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Page 1: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

IntroductionITC's Market Analysis Tools and trade analysis

Page 2: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

What is ITC?

• Mission

ITC enables small business export success in developing countries by providing, with partners, trade development solutions to the private sector, trade support institutions and policy-makers

The UN body for design of policy recommendations to achieve economic and social development through trade and investment.

ITC works with local and regional institutions and businesspeople to

promote exports and trade.

The forum to negotiate multilateral trade rules, monitor their

implementation and handle trade disputes

Page 3: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

ITC activities

Micro,Small and

Medium-SizedExporters

ITC Beneficiaries

Export Impact for GoodGenerating sustainable

incomes and livelihoodsespecially for poor

households, by connectingenterprises to global markets

ITC Development Outcomes

PolicyMakers

TradeSupport

Institutions

BusinessCommunity

ITC Clients

Business and Trade Policy

Export Strategy

Trade Intelligence

Trade Support Institution

Exporter Competitiveness

Activities

One One Many

Page 4: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

ITC organisational chart

Page 5: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

MAR activities

I. Market Analysis Tools

Trade Map

Market Access Map

Investment Map

Trade Competitiveness Map

Trade Competitiveness Assessment

Export Potential Assessment

Export Opportunity Scan

Sector Competitiveness Scan

Customised analyses

II. Tailored Analysis

Introduction to Market Analysis

Preparation of Market Profiles

Training–of–Trainers

Face-to-face and E-training

III. Capacity Building and Training

Mentoring for Tailored Analyses

Customised training

Page 6: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

Workshop objectives• Understand some of the main trends in the current global trade

environment

• Introduce ITC's Market Analysis Tools and become knowledgeable in their use

• Gain an insight into how these tools can facilitate trade analysis

Page 7: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

Some trends......of the current trading environment

Page 8: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

$13,700,000,000,000Trade in goods in 2007

or $420,000 per second

• Globalization has accelerated over the last 20 years

• The volume of trade as a percentage of global GDP has more than doubled since 1960

Trade is enormous...

Page 9: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

World Trade vs. GDP Growth1960-2007

...and it's more dynamic than the economy...

-1%

1%

3%

5%

7%

9%

11%

13%

1960-70 1970-80 1980-90 1991-94 1995-98 1999 2000 2001 2002 2003 2004 2005 2006 2007

GDP Trade

Source: WTO

Page 10: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

... but it's not immune to the downturn...

0%

5%

10%

15%

20%

25%

30%

2002 2003 2004 2005 2006 2007

Developed Countries Developing Countries

Source: ITC Trade Map

Annual Growth of Imports by Level of Development of Countries2002-2007

Page 11: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

Source: WTO

GDP and merchandise trade by region, 2005-07Annual % change at constant prices

...although downturn is not uniform...

Page 12: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

... and 2009 will be a tough year

-3

0

3

6

9

12

15

18

1981 1984 1987 1990 1993 1996 1999 2002 2005 2008

World trade

Developing country exports

Source: World Bank, Global Economic Prospects 2009

Growth of trade volumesAnnual % change

Page 13: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

Global trade patterns are changing...• Trade flows within regions account for a higher share of world

trade than flows between regions

• Asia Pacific & EU trade more within the region

• However many regions trade more with other regions than internally: Africa, South and Central America, Middle East and CIS

Page 14: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

...with developing countries gaining ground...

Source: ITC analysis based on world trade statistics

Share of Global Trade by Level of Development% of Total Trade

Page 15: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

...and "south-south" trade growing fast...

# ImportersImports

2007Growth2003-07

Share in Total

TOTAL 5,186 101% 100.0%

1 EU(27) 1,126 112% 21.7%2 United States of America 1,108 71% 21.4%3 China 573 158% 11.1%4 Japan 422 77% 8.1%5 Hong Kong (SARC) 277 68% 5.4%6 Republic of Korea 197 134% 3.8%7 Singapore 166 109% 3.2%8 India 139 446% 2.7%9 Chinese Taipei 111 102% 2.1%

10 Canada 98 113% 1.9%11 Malaysia 88 109% 1.7%12 Thailand 80 112% 1.5%13 Mexico 80 149% 1.5%14 Australia 76 122% 1.5%15 Russian Federation 63 323% 1.2%16 Brazil 62 216% 1.2%17 Turkey 52 215% 1.0%18 Indonesia 49 156% 1.0%19 South Africa 37 219% 0.7%20 Philippines 35 80% 0.7%21 Saudi Arabia 34 191% 0.7%22 Argentina 27 263% 0.5%23 Pakistan 21 156% 0.4%24 Switzerland 17 90% 0.3%25 Colombia 16 197% 0.3%

Top 25 markets for developing countries

Source: ITC Trade Map

Page 16: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

…but mostly intra-region…

$ 66bn

$ 50bn

$ 45bn

$ 16bn

$ 6bn$ 12bn

$ 8bn

$ 109bn

$ 7bn

$ 10bn

$ 256bn

Intra-Trade: $126bnor 6% of S-S Trade

Latin America

Intra-Trade: $62bnor 3% of S-S Trade

Middle Eastand Arab

Asia PacificIntra-Trade: $ 1’121bn or 55% of S-S Trade

$ 109bn

Intra-Trade: $27 bnor 1% of S-S Trade

Africa

Source: ITC

Total 2007 S-S Trade: $2’157 billionTotal 2007 S-S Trade: $2’157 billion

Page 17: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

0%

10%

20%

30%

40%

50%

60%

70%

80%

2001 2002 2003 2004 2005 2006 2007

Agricultural Mining Manufacturing

The mix of products traded is changing...

Source: ITC Trade Map

Global trade by type of commodity% of total trade

Page 18: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

... but not all sectors are equally successful

The best performing exports from developing country exporters tend to be manufactured

products, as opposed to commodities

Top export industries for high-performance developing countries (but not from struggling developing countries)

Top export industries for struggling developing countries

(but not from struggling developing countries)

Electrical, electronic equipment Cotton

Machinery, boilers, etc. Wood and art of wood, wood charcoal

Precision instruments Other made textile articles, worn clothing

Plastics and articles thereof Fish, crustaceans, mulluscs

Organic chemicals Edible vegetables, roots & tubers

Articles of iron and steel Edible fruits, nuts, melons

Copper and articles thereof Raw hides, skins, leather

Furniture, lighting, prefab buildings Cereals

Toys, games, sports requisites Cocoa & cocoa preparations

Ships, boats Coffee, tea, mate and spices

Footwear, gaiters, parts thereof Nickel and articles thereof

Page 19: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

Trade in services grows quickly...

6

7

8

9

10

11

12

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

Trade in Services as % of GDP1975 – 2007

Source: World Development Indicators, World Bank

Page 20: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

...significantly due to FDI... • In spite of quick growth in traded value, over the past 30 years

the share of services, excluding Mode 3 (commercial presence), in global trade has been quite stable around 20%

• BUT, Mode 3 is not captured in current trade in services statistics

• FDI data shows that more than half of FDI flows are in the services sector

• FDI keeps on growing globally...

Page 21: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

…which is ever more important

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Source: World Development Indicators, World Bank

FDI as % of World GDP1985 – 2007

Page 22: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

Market access issues are changing:• Trade agreements proliferate...

Number of Existing Trade Agreements 1960 – 2007All countries, all types of agreements

Source: WTO

Page 23: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

… reducing tariffs…

0

2

4

6

8

10

12

Low Med-low Medium Med-High High

2001 2007

Applied MFN Tariffs, All Products, By Level of Income

Source: World Trade Indicators, World Bank

Page 24: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

… and making NTMs more important

0

5

10

15

20

25

30

35

40

45

Low Med-low Medium Med-High High

NTM FrequencyBy Level of Income, 2001

Source: World Trade Indicators, World Bank

Page 25: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

Business environment matters…

Source: World Bank Doing Business Report 2009

Page 26: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

Source: World Trade Indicators 2008, World Bank

...because it affects trade, inter alia

Page 27: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

Register to access ITC’s Market Analysis Tools

Page 28: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

Free to users from developing countries

Thanks to financial contributions from ITC's Global Trust Fund and the World Bank, as of the 1st January 2008, all users from developing countries and territories may access ITC's market analysis tools free of charge.

http://www.intracen.org/mat

Page 29: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...
Page 30: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...
Page 31: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

Free to users from developing countries

Page 32: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

Trade MapA web-based trade flow analysis tool

Page 33: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

Introduction• An exporter of pineapples is looking to diversify its client base…Which

country should be targeted?

• A shoe exporter needs an overview of trade barriers he/she would face for exports to Malaysia…

• A trade mission needs to know our top export products to Germany…

• Where could you import automotive components from?Who are the largest suppliers in your region?

• What is the current trade between your country and the United States?

Initial answers to these questions and many more are easily found in Trade Map

Page 34: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

Trade Map• Online application to produce reports on international trade flows

• Every product (HS-6) to and from (almost) every country

• Based on probably the largest trade flow database in the world

• User-friendly interface, report-ready outputs

• Flexibility for customising reports, analysis

• Graphic presentation of outputs to facilitate analysis

Page 35: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

Key characteristics • Where does the data come from?

• National Authorities

• COMTRADE, produced by the United Nations Statistics Division database

• What is Trade Map’s geographical coverage?

• Information for over 220 countries and territories using data reported by 160 countries and territories

• Data for non-reporting countries is spawned from mirror statistics

• What is Trade Map’s product coverage?

• For the Harmonized System

• over 5,300 products at the 6 digit level

• For the National Tariff Line

• up to 30,000 products for 90 countries (~84% of world trade)

• What is Trade Map’s time horizon?

• Yearly, quarterly and monthly data

Page 36: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

Data classification• The Harmonized System (HS)

• Is used as a basis for the collection of Custom duties and international trade statistics by almost all countries, representing about 98% of world trade

• Developed by the World Customs Organisation – WCO (www.wcoomd.org)

• Implemented late 1980s.

• Harmonised different existing nomenclatures

• Adopted by almost all countries in the world

• Basis for all trade conversations internationally

• Main revisions in 1996 and 2007

Page 37: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

HS-2

HS-4

HS-6

Data classification• The Harmonized System (HS)

• Is a numerical classification system of products used as a basis for international trade statistics by almost all countries.

• is harmonized up to six digits (HS-6) - You can compare HS data between countries.

• Is broken down into 3 clusters:

• HS-2: the chapter of the good (sector)

• E.g. 09 = Coffee, Tea, Mate and Spices

• HS-4: groupings within the chapter (sub-sector)

• E.g. 0902 = Tea, whether or not flavoured

• HS-6: product(s) within the grouping (product level)

• E.g. 090210 = Green tea (not fermented)

Mor

e an

d m

ore

spec

ific

Page 38: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

HS-2

HS-4

HS-6

NTL

Data classification• National Tariff Lines (NTL) codes

• Classification of goods after the 6 digit level of the Harmonized System classification.

• National Tariff Lines go from 8 digits to 12 digits.

• Why use the HS and NTL classification?

• The HS classification is standardised internationally

• The NTL classification is not standardised internationally.

Each country decides its own further classification after the Harmonized System. Hence, National Tariff Line codes can be different from a country to another.

Mor

e an

d m

ore

spec

ific

Page 39: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

Data classification

AustraliaAustralia 08.04.50.00 Fresh or dried guavas, mangoesmangoes and mangosteens

JapanJapan08.04.50.01.1 MangoesMangoes, fresh

08.04.50.01.9 Guavas and mangosteens, fresh

United States:United States:08.04.50.40.40 MangoesMangoes, fresh, if entered during the period from September 1, in

any year, to the following May 31, inclusive

08.04.50.60.80 Guavas and mangosteens, fresh, if entered during the period from June 1 to August 31, of the following year, inclusive

08.04.50.80.00 Guavas, mangoesmangoes and mangosteens, dried

08 Edible fruit and nuts; peel of citrus fruit or melons.

08.04 Dates, figs, pineapples, avocados, guavas, mangoesmangoes and mangosteens, fresh or dried.

08.04.50 Guavas, mangoesmangoes and mangosteens.

HS(International

standard)

NTL(NONNON

standard)

Page 40: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

Market Access MapInformation on tariffs and other market access conditions

Page 41: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

Market Access

• Information on market access conditions allows exporters to:

• Evaluate the competitiveness of the product relative to suppliers from other countries under different tariff schemes

• Select markets/market segments in which the product has the best prospects

• Adapt, where necessary, the product to conform to the target market’s import regulations

Page 42: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

Types of tariffs• Ad valorem tariffs:

• Levied on the basis of the value

• Used by most countries; more than 87% of tariffs worldwide are ad valorem

Page 43: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

Ad valorem tariffs

E.g. Australian tariff of 5% on imported wine (22.04.21.20.70)

New Zealand wine:• AUD 6 / litre

French wine:• AUD 8 / litre

Tariff paid:AUD 0.30 /litre

Tariff paid:AUD 0.40 /litre

Tariff per unit = Price * Rate

Page 44: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

Types of tariffs• Ad valorem tariffs:

• Levied on the basis of the value

• Used by most countries: more than 87% of tariffs worldwide are ad valorem

• Specific tariffs:• Levied on the basis of volume or weight• Users of specific tariffs include (% of MFN tariff lines): Switzerland (79.8%),

Thailand (21.9%), Russia (12.2%), Argentina (12.1%), Belarus (11.9%), USA (8.2%), EU (4.6%)

Page 45: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

Before border

CHF3 / kg beef

CHF12 / kg Argentine

prime quality beef

The prime beef is 4 times the price of the low quality beef, but also 4 times the quality

After the border

= 600% ad valorem equivalent

CHF21 / kgregular

beef

CHF30 / kg Argentine

prime quality beef

The prime beef is now only 1.4 times the price of the low quality beef, but still 4 times

the quality=150% ad valorem

equivalentCHF18 specific

tariff per kilo

At border

Specific tariffs change relative prices

E.g. Switzerland's tariff on beef of CHF18 / kilo (02.01.30)

Page 46: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

Types of tariffs• Ad valorem tariffs:

• Levied on the basis of the value• Used by most countries: more than 87% of tariffs worldwide are ad

valorem

• Specific tariffs:• Levied on the basis of volume or weight• Users of specific tariffs include (% of MFN tariff lines): Switzerland (79.8%),

Thailand (21.9%), Russia (12.2%), Argentina (12.1%), Belarus (11.9%), USA (8.2%), EU (4.6%)

• Combined tariffs:• Contain both ad valorem and specific rates• Eg: 10% of the value + $2 per kilogram (Japan, EU, Canada)

Page 47: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

Compound tariffs

• Chocolate from Switzerland: USD 6,356 / ton

• Chocolate from Brazil: USD 3,181 / ton

Tariff:

4.3% Ad Valorem USD273 Tariff

+ USD528/ton Specific USD528 Tariff

Tariff:

4.3% Ad Valorem USD137 Tariff

+ USD528/ton Specific USD528 Tariff

Tariff = USD801

AVE = 13%

Tariff = USD665

AVE = 21%

E.g. USA tariff on chocolate of 4.3% and USD528 / ton (18.06.32.08)

Page 48: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

Types of tariffs• Mixed tariffs:

• Minimum or maximum of two kinds of tariffs

• Eg: Min or Max (10%, $2/kg) (Canada, EU, Japan)

Page 49: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

Mixed tariffs

• Manolo Blahnik shoes: USD1,000 /pair

• Clark's shoes: USD30 /pair

Tariff: the maximum of

30% Ad Valorem USD300 Tariff

Or JPY4,300/pair (USD36) Specific USD36 Tariff

Tariff: the maximum of

30% Ad Valorem USD9 Tariff

Or JPY4,300/pair (USD36) Specific USD36 Tariff

Tariff = USD36AVE= 120%

Tariff = USD300AVE= 30%

e.g. Japanese tariff on shoes: Max. of 30% or JPY4,300 Yen / pair

Page 50: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

Types of tariffs• Mixed tariffs:

• Minimum or maximum of two kinds of tariffs

• Eg: Min or Max (10%, $2/kg) (Canada, EU, Japan)

• Variable tariffs: • Levied on the basis of the composition of the products

• Eg: USD5/unit if lead content of paint > 2% on toys

• USD200/unit on fridges if cooling system is not CFC-free

Page 51: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

Types of tariffs• Mixed tariffs:

• minimum or maximum of two kinds of tariffs

• Eg: Min or Max (10%, $2/kg) (Canada, EU, Japan)

• Variable tariffs: • Levied on the basis of the composition of the products

• Eg: USD5/unit if lead content of paint > 2% on toys

• USD200/unit on fridges if cooling system is not CFC-free

• 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.

Page 52: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

MAcMap includes ad valorem equivalents• Ad Valorem Equivalents – AVE:

• Are a common measure of the effecteffect of the different types of tariff on the product, as if they were all ad valorem.

• Are calculated for specific, mixed, compound or variable tariffs and anti-dumping rates and countervailing duties

• Are calculated by:

AVE = Particular Tariff per Unit Unit Value

• Allow for regional or sectoral tariffs to be added and compared

• Allow for comparison of effective levels of protection across countries.

• The total AVE is the sum of all individual ad valorem equivalents

Page 53: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

Common types of trade agreements• Partial Scope Agreement: reduces trade restrictions between partner

countries for a few products

• Free Trade Zone/Agreement/Area: eliminates trade barriers within the zone (FTA, RTA, etc.)

• Customs Union: free trade zone + common external tariff

• Common Market: customs union + free flow of factors of production within region (capital, labour)

• Economic Union: unification/harmonization of economic policies: monetary policy, fiscal policy, regulatory regimes…

Page 54: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

Proliferation of FTAs

Source: World Trade Organization

Number of Free Trade Agreements 1960 – 2007

Page 55: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

NMFOMC

GSP

Bilateral

GSP+

EBA

Australia

Canada

Euro-Med

Hong KongJapan

New Zealand

Singapore Taiwan Korea, Rep.

Micronesia

Belarus*

China

Iran Iraq

Libya

Palau

Russia

Tajikistan

Turkmenistan

Vietnam

Yemen

Uzbekistan

Marshall Is.

Nauru

Brunei

Kazakhstan

Malaysia

Mali

Philippines

Laos

Afghanistan

NepalBhutan

Cambodia

Maldives

Myanmar*

Bangladesh

Congo Dem.Rep.Eq. Guinea

Eritrea

Ethiopia

Kiribati

Liberia

Samoa

SomaliaSudan

Tonga

Tuvalu

Vanuatu

Sao Tome

Benin

Burkina Faso

Ctrl. Afr. Rep.

Chad

Congo

Djibouti

Gabon

Gambia

Guinea

Guinea-Bissau

Malawi

Mauritania

Nigeria

Sierra Leone

Togo

Interim EPA

Angola

EU-CARIFORUM

Bermuda

Senegal

Niger

East Timor

Greenland

Montserrat

Aruba

Anguilla

Gibraltar Niue

Tokelau

Cook Is.

EEANorway

Liechtenstein

Iceland

Macao

Kyrgyzstan

IndonesiaThailand

United States

Oman

Qatar

Kuwait

BahrainU.A.E

Azerbaijan

Guatemala

Mongolia

Armenia

GeorgiaPakistan

ParaguaySri Lanka

IndiaCosta Rica

Nicaragua

Honduras

El Salvador

Bolivia

Venezuela

Colombia

PeruEcuador

Albania Croatia

Others non-reciprocal

Andorra

Moldova

Serbia

Kosovo

Macedonia

Montenegro

Bosnia

San Marino

Saudi Arabia

Cape Verde

Ukraine

Brazil

Uruguay

Argentina

Cuba

Panama

Swaziland

Namibia

Botswana

Lesotho

Comoros

Cameroon

Mozambique

Papua NG

Madagascar

Seychelles

Mauritius

Zambia

Zimbabwe

Ghana

Fiji

Burundi

Kenya

Tanzania

UgandaRwanda

South Africa

Mexico

Israel

Algeria

Egypt

Lebanon

Morocco

Syria

TunisiaJordan

Palestine

Chile

Switzerland

EAC East African CommunityEBA Everything but armsEEA European Economic AreaSGP Sistema General de PrefereciasEuro-Med Euro-Mediterranean Partnership* Belarus and Myanmar (LDC) are temporarily suspended from the GSP regime

Guyana

St. Kitts

Dominican Rep.Antigua

Belize

Barbados Dominica

Grenada

Haiti

Jamaica

St. LuciaSt. Vincent

TrinidadSuriname

Solomon Isl.

EU-EAC

Turkey

Netherlands Antilles

Antartica

Am. Samoa

Bouvet Is.Cocos Is.

Cayman Is.

N. Mariana Is. New CaledoniaNorfolk Is.

Christmas Is. Falkland Is.S. Sandwich Is.

Guam

McDonald Is. B.I.O.T.

F. Polynesia

St. Piere.

Pitcairn

St. Helena

Turks Wallis

Mayotte

Bahamas

Ivory Coast

EU existing trade regimes

Page 56: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

Implications• Almost every country in the world is member to an ever

increasing number of trade agreements

• Every trade agreement has its own rules of origin

• It is difficult to keep up-to-date on what tariffs are applied and faced by your country and your competitor countries

• It is confusing to understand what are the best conditions you face to access one specific market

• It is key to have more clarity and transparency on what tariffs and rules of origin apply to specific products in specific markets

Page 57: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

Features of MAcMap• Wide geographical coverage:

• tariffs applied by 169 countries to the products exported by over 200 countries and territories

• Wide coverage of instruments:

• ad-valorem tariffs; specific tariffs; tariff quotas and antidumping duties

• Preferences:

• Covers most bilateral and regional agreements

• Rules of Origin and Certificates of origin also included for most agreements

• Analytical flexibility:

• Permits any analysis: by region, by economic sector or by measure

Page 58: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

MAcMap: sources of data• Market Access Map is continuously updated. Data is sourced

from:

• Applied tariff data is collected by ITC directly from national customs institutions

• Tariff quota data from WTO (agricultural notification of tariff quota) and national sources for bilateral and regional tariff quota agreements

• Trade data from national sources, IDB (integrated database), WTO and the COMTRADE database of the United Nations Statistics Division (UNSD).

Page 59: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...
Page 60: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

Investment MapFor an improved identification of opportunitiesfor FDI attraction

Page 61: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

What is it?• An interactive tool that combines statistics on FDI, international

trade, tariffs and information on foreign affiliates for better investment targeting and promotion

• A joint undertaking

• Between the United Nations Conference on Trade and Development (UNCTAD) and the International Trade Centre (UNCTAD/WTO)

• In partnership with:

• Multilateral Investment Guarantee Agency (MIGA)

• World Association of Investment Promotion Agencies (WAIPA)

Page 62: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

Main features• Integrates data on

• FDI flows and stocks

• Trade flows

• Tariffs

• Information on activities of foreign affiliates in developing countries

• Presents data and analyses in multi-functional dimensions and graphs

• Links to other related resources:

• UNCTAD World Investment Directory and Investment Compass

• World Bank and third party indicators on business environment

• World Bank privatisation database

Page 63: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

Geographic coverage• Total FDI flows and stocks for around 80 countries and territories

• FDI flows and stocks partially classified by up to 150 industries (ISIC rev 3)

• covering goods and services in approximately 60 developing and transition economies

• Trade and tariff data covering over 180 countries and territories

• Information on the location, sales, employment and parent company for around 74,000 foreign affiliates in developing countries

Page 64: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

Sources of Data• Foreign Direct Investment: UNCTAD and ITC

• Trade data: Trade Map (ITC)

• Tariffs: Market Access Map (ITC)

• Activities on Foreign Affiliates: Dun & Bradstreet Database

Page 65: Slide 1 - UNCTAD Virtual Institute on Trade and Development ...

Data limitations• FDI

• International reporting practices (IMF BOPMV; OECD,2004) are not followed uniformly

• Countries that report often do so with considerable time lag

• FDI data are affected by:

• Identification of ultimate owner

• Valuation problems of FDI stocks

• Round-tripped investment and transhipped investment

• Foreign affiliates

• Data on foreign affiliates vary from country to country

• Data available ONLY for developing countries

• Dependant on quality of business registration information

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• Different data classifications:

• FDI data cannot always be allocated accurately to a given industry or a given country

• Investment flows may fall under multiple activities

• Foreign affiliates are based on the United States nomenclature, US SIC87.

• Its conversion to the ISIC nomenclature can only be approximative

• Trade data (HS 6 digit level) are converted into the ISIC classification.

Data limitations

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Measuring FDI

FDI flows

• Are the total amount of FDI undertaken over a given period of time (quarter, year), and they comprise:

• Net sales of shares with the parent company (10% participation threshold)

• Net intra-company loans (short- and long- term) with the parent company

• Reinvested earnings of a foreign affiliate in the host country

• Sources: Central Banks and/or Statistical offices

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Measuring FDI

FDI stocks

• Are the total accumulated value of foreign-owned assets at a given time, and they comprise:

• The value of the share of their capital and reserves belonging to foreign companies

• The net indebtedness with the parent companies

• Sources: Balance sheets or enterprise surveys

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Flow

Flow

• Stocks and flows are related over time:

• Stockt = Stockt-1 + Flowt

• Flowt = Stockt – Stockt-1

Measuring FDI

Stock

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• Flows are named according to the OWNERSHIP or Origin of the money, not the direction of the flow:

• ININflows = FOREIGNFOREIGN money

• OUTOUTflows = DOMESTICDOMESTIC money

Measuring FDI

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Structure of tool• Module 1: Identify industries for inward investment

• Foreign Direct Investment: e.g. inflows, stocks, changes, etc

• Foreign affiliates: e.g. number of affiliates, number of employees, leading parent company and investor country, addresses, etc

• International Trade: e.g. exports, imports, changes, etc

• Tariffs: Maximum, minimum and average tariff faced and applied, etc

• Module 2: Identify competing locations

• Similar information for competing locations for a specific industry

• Module 3: Identify investor countries

• Similar information for the main investor countries for a specific industry

• Module 4: Analyse investor profile

• Similar information classified per industry for any specific investor country

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