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

Session 1:

Current situation of NTBs information

Short courses for Permanent Missions in GenevaFriday 30 October 2009

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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.

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Presentation outline

1. Background

2. Overview of UNCTAD’s classification of NTMs

3. NTMs data collection

4. Sources of NTMs data

5. NTMs data in UNCTAD‘s TRAINS database

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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

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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

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• 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.

TCMCS overview

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TCMCS overview

NTMs

Quantity

Control

Measures

Price Control

Measures

Monopolistic

Measures

Automatic

Licensing

MeasuresFinance

Measures

Technical

Measures

Non-Core NTMs Core NTMs

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TCMCS overview

Price Control Measures

Administrative

pricingVoluntary export

price restraintAntidumping

measures Countervailing

measures

Variables

Charges

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TCMCS overview

Finance Measures

Advance

payments

requirements

Multiple

exchange

rates

Restrictive

official foreign

exchange rate

Regulations

concerning

terms of payment

for imports

Transfer

delays,

Queuing

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TCMCS overviewAutomatic Licensing

Measures

Automatic

licenseImport

monitoring

Surrender

requirements

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TCMCS overview

Quantity Control

Measures

Non-Automatic

licensingQuotas

ProhibitionsExport restraint

arrangements

Enterprise

specific

restrictions

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TCMCS overviewMonopolistic

Measures

Single Channel

for Imports

Compulsory

National

Services

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TCMCS overviewTechnical

Measures

Technical

Regulations

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1. Compilation of sources2. Reading and extracting relevant information

from available sources3. Computerized inventory of classified

documents4. Identification of affected products and

measures5. Writing of country notes6. Using country notes for codification (HS

code and NTM code)7. Data Verification8. Data transfer to TRAINS database

Collection of NTMs data: Process

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• 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

Collecting NTMs data

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• 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)

Collecting NTMs data

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TCMCS coding system3000 PRICE CONTROL MEASURES

3100 ADMINISTRATIVE PRICING

3110 Minimum import prices

3190 Administrative pricing n.e.s.

3200 VOLUNTARY EXPORT PRICE RESTRAINT

3300 VARIABLE CHARGES

3310 Variable levies

3320 Variable components

3330 Compensatory elements

3340 Flexible import fees

3390 Variable charges n.e.s

3400 ANTIDUMPING MEASURES

3410 Antidumping investigations

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TCMCS coding system5000 AUTOMATIC LICENSING MEASURES

5100 AUTOMATIC LICENCE

5200 IMPORT MONITORING

5210 Retrospective surveillance

5220 Prior surveillance

5270 Prior surveillance for sensitive product categories

5700 SURRENDER REQUIREMENT

5900 AUTOMATIC LICENSING MEASURES N.E.S.

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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.

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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

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NTM data table

1 2 3 4 5 6 7 8 9 10 11 12 13

H1 788 2002 2938

Glycosides

Prior surveillance 5276 1988 11 *

H1 788 2002 2939

Vegetable alkaloids

Prior surveillance 5276 1988 11  

1. Nomenclature

2. Country Code

3. Year

4. Product Code

5. Product description

6. NTM description

7. NTM code

8. Start Year

9. Start month

10. Partial coverage

11. Sources

12. Country List

13. Footnotes

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NTMs data in TRAINS: Structure

Nom

enCode

Reporter_IS

O_N

Year

ProductC

ode

Pro

du

ctDescrip

tion

MeasureN

ame

NT

MC

ode

StartY

ear

StartM

onth

Partial C

overage

Sources

CountryList

FootN

otes

H1 788 2002 01039001  

Authorization for human health protection 6171 1997 12 *

IFO August 1999  

Products excluded from the liberalized import regime as per decree 97-2515 of 29.12.97

H1 788 2002 01039001  

Authorization to protect animal health 6172 1997 12 *

IFO August 1999  

Products excluded from the liberalized import regime as per decree 97-2515 of 29.12.97

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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

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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/

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TRAINS: NTMs Current Trend

• Growing importance of Technical Measures as Barriers to Trade in the face of elimination of Core-Measures

1994 (%) 2004 (%)

Core Measures 45 15

Non-core Measures 55 85

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TRAINS: Evolution of NTM use by broad category

TCM description 1994 (%) 2004 (%)

PRICE CONTROL MEASURES 7.1 1.8

FINANCE MEASURES 2.0 1.5

AUTOMATIC LICENSING MEASURES 2.8 1.7

QUANTITY CONTROL MEASURES 49.2 34.8

MONOPOLISTIC MEASURES 1.3 1.5

TECHNICAL MEASURES 31.9 58.5

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Types of NTMs applied by region

TCM description 1994 2004

Dvped (%)

Dping (%)

Dvped (%)

Dping (%)

PRICE CONTROL MEASURES 9.4 6.1 2.9 1.7FINANCE MEASURES 0.1 3.1 0.3 1.6AUTOMATIC LICENSING MEASURES

5.3 1.5 7.4 1.1

QUANTITY CONTROL MEASURES

45.8 53.1 34.7 35.2

MONOPOLISTIC MEASURES 1.1 1.4 0.7 1.6TECHNICAL MEASURES 21.9 34.4 50.0 58.6

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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.

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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

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Tunisia: NTMs Broad Categories:Frequency

84%

12%

4%0%

Technical Measures

Quantity Control Measures

Monopolistic Measures

Automatic Licensing Measures

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Analyzing NTM data: Distribution of NTMs per HS chapter

HS chapter ProductDescription Share

85 Electrical mchy equip parts thereof; sound record 11

22 Beverages, spirits and vinegar. 9

20 Prep of vegetable, fruit, nuts or other parts of 7

02 Meat and edible meat offal 7

29 Organic chemicals. 6

03 Fish & crustacean, mollusc & other aquatic invert 4

15 Animal/veg fats & oils & their cleavage products; 4

04 Dairy prod; birds' eggs; natural honey; edible pr 4

62 Art of apparel & clothing access, not knitted/cro 3

23 Residues & waste from the food indust; prepr ani 3

08 Edible fruit and nuts; peel of citrus fruit or me 3

16 Prep of meat, fish or crustaceans, molluscs etc 2

17 Sugars and sugar confectionery. 2

19 Prep.of cereal, flour, starch/milk; pastrycooks' 2

01 Live animals 2

61 Art of apparel & clothing access, knitted or croc 2

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NTM frequency

NTMCode MeasureName N Share

8111Product characteristics req. to protect human

health 14319 46%

8131 Labelling requirements to protect human health 2882 9%

8141 Packaging requirements to protect human health 2882 9%

6320 Suspension of issuance of licences 1816 6%

7110 State trading administration 1295 4%

8159 Testing, inspection etc. req. for purposes n.e.s. 1144 4%

8139 Labelling requirements for purposes n.e.s. 1144 4%

8153 Test, inspection and quarantine for plant health 681 2%

6376 Prohibition to control drug abuse 609 2%

8169 Information requirements for purposes n.e.s. 599 2%

8112 Prod characteristics req. to protect animal health 534 2%

8151 Test, inspection and quarantine for human health 497 2%

8152 Test, inspection and quarantine for animal health 497 2%

6179 Authorization, n.e.s. 493 2%

8190 Technical regulations n.e.s. 446 1%

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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 are indicated 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

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NTM data in TRAINS: Limitations

• Time series analysis not possible• Data not updated on regular basis (has not been

updated regularly since 2004)

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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.

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Additional Information

• http://www.unctad-trains.org/

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

• samuel.munyaneza@unctad.org

Thank you!