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The Issue with NTBs

The Challenge for Africa. Africa has been the beneficiary of market access either at MFN level or in the context of Preferential Trade Agreements (PTAs). However, it is on record that utilization rates of preferences are minimal owing to the restrictive nature of the NTBs.As beneficiaries of the p

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The Issue with NTBs

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    1. The Issue with NTBs As the demand for liberalization of tariff regime continues to reduce market protection, many countries are resorting to the use of NTBs to regulate import flows or for the purposes of guaranteeing health and safety of their consumers. 1

    2. The Challenge for Africa Africa has been the beneficiary of market access either at MFN level or in the context of Preferential Trade Agreements (PTAs). However, it is on record that utilization rates of preferences are minimal owing to the restrictive nature of the NTBs. As beneficiaries of the preferential schemes, NTBs are increasingly becoming one of the main market access concerns. It is crucial that they are addressed in the negotiations as whatever gains made through tariff concessions may be nullified by the incidences of this form of market access barriers. 2

    3. Summary of Key Proposals I. MINISTERIAL DECISION ON PROCEDURES FOR THE FACILITATION OF SOLUTIONS TO NON-TARIFF BARRIERS II. NEGOTIATING PROPOSAL ON NON-TARIFF BARRIERS IN THE CHEMICAL PRODUCTS AND SUBSTANCES SECTOR III. UNDERSTANDING ON THE INTERPRETATION OF THE AGREEMENT ON TECHNICAL BARRIERS TO TRADE AS APPLIED TO TRADE IN FIREWORKS IV. UNDERSTANDING ON THE INTERPRETATION OF THE AGREEMENT ON TECHNICAL BARRIERS TO TRADE AS APPLIED TO TRADE IN LIGHTER PRODUCTS V. DECISION ON THE ELIMINATION OF NON-TARIFF BARRIERS IMPOSED AS UNILATERAL TRADE MEASURES VI. UNDERSTANDING ON THE INTERPRETATION OF THE AGREEMENT ON TECHNICAL BARRIERS TO TRADE AS APPLIED TO TRADE IN ELECTRONICS VII. REVISED SUBMISSION ON EXPORT TAXES 3

    4. VIII. UNDERSTANDING ON THE INTERPRETATION OF THE AGREEMENT ON TECHNICAL BARRIERS TO TRADE WITH RESPECT TO THE LABELLING OF TEXTILES, CLOTHING, FOOTWEAR, AND TRAVEL GOODS IX. PROTOCOL ON TRANSPARENCY IN EXPORT LICENSING TO THE GENERAL AGREEMENT ON TARIFFS AND TRADE 1994 X. DECISION ON NON-TARIFF BARRIERS AFFECTING FORESTRY PRODUCTS USED IN BUILDING CONSTRUCTION XI. AGREEMENT ON NON-TARIFF BARRIERS PERTAINING TO THE ELECTRICAL SAFETY AND ELECTROMAGNETIC COMPATIBILITY (EMC) OF ELECTRONIC GOODS XII. MINISTERIAL DECISION ON TRADE IN REMANUFACTURED GOODS XIII. AUTOMOTIVE NTBS 4

    5. WORKSHOP ON WTO NAMA NEGOTIATIONS ON NON-TARIFF BARRIERS 12th-14th April 2010 Nairobi, Kenya 5

    6. 6 UNIDO�S ROLE IN ADDRESSING TRADE CONSTRAINTS Andrew EDEWA United Nations Industrial Development Organization (UNIDO)

    7. 7 UNIDO VISION & CORPORATE STRATEGY To reduce poverty in countries with developing or transition economies through sustainable industrial growth

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    9. UNIDO�s Trade Capacity Building Programme The technical ability of developing countries to produce competitive exportable products that comply with international standards is key to their successful participation in international trade UNIDO is one of the largest providers of trade related services, offering focused advice and integrated technical cooperation in the areas of competitiveness, industrial modernization and upgrading, Compliance with trade standards, testing methods and metrology. 9

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    12. KEY INTERVENTIONS NEEDED TO PROMOTE SUSTAINABLE DEVELOPMENT Capacity building in the public sector to ensure informed and timely trade-related policy making Strengthening the domestic private sector, improving competitiveness and the supply capability of enterprises Establishing/strengthening institutions/ infrastructure that are part of the enabling environment for effective trade participation Promoting consumer, environmental and health protection during the process of globalization 12

    13. No.13 These tools are based on accumulated expertise and knowledge of challenges and opportunities of developing countries in the process of integration in the MTS with regards to their: Supply-capacity; Ability to comply with growing market demands in terms of standards and conformity assessment; Capacity to access national, regional and international markets

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    17. No.17 We have established strategic partnerships with international standards, measurement, accreditation and research organizations, including: International Organization for Standardization (ISO), International Laboratory Accreditation Cooperation (ILAC), International Accreditation Forum (IAF), International Bureau of Weights and Measures (BIPM) and International Organization of Legal Metrology (OIML) World Associations of Industrial and Technological Research Associations WAITRO�� In addition, UNIDO is a founding member of the Joint Committee on Coordination of Assistance to Developing Countries in Metrology, Accreditation and Standardization (JCDCMAS).

    20. Both the WTO TBT and Sanitary and Phytosanitary (SPS) Agreements rely upon the efficient functioning of the underlying technical infrastructure to support the system and the exchange of products worldwide. Many developing economies lack the institutional frameworks and the technical infrastructure and practices necessary to meet obligations of the Agreements. Discrepancy between the technical infrastructures of developed and developing economies present significant obstacles for the implementation of the Agreements. The WTO Doha Development Agenda recognizes technical cooperation and capacity building as integral elements of the development dimension of the multilateral trading system. Efforts to support the development of trade related capacity are key to ensuring that developing countries have the ability to implement obligations and exercise the rights of membership. Both the WTO TBT and Sanitary and Phytosanitary (SPS) Agreements rely upon the efficient functioning of the underlying technical infrastructure to support the system and the exchange of products worldwide. Many developing economies lack the institutional frameworks and the technical infrastructure and practices necessary to meet obligations of the Agreements. Discrepancy between the technical infrastructures of developed and developing economies present significant obstacles for the implementation of the Agreements. The WTO Doha Development Agenda recognizes technical cooperation and capacity building as integral elements of the development dimension of the multilateral trading system. Efforts to support the development of trade related capacity are key to ensuring that developing countries have the ability to implement obligations and exercise the rights of membership.

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    49. The Market linkage Challenge can be met provided we avoid the 7 Sins The sins are: �wealth without work, pleasure without conscience, knowledge without character, COMMERCE WITHOUT MORALITY, science without humanity, worship without sacrifice, and politics without principle�. M. Gandhi 49

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