select the Reporting Country, which means the one for which you want to display the type of flow you selected.


Comtrade by country period4

COMTRADE by Country/Period

Query specification in details:

5. Select the Year. WITS displays only the years for which data exist in COMTRADE.


Comtrade by country period5

COMTRADE by Country/Period

Query specification in details:

6. Select the Partner Country. You can choose either one individual country, World (one aggregated flow for all partners) or All Partners (one flow by partner country).


Comtrade by country period6

COMTRADE by Country/Period

Query specification in details:

7. Once the parameters are all set, click on View data to send the request to the WITS server and display the data.


Comtrade by country period7

COMTRADE by Country/Period

Data can be sorted for any field by clicking on column headings.

WITS indicates the number of lines retrieved from the database.


Comtrade by country period8

COMTRADE by Country/Period

Check the box to see a description of each product line.

Extracted data can be saved as a file and opened in a statistical or spreadsheet software for further computation.


Comtrade by product

COMTRADE by Product

  • Quick Query / COMTRADE by product produces output for one product for one or more years, reporters and partner countries.


Comtrade by product1

COMTRADE by Product

Query specification in details:

Choose Nomenclature, Tier and Flow type as seen in COMTRADE by Country/Period.


Comtrade by product2

COMTRADE by Product

Query specification in details:

Choose the Product category you want to display.

The level of details depends on the chosen Tier.


Comtrade by product3

COMTRADE by Product

Query specification in details:

Check the Years, Reporters and Partners you want. Note that you can select several items in each field

Once the parameters are all set, click on View data to send the request to the WITS server and display the data.


Comtrade by product4

COMTRADE by Product

WITS displays one line for each selected reporter having data matching your query.

Click on the plus sign to get detailed data for the corresponding country.


Comtrade by product5

COMTRADE by Product

WITS displays selected partners and trade value for a given product and reporter for each selected and available year.

Scroll down to see next selected reporter dataset.


Dealing with mirror data

Dealing with mirror data

  • When some data are missing, it can be useful to use partner’s mirror data (exports – imports) to fill gaps.

  • However, one has to be very careful because:

    • Of the FOB – CIF issue;

    • Of the difference in reporting quality when a country deals with imports and exports;

    • Of the difference in reporting quality from one country to another.

  • Example: Pakistan (exports)– China (imports) in 2001236 M US$557 M US$


Querying trains

Querying TRAINS

  • TRAINS – Trade, tariffs, NTBs produces output for the value of imports at the tariff line level (where available) for all partners, for a single product in a single year.

  • TRAINS – View and export raw data produces output for the value of imports at the tariff line level for all products, for a single year.

  • TRAINS - User criteria allows for retrieving all import lines above a user specified value.


Trains view export raw data

TRAINS – View & Export Raw Data

1. Select Tariff Line Imports as data type.


Trains view export raw data1

TRAINS – View & Export Raw Data

2. Select the reporting country (Reporter), Year and Partner.

Once the parameters are all set, click on View data to send the request to the WITS server and display the data.


Trains view export raw data2

TRAINS – View & Export Raw Data

Click on the column heading to sort by most traded products.

WITS displays the number of commodity lines for which USA imports from Pakistan.

The most imported product line.

Extracted data can be saved as a file and opened in a statistical or spreadsheet software for further computation.


Trains trade tariffs ntbs

TRAINS – Trade, Tariffs & NTBs

  • Let’s see who are Pakistan main competitors on the US market for product 61102020.

  • We’re going to query TRAINS using the Quick Query TRAINS – Trade, tariffs, NTBs to retrieve this information.


Trains trade tariffs ntbs1

TRAINS – Trade, Tariffs & NTBs

We select United States as for the Market, Year 2000, we keep the native Nomenclature (HS 1996) and select chapter 61 as for the Product category.

WITS looks for the product lines matching our parameters.


Trains trade tariffs ntbs2

TRAINS – Trade, Tariffs & NTBs

Once WITS has finished retrieving the lines, it indicates the number of matching lines. Scroll through the list of lines and select the one you want.


Trains trade tariffs ntbs3

TRAINS – Trade, Tariffs & NTBs

Click on the Imports tab to display trade value information.

Pakistan and its competitors are listed in decreasing trade value.


Querying idb

Querying IDB

  • WTO – Integrated database retrieves the value of imports of a product from one specific partner or from all partners for a given reporter in a given year.

  • WTO – View and export raw data retrieves the value of imports from all active partners for all products at the national tariff line level for a given country in a given year.


Trade advanced queries

TRADE : ADVANCED QUERIES

  • The Advanced Query is a more complex but more powerful and flexible tool for sophisticated queries :

    • Can retrieve trade for several years, partners and products with a single query;

    • Can retrieve aggregated trade for groups of countries or products;

  • The process goes through two steps :

    • The user defines, saves and submits his query

    • The server runs the query and notifies when results are ready.


Advanced query definition

Advanced Query Definition

  • In the Advanced Query menu, choose Query Definition to open the definition panel.


Advanced query definition1

Advanced Query Definition

Enter a Query Name, a Description, and select the Data Source.


Advanced query definition2

Advanced Query Definition

Once the Data Source has been selected, a set of folders appears on the top left side of the Query Definition window.

Those folders may vary depending on the chosen data source.


Advanced query definition3

Advanced Query Definition

{

Each and every folder has to be filled before you can save and submit your query.


Advanced query definition4

Advanced Query Definition

Selecting Reporters

Click on the Reporters folder. A selection box appears on the right.


Advanced query definition5

Advanced Query Definition

Selecting Reporters

Scroll down the Available markets list and click on Pakistan to select it as a reporter.

Pakistan is added to the list of Reporters.


Advanced query definition6

Advanced Query Definition

Selecting Reporters

If you want to remove items from your selection, you can either unselect them individually or use the Unselected All button to remove all and restart your selection from scratch.


Advanced query definition7

Advanced Query Definition

Selecting Products

Now, click on the Products folder. The product selection panel appears.

Advanced Query offers many possibilities for selecting Products.

To get results, you have to use nomenclatures available for the selected reporter(s).


Advanced query definition8

Advanced Query Definition

Selecting Products

First choose a Nomenclature.


Advanced query definition9

Advanced Query Definition

Let’s detail the Product Selection Panel.

Once a nomenclature is chosen, you can select products by combining Items, Clusters, Aggregates or using a Search tool.


Advanced query definition10

The Folder icon indicates that there are sub-categories available. Double-click on a folder to open it and display sub-categories.

The Item icon indicates that it’s the most detailed available category.

Check category and/or item boxes to select the corresponding level of details. WITS will return one line for each selected and available category/item.

Here division 33 and sub-group 3300 are selected.

Advanced Query Definition

Selecting Items


Advanced query definition11

Check a Cluster to select all categories for this level of details.

Advanced Query Definition

Selecting Clusters

Here the All 2-digit (Divisions) cluster is selected. WITS will return one line by Division category.

The Cluster selection is a shortcut for selecting many elements in one click.


Advanced query definition12

Advanced Query Definition

Selecting Aggregates

Check an Aggregate box to select all categories and items included in that aggregate. WITS comes with a set of pre-defined aggregates and users can create more aggregates that will be added to the list.

Here the Textiles aggregate is selected. WITS will return one line of information for each selected aggregate.


Advanced query definition13

Advanced Query Definition

The Products folder reflects our product selections.


Advanced query definition14

Advanced Query Definition

The selection can be modified at anytime by unchecking selected items and/or checking new ones. Here, several items have been removed and only the Textiles aggregate has been kept.


Advanced query definition15

Advanced Query Definition

Selecting Partners

Now, click on the Partner Countries folder. The selection panel appears. It is the same as the one we’ve seen for selecting Reporters.


Advanced query definition16

Advanced Query Definition

Selecting Partners

We select individual countries from Partner countries, and the EEC15 from the Partner Regions. Regions are group of countries that can be used either as a shortcut for selecting several individual countries at once or as an aggregate for all countries included in the group.


Advanced query definition17

Advanced Query Definition

Selecting Years

Select the Years folder and check the year(s) you want from the selection panel.


Advanced query definition18

Advanced Query Definition

Selecting Trade Flow

Select the Trade Flow folder and check the type(s) of flow you want from the selection panel.

Here we checked Gross Exports (Exports+Re-Exports)


Advanced query definition19

Advanced Query Definition

Let’s review our query:

We ask WITS to retrieve Pakistan gross exports of textiles to the 4 quad country group (USA, EU, Japan and Canada) in 2002.


Advanced query definition20

We have to Save the query before we can submit it.

We’ll be able to re-open it later for further use or adjustment.

Advanced Query Definition

Click OK to save your query using the Name and Description you gave at the beginning of the query definition.


Advanced query submission

The Breakdowns feature allows you to decide if you want a group of countries (reporters or partners) to be shown as an aggregate only (keep the boxes unchecked) or also as individual countries (check the boxes).

Advanced Query Submission

Click on Submit to send your query to the WITS server.

We check the Include partner country group breakdowns to see details for each individual country of the EU.

Click on OK to send your query to the WITS server.


Advanced query submission1

Advanced Query Submission

Click on OK to send your query to the WITS server.

After a few seconds, the WITS server confirms your submission by displaying this information window.


The query status panel

The Query Status Panel

  • The time required to complete your query and to receive the results depends on several factors:

    • The size of your query;

    • The quality of your internet connection;

    • The number and size of queries sent by other WITS users (first come first served principle).

  • Your query will take from a few seconds to several minutes to be operated by the WITS server.


The query status panel1

The Query Status Panel

Click on Status to check if your query has been completed and to access the results.

Each line of the table corresponds to a query. Each user sees only it’s own submitted queries.

This line corresponds to the query we’ve just submitted.

The empty View column indicates that results are not ready yet.

This is confirmed by the Running reference in the Status column.

When results are ready, a binocular is displayed in the View column and the Status column indicates Completed.


The query status panel2

Results are now ready, click on the binocular to display the Output Report of the corresponding query.

The Query Status Panel

The status update is done manually by clicking the Refresh button


Advanced query results

Advanced Query Results

The Results window displays data matching the query and available in the queried database. Here, we get results for both the 4 Quad country group as well as for individual countries belonging to that group (remember the partner breakdown check).


Tariffs and ntms in wits

Tariffs and NTMs in WITS


Tariffs and ntms in wits1

Tariffs and NTMs in WITS

  • 3 types of tariffs:

    • Bound tariffs (MFN by nature)

    • AppliedMFN tariffs

    • Preferential tariffs


Bound tariffs

Bound Tariffs

  • Bound tariffs are specific commitments made by individual WTO member governments;

  • The bound tariff is the maximum tariff level for a given commodity line;

  • A country may bind only part of its tariff structure: concept of binding coverage;


Applied mfn tariffs

MFN Applied

Applied MFN Tariffs

  • Tariffs actually applied to all imports except where preferences

  • Bound rate  Applied rate

  • No or little binding overhangfor most developed countries

  • Developing countries oftenhave binding overhang

Developedcountries

Developing

countries

Bound

Binding overhang concept


Examples of binding overhang

Examples of Binding Overhang

Simple averagesof non-agricultural MFN tariffs


Preferential tariffs

Preferential Tariffs

  • Preferential tariffs are granted to a subset of trading partners under some exception to the MFN principle

  • Preferences differ between partners and agreements: some countries have access to several preference schemes:

    • Example: ACP countries have access to both EBA and Cotonou preferences when exporting to the EU


Tariffs

Tariffs

  • The 3 types of tariffs may exist for the same commodity line. The bound should always be the highest tariff and the preferential the lowest one. The MFN applied should be somewhere in between:

ceiling

Bound

MFNApplied

Preferential

3 tariffs for a same product


Different forms of tariffs

Different forms of tariffs

  • Ad valorem tariffs (% of declared value)

  • Non ad valorem tariffs :

    • Specific tariffs ($/ton)

    • Mixed tariffs: specific + ad valorem

    • Compound tariffs: based on sugar or alcohol content, etc.

  • Non ad valorem tariffs are less transparent, more distortive and less stable.


Non tariff measures

Non Tariff Measures

UNCTAD Coding System for Trade Control Measures:

CODE

MEASURES

EXAMPLE

3

Price control

Minimum import prices

4

Finance

Advance payment of customs duties

5

Automatic licensing

Prior surveillance

6

Quantity control

Seasonal quotas

7

Monopolistic

Sole importing agency

8

Technical

Packaging requirements


Protection data in wits

Protection Data in WITS

Protection data is available attariff line level in 3 databases:

Note: Figures are numbers of countries


Querying trains1

Querying TRAINS

  • TRAINS – view and export raw data produces output on either MFN Applied or Preferential tariffs or Non Tariff Barriers for the whole tariff structure.

  • TRAINS – trade, tariffs, NTBs displays all protection related information (MFN Applied, Preferential, Non Tariff Barriers) for a chosen product at tariff line level.

  • TRAINS – user criteria allows searching for lines depending on user parameters. For example, one can search for MFN Applied tariffs above a specified value, or look for specific NTBs …


Trains view and export raw data

TRAINS - View and Export Raw Data

Select Tariff Schedule as Data Type, the Reporter you want and a Year


Trains view and export raw data1

TRAINS - View and Export Raw Data

Choose the Duty Code you want (the list is country/period dependant)

Click on View Data to retrieve matching data.


Trains view and export raw data2

TRAINS - View and Export Raw Data

WITS displays all lines matching the query (904 in this case).

Data can be saved for further use outside WITS.


Querying wto idb

Querying WTO IDB

  • Quick Query – WTO view and export raw data retrieves complete MFN applied tariff schedule at national tariff line level.

  • Quick Query – WTO Integrated Database displays MFN applied tariff for a specific product at tariff line level.


Querying cts

Querying CTS

  • WTO – CTS, view and export raw data returns bound tariffs for the whole tariff structure of one selected country, from chapter category to tariff line level.

  • Data can be sorted for any field by clicking on column headings.


Querying tariffs advanced queries

Querying Tariffs: Advanced queries

  • Information in TRAINS and WTO IDB can also be retrieved and usual statistics produced using the Advanced query. For example:

    • Tariffs for several years, partners and products can be retrieved with a single query;

    • Tariffs and trade can be aggregated for groups of countries or products;

    • Weighted averages of tariffs can be calculated


Advanced query for tariff data

Advanced Query for Tariff Data

  • The query definition for tariff data follows the same principles as for Trade data.

  • Let’s focus only on the differences and the Output Report.

  • For detailed information about defining a query, look at the slides on Advanced Query Definition in TRADE.


Advanced query definition21

Advanced Query Definition

Choose the tariff database (TRAINS or WTO) you want to query in Data Source. Enter a Query Name and a Query Description.

We select WTO IDB in this example.


Advanced query definition22

Once the query is fully defined :

Save it

and Submit it

Advanced Query Definition

The parameters to be defined are the same as for a trade query except for the Trade Flow folder which is missing here since it is not useful in the context of querying tariffs.

{


Advanced query submission2

Advanced Query Submission

1. The General tab.

Include non-traded products allows users to decide if they want tariff statistics like simple averages to be calculated using only effectively traded lines or the full tariff structure.

Click on OK to send your query to the WITS server.


Advanced query submission3

Choose Protection Data as for the Tariff Data Request Type.

Advanced Query Submission

2. Click the Tariff/GSIM tab to display the corresponding panel.

Check the Duty Types you want to be included in the report.

Check Use the latest available year if you want WITS to overwrite your selection or click on Change Year Baskets to check year availability for each chosen reporter.


Advanced query submission4

Advanced Query Submission

When you click on Change Year Baskets the window below opens:

WITS shows your selection as a column heading (2002) and displays data availability for each chosen reporter.

2002 tariff data are available for Indonesia in WTO IDB, but not for Colombia.


Advanced query submission5

Advanced Query Submission

Open the dropdown list and manually select a year in the list of available years for Colombia.

Or click on Adjust NA to give WITS a rule for automatically selecting an available year.


The query status panel3

when results are completed, click on the binocular to access the output report.

The Query Status Panel

Click on the Status button to open the Query Status window.


Advanced query results1

Advanced Query Results

The output report displays a set of usual statistics for each type of tariff like simple average …


Advanced query results2

Advanced Query Results

… (Trade) Weighted average, Minimum, Maximum and Number of tariff lines …


Advanced query results3

Advanced Query Results

… Peaks, Imports value and Binding coverage (bound tariffs) by selected reporter, partner and product categories.


Advanced query results4

Advanced Query Results

You can Save your report as it is or you can customize it by using the Alter View button


Output report customization

Output Report Customization

The Alter View window allows users to choose what to display in a report and how it has to be organized.

By default, WITS displays fields of information as separate columns in one table. Display can be customized to create one individual table for each distinct value of a field declared as Heading.


Output report customization1

Output Report Customization

Uncheck Reporter as a Column and check it as a Heading.

Scroll down the list and make Duty Type a Heading.

Fields to be removed from the report are unchecked (here Partner) and additional fields can be checked to be included.

Click Ok to confirm modifications


Customized output report

Customized Output Report

The Reporter and Duty Type fields are no more showed as columns, instead they appears as dropdown lists.

As a result, the table shows information for one reporter and one duty type at a time.


Customized output report1

Customized Output Report

The Reporter and Duty Type fields are no more shown as columns, instead they appear as dropdown lists.

As a result, the table shows information for one reporter and one duty type at a time.


Customized output report2

Customized Output Report

Shift from one duty type table to another one using the dropdown list…


Customized output report3

Customized Output Report

… To display the Bound table …


Customized output report4

Customized Output Report

… or to display the table for another reporter.


Session 3

Session 3

Monday, 2:30pm – 4:00pm

  • Exercises

    • Extraction of trade and tariff data from WITS


Exercise 1 trade data availability

Exercise 1: trade data availability

  • Look at trade data availability in the COMTRADE, TRAINS and IDB catalogs for your focus country:

    • What are the available databases, nomenclatures and years?


Wits world integrated trade solution training

Exercise 2: main import and export products

Using COMTRADE,HS 1996 nomenclature at 2 digits (Chapter level), World as partner:

Identify the main import products for your focus country apart from petroleum.

Identify the main export products for your focus country.


Wits world integrated trade solution training

Exercise 2: main import and export products

Hints:

  • Use Comtrade by country/period

  • World as partner

  • Click column heading to rank values


Exercise 3 main trading partners

Exercise 3: main trading partners

Using COMTRADE and the HS 1996 nomenclature at 2 digits (Chapter level):

  • Identify your focus country’s main suppliers?

  • Identify your focus country’s main export markets ?


Exercise 3 main trading partners1

Exercise 3: main trading partners

Hints:

  • Use Comtrade by product

  • Total all products as product

  • All partners as partner

  • Click column heading to rank values


Exercise 4 main trading partners

Exercise 4: main trading partners

Using the HS 1996 nomenclature at 2 digits (Chapter level):

  • Identify your focus country’s 3 main export products to its main export market ?

  • Identify your focus country’s 2 main competitors for each of these 3 products in its main export market ?


Exercise 4 main trading partners1

Exercise 4: main trading partners

Hints:

  • Use Comtrade – by country, period select exports, your country as reporter and choose the main export market as partner

  • Use Comtrade – by product, select imports and choose the main export market as reporter and the product you are interested in as product


Exercise 5 mirror statistics

Exercise 5: mirror statistics

  • Compare what your focus country reports as exports to USA with what’s reported bythe USA as imports from your focus country.


Exercise 5 mirror statistics1

Exercise 5: mirror statistics

Hints:

  • Use Comtrade by product


Wits world integrated trade solution training

Exercise 6: main exports to the EU

Using IDB, identify your focus country’s 10 main export products (defined at the line level) to the EU in 2001.

Using IDB, identify your country’s main competitors on the EU market for its main export product to the EU.


Wits world integrated trade solution training

Exercise 6: main exports to the EU

Hints:

Use WTO – View & Export Raw Data, Tariff line imports as data type, EU as reporter and your focus country as partner.

Use WTO – IDB, EU as reporter, 2001 as year, HS96 as nomenclature, and select your product.


Exercise 7 evolution of trade

Exercise 7: evolution of trade

  • Define and submit an advanced query using the proposed selections

  • Do not use the breakdown features when submitting

  • Open the Status window and display the Output Report when it is ready


Exercise 7 evolution of trade1

Exercise 7: evolution of trade


Wits world integrated trade solution training

Exercise 8 : applied tariffs

Identify duty types available in TRAINS for your focus country

Using TRAINS, identify the product (line) with the highest ad valorem MFN Applied tariff for your focus country.

Identify the number of lines for each duty type


Wits world integrated trade solution training

Exercise 8 : applied tariffs

Hints:

Use Trains – View and export raw data

Use Trains – View and export raw data.

Use Trains – View and export raw data.


Wits world integrated trade solution training

Exercise 9: applied tariffs

Using IDB, check the MFN tariff applied by your focus country on imports of vaccines for human medicine.

Using IDB, identify the products (lines) with the highest ad valorem MFN Applied tariff for your focus country.


Wits world integrated trade solution training

Exercise 9: applied tariffs

Hints:

Use WTO – IDB, look for HS 300220.

Use WTO – view and export raw data, rank


Exercise 10 bound tariffs

Exercise 10: Bound tariffs

  • Identify the number of Bound lines in your focus country’s tariff structure

  • Identify lines facing the highest bound tariffs.


Wits world integrated trade solution training

Exercise 10 : bound tariffs

Hints:

Use WTO – CTS view and export raw data

Use WTO – CTS view and export raw data


Exercise 11 tariff statistics

Exercise 11 : Tariff statistics

  • Define and submit a query using the selections proposed in the next slide

  • Include non traded products when submitting

  • Include all types of tariffs

  • Open the Status window and display the Output Report when it is ready


Exercise 11 tariff statistics1

Exercise 11: Tariff statistics


Session 5

Session 5

Tuesday, 9:00am – 11:00am

  • Simulation of the Doha proposals

    • NAMA proposals, defining the queries and interpreting the results

  • SMART Model

    • The model, results, limits


Wits analytical tools

WITS Analytical Tools

Doha Formulas

SMART Simulation


Analytical tools doha formulas

Analytical Tools: Doha Formulas

  • WTO Doha Proposals simulates the tariff reduction proposals submitted to the WTO’s Negotiating Group on Market Access.

  • Formulas apply only to Non Agricultural products.

  • Proposals only deal with Bound and MFN Applied tariffs.

  • WITS reproduces several tariff change proposals by implementing the full process for tariff reduction.


The tariff cut process

Bound Tariff

Applied Tariff

Tariff Base

Formula

New Bound Tariff

New Applied Tariff

The Tariff Cut Process

6 digit Aggregation

If new bound  current applied  new applied = new bound

If new bound > current applied  new applied = current applied


Example chairman s proposal

Example : Chairman’s proposal

Ta is the average of the base rate

B is a coefficient to be determined

Base: bound rate; two times the applied rate in 2001 or 5% if applied = 0 when unbound


Doha proposal query definition

Doha Proposal: Query Definition


Doha proposal importer selection

Doha Proposal: Importer Selection


Doha proposal partner selection

Doha Proposal: Partner Selection


Doha proposal product selection

Doha Proposal: Product Selection


Doha proposal product selection1

Doha Proposal: Product Selection


Doha proposal product selection2

Doha Proposal: Product Selection


Doha proposal formula selection

Doha Proposal: Formula Selection


Doha proposal formula selection1

Doha Proposal: Formula Selection


Doha proposal submission

Doha Proposal Submission

As for the Advanced Query, Save your query…

…Submit it to the WITS server …

… and click on Status to access the results of the cut.


Doha proposal query status

when results are completed, click on the binocular to access the output report.

Doha Proposal: Query Status


Doha proposal output reports

Doha Proposal: Output Reports

Choose a report to be displayed …


Doha proposal output reports1

Doha Proposal: Output Reports

… An Importer and a Duty Type


Doha proposal output reports2

Doha Proposal: Output Reports

Each row alternatively corresponds to a Pre or Post cut tariff value for a selected product category.


Doha proposal output reports3

Doha Proposal: Output Reports

Each report displays a set of usual statistics that helps to analyze the impact of the chosen cut proposal…


Doha proposal output reports4

Doha Proposal: Output Reports

… on Bound tariff …


Doha proposal output reports5

Doha Proposal: Output Reports

… on Bound tariff …


Doha proposal output reports6

Doha Proposal: Output Reports

… and MFN Applied …


Doha proposal output reports7

Doha Proposal: Output Reports

… and MFN Applied …


Doha proposal output reports8

Doha Proposal: Output Reports

… and MFN Applied …


Doha proposal output reports9

Doha Proposal: Output Reports

… and MFN Applied …


Doha proposal output reports10

Doha Proposal: Output Reports

WITS proposes an another kind of report called Exporter view


Doha proposal output reports11

Doha Proposal: Output Reports

The Exporter view report displays bilateral information between an importer and selected partners.


Doha proposal output reports12

Doha Proposal: Output Reports


Doha proposal output reports13

Doha Proposal: Output Reports

In this report, Pre and Post cut information are displayed in columns


Doha proposal output reports14

Doha Proposal: Output Reports

And shows % changes in statistics.

To be compared to a more than 50% decrease for the Bound.


Doha proposal output reports15

Doha Proposal: Output Reports


Doha proposal output reports16

Doha Proposal: Output Reports


Impact of chairman formula on pakistan bound tariffs all non agricultural products

Impact of chairman formula on Pakistan Bound tariffs: all non agricultural products

Binding coverage

Share of duty free

Simple average tariff

Weighted average tariff

Standard deviation

Share of items >15%

Share of items>3xAverage

Maximum

PRE CUT

28.5

0.00

40.87

14.07

14.26

90.03

0.00

100.0

P O S T C U T

Chairman

99.9

0.00

19.38

19.58

5.48

69.07

0.00

38.3

China

99.9

0.00

11.09

11.13

3.21

4.51

0.00

21.8

E.U.

99.9

0.00

9.46

9.80

3.60

0.00

0.00

15.0

India

100.0

0.00

79.12

76.40

33.22

96.01

0.00

166.3

Korea

99.9

0.00

17.57

17.50

7.25

69.19

0.00

42.5

U.S.A.

99.9

8.73

5.02

4.640

1.76

0.00

0.00

7.8


Wits world integrated trade solution training

Impact of chairman formula on Pakistan MFN Applied tariffs: all non agricultural products

Share of duty free

Simple average tariff

Weighted average tariff

Standard deviation

Share of items >15%

Share of items>3xAverage

Maximum

PRE CUT

0.00

19.85

20.14

12.52

57.09

0.59

250

P O S T C U T

Chairman

0.00

16.58

15.55

7.22

54.08

0.00

38.3

China

0.00

10.56

10.08

3.27

4.47

0.00

21.8

E.U.

0.00

8.74

8.45

3.1

0.00

0.00

15.0

India

0.00

19.07

19.00

11.38

54.91

0.65

166.3

Korea

0.00

15.64

14.26

7.47

55.40

0.00

42.5

U.S.A.

8.73

5.02

4.64

1.76

0

0

7.8


Analytical tools smart

Analytical Tools: SMART

  • SMART:

    • Simulates the partial equilibrium impact of a tariff reduction for a single market

    • Can’t easily capture the effects of a full round of tariff negotiations


Smart

SMART

  • A 3 step process:

    • Prepare or import data for simulation

    • Specify the simulation parameters

    • Review or update the data (optional)

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Smart example scenario

SMART: Example Scenario

  • Consider USA grants a free trade agreement (FTA) to El Salvador, Guatemala and Honduras on chapters 61 and 63 (Textile products)

  • Let’s look at the consequences on:

    • The beneficiaries exports to USA

    • The trade creation, tariff revenue and consumer surplus for USA

    • Pakistan exports to USA on these chapters


Smart dataset definition

SMART: Dataset Definition

Click on the button corresponding to Step 1 to define the dataset


Smart dataset definition1

SMART: Dataset Definition

Choose the importing market on which a tariff cut will be applied

Choose a year

Choose the product categories on which simulation will be applied.Output report will display information at the most detailed level (6 digits or Tariff line level)


Smart dataset definition2

SMART: Dataset Definition

Save the dataset. You can reuse it later to apply new cut parameters.


Smart dataset definition3

SMART: Dataset Definition

Step 1 is now completed as indicated by the checked box

We can now go for step 2 by clicking on this button


Smart simulation parameters

SMART: Simulation Parameters

Here we are going to specify tariff cut, affected products as well as beneficiaries


Smart simulation parameters1

SMART: Simulation Parameters

Here we are going to specify tariff cut, affected products as well as beneficiaries

Click on Specific countries to get access to the country selection panel and select beneficiary countries


Smart simulation parameters2

SMART: Simulation Parameters

Affected products can be either all previously selected products in the dataset or only part of them. Here we choose to apply the tariff cut to all.

Finally, we specify the cut type from the Custom rate adjustment panel.

Here, since we consider a FTA we fix the new rate at 0.

We next click on Apply to confirm the adjustment.

Click on Done when all parameters are set.


Smart simulation parameters3

SMART: Simulation Parameters

WITS acknowledges the parameter definition

Step 2 is now completed as indicated by the checked box

Click this button to display the data table (Step 3 is optional)


Smart review simulation data table

SMART: Review Simulation Data Table

This window allows to control that the parameters are properly set.

Here we can see that tariff for El Salvador is indeed cut to 0.


Smart the results

SMART: The Results

Results of the simulation are displayed using the View Options panel.


Smart the results1

SMART: The Results

  • Through a set of 5 output reports, WITS provides the following results:

    • Trade Total Effect composed of:

      • Trade Diversion Effect

      • Trade Creation Effect

    • Pre and Post Exports by Partner

    • Pre and Post cut average duty rate

    • Consumer Surplus (Welfare)

    • Tariff Revenue effect

    • Price effect only if one uses a non infinite Supply elasticity (infinite by default in SMART)


Smart comments

SMART: Comments

  • Preferential tariff reduction (free trade areas, customs unions, bilateral agreements) diverts trade away from countries not enjoying preferences

  • When most efficient producers are part of the FTA, preferences may, on balance, create new trade


Wits in a nutshell

WITS in a nutshell

  • Enormously powerful instrument for retrieving and analyzing data

    • much more data than we’ve ever had before

  • Great care needed in interpreting the meaning of the data and the analysis

    • These are complex areas

  • Helpful to trade negotiators, particularly in developing countries, as well as analysts

  • Further development to come

    • New databases to be included, including AVEs

    • More simulation tools to be released


More about wits

More about WITS ?

The WITS information web site at:

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


Session 6

Session 6

Tuesday, 11:15am – 12:45am

  • Exercises

    • Simulation of the Doha proposals

    • SMART Model


Doha proposals exercise

Doha Proposals: Exercise

  • Apply a formula of your choice on the following query using the Doha Proposal analytical tool:

    • Reporter : your focus country

    • Products : HS WTO Industrial and a Chapter of your choice (2 digits)

    • Partner : World


Smart exercise

SMART: Exercise

  • Consider Kenya grants the EU free access for imports of motor cars (8703)

  • Let’s look at the consequences on:

    • The EU’s exports to the US

    • Trade creation, tariff revenue and consumer surplus for Kenya

    • Japanese car exports to Kenya


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