spotlight on the invisible barriers to trade · prohibition, etc. obstacles procedural obstacles...
TRANSCRIPT
Spotlight on the invisible barriers to trade
Capturing the experiences of Namibian exporters with non-tariff
measures
Samidh Shrestha & Cristian Ugarte
NTM Survey Launch
Windhoek, Namibia - 01 June 2016
1. Introduction to ITC
2. Introduction to non-tariff measures (NTMs)
3. The ITC project on NTMs
4. The survey implementation in Namibia
5. How you can support us
6. Feedback / Discussion
7. Results from surveys in other countries
What is ITC?
The UN body for design of
policy recommendations to
achieve economic and social
development through trade and
investment.
The forum to negotiate
multilateral trade rules, monitor
their implementation and handle
trade disputes
ITC works with local and regional
institutions and businesspeople to
build trade capacity.
ITC’s six focus areas and goals
ITC’s Market Analysis And
Research Services
1. Information transparency (Global Public Goods)
• Trade Map
• Market Access Map
• Investment Map
• Standards Map
2. Country-level trade diagnostics & research on
global trade trends
(including NTM Business Surveys)
3. Building Capacity in market analysis and
research
1. Introduction to ITC
2. Introduction to non-tariff measures (NTMs)
3. The ITC project on NTMs
4. The survey implementation in Namibia
5. How you can support us
6. Feedback / Discussion
7. Results from surveys in other countries
What are non-tariff measures (NTMs)?
Official policy measures on export and import, other than
ordinary customs tariffs, than can potentially have an effect on
international trade in goods, changing quantities traded, or prices
or both.
Mandatory requirements, rules or regulations legally set by the
national authorities of the exporting, importing or transit country (in
contrast to private standards which are not legally set)
Can affect both export and import
Include technical measures and standards, as well as regulations
on customs procedures, para-tariff measures, financial measures,
prohibition, etc.
Tra
de
Ob
sta
cle
s
Procedural Obstacles
Practical challenges or
administrative hurdles
which make compliance to
NTMs difficult.
NTMs and other trade obstacles
Excessively strict/
complex requirements
The requirements are too
strict or complex to comply
with.
NTMs
Regulations on trade and products,
other than tariffs, which may negatively
affect the international trade of goods.
NTBs
NTMs that have
a ‘protectionist or
discriminatory intent’
Business Environment
General operating conditions in the country that are not related to NTMs
but which may hinder a company’s ability to trade.
10
The NTM Survey classification
• International taxonomy used to classification different types of regulations
related to trade in goods.
• Prepared in a multi-agency framework under UNCTAD’s leadership.
• Covers
• mandatory, government-imposed regulations:
• both import and export of goods
• technical and non-technical measures
• Trade in services not covered
• Simplified version of the classification used for NTM business survey
Classification of NTMs
1. Introduction to ITC
2. Introduction to non-tariff measures (NTMs)
3. The ITC programme on NTMs
4. The survey implementation in Namibia
5. How you can support us
6. Feedback / Discussion
7. Results from surveys in other countries
Three Pillars of ITC’s Programme on NTMs
Pillar 1
NTM Regulatory
Mapping
• Codifying and
classification of
national trade-related
regulations
• Data dissemination
through Market
Access Map
(MAcMap)
Pillar 2
Business
Surveys
• Large-scale surveys
of businesses on
their experiences
with government
regulations when
exporting or
importing
Pillar 3
Follow Up
Actions
• Design and
implementation of
actions to address
companies’
difficulties with NTMs
• E.g.: Trade Obstacle
Alert (TOA)
mechanism
Surveys Methodology: Scope
NTM Survey covers the following
sectors:
1. Fresh food and raw agro-based
products
2. Processed food and agro-based
products
3. Wood, wood products and paper
4. Yarn, fabrics and textiles
5. Chemicals
6. Leather
7. Metal and other basic manufacturing
8. Non-electric machinery
9. Computers, telecommunications;
consumer electronics
10. Electronic components
11. Transport equipment
12. Clothing
13. Miscellaneous manufacturing
Goods
• Covers companies involved in international
trade in goods.
• Products from all sectors included except
minerals and arms.
• Sectors with more than a 2% share in total
exports are included
• Cumulatively, sectors covered account for
at least 90% of country’s total export value
Services
• The survey does not cover companies
involved in cross-border trade in services
such as tourism, banking, finance,
telecommunication and BPO.
• A survey on trade in services requires a
different methodology
Two-step interview process
• 500 PS in Namibia
• 6-8 min per interview
• Identify products exported by the
company and partner countries
• Identify if the company face problems
with burdensome regulations
• Companies facing problems with NTMs
as identified in PS interviewed
• 200 face-to-face interviews in Namibia
• 40-60 min per interview
• All details of the problem faced by the
company recorded
Step 1
Phone Screens (PS) Step 2
Face-to-Face interviews (FTF)
17
18
Business Environment
Company perception on the current business environment in Namibia
• Identify various factors in the country that has restricted or limited
company’s ability to trade:
• Administrative burdens
• Transport or storage problems
• Infrastructure and production constraints
• Legal and financial issues
• Whether there has been an improvements or not in the past 5 years
19
20
Objectives of the survey
The NTM survey
…documents the private sector experience with NTM-related trade obstacles with
a view to identify feasible options to overcome these.
…is part of a wider, collaborative approach, beyond company perceptions, which
integrates all stakeholders of the import and export process. The survey report will
be finalized and published after this stakeholder consultation has taken place
through additional interviews and a validation meeting.
…aims at identifying concrete actions that enable Namibia to reach greater
efficiency in the export process and reduced trade cost.
The NTM survey is NOT
…a collection of or platform for complaints.
…intended to single out specific institutions to blame for inefficiencies.
Who will benefit from the ITC survey on NTMs?
1. Exporters • Channel for reporting the obstacles to trade they face in their daily business to raise
awareness among other exports and importers, trade support institutions and policy makers
• Exchange of experiences with other exporters and importers
• final beneficiaries of removal of NTM-related trade obstacles
2. Trade support institutions • Better understanding of sector-specific needs;
• Better support for business sector; fostering of transparent and dynamic commercial activity
3. Policy makers • Understanding specific needs of business sector; better formulation of national and
regional strategies and policies
• Removal of procedural obstacles
4. Researchers • Better understanding of the impact of NTMs on international trade – from the
perspective of the business sector
21
As of 26 October 2015
NTM Business Surveys in numbers
22,344 Phone Interviews
More than
21,000
reported trade obstacles…
Complete
Ongoing
Planned
From over
developing
countries
+ 28 EU countries
30 185
…concerning
trade with
partner countries
6,164 Face-to-face interviews
A MILLION DATA POINTS
TO EXPLOIT FOR HIGHER
TRTA IMPACT
ITC Survey results online:
www.ntmsurvey.org
1. Introduction to ITC
2. Introduction to non-tariff measures (NTMs)
3. The ITC programme on NTMs
4. The survey implementation in Namibia
5. How you can support us
6. Feedback / Discussion
7. Results from surveys in other countries
In close collaboration with national and
international partners
The Ministry of Industrialization, Trade
and SME Development
National Partner
Survey Implementation Partner Main Donor
NTM survey in Namibia – the process (tentative dates)
1. Survey Inception and Preparation
• Survey design adjustment to country specific needs
• Sample size calculation*
• Face-to-face training of interviewers*
• First stakeholder meeting to inform about survey objectives and encourage participation
In collaboration with the Ministry of
Industrialization, Trade and SME Development
2. Interview
Period
• 500 phone-screen interviews with exporters and importers
• 200 face-to-face interviews with exporters and importers
• Data digitalization
• Data quality control*
In collaboration with
Vision Africa Research Services Namibia .
3. Data Analysis and Draft Report
• Preparation of analytical tables (by products and sectors, partner countries, types of NTMs and procedural
obstacles)*
• Additional research and complementing discussions and interviews with business associations and institutions involved in export / import process
• Drafting of country report
In collaboration with local expert(s)
(economist, trade specialists)
4. Results Validation and Dissemination
• Validation of survey results and formulation of policy options though a second stakeholder meeting
• Compilation of a matrix of action and definition of follow-up activities with a view to remove identified trade obstacles
• Finalization of country report
In collaboration and coordination with the
government, TSIs and other local stakeholders
(customs, certification bodies, etc.)
Until May 2016 June 2016 – August 2016
September 2016 –
October 2016 November 2016
*Activities implemented by ITC
ITC survey on NTMs – Methodology
• Global Methodology, adjusted to specific requirements of Namibia.
• The survey will prioritize companies that export the following products, deemed
of high importance by the Government of Namibia:
• Confidential
• Focus on exporting and importing companies; if required, further actors taken into consideration
• Representative by sector : covers all export sectors excluding services, minerals and arms that accumulatively account for +90% of country’s export value. Import sectors are also covered. Several geographic regions included.
NTM survey implementation in Namibia
• In collaboration with our local partner, responsible for the
implementation of interviews:
Vision Africa Research
(selected through ITC (UN) procurement process)
• Training of interviewers and testing interviews:
30 May – 03 June 2016
During the phone screening, Vision Africa will randomly contact
exporting and importing companies from the business register.
NTM survey Namibia: Sample
29
Active exporting companies in Namibia in 2014
Companies to be interviewed by phone
Companies to be interviewed face-to-face
~2000
~500
~200*
*Estimated number; actual number depends on results of
phone screening and company willingness to participate in
face-to-face interviews
Exporters by sector* 30
01. Fresh food and raw agro-based products
13%
02. Processed food and agro-based products
4%
03. Wood, wood products and paper
6%
04. Yarn, fabrics and textiles
2%
05. Chemicals 4%
06. Leather and leather products
1%
07. Metal and other basic manufacturing
9%
08. Non-electric machinery
17%
09. Computer, telecommunications, consumer electronics
7%
10. Electronic components
8%
11. Transport equipment
10%
12. Clothing 1%
13. Miscellaneous manufacturing
13%
14. Minerals and other excluded
5%
*Sector based on the HS code of exported products.
Note: some companies may export products which may fall under multiple
sectors. Only the *main* products’ sector of a company is taken into
consideration for this chart
Total = 2152
Namibia Exports in 2014
31
14%
5% 1%
1% 1%
12%
3%
1% 1% 18%
0% 1%
42%
01. Fresh food and raw agro-based products
02. Processed food and agro-based products
03. Wood, wood products and paper
04. Yarn, fabrics and textiles
05. Chemicals
06. Leather and leather products
07. Metal and other basic manufacturing
08. Non-electric machinery
09. Computer, telecommunications, consumerelectronics10. Electronic components
11. Transport equipment
12. Clothing
13. Miscellaneous manufacturing
14. Minerals and other excluded
Total exports =
US$ 5.98 billion
Share of export valued and companies:
by sector – excluding mineral exports
32
14%
1%
10%
8%
7%
18%
10%
1%
5%
2%
7%
4%
14%
2%
0%
31%
1%
1%
6%
20%
1%
2%
0%
2%
9%
25%
0% 5% 10% 15% 20% 25% 30% 35%
13. Miscellaneous manufacturing
12. Clothing
11. Transport equipment
10. Electronic components
09. Computer, telecommunications,…
08. Non-electric machinery
07. Metal and other basic manufacturing
06. Leather and leather products
05. Chemicals
04. Yarn, fabrics and textiles
03. Wood, wood products and paper
02. Processed food and agro-based products
01. Fresh food and raw agro-based products
% Export Value % Number of Exporters
Survey sample by sector
33
Sector Export Value
(US$ '000), 2014 1
Export share, 2014 1
Number of companies
2
Phone screen
interviews
Face-to-face
interviews 01. Fresh food and raw agro-based products 863,749 24.7% 286 72 27
02. Processed food and agro-based products 313,395 9.0% 78 43 16
03. Wood, wood products and paper 73,597 2.1% 135 56 21
07. Metal and other basic manufacturing 692,233 19.8% 197 65 25
08. Non-electric machinery 194,741 5.6% 376 76 29
11. Transport equipment 1,084,135 31.0% 207 66 25
13. Miscellaneous manufacturing 76,791 2.2% 278 71 27
Others sectors
04. Yarn, fabrics and textiles 16,257
195,867
0.5%
5.6%
51
497 80 30
05. Chemicals 58,615 1.7% 93
06. Leather and leather products 30,940 0.9% 20
09. Computer, telecommunications, consumer electronics 51,271 1.5% 143
10. Electronic components 29,023 0.8% 167
12. Clothing 9,761 0.3% 23
3,494,508 2054 529 200
1/ Excludes export of Minerals 2/ Excludes companies exporting minerals and non-registered companies
Caveats
• Information collected from the survey is perception data
• Respondents may have different scale for judging what constitutes an
impediments.
• Perceptions across countries can differ due to cultural, political, social,
economic and linguistic differences.
• Companies may not have full understanding of the purpose of the regulation
• Scope of the survey limited to legally operating companies
• Informal trade not covered
Post-survey activities
• The study is on company perspectives on non-tariff measures BUT not just
• ITC will also talk to different:
– Public agencies (Customs, Standard Agency, etc),
– Business associations
– Development agencies etc
• Data quality control and analysis
• In collaboration with Namibian experts
• Validation of results during National Stakeholder Meeting
• Publication of Country report
• Preparation for activities to tackle difficulties identified – in close collaboration
with Government of Namibia and other development partners
35
1. Introduction to ITC
2. Introduction to non-tariff measures (NTMs)
3. The ITC project on NTMs
4. The survey implementation in Namibia
5. How you can support us
6. Feedback / Discussion
7. Results from surveys in other countries
Company contacts
Current situation
• List of active exporters and importers (2014)
• Contact details missing
• Namibia Trade Directory 2016
• Unindexed
• Manufacturing and Processing Directory
• Unindexed
• List of women owned business that ITC has worked with
• ACCESS! Namibia
37
Need for a comprehensive list of exporters with contact details
Spread the word!
The methodology hinges upon enterprises being willing to
participate in interviews.
Your potential role:
Inform exporting companies that they may be
contacted during the next weeks and months and
encourage their participation in the survey.
1. Introduction to ITC
2. Introduction to non-tariff measures (NTMs)
3. The ITC project on NTMs
4. The survey implementation in Namibia
5. How you can help us
6. Feedback / Discussion
7. Results from surveys in other countries
Your feedback on the survey scope in
Namibia and expected results
Current sector/Product coverage? (e.g. for
transportation sector?)
Sectors or products of specific importance?
Current trade concerns related to NTMs?
Specific expectations in relation to SACU or other
trading partners/regions?
Coverage of informal sector?
1. Introduction to ITC
2. Introduction to non-tariff measures (NTMs)
3. The ITC project on NTMs
4. The survey implementation in Namibia
5. How you can help us
6. Feedback / Discussion
7. Results from surveys in other countries
Share of companies affected by NTMs
39%
39%
44%
29%
15%
49%
38%
36%
37%
40%
44%
55%
62%
0% 10% 20% 30% 40% 50% 60% 70%
Miscellaneous manufacturing
Clothing
Transport equipment
Electronic components
Computer, telecommunications; consumer electronics
Non-electric machinery
Metal and other basic manufacturing
Leather and leather products
Chemicals
Yarn, fabrics and textiles
Wood, wood products and paper
Processed food and agro-based products
Fresh food and raw agro-based products
Source: ITC surveys on NTMs, 2010-2013.
Cross country average of 23 countries
Share of exporting companies affected and PPP
income per capita in surveyed countries
y = -0.3135x + 6.4613
R² = 0.6449
3
3.2
3.4
3.6
3.8
4
4.2
4.4
4.6
4.8
6.0 6.5 7.0 7.5 8.0 8.5 9.0 9.5 10.0 10.5
Income Level (log)
Affe
cte
dn
ess r
ate
(lo
g)
Source: ITC surveys on NTMs, 2010-2013 and World Bank for income per capita
Note: GDP per capita in purchasing power parity on the horizontal axis (log scale) and
100xaffectedness on the vertical axis (log scale). GDP is observed at starting year of the
survey for each country.
Distribution of NTM cases reported by exporters
across countries/regions applying the NTM
39%
20%
13%
28%
Agriculture
OECD countries Countries within RTA
31%
30%
13%
26%
Manufacturing
Other developing countries Home country
Share of cases of burdensome NTMs versus share
of exports across trading partners, by sector
54%
28%
18%
41%
18%
41%
0%
10%
20%
30%
40%
50%
60%
OECD countries Countries withinRTA
Other developingcountries
Agriculture
Share of NTM cases
41% 41%
18%
54%
22% 24%
OECD countries Countries withinRTA
Other developingcountries
Manufacturing
Share of exports to this region
Types of burdensome NTMs applied by
partner countries
22%
48%
5%
5%
5%
2% 11%
2%
Agriculture
Technical requirements
Conformity assessment
Pre-shipment inspection and other entry formalities
Quantity control measures
11%
23%
13%
4% 9% 3%
35%
2%
Manufacturing
Charges, taxes and price control measures
Finance Measures
Rules of origin and related certificate of origin
Other
Types of NTMs applied by home country
to exports
25%
21%
8%
18%
10%
11%
7%
Agriculture
Export inspection
Certification required by the exporting country
Other export technical measures
Licensing or permit to export
20%
12%
7%
19%
13%
9%
20%
Manufacturing
Other export quantity measures
Export taxes and charges
Other export related measures
Reason making NTMs burdensome for exporters,
by sector
40%
58%
25%
19%
35%
23%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Agriculture Manufacturing
Too strict
Both
Procedural obstacles
Morocco: creation of an inter-
ministerial steering committee to
address the identified obstacles
Jamaica: request to
ITC for assistance in addressing capacity building needs of SMEs as well as customs officials to increase compliance with NTMs and reduce procedural obstacles
Côte d’Ivoire: continued
public-private interaction through the creation of an online trade barriers reporter
Mauritius: elimination of the
need for Tea Board clearance of Rooibos tea imports resulting in reduced time for importing
Sri Lanka: successful application to WTO
STDF with a view to improve product quality
and cost of exporting
Follow-up: examples
Reduction of
NTM-related
trade
barriers
Question / Comments?
50
ITC Programme on Non-Tariff Measures
Market Analysis and Research
International Trade Centre
CH-1211 Geneva 10, Switzerland
Tel.: +41 (0)22 730 0184
Fax: +41 (0)22 730 0577
Thank you!
For further information:
www.ntmsurvey.org/namibia
ITCmarketanalysistools @ITC_MktAnalysis