CASE STUDY USING THE ITC MARKET ANALYSIS TOOLS

Product: HS-080390 Fresh or dried bananas (excl. plantains) Exporting country: Costa RicaTarget markets: ………….

HOW TO IDENTIFY YOUR PRODUCT AND FIND A TARGET MARKETTHE HARMONIZED SYSTEM AND INTERNATIONAL TRADE STATISTICS

1. INTRODUCTION

Go to www.intracen.org/marketanalysis and log in to your ITC Tools account on the upper right corner of the page.

2. IDENTIFY YOUR PRODUCT CODE

Suppose you are an exporter of name of your product. Please identify the Harmonised System product code at HS6 level for this product. (…../1)

Product HS 6-digits: 080390 Fresh or dried bananas (excluding plantains).

3. WORLD MARKET ANALYSIS

Analyse the world market for your product with the help of the trade indicators displayed in Trade Map.

3.1 i. Find the top three importers (…../3)

Hint: Go to “Home & Search”. Select “imports”, enter your product and leave all other fields blank. Then click on “Trade indicators”. The results are sorted according to the import value in 2016. Thus, the biggest importer appears first in the table.

Hint: Click on the button “Advanced Search” in the selection menu of Trade Map. Choose the option “At 2, 4, 6 Digit level”. Here, you are able to use a keyword search.

ii. Find the imported value in 2016 (USD thousand) for the top 3 importers and for the world. (…../4)

iii. Find the annual growth in value between 2012 and 2016 for the top 3 importers and for the world. (…../4)

Importer Imported value in 2016 (USD thousand)

Annual growth in value between 2012 and 2016 (%)

World

1.

2.

3.

3.2 Looking at the table of trade indicators (e.g., trade balance) is there a global trade surplus or deficit for your product? (…../1)

Please circle your answer:

A. Surplus B. Deficit

3.3 i. Find the top three exporters (…../3)

ii. Find the exported value in 2016 (USD thousand) for the top 3 exporters and for the world. (…../4)

iii. Find the annual growth in value between 2012 and 2016 for the top 3 exporters and for the world. (…../4)

Exporters Exported value in 2016 (USD thousand)

Annual growth in value between 2012 and 2016 (%)

World

1.

Hint: Go to “Home & Search”. Select “Exports”, enter your product and leave all other fields blank. Then click on “Trade indicators”. The results are sorted according to the export value in 2016. Thus, the biggest exporter appears first in the table. The resulting table of exporters shows the competitors of Costa Rica

2.

3.

4. IMPORT CHARACTERISTICS OF THE TARGET MARKETS

4.1 Analyse the target markets ……………and ……………with respect to their demand for your product.

i. What is the imported value in 2016 from the world (USD thousand) by the two target markets and the world? (…../2)

ii. What is the annual growth in value between 2012 and 2016 (%) for the two target markets and the world? (…../2)

iii. What is the annual growth in quantity between 2012 and 2016 (%) for the two target markets and the world? (…../3)

iv. What is the share in world imports (%) of each of the two target markets? (…../2)v. What is the type of data for the two target markets and the world? (…../3)

Please use the table below for your answers:

Target Markets

Imported value in 2016 from the world (USD thousand)

Annual growth in value between 2012 and 2016 (%)

Annual growth in quantity between 2012 and 2016 (%)

Share in world imports (%)

Type of data (direct/mirror/estimations)

World Copy from Q3.1.ii Copy from Q3.1.ii

4.2 Is the demand structure in these two markets diversified, moderately concentrated or concentrated?(…../2) Please circle your answer:

Hint: Values in the result table are colour coded according to the type of data. Values in black are the default and represent direct data. Any other colours are explained below the results table.

Hint: To easily find your country among all countries listed in the table of trade indicators, click twice on the title of the column entitled “Importers”. Instead of being sorted by “Value imported in 2016”, it will be sorted alphabetically.

Hint: Look at the column “Concentration of supplying countries”. If you do not know how to interpret it, click on the little to find out more.

“Target country 1” Diversified moderately concentrated concentrated

“Target country 2” Diversified moderately concentrated concentrated

4.3. Compare the “Imported growth in value between 2012 and 2016” and the “Imported growth in quantity between 2012 and 2016” for your product in ……………and ……………. (…../2) Please circle your answer:

“Target country 1” increasing UV decreasing UV stable UV

“Target country 2” increasing UV decreasing UV stable UV

What can you say about the development of the unit value? (…../1)_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

5. COSTA RICA’S EXPORT PERFORMANCE IN TARGET MARKETS

Analyse Costa Rica’s export performance in the target markets.

5.1 Please fill in the table below:

i. What is the exported value in 2016 by the two target markets from Costa Rica (USD thousand)? (…../2)

ii. What is the share in Costa Rica’s exports of the two target markets? (…../2)iii. What is the ranking of the target markets in world imports? (…../2) iv. What is the exported growth in value between 2012 and 2016 from Costa Rica (%)? (…../2)v. What is the total import growth in value of target countries between 2012 and 2016? (…../2)

Target market

Exported value in

2016 from Costa Rica

(USD thousand)

Share in Costa Rica's exports (%)

Ranking of target countries in world imports

Exported growth in value between 2012 and 2016 from Costa Rica (%, p.a.)

Total import growth in value of target countries in between 2012 and 2016 (%, p.a.)

Hint: If the quantity traded rises quicker than the value, unit values must have been decreasing.

Hint: Go to “Home & Search”: 1) Choose exports, 2) Type in your product code, 3) select Costa Rica as a country, and 4) click on “Trade indicators”.

5.2 Is your country gaining or losing market share in the target markets? (…../2) Please circle your answer

“Target country 1” GAINING LOSING

“Target country 2” GAINING LOSING

Please explain (….. /1):

5.3 Please provide details on one company that imports your product into ……………(You can choose one of your two target markets) (…../3)

There are many possibilities and many correct answers.

Company name

Distributor, producer, services supplier, importer or exporter of the good?

Contact details (website, phone number)

6. SUMMARY

After the analyses you have performed today, what can you say about the attractiveness of the two markets for product from Costa Rica?

Hint: compare the export growth of your country to the target market with the target market’s import growth rate from all suppliers.

Hint: Go to the selection menu. Choose exports and enter your product, leave all other fields empty and click on Trade Indicators. Click on “Target country” in the results table and select companies tab.

In your opinion, which of the two target markets ……………and ……………, is now, after the analysis of market

size, market dynamics, and competition more attractive for Costa Rica exporters of product? (…../1)

Which further information would you like to inquire in order to decide if a Costa Rican exporter should export to either ……………or ……………market? (…../1)

HOW TO ENTER A TARGET MARKET

TARIFFS AND OTHER MARKET ACCESS REQUIREMENTS

7. DATA AVAILABILITY

Go to Market Access Map: www.intracen.org/marketanalysis or straight to www.macmap.org

7.1. Find out the latest available year for different types of information for your two target markets: ……………and ……………:

i. For MFN applied tariffs (…../2)ii. For preferential tariffs (…../2)iii. For tariff rate quota (…../2) iv. For trade remedies (…../2)v. For non-tariff measures (…../2)

Type of dataLatest available year

“Target country 1” “Target country 2”

MFN applied tariffs

Preferential tariffs

Tariff rate quota

Trade Remedies

Hint: Go to “Support materials” and click on “Data availability”. Use the tabs on top of the table to navigate between different data types. Note down the last year for which data has been uploaded on Market Access Map.

Non-tariff measures

8. IDENTIFY TARIFF RATES IN YOUR TARGET MARKETS

8.1. Identify the tariffs applied by your target markets, ……………and ……………, to your product at HS6 level imported from Costa Rica and enter the information below:

i. What is the NTL code of your product in the two target markets? (….. /2)ii. What is the tariff regime applied to your product in the two target markets? (….. /2)iii. What is the applied tariffs with units applied to your product by the two target markets? (….. /2)iv. What is the total ad valorem equivalent tariff (%) in the two target markets? (….. /2)

Target Market

NTL code Tariff regime (MFN, Name of the trade agreement or non-reciprocal preference scheme)

Applied tariffs (as reported) with units

Total ad valorem equivalent tariff, %

Note: If several NTL are available, choose the NTL that matches the most your product description according to you.

8.2. Please fill in the table below on preferential market access and tariff advantage:

Hint: Go to “Quick search” and click on “Find tariffs”. Enter your target market (Importing country:*), your product at HS6 level (click on the “HS6” tab) and your home country (Exporting country:).

Hint: For specific tariffs, use the Ad valorem equivalent (AVE) to calculate the Tariff advantage. Please compare the preferential tariffs (if available) to the MFN rate applicable in the same year.

i. Is your country benefitting from a preferential market access for your product in any of the two target markets? (…. /2)

ii. If applicable, calculate the tariff advantage. (….. /2)

Target market Is your country benefitting from a preferential market access for this product in the specific target market? Answer Yes or No

Tariff advantage:

Calculate the difference between the MFN rate and the preferential rate (if it exists).

9. ANALYZE TRADE AGREEMENTS AND RULES OF ORIGIN

In order to benefit from possible tariff advantages (see previous questions), you have to comply with Rules of Origin (RoO) and provide the necessary certificates and forms.

9.1. Please fill in the table below for the tariff regimes you found for one of your selected target markets.

i. Is there a trade agreement between Costa Rica and your preferred target market? (….. /1)ii. Are the rules of origin available? (….. /1)iii. Are the certificates/forms available? (….. /1)

Target market Trade agreement(s) Are the RoOs available? Are the certificates /forms available?

9.2 How can you define trade agreement between your preferred target market and Costa Rica? (….. /1)

Hint: Go to “Quick search” and click on “Trade agreements and Rules of Origin”. Select your target market “as Importer”. Select your home country as partner (Partner:) to narrow the search.

Hint: Go to Trade Agreements and Rules of Origin; choose……………….. as an importer and Costa Rica as a partner country. On the result page, click on the Link: All relevant documents.

a. Partial Trade Agreement (PTA)

b. Free trade Agreement (FTA)

c. Economic Partnership Agreement (EPA)?

d. Other, please specify……........

9.3. (If applicable) Under which condition is your product considered to originate from Costa Rica? (….. /1)

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10. IDENTIFY OTHER MARKET ACCESS REQUIREMENTS IN MACMAP

10.1. i. Does “Target country 1” apply non-tariff measures (NTMs) to your product? (….. /1)

Circle your answer.

Yes or No

ii. If yes, what kinds of NTMs did you find? (….. /1)

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10.2. i. Does “Target country 2” apply non-tariff measures to your product? (….. /1)

Yes or No

ii. If yes, what kinds of NTMs did you find? (…../1)

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Hint: Go to “Quick search” and click on “Find non-tariff measures”. Select “Non-tariff measure category” (View results by:). Specify that you are looking for NTMs “applied to imports” and enter your target market (Reporter:*). Select Costa Rica as partner and your HS6 product.

Hint: You can find specific regulations under respective trade agreements.

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10.3 In case, one of your target market applies a NTM to your product imported from Costa Rica, choose one of these regulations (we suggest you a SPS or TBT regulation) and provide the complementary information below. (….. /4)

Which countries have to comply with this measure

When did the measure enter in force?

Which authority in ………. implemented the measure?

Is an end date of the measure known?

10.4. Does any of the two target markets impose Trade Remedies (Anti-dumping-, Countervailing- or Safeguard measures)? (….. /1)

Yes or No

11. MARKET ACCESS MAP ADVANCED QUESTIONS

11.1

i. What is the total Ad-valorem tariff faced by Costa Rica and the top two exporting countries in your first target market? (…../2)

ii. What is the total Ad-valorem tariff faced by Costa Rica and the top two exporting countries in your second target market? (…../2)

Please fill in the table below:

Top two Exporting Countries vs. Costa Rica (refer to Q3.3)

Total Ad valorem Tariff

In “Target country 1”

Total Ad valorem Tariff

In “Target country 2”

Hint: Click again on the measure(s) above. You will see a list of sub-measures, such as SPS or TBT. To obtain the details of each sub-measure, drill down through categories by clicking on the name of the category again. “01.9999” as an end date means that the end data is not specified in the regulation.

Costa Rica (Copy from Q8.1.iv.)

11.2 Does Costa Rica have a tariff advantage or disadvantage vis-à-vis its competitors in target markets? Please use the results found above (….. /1)

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