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NTB Proposals under NAMA Negotiations - An Overview -

NTB Proposals under NAMA Negotiations - An Overview -. ECA Workshop for the African Group on NTBs under NAMA Negotiations 12-14 April 2010 Taisuke ITO , UNCTAD. Outline. Economic significance for Africa Existing proposals (vertical TBT-related) Some issues for consideration.

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NTB Proposals under NAMA Negotiations - An Overview -

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  1. NTB Proposals under NAMA Negotiations- An Overview - ECA Workshop for the African Group on NTBs under NAMA Negotiations 12-14 April 2010 Taisuke ITO, UNCTAD

  2. Outline • Economic significance for Africa • Existing proposals (vertical TBT-related) • Some issues for consideration

  3. Existing NTB Proposals • 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)

  4. Significance of NTB sectors for AfricaShare of NTB sectors in total African non-ag imports, 2008 Source: TRAINS/WITS

  5. African import growth since 1995Evolution of African imports in proposed NTB setor, 1995-2008 (1995=100) Source: TRAINS/WITS

  6. Africa’s net-exports African trade balance by NTB sector as % of exports, 2008 Source: TRAINS/WITS

  7. Major import sources Source: TRAINS/WITS

  8. Significance for Africa's exportsShare of NTB sectors in total world non-ag imports from African, 2008 Source: TRAINS/WITS

  9. Growth in African exportsEvolution of African exports in proposed NTB setor, 1995-2008 (1995=100) Source: TRAINS/WITS

  10. Major importers from Africa (export markets)

  11. How do NTBs matter for exports? – NTM dataTotal counts of NTMs by HS chapter, Japan, 2009(Total 21554, av 2.9 per TL) Organic chemicals Fish Forestry Electronics Auto Chemicals Textiles etc Source: TRAINS/WITS

  12. NTM coverage rates 1 - Tariff line Share of TL subject to at least one NTM in total TL by HS Chapter by HS Chapter, Japan, 2009 Source: TRAINS/WITS

  13. NTM coverage rates 2 - African exportsShare of SSA imports subject to at least one NTM in total imports by HS chapter, Japan, 2009 Source: TRAINS/WITS

  14. Types of TBTShare of sub-categories in total TBT measures, Japan, 2009 Source: TRAINS/WITS

  15. When NTMs become NTBs.. • Lack of transparency & openness • Discriminatory treatment (remanufactured, forestry) • Overly stringent TR (chemicals, textile labeling) • Burdensome & duplicative conformity assessment procedures for low-risk products (auto, electro) • Non-recognition of international standards – diversity across jurisdictions (auto, electro)

  16. 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)

  17. 1. 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

  18. 1. 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

  19. 2. Automotives (EU) • Objective - One global set of international standards • 1958/1998 Agreements by WP29 UNECE • Harmonization of national TR with IS within 10 yrs • New technology or new features >> No undue delay • Scheduling national TRs with functional equivalence & mutual recognition as per IS • Promotion of plurilateral system of recognition of CA

  20. 2. Automotives (US) • No a priori determination of IS • ISSBs = as per TBT Com Dec, including membership openness to all WTO members & effectiveness & relevance (regulatory & market needs, scientific & tech developments) • TR to consider costs of compliance & (non) regulatory alternatives (market incentives et) • Expanded transparency requirements • No requirement for testing to be done in the territory & acceptance of third party certification if deemed

  21. 3. Chemical & substances (ARG/BRA) • Registration requirement(cf. EU REACH) • Cost & benefits - Other available (non) regulatory alternative • Costs are not an unnecessary, unreasonable or disproportional obstacle • Procedures are not excessively complex or constitute an unnecessary, unreasonable or disproportionate obstacle • Proportional to the risk • Negotiate MRAs on accreditation of laboratory • The impact on exporters to be considered

  22. 3. Chemical & substances (EU) • OECD (testing, data acceptance etc), UNSCE GHS (classification & labeling) & ISO as ISSB • Harmonize national TRs on GHS with IS by 2015 • Requirement on collection & registration of data to be permissible to meet legitimate objectives • Data registration also for chemicals in imported articles for release or with scientific evidence • Plurilateral system of mutual acceptance of data

  23. 4. Textiles, clothing, footwear, travel goods (EU, Mauritius, SLK, UKR, US) • Multiple/excessive labeling requirements & certification requirement unrelated to int’l stds • Rebuttable presumption of necessity • Fibre content, country of origin (T&C, travel goods) • Predominant materials of core parts, country of origin (footwear) • Rebutable presumption of unnecessary obstacle • Prohibition of the use of more than one language • Label pre-approval, registration & certification • No use of brand names • Permit any required info on non-permanent label

  24. Issues for consideration 1 • Existing trade pattern suggests uneven effects of possible NTB reforms for Africa: greater on imports, & auto, electronics & chemical • Implications of different approaches for domestic regulations >> Some proposals appear to require greater domestic regulatory adjustment than others • Can be opportunity to incorporate best practice but challenging given institutional constraints • Effective flexibilities & SDT deserve attention

  25. Issues for consideration 2 • Regulatory barriers encountered by exporters in existing & dynamic markets form the basis for offensive agenda • Surplus sectors (T&C, fish, forestry), growing sector or unaddressed area (SPS)? • Lessons to be drawn from other DCs like ARG/BRA on chemicals, Mauritius & Sri Lanka on textiles

  26. Thank You Contacts Taisuke Ito E-mail: taisuke.ito@unctad.org Tel: +41 22 917 4893 Fax: +41 22 917 0044

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