uwi study tour 2008...watch at border after border $1070 rolex $120 swatch =140% ave tariff =7%...

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


Geneva, 9 May 2008


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”


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)


Geneva, 9 May 2008


$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


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


Geneva, 9 May 2008


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.


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% Ad Valorem 1$ TariffOr $2/kg Specific 2$ Tariff Tariff = 2$



Geneva, 9 May 2008


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


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…


Geneva, 9 May 2008


Number of Trade Agreements

Source: World Trade Organization


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


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)


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


Geneva, 9 May 2008


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


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


Geneva, 9 May 2008


http://www.macmap.org

MAcMap Homepage

Type your username,

password and click on ‘login’


Mandatory fields

Quick Tariff Search

Click on Glossary for

definitions, as shown on next

slide

Quick tariff search for companies


Geneva, 9 May 2008


Glossary Main Page

Search alphabetically




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


Geneva, 9 May 2008


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


See trade regimes that a country applies or faces and rules of

origin for many tradeagreements

Quick Search on Rules of Origin


Geneva, 9 May 2008


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


Example of a Rule of Origin


Geneva, 9 May 2008


Example of a Certificate of Origin


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


Geneva, 9 May 2008


Which partners offer the best

market access for Ghana’s cocoa

beans?

Example: Ghana’s cocoa beans


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…


Geneva, 9 May 2008


If you leave your mouse on a given country, the tariff applied appears…


MAcMap’s Country analysis

Create a variety of useful reports on

your country or on one of your trading

partners


Geneva, 9 May 2008


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


Tariffs of major importer

Tariffs at the tariff line level applied by Uruguay to Paraguay


Geneva, 9 May 2008


Average tariffs per sector


MAcMap’s Trade Flows

Perform simple trade flow analysis


Geneva, 9 May 2008


Trade flows between countriesTrade flows between two

countries for different products


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


Geneva, 9 May 2008


• 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


For more information on

MAcMap

please contact us at:

[email protected]

uwi study tour 2008...watch at border after border $1070 rolex $120 swatch =140% ave tariff =7%...

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