firm level experience of ntms: philippines case
TRANSCRIPT
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Gloria O. Pasadilla, PhDSenior Fellow, PIDS
Firm Level Experience of NTMs: Philippines Case
Firm Level Experience of NTMs: Philippines Case
Emerging trade issues in Asia and the Pacific: New Era of Trade Governance
March 4-6, 2009, Makati, Philippines
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Outline
Background info on the project and NTMsSurvey instruments, NTM classificationResults for the Philippines
Experience of exportersCollected info on RP NTMs
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Purpose of the project
Global liberalization process was like ‘“draining a swamp” with the “lower water level revealing all the snags and stumps of non-tariff barriers that still have to be cleared away”.’ (Baldwin)
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Figure I.1 Frequency Distribution of Philippine tariffs
MFN CEPT
78.9
50.1
27.1
20.116.0
0.1
6.80.5
0-3 % 5 %-10% 15%-20% >25%
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NTMs :‘Within border’ measures e.g. regulations, standardsNot all NTMs are NTBs
difficult to determine when a measure is a trade barrierBut certainly whether it is an NTM or NTB, the measure increases trade costsSimilar effect on trade as tariffs: higher price, lower trade volume
Purpose
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Theory, firm experience, and data paucity.Theory: microeconomic literature has grown on effect of NTBs, but empirical evidence is scantyBest source of info: exporters themselves, importers, governmentClassification challenge
Typology of NTMs from UNCTAD
Purpose
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Frame: registered exporters Target export sectors with likely large NTM experiencesNot necessarily reflective of export structure that is dominated by electronic exports (60%)
Two phases: Metro Manila, Regions (General Santos, Cebu, Davao)
Sample selection
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Firms asked about NTM experiences:Specific productDestination marketSpecific NTM and Procedural obstacles encountered
Unit of observation: firm-product-ntm-destinationTotal: 812 observations out of 303 firms interviewed
Key is good understanding of the NTM typology
Keys to understanding the survey result
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Classification of NTM
A000 SANITARY AND PHYTOSANITARYB000 TECHNICAL BARRIERS TO TRADEC000 OTHER TECHNICAL MEASURESD000 PRICE CONTROL MEASURESE000 QUANTITY CONTROL MEASURESF000 PARA-TARIFF MEASURESG000 FINANCE MEASURESH000 ANTI-COMPETITIVE MEASURESI000 EXPORT RELATED MEASURESJ000 TRADE-RELATED INVESTMENT
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A000 SANITARY AND PHYTOSANITARY MEASURESB000 TECHNICAL BARRIERS TO TRADE
C000 OTHER TECHNICAL MEASURESD000 PRICE CONTROL MEASURESE000 QUANTITY CONTROL MEASURES
F000 PARA-TARIFF MEASURESG000 FINANCE MEASURESH000 ANTI-COMPETITIVE MEASURESI000 EXPORT RELATED MEASURESJ000 TRADE-RELATED INVESTMENT MEASURESK000 DISTRIBUTION RESTRICTIONS*L000 RESTRICTION ON POST-SALES SERVICES*M000 SUBSIDIES*N000 GOVERNMENT PROCUREMENT RESTRICTIONS*O000 INTELLECTUAL PROPERTY*P000 RULES OF ORIGIN*
A100 Voluntary standards, A200 Sanitary and phytosanitary regulations, A300 Conformity assessment related to SPS, and A900 Sanitary and phytosanitary measures, n.e.s.
First and second level of disaggregation
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A100 Voluntary standards, A200 Sanitary and phytosanitary regulations, A300 Conformity assessment related to SPS, and A900 Sanitary and phytosanitary measures, n.e.s.
A210 Labelling, Marking and Packaging requirements, A220 Traceability requirements, A230 Tolerance limits for residues and contaminants,
or restricted use of certain substances, A240 Regulation of foods or feeds derived from
or produced using GMO, A250 Hygienic requirement, A260 Disease prevention measures, A270 Regulations on productions processes, A280 Geographical restrictions, and A290 Sanitary and Phytosanitary regulations n.e.s.
Second and third level of disaggregation
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Besides NTMs: Procedural Obstacles
A. Arbitrary or inconsistent behaviour:
B. Discriminatory behaviour favouring specific producers or suppliers:
C. Inefficiency or cases of outright obstruction consisting of:
D. Non-transparent practices consisting of:
E. Legal obstacles consisting of:
F. Unusually high fees or charges
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Procedural obstacles: first and second level of disaggregation
A. Arbitrary or inconsistent behaviour:
B. Discriminatory behaviour favouring specific producers or suppliers:
C. Inefficiency or cases of outright obstruction consisting of:
D. Non-transparent practices consisting of:
E. Legal obstacles consisting of:
F. Unusually high fees or charges
C1: Too much documentation or forms to be supplied or completed C2: Too strict, too detailed or redundant testing/certification or labeling requirement C3: Substantial delays in obtaining authorization/approval C4: Complex clearing mechanism such as a need to obtain approval from several entities C5: Short submission deadlines to supply information C6: Outdated procedures such as lack of automation C7: Lack of resources such as understaffing or scarce equipment in destination market
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Results: Sample Characteristics
Figure II.1. Profile of Interviewed Companies
Manufacturing: 235
Trading: 16Agri: 37
1
123
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Sample CharacteristicsSample CharacteristicsNo foreign ownership
Foreign ownership
less/equal 50%
Foreign ownership more
than 50%
Not available TOTAL number of interviewed
companies
No. of companies 254 25 24 0 303
Percent of Total 84 8 8 0 100
Less than 5 years More than 5 years Not available
Nr. of companies 38 264 0
Percent of Total 13 87 0
Foreign vs. Local
Length of Operation
1-9 employees
10-20 employees
21-50 employees
More than 50
employees
TOTAL number of
interviewed companies
No. of companies
25 58 56 164 303
Percent of Total 8 19 19 54 100
Size
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Survey of Collected Cases from Exporters
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Which NTMs are widely experienced?
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Table II.6 Detailed Incidence for SPS and TBTTable II.6 Detailed Incidence for SPS and TBT
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Table II.8 Detailed Table for A, C and F Procedural Obstacles
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Incidence by economic sectors
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Top Countries for which cases have been reported
Table 11.9
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Table II.10a:
Top Ten Countries’ Cases by NTM Category
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Product incidence, selected countries
Table II.15
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Incidence by productIncidence by product
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Table II.14: Incidence on Exports per NTM Category
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Firms’ perception of sanitary and technical regulations
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Firms’ perception of sanitary and technical regulations
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Firms’ perception of sanitary and technical regulations
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Who has more incidence of NTMs?
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Who has more incidence of NTMs?
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NTMs applied by Philippines
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Affected products
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Gloria O. Pasadilla, PhDSenior Fellow, PIDS
Firm Level Experience of NTMs: Philippines Case
Firm Level Experience of NTMs: Philippines Case
Emerging trade issues in Asia and the Pacific: New Era of Trade Governance
March 4-6, 2009, Makati, Philippines