UNCTAD’s work on on Non-Tariff Barriers ( NTBs)

1. UNCTAD’s work on on Non-Tariff Barriers (NTBs) Session 1: Current situation of NTBs information Short courses for Permanent Missions in Geneva Friday 30 October 2009

2. Introduction • NTBs or NTMs? • UNCTAD uses the term NTMs • Difficult or impossible to assess whether a measure has protectionist intent or has discriminatory effects. • NTMs are defined as policy measures that have the effect of limiting trade with no implied judgment on their legitimacy. • NTBs are a subset of NTMs.

3. Presentation outline • Background • Overview of UNCTAD’s classification of NTMs • NTMs data collection • Sources of NTMs data • NTMs data in UNCTAD‘s TRAINS database

4. Background • UNCTAD work on NTMs goes back to early 1980s when a taxonomy of different types of NTMs was developed. • Effort led to the establishment of the UNCTAD Coding System of Trade Control Measures (TCMCS) in late 1980s, following several revisions • Collecting data using TCMCS began in 1988 • Data in the Trade Analysis and information System (TRAINS) database in 1992

5. Background • Disseminated through TRAINS CD-ROM between 1994 and 2001. • Since 2002 through the World Integrated Trade Solution (WITS) software. • TRAINS database contains NTM data on 102 countries (some on several years) from 1988 to 2008. • But only complete information until 2004

6. TCMCS overview • TCMCS identifies over 100 different types of NTMs at its most detailed level grouped in six broad categories. • NTMs divided into Core and non-Core measures • Core Measures: Measures intended to protect local producers. • Non-Core Measures: Measures intended to protect local consumers.

7. TCMCS overview Core NTMs Non-Core NTMs Price Control Measures Automatic Licensing Measures NTMs Finance Measures Monopolistic Measures Quantity Control Measures Technical Measures

8. TCMCS overview Price Control Measures Variables Charges Administrative pricing Voluntary export price restraint Antidumping measures Countervailing measures

9. TCMCS overview Transfer delays, Queuing Finance Measures Advance payments requirements Multiple exchange rates Restrictive official foreign exchange rate Regulations concerning terms of payment for imports

10. TCMCS overview Automatic Licensing Measures Automatic license Surrender requirements Import monitoring

11. TCMCS overview Enterprise specific restrictions Quantity Control Measures Non-Automatic licensing Quotas Prohibitions Export restraint arrangements

12. TCMCS overview Monopolistic Measures Single Channel for Imports Compulsory National Services

13. TCMCS overview Technical Measures Technical Regulations

14. Collection of NTMs data: Process • Compilation of sources • Reading and extracting relevant information from available sources • Computerized inventory of classified documents • Identification of affected products and measures • Writing of country notes • Using country notes for codification (HS code and NTM code) • Data Verification • Data transfer to TRAINS database

15. Collecting NTMs data • Several Sources are used to compile NTMs data. • Most sources are publicly available information • Tariff schedules • Government Publications • WTO Countries notifications • Other International/regional Organizations (IMF, ESCAP TISNET) • Specialized Institutions • German Foreign Trade Information Office (BFAI) • French International Trade Monitor (MOCI) • Institute for economic research (IFO) • British Business

16. Collecting NTMs data • Collaboration with Regional Organizations • Latin American Integration Association (ALADI) and Central American Secretariat for Economic Integration (SIECA) with Inter-American Development Bank • South Asian Association for Regional Cooperation (SAARC)

17. TCMCS coding system

18. TCMCS coding system

19. TCMCS coding system: country notes 5. AUTOMATIC LICENSING MEASURES Automatic licence 52.7 Prior surveillance for sensitive product categories Tunisia is a party to the Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (1988) under which it is required to establish and maintain a system to monitor international trade in substances mentioned in Tables I and II of the Convention.

20. Converting Country notes into files for TRAINS • Product(HS 2, 4, or 6 digit, or full national tariff line) • Measure Code (4-digit UNCTAD Coding system of Trade Control Measures) • Year(for NTM and Product code) • Date of introduction • Source of Information • Footnote (detailed measure and/or product description) • Affected Countries • Partial coverage indication

21. NTM data table 9. Start month 10. Partial coverage 11. Sources 12. Country List 13. Footnotes • 5. Product description • 6. NTM description • 7. NTM code • 8. Start Year • 1. Nomenclature • 2. Country Code • 3. Year • 4. Product Code

22. NTMs data in TRAINS: Structure

23. NTM data in TRAINS database • Raw data without additional computation • No frequency count • No quantification or AVEs • User can download the file and use it for analysis

24. Accessing TRAINS database • TRAINS database is currently accessible through the World Integrated Trade Solution (WITS) software. • WITS was developed by the World Bank in close collaboration with UNCTAD. • WITS gives access to major market access and trade databases. • WITS access: http://wits.worldbank.org/witsweb/Register/

25. Growing importance of Technical Measures as Barriers to Trade in the face of elimination of Core-Measures TRAINS: NTMs Current Trend

26. TRAINS: Evolution of NTM use by broad category

27. Types of NTMs applied by region

28. Analyzing TRAINS NTM data: Tunisia Example • Data compiled in 2002. • Data classified according to HS 1996 revision. • Out of 16,163 Tariff lines (HS10 digits), 11,533 are affected by at least one type of NTMs i.e 71% of Tariff lines in 2002. • In terms of HS-6 digit, 3566 HS codes out of 5113 (70%). • 88 chapters out of 96 chapters of the HS system (91%). • 26 distinct types of NTMs.

29. Tunisia NTMs: SOURCES • Foreign Agricultural Service/USA: Country Report 2000 (Food and Agricultural Import Regulations) USDA • German Institute for Economic Research (IFO) • Journal Officiel de la Republique Tunisienne (JORT) • French International Trade Monitor (MOCI) • United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (Nov. 1998) • WTO publications

30. Tunisia: NTMs Broad Categories:Frequency

31. Analyzing NTM data: Distribution of NTMs per HS chapter

32. NTM frequency

33. NTMs data in TRAINS: Limitations • Some Measures apply to all products without a clear justification.e.g. Automatic Licensing • Products can not be identified easily. Such products areindicated by an artificial code ‘000000’ • No end date indicated • Coverage in terms of measures/countries collected. • Outdated classification missing some very important new types of measures

34. NTM data in TRAINS: Limitations • Time series analysis not possible • Data not updated on regular basis (has not been updated regularly since 2004)

35. CONCLUSION • TRAINS is considered to be the most comprehensive database on NTMs today • NTMs data TRAINS is far from being perfect. • A lot needs to be done to improve the situation.

36. Additional Information • http://www.unctad-trains.org/ • http://wits.worldbank.org/witsweb/Register/ • samuel.munyaneza@unctad.org Thank you!