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16th March 2012
“Specialised Course on WTO Rules (Anti-Dumping, Subsidies, Safeguards), Dispute Settlement and RTAs (including Rules of Origin and WTO Plus
Provisions)”
Dr. Murali KallummalAssociate Professor
Centre for WTO Studies, IIFT
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Today’s Discussions
1. Trade Intervention Measures;2. Understanding on the NTMs like SPS and TBT
Measures;3. Doha Round and its Mandate;4. Market Access Analysis;5. Portal of CWS – Practical Training6. Case study of Information Communication
Technologies and Electronics (ICT&E);7. Some basic facts about registered users to CWS
Portal
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What all are the Processes of Trade Intervention?
world price (c.i.f. price)
Domestic producer price (1)
NTM
s
Tari
ffs
Subsidies can also be seen to influence the price trends in the global arena
Import Price (X%)
Domestic producer price (2)
Y
X
Yi
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NTMs of Intervention: Direct MeasuresDefinition of Direct Measures:Explicitly designed and implemented for purposes of restricting trade Quantitative Measures
Quantitative RestrictionsTariff QuotaVoluntary Export RestraintsOrderly Marketing Agreements
Fiscal MeasuresExport SubsidyExport Credit SubsidyGovernment Procurement
AdministrativeImport Licensing
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NTMs of Intervention: Indirect MeasuresDefinition of Indirect Measures:Notionally implemented to meet some other policy target, but affecting trade flows in the process
Fiscal MeasuresRegional SubsidisationSubsidisation of public enterprisesTied aid
Administrative MeasuresHealth and Safety RegulationsEnvironmental controlsCustoms valuation proceduresRules of Origin
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SPS or TBT: How to make the distinction? Is it food, drinks or feed and is its objective to protect one of these?• Human/Animal/Plant life, or a country
and it reads risk from the following:• Additives• Contaminants• Toxins• Plant- or animal carried diseases• Diseases causing organisms• Pest entering , establishing or spreading
YES SPS
NO
Is it a Technical Regulation, Standard, or Procedure for assessing whether a product conforms with a Standard
NO
OTHERS
YES TBT
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7
20111947
Source: CWS Web Portal and WTO
What is the Impact on the Overall Effective Market Access
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Doha: Para. 16 (December 2001)
1. We agree to negotiations which shall aim, bymodalities to be agreed, to reduce or asappropriate eliminate tariffs, including thereduction or elimination of tariff peaks, high tariffs,and tariff escalation, as well as non-tariffbarriers, in particular on products of exportinterest to developing countries.
MARKET ACCESS FOR NON-AGRICULTURAL PRODUCTS
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Market Access: Discussion Points1. Market?2. Unit Price – (use of WITS and WTA)
1. Own products price, 2. International price, and3. Competitors price
3. MFN Duty: Importing country?4. PT under FTAs?5. Non tariff measures:
Import policy measures – QRs, permits, TRQs SPS requirement TBT requirement CV, SSG, RoO and AD/(S&CM) Any other rule
Complete Market Analysis Report
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Trade Linkage: The HS Systems
Section-Cluster of Chapters
HS 2 digit-Chapter
HS 4 digit-Heading
HS 6 digit-Sub Heading
Up to 14 digits (TARIC)
HS 8 digit (Slit Sub Heading)
The CWS database will give you the
trade linkage at 4 digit level
Harmonised by theWCO
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Challenges for an Exporter?
EXPORTERB
arri
er I:
Inte
rnat
ion
alR
egu
lati
on
Bar
rier
II: N
atio
nal
Leg
isla
tion
Identified Market
SPS Measures
TBT Measures
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Market Access Issues and Discussions on the CWS
Database
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The Objective of the Web portal of CWS In the context of Doha Round (Market Access) it become imperative
to look beyond tariffs, as an instrument of trade policy, - theaverage tariffs of these across the countries were coming down andsubstituted by the WTO-Compatible instrument like non-tariffmeasures (TBT and SPS) and these were increasing year on year.
So it was felt way back in 2003 that a database to captureindividual notifications and its link with the trade (i.e., HScodes). Simultaneous, it was also felt that Indian exporter’s neededto be aware of the notifications and their product coverage. Hence,it was important to have comprehensive database compiled butequally important to disseminate.
The whole process took us six years (to collate and compile) beforethe database was made public in 2009.
Thereafter, we have been constantly updating these databases witha lag of two months.
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Presently: What is the trade impact of these two NTMs
Nearly 16,403 TBT notifications January 1995 to November 2011, interms of coverage roughly 83,385 products at heading level (4 digitHS)
Nearly 12,639 SPS notifications January 1995 to November 2011, interms of coverage roughly 1,02,929 products at heading level (4digit HS)
So the total NTMs 29,137 notifications having a product coverageof 1,86,314 until July 2011
Including the broad product classification(BPC), for example like “Allproducts”, “Construction materials”, “Animal and animal products”, etc;
The total number includes the notifications made under the addition,revisions and corrigendum;
Virtually, no tariff line is left untouched by the indirect tradeeffect of SPS & TBT’s measures.
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What is so unique about these two Database?
With less than 10 % of total SPS/TBT notifications withcontaining the HS Codes details. A viable answer to many ofour questions on account of market access related issueswhere not possible.
The coverage had to be increased (100 percent). For thisdatabase needed to bridge this GAP – though an objectiveapproach that would certainly provide answers to many keymarket access questions and thus provide clearer picture.
This then can be very useful for providing answers to issues ata micro-level. It would be useful for the exporter, importer,academicians, and apex industrial bodies and trade policymakers.
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The Actual Coverage of the WTO notifications
1. SPS Notifications 9.5 % of the total notification actually
contain some or the other informationwith regard to the HS codes.
2. TBT Notifications 15 % of the total notification actually
contain some or the other informationwith regard to the HS codes.
3. So how did we manage to provide the HScode linkage?
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Objectivity in the Creation of DatabasesDeciphering the actual intension of an actual notification:
1. Product name2. ICS code (International Classification for Standards )3. Description of content4. Any other relevant information in the notification
ICS Code revealing the actual purpose a TBT Measure
A classic case of use of “ICS code” to reveal the actual intension of a TBT notification:
1. G/TBT/N/KEN/133, Dated 21/04/20092. In the product name was a mention of : “COUNTERFEIT GOODS”3. If this was to be considered, we would have ended up categorising it as either of
the two broad categories i.e., “All Products” or “Packaging and labelling”.4. After a careful study of the notification, we found a mention of ICS Code, it had
07.080.5. This ICS code was designated to “genetically engineered products”6. It was clear that this notification was applicable to only for “Food and Food
Products”
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SPS & TBT Databases the procedure for registration
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First link: Commerce Ministry
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Second link: IIFT Website
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It is also available at Google NTM Network wiki”
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Registration Process
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Login ID and Password An automated unique Login ID and Password (the password can
customised), will be send to you to your email ID, as mentioned as part
of the registration process, with in few hours or a maximum duration of
48 hours.
If it is not working, please check your junk mails, and for institutional
users find out if your Web ID is fire wall protected or not, this also
from our past experience we have found.
Both the SPS and TBT Web Portals require separate registration.
There is no restriction on the number of registrations within the same
organisation. For Apex Chamber of Commerce, FICCI & CII this will be of
use by way of decentralising.
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Options Available for Searching on TBT Database
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Options Available for Searching on SPS Database
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HS Code VS SPS Measure
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Result for Search of HS Code 2002
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Search Result for ISO-13.240.20
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Cross Section Search
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Searching for HS: 8401
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Searching for 8401- more Parameters
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Graphic Results
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1,401
912
596
0
200
400
600
800
1000
1200
1400
0
100
200
300
400
500
600
700
800
900
1000
Trends in SPS Measures: January 1995 to November 2011
SPS Measures Developing Developed
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Usage of National Vs International
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Countries with more than 100 notifications: (Top NTMs Players)
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Let us take a case study:
SECTORALSINFORMATION COMMUNICATIONTECHNOLOGIES AND ELECTRONICS
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Analysis that could be done at the Product, Sectoral or Country level
1. Usage of technical regulations?
1. Varied types of objectives in technical measures;
2. Select the best that serves the interests.
2. Importance of technical regulations?
1. Individual markets;
2. Sector wise; and
3. Region wise.
3. The usage of the international standards?
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Usage of National Vis-a-Vis International
113
98
171137
92
110103 102
132
87
125
151
174
267
349
291
85
0
50
100
150
200
250
300
350
0
50
100
150
200
250
300
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 May/11
Total TBT Measures International Measures National Measures
TBT under ICT&E : National and International (ISO) Measure
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TBT notifications Under ICT&Es: Chapters 84, 85, 90, and 9405
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Use of the database for Market Analysis: How open a market is?
CountriesTotal Notifications: 1995 to May 2011
International measures with ISO
Code
National Measures
Under Article 2.4: Use of international Standards
Saudi Arabia 62 61 Completely
Israel 218 215 Completely
United States 136 110 Mostly
Trinidad and Tobago 49 48 Mostly
Thailand 132 124 Mostly
South Africa 41 40 Mostly
China 265 237 28 Lesser
Canada 97 70 27 Lesser
Philippines 49 17 32 Very Rarely
Switzerland 53 53 None
South Korea 62 60 None
Netherlands 99 99 None
Mexico 85 85 None
Japan 163 163 None
Hong Kong, China 43 43 None
European Communities 81 81 None
Denmark 46 43 None
Chile 73 73 None
Brazil 66 63 None
Belgium 74 74 None
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Coformity Assessment Process
1%Energy Conservation
& Environmental Protection
13% Harmonisation6%
Safety, Regulating Market &
Certifications13%
Human Safety, Animal Health & Environmental
Protection25%
Human Safety & Quality Control
15%
Technical Regulations/Standard
s24%
Trade Facilitation and Others
2%Labelling &
Consumer Protection1%
ICT&E Goods- TBT Measures and its Objectives
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Some Facts about Registered Users of the CWS Web Protal
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Some Facts about the Database: As on 15-10-2011
Visitors to the Web Portals TBT Visitor: 10089 SPS Visitor: 8021
Registered users: Approximately to 1000
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Profile of Registered users
Thank you