uwi study tour 2008...watch at border after border $1070 rolex $120 swatch =140% ave tariff =7%...
TRANSCRIPT
MAcMap: Market Access BarriersUsing MAR tools for Market Analysis
Geneva, 9 May 2008
Market Analysis Research
MAcMapInformation on tariffs and other market access conditions
UWI Study Tour 2008
Miguel CAMACHOGeneva, May 9, 2008
2Using MAR tools for Market Analysis
Current Situation• The multilateral trading environment is increasingly complex:
– More countries, more liberalisation issues, higher stakes eg. Cancun
• “Global” trade and investment is increasingly intra-regional -NAFTA, EU, Asia
• Geopolitical world tensions have tended to reinforce regional economic policies
• Countries increasingly turning to regional or bilateral trade agreements
• Increased use of non-tariff barriers
MAcMap: Market Access BarriersUsing MAR tools for Market Analysis
Geneva, 9 May 2008
3Using MAR tools for Market Analysis
Hallmarks of Good Trade Policy• Economic Perspective
– Involves finding ways to move gradually towards more open markets
• Business Perspective– Involves establishing a stable a predictable economic climate at home and
abroad– Fostering the private sector
• Political Perspective– Stable, participatory government– Good diplomatic relations in regional and world arenas
• Legal Perspective– Insists on non-discrimination, transparency, and due process– Clear “rules of the game” and fair “refereeing”
4Using MAR tools for Market Analysis
Types of tariffs• Ad valorem tariffs:
– levied on the basis of the value– Ex: 20% of the value of the imported product (majority of countries)
• Specific tariffs:– levied on the basis of volume or weight– Ex: $2 per kilogram or per litre (Switzerland, USA, EU, Japan)
• Compound tariffs:– containing both ad-valorem and specific rates– Ex: 10% of the value+$2 per kilogram (Japan, EU, Canada)
MAcMap: Market Access BarriersUsing MAR tools for Market Analysis
Geneva, 9 May 2008
5Using MAR tools for Market Analysis
$50 swatch
$1000Rolex
Before Border
$70 tariff per
watch
At Border
After Border
$1070Rolex
$120 swatch
=140% AVE tariff
=7% tariff
Specific tariffs change relations
The Rolex watch is 20 times the quality but it
is also 20 times the price of the swatch
The Rolex watch is now about 10 times the
price but it still 20 times the quality
6Using MAR tools for Market Analysis
Compound tariffsTariff of 10% and $2/kg
• Beluga Caviar : 500 $/kg
• Lumpfish Caviar : 10 $/kg
Tariff:10% Ad Valorem 50$ Tariff
+ $2/kg Specific 2$ TariffTariff = 52$
Tariff = 10.4% of Price
Tariff:10% Ad Valorem 1$ Tariff
+ $2/kg Specific 2$ TariffTariff = 3$
Tariff = 30% of Price
MAcMap: Market Access BarriersUsing MAR tools for Market Analysis
Geneva, 9 May 2008
7Using MAR tools for Market Analysis
Types of tariffs• Mixed tariffs:
– minimum or maximum of two kinds of tariffs– Ex: Min or Max (10%, $2/kg) (Canada, EU, Japan)
• Variable tariffs: – levied on the basis of the composition of the products– Ex: $0.88/kg on magnesium content+20% of the value
• Tariff quotas:– a two tiered tariff. A lower in-quota tariff is applied to the first Q units of
imports and a higher over-quota tariff is applied to all subsequent imports.
8Using MAR tools for Market Analysis
Mixed tariffsMax. 10% or $2/kg
• Beluga Caviar: 500 $/kg
• Lumpfish Caviar: 10 $/kg
Tariff:10% Ad Valorem 50$ TariffOr $2/kg Specific 2$ Tariff
Tariff = 50$
Tariff = 10% of Price
Tariff:10% Ad Valorem 1$ TariffOr $2/kg Specific 2$ Tariff Tariff = 2$
Tariff = 20% of Price
MAcMap: Market Access BarriersUsing MAR tools for Market Analysis
Geneva, 9 May 2008
9Using MAR tools for Market Analysis
AVE – Ad Valorem Equivalents• Ad valorem equivalent tariffs for
– specific tariffs, tariff quotas and anti-dumping measures
AVE = Specific tariff per unit Unit Value
• AVEs allow us to aggregate tariffs at the sector or regional level; and
• AVEs allow us to compare the protection levels of different countries
• Total AVE – sum of each of the ad valorem equivalents
10Using MAR tools for Market Analysis
Common trade agreements• Economic Complementation Agreement: reduces trade restrictions
between partner countries
• Free Trade Agreement/Area/Zone: eliminates trade barriers within the zone
• Customs Union: free trade zone + common external tariff
• Common Market: free trade of services, goods and factors of production (capital and labour)
• Economic Union: unification/harmonization of economic policies: monetary policy, fiscal policy, norms…
MAcMap: Market Access BarriersUsing MAR tools for Market Analysis
Geneva, 9 May 2008
11Using MAR tools for Market Analysis
Number of Trade Agreements
Source: World Trade Organization
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Key Issues in Trade Agreements• Trade in goods
– tariff elimination; product standards; customs procedures; customs valuation; rules of origin; subsidies and dumping
• Trade in services– cross-border supply; consumption abroad; presence of natural
persons; commercial presence (foreign investment)
• Foreign investment– rules of the game; protection from expropriation; right to transfer profits
across borders
MAcMap: Market Access BarriersUsing MAR tools for Market Analysis
Geneva, 9 May 2008
Guatemala
Australia
Bulgaria
Canada
Hong Kong
Israel
Japan
Korea, Rep.
Mongolia
New Zealand
Romania
Singapore
Turkey
Swaziland
Taiwan
Korea, Dem. Rep.Algeria
Egypt
Lebanon
Morocco
Syria
Tunisia
Micronesia
Armenia
Azerbaijan
Belarus
Bosnia
China
Iran
IraqLibya
Moldova
Palau
Russia
Saudi ArabiaTajikistan
Turkmenistan Ukraine
Vietnam
Yemen
Uzbekistan
Marshall Isl.
Oman
Nauru
Albania
Brazil
BruneiIvory Coast
CroatiaGeorgia
Guyana
JordanKazakhstan
Malaysia
Mali
Namibia
Pakistan
ParaguayPhilippines
Qatar
St. Kitts
South Africa
Sri Lanka
Uruguay
India
Dominican Rep.
Kuwait
Laos
Afghanistan Nepal
Bhutan
CambodiaMaldives
Myanmar
Bangladesh
Bahamas
Cape Verde
Comoros
Congo Dem.Rep.
Eq. Guinea
Eritrea
Ethiopia
Kiribati
Liberia
Samoa
Seychelles
Somalia
Sudan
TongaTuvalu
Vanuatu
Sao Tome
Antigua
Belize
Benin
Botswana
Burkina Faso
Burundi
Cameroon
Barbados
Ctrl. Afr. Rep.
Chad
Congo
Djibouti
Dominica
Fiji
Gabon
Gambia
Ghana Grenada
Guinea
Guinea-BissauHaiti
Jamaica
Kenya
Lesotho
Madagascar
Malawi
Mauritania
Mauritius
Mozambique
NigeriaPapua
St. Lucia
St. Vincent
Sierra Leone
Tanzania
Togo
Trinidad
Uganda
Zambia
Zimbabwe
MFNWTO
GSP
AndeanCommunity
ACP
CACM
LDC
Euromed
EFTA
Rwanda
Angola
EEA
Bermuda
Senegal
Niger
Yugoslavia
Macedonia
Suriname
East Timor
Solomon Isl.
Greenland
Montserrat
Aruba Anguilla
Gibraltar
Niue
Tokelau
Cook Isl.
Costa RicaNicaragua
HondurasEl Salvador
Panama
Norway
LiechtensteinIceland
SwitzerlandPeru
Bolivia
VenezuelaEcuador
Colombia
Macao
Kyrgyzstan
Argentina
Bahrain
Cuba
Indonesia
Mexico
Thailand
Chile
U.A.E
U.S.
Andorra
Palestine
Arrangement for Sustainable Dev.
Bilateral
Non-MFN
European trade policy(status as of end-2004)
14Using MAR tools for Market Analysis
Nicaragua
CACM
CAN
Ecuador
Peru
CARICOM
Antigua & Barbuda
Bahamas Barbados
Belize DominicaGrenada
Guyana
Haiti Jamaica Montserrat
St. LuciaSt. Kitts & Nevis
St. Vincent & Grenadines
Suriname
Trinidad & Tobago
NAFTA
USA Canada
MERCOSUR
ArgentinaBrazil
Uruguay
Paraguay
Bolivia
ColombiaMexico
G2
Honduras
El Salvador
Costa Rica
CAFTA
Triangulodel Norte
Dominican Rep.
Regional agreements in the Americas
Guatemala
MAcMap: Market Access BarriersUsing MAR tools for Market Analysis
Geneva, 9 May 2008
15Using MAR tools for Market Analysis
Inferences• The average developing country belongs to 5
separate regional trade agreements (Global Economic Prospects, Trade Regionalism and Development, World Bank, 2005)
• Difficult to keep track of what tariffs your own country applies and faces as well as the tariffs faced by your competitors
• Need for greater transparency on tariffs and rules of origin
16Using MAR tools for Market Analysis
General features of MacMap• Wide Geographical Coverage: tariffs applied by 182
countries to the products exported by 239 countries and territories.
• Wide Coverage of Instruments: Covers: ad-valorem tariffs; specific tariffs; tariff quotas; and antidumping duties
• Preferences: Covers most bilateral and regional agreements. Rules of Origin and Certificates of origin are also included formost agreements.
• Analytical Flexibility: Permits any analysis: by region, by economic sector or by measure
MAcMap: Market Access BarriersUsing MAR tools for Market Analysis
Geneva, 9 May 2008
17Using MAR tools for Market Analysis
http://www.macmap.org
MAcMap Homepage
Type your username,
password and click on ‘login’
18Using MAR tools for Market Analysis
Mandatory fields
Quick Tariff Search
Click on Glossary for
definitions, as shown on next
slide
Quick tariff search for companies
MAcMap: Market Access BarriersUsing MAR tools for Market Analysis
Geneva, 9 May 2008
19Using MAR tools for Market Analysis
Glossary Main Page
Search alphabetically
Search alphabetically
Search alphabetically
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Fill in the fields by typing a few letters of the information you’re
looking for
Select the appropriate information
Choose whether you wish to see the
most detailed product codes
(national tariff line) or at the HS 6 digit
levelClick on ‘Enter’ or
‘Tab’ to confirm you selection from the
drop-down list
MAcMap: Market Access BarriersUsing MAR tools for Market Analysis
Geneva, 9 May 2008
21Using MAR tools for Market Analysis
Results for Tariff Search
Keep reviewing the various types of trade regimes by clicking on
the numbers
Click on ‘print report’ to view all trade
regimes on one page, as shown on next slide
22Using MAR tools for Market Analysis
See trade regimes that a country applies or faces and rules of
origin for many tradeagreements
Quick Search on Rules of Origin
MAcMap: Market Access BarriersUsing MAR tools for Market Analysis
Geneva, 9 May 2008
23Using MAR tools for Market Analysis
Click on ‘print report’ to view
all trade regimes on one page
There may be several agreements
(corresponding to different products) applied to the same
country
Trade Regimes applied by Brazil and corresponding Rules of Origin
Review the certificates
and/or rules of originbyclicking on their link
Review the certificates and/or rules of origin by
clicking on their link
24Using MAR tools for Market Analysis
Example of a Rule of Origin
MAcMap: Market Access BarriersUsing MAR tools for Market Analysis
Geneva, 9 May 2008
25Using MAR tools for Market Analysis
Example of a Certificate of Origin
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As an exporter – “Which markets offer your country’s products the best access?”
orAs an importer –” which
supplying nations does your country prefer?”
Tariff Comparison
MAcMap: Market Access BarriersUsing MAR tools for Market Analysis
Geneva, 9 May 2008
27Using MAR tools for Market Analysis
Which partners offer the best
market access for Ghana’s cocoa
beans?
Example: Ghana’s cocoa beans
28Using MAR tools for Market Analysis
Scroll through the importing countries alphabetically, or…
Tariffs applied by countries
…click on the heading “level of protection” to sort by those offering the lowest
tariff
Click here to have a visual overview of tariffs imposed…
MAcMap: Market Access BarriersUsing MAR tools for Market Analysis
Geneva, 9 May 2008
29Using MAR tools for Market Analysis
If you leave your mouse on a given country, the tariff applied appears…
30Using MAR tools for Market Analysis
MAcMap’s Country analysis
Create a variety of useful reports on
your country or on one of your trading
partners
MAcMap: Market Access BarriersUsing MAR tools for Market Analysis
Geneva, 9 May 2008
31Using MAR tools for Market Analysis
Top 200 export transactions, the most important markets and the key competitors in
each market
Country analysis resultsClick on the product code to see the tariffs faced by
Paraguay and its key competitors in the Uruguayan market
32Using MAR tools for Market Analysis
Tariffs of major importer
Tariffs at the tariff line level applied by Uruguay to Paraguay
MAcMap: Market Access BarriersUsing MAR tools for Market Analysis
Geneva, 9 May 2008
33Using MAR tools for Market Analysis
Average tariffs per sector
34Using MAR tools for Market Analysis
MAcMap’s Trade Flows
Perform simple trade flow analysis
MAcMap: Market Access BarriersUsing MAR tools for Market Analysis
Geneva, 9 May 2008
35Using MAR tools for Market Analysis
Trade flows between countriesTrade flows between two
countries for different products
36Using MAR tools for Market Analysis
Partnerships on MAcMap• IMF – Report on Market Access for Developing Countries
• Market Access Map, UNCTAD & WTO collaborating with UNDP on Millennium Development Goals
• GTAP (Global Trade Analysis Project) – a collaboration of Market Access Map and CEPII
• UNCTAD – Report on Least Development Countries (based on Market Access Map)
• World Bank for their database World Integrated Trade Solutions (WITS)
• Present in around 100 countries
MAcMap: Market Access BarriersUsing MAR tools for Market Analysis
Geneva, 9 May 2008
37Using MAR tools for Market Analysis
• MAcMap has been used by the principal institutions:– IMF for their country evaluations (Sector IV)– World Bank for their database World Integrated Trade Solutions
(WITS)– UNDP and WTO for the Millennium Development Indicators– GTAP
• Country Profiles: – Present in seventy countries
• Sectoral data:– International Community of Pepper
Partnerships on MAcMap
38Using MAR tools for Market Analysis
For more information on
MAcMap
please contact us at: