key aspects of non-tariff measures and economic development€¦ · 1995 2000 2005 2010 2015...

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Key aspects of non-tariff measures and

economic development

Short courses for Permanent Missions in Geneva

Organised by the Division on Technology and Logistics

Friday, 17 March 2017

Delivered by the

Division on International Trade in Goods and Services, and Commodities Trade analysis Branch

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5

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NTMs (supported by Regulation /Law)

•Sanitary and phyto-sanitary conditions

•Technical barriers to trade

•Quotas

•Embargo

•Import licenses

•Import deposits

•Export subsidies/restrictions

•Fixation of a minimum import price

• Rules of Origin

•Subsidies (affecting trade)

•Public Procurement

…

No NTMs (no law)

•Misaligned exchange rate

•Inadequate trade infrastructure

•Private Standards

Grey areas

•Intellectual property laws

•Lengthy entry procedures

•Procedural obstacles

•Labor standards/law

•Occupational safety and health

regulation

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3

4

5

6

Ta

riff

(%

)

1000

1500

2000

2500

3000

Nu

mb

er

of M

ea

sure

s in

Fo

rce

1995 2000 2005 2010 2015

Non-Tariff Measures Applied Tariff MFN Tariff

Tariffs have gone down, non-tariff measures not so

Figure 5: Contrasting Trade Policies

Source: UNCTAD calculations based on UNCTAD TRAINS and WTO I-TIP data

12

0 20 40 60Percent

Other

Export

Finance

Quantity Control

Price Control

TBT

SPS

NTMs in World Trade

Frequency Index Coverage Ratio

Source: UNCTAD calculations based on UNCTAD TRAINS I-TIP data

0

.2

.4

.6

.8

Fre

qu

en

cy I

nd

ex

6 7 8 9 10 11log GDP per capita

Technical NTM Fitted Line

Non-Technical NTM Fitted Line

Technical and Non-TechnicalNTM vs GDP per Capita

13

0 20 40 60 80 100Percent

Office MachineriesPaper Prod, Publishing

Comunication Equip.Metal Products

Non-Metallic MineralWood Prod, Furnitures

Basic MetalsTransport Equipment

Oil, Gas, CoalMachinery Various

Tobacco, BeveragesElectrical Machinery

Precision InstrumentsRubber/Plastics

Mining and Metal OresAnimal Products

TanningTextiles

Oils and FatsChemicals

Vegetable ProductsPetroleum Products

Food ProductsMotor Vehicles

Apparel

Technical Barriers to Trade

Frequency Index Coverage Ratio

14

0

500

1,000

1,500

Ca

ses

with

Me

asu

res

in E

ffe

ct

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Trade Defence Measures

Initiated by Developing Countries

Initiated by Developed Countries

Source: UNCTAD calculations based on WTO I-TIP database

0 100 200 300 400 500Cases with Measures in Effect

Office MachineryApparel

Comunication Equip.Tanning

Tobacco, BeveragesOils and Fats

Animal ProductsPetroleum Products

Transport EquipmentMotor Vehicles

Precision InstrumentsVegetable Products

Food ProductsWood Prod. Furniture

Electrical MachineryPaper Prod, Publishing

Machinery VariousTextiles

Non-Metallic MineralMetal Products

Rubber/PlasticsBasic Metals

Chemicals

Trade Defence Measuresby Sector

North-North North-South

South-North South-South

Source: UNCTAD calculations based on WTO I-TIP database

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

Total Ag. Mfg. Total Ag. Mfg. Total Ag. Mfg.

High income Middle income Low income

MA

-OT

RI

Tariff Non-Tariff

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17

18

19

20

22

0 2 4 6 8 10Billion US$

Wood Prod. Furniture

Energy products

Animal Products

Other, agricultural

Mining and Metal Ores

Metals

Other, nonagricultural

Vegetable Products

Textiles

Apparel

Facilitating compliance with NTMs and lower tariff would help

Chart 3: Market Access still Matters

NTMs Tariffs

Source: UNCTAD Policy Series Study #75: G20 Policies and LDCs Export Performance

0 20 40 60 80Percent

Wood Prod. Furniture

Vegetable Products

Textiles

Other, non-agricultural

Other, agricultural

Mining and Metal Ores

Energy Products

Basic Metals

Apparel

Animal Products

Market access is both about tariffs and compliance with NTMs

Chart 2: G20 Policies on LDCs Exports

Exports subject to NTMs Tariffs (trade weighed)

Source: UNCTAD calculations based on UNCTAD TRAINS I-TIP data

0 1 2 3 4 5 6

Live Animal

Meats

Fish

Dairy Products

Other Animal Products

Live Plants

Vegetables

Fruits

Coffee/Tea/Spices

Cereals

Milling Products

Oil Seeds

Gums/Resins

Fats/Oils

Prepared Animal Products

Sugar

Cocoa

Prepared Cereals

Prepared Vegetables

Other Prepared Food

Beverages

Billion US$ Exports to the EU Export Loss

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25

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Thank you