UNCTAD/CD-TFT 1 1 NTB Proposals under NAMA Negotiations - An Overview - ECA Workshop for the African Group on NTBs under NAMA Negotiations 12-14 April.

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NTB Proposals under NAMA Negotiations

- An Overview -ECA Workshop for the African Group on NTBs under

NAMA Negotiations

12-14 April 2010

Taisuke ITO, UNCTAD

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Outline

1. Economic significance for Africa

2. Existing proposals (vertical TBT-related)

3. Some issues for consideration

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Existing NTB Proposals

Facilitation of solutions on NTBs (horizontal) Electronics Automotive products Chemical & substances Textiles, clothing, footwear & travel goods Forestry products in building construction Remanufactured goods Fireworks / lighter products Unilateral trade measures Export taxes / export licensing

(Vertical)

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Significance of NTB sectors for Africa

Share of NTB sectors in total African non-ag imports, 2008

Source: TRAINS/WITS

28%

13%

12%5%1%

1%

40%Electronics

Chemical

Auto

Textile

Forestry

Fishery

Other

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African import growth since 1995Evolution of African imports in proposed NTB setor,

1995-2008 (1995=100)

Source: TRAINS/WITS

0

200

400

600

800

1000

1200

1400

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Automotive

Electronics

Chemicals

Forestry

Textiles

Fishery

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Africa’s net-exports African trade balance by NTB sector as % of

exports, 2008

Source: TRAINS/WITS

-363

-131 -123

-2

23

55

-400

-350

-300

-250

-200

-150

-100

-50

0

50

100

Electronics Auto Chemical Textile Forestry Fishery

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Major import sources

Source: TRAINS/WITS

Auto 2008 % Electronics 2008 % Chemicals 2008 %Japan 6105022 18.6 China 13404167 16.7 France 4012032 10.5Germany 4943033 15.0 US 7913552 9.9 US 2848648 7.5China 2686807 8.2 Germany 7279466 9.1 Germany 2818223 7.4US 2079728 6.3 France 7216760 9.0 China 2771779 7.3France 2077209 6.3 Italy 5153973 6.4 UK 1792271 4.7

Textiles 2008 % Forestry 2008 % Fireworks 2008 %China 6642914 43.7 Sweden 462352 14.6 China 6624 73.3India 750474 4.9 Finland 457463 14.5 Hong Kong 1092 12.1Spain 726559 4.8 Russia 276273 8.7 France 604 6.7France 666716 4.4 China 275049 8.7 Belgium 307 3.4Italy 659067 4.3 Austria 184682 5.8 South Africa 127 1.4

Lighter 2008 % Fishery 2008 %China 10823 51.9 Netherlands 233114 8.9Spain 3814 18.3 Spain 229621 8.8France 1869 9.0 Thailand 181845 7.0Hong Kong 701 3.4 Mauritania 167871 6.4US 600 2.9 China 136753 5.2

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Significance for Africa's exports Share of NTB sectors in total world non-ag imports

from African, 2008

Source: TRAINS/WITS

4% 4%

3%

3%

1%

1%

84%

Chemical

Electronics

Textiles

Auto

Fishery

Forestry

Other

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Growth in African exports Evolution of African exports in proposed NTB setor,

1995-2008 (1995=100)

0

200

400

600

800

1000

1200

1400

1600

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Automotive

Electronics

Chemicals

Fishery

Forestry

Textiles

Source: TRAINS/WITS

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Major importers from Africa (export markets)

Chemicals 2008 % Electronics 2008 % Textiles 2008 %EU 5160046 30.2 EU 10357704 59.8 EU 10774812 72.2India 1658472 9.7 US 708301 4.1 US 2410753 16.2US 1636205 9.6 Zambia 636847 3.7 Namibia 180564 1.2Brazil 1356172 7.9 Namibia 597099 3.4 Turkey 136246 0.9Pakistan 635446 3.7 China 404864 2.3 South Africa 108088 0.7Automotive 2008 % Forestry 2008 % Fireworks 2008 %EU 7442524 52.4 EU 1967602 47.9 Namibia 46 26.4US 2300891 16.2 China 915107 22.3 Zambia 44 24.8Japan 877474 6.2 Japan 419446 10.2 Rwanda 28 15.9Australia 615556 4.3 US 141502 3.4 Congo, Dem. Rep. 14 8.1Namibia 513283 3.6 Morocco 84742 2.1 EU 12 7.1Lighter 2008 % Fishery 2008 %EU 2813 86.2 EU 4068746 70.5Namibia 187 5.7 Japan 418751 7.3Tanzania 50 1.5 Cote d'Ivoire 240690 4.2US 33 1.0 Hong Kong 140411 2.4Angola 31 0.9 US 107503 1.9

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How do NTBs matter for exports? – NTM data

Total counts of NTMs by HS chapter, Japan, 2009 (Total 21554, av 2.9 per TL)

Source: TRAINS/WITS

0

1000

2000

3000

4000

5000

6000

03 16 26 29 32 35 38 41 44 47 50 53 56 59 62 65 68 71 74 77 80 83 86 89 92 95

Organic chemicals

Fish

Forestry AutoElectronics

Textiles etc Chemicals

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NTM coverage rates 1 - Tariff line

Share of TL subject to at least one NTM in total TL by HS Chapter by HS Chapter, Japan, 2009

Source: TRAINS/WITS

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

03 16 26 29 32 35 38 41 44 47 50 53 56 59 62 65 68 71 74 77 80 83 86 89 92 95

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NTM coverage rates 2 - African exports

Share of SSA imports subject to at least one NTM in total imports by HS chapter, Japan, 2009

Source: TRAINS/WITS

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

03 16 26 29 32 35 38 41 44 47 50 53 56 59 62 65 68 71 74 77 80 83 86 89 92 95

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Types of TBTShare of sub-categories in total TBT

measures, Japan, 2009

Source: TRAINS/WITS

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

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When NTMs become NTBs..

Lack of transparency & openness Discriminatory treatment (remanufactured, forestry) Overly stringent TR (chemicals, textile labeling) Burdensome & duplicative conformity assessment

procedures for low-risk products (auto, electro) Non-recognition of international standards – diversity

across jurisdictions (auto, electro)

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TBT Agreement

Technical regulation, standards & conformity assess. Transparency Non-discrimination (MFN/NT) Necessity test – legitimate objectives & risks

National security, deceptive practices, human, animal, plant life safety or health, environment

Harmonization – International standards TR “based on” IS = Rebuttable presumption Body unspecified (<> SPS)

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1. Electronics - Electrical safety & EMC (EU/CH)

Objective - Increased use of suppliers’ declaration of conformity (SDoC) for low-risk ICT & consumer electronics

ISO/IEC/ITU as relevant ISSBs >> harmonization of national TRs through regular review

Greater choice of testing laboratories if requiredGreater choice of testing laboratories if required Based on certain accreditation schemes (IECEE CB etc) No requirement for them to be in importers’ territories

Prohibit or discourage (list & reduce) mandatory Prohibit or discourage (list & reduce) mandatory third-party certificationthird-party certification

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1. Electronics - Electrical safety & EMC (US)

No a priori determination of ISSB (TBT Com Dec) Innovation / time-to-market important in the sector Enhanced transparency (>TBT) Non-discrimination of CABs in accreditation SDoC – to be based on relevant IS, may be refused Third-party certification allowed for scheduled

products

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2. Automotives (EU)

Objective - One global set of international standards 1958/1998 Agreements by WP29 UNECE Harmonization of national TR with IS within 10 yrs New technology or new features >> No undue delay Scheduling national TRs with functional equivalence

& mutual recognition as per IS Promotion of plurilateral system of recognition of CA

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2. Automotives (US)

No a priori determination of IS ISSBs = as per TBT Com Dec, including membership

openness to all WTO members & effectiveness & relevance (regulatory & market needs, scientific & tech developments)

TR to consider costs of compliance & (non) regulatory alternatives (market incentives et)

Expanded transparency requirements No requirement for testing to be done in the territory

& acceptance of third party certification if deemed

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3. Chemical & substances (ARG/BRA)

Registration requirement (cf. EU REACH) Cost & benefits - Other available (non) regulatory

alternative Costs are not an unnecessary, unreasonable or

disproportional obstacle Procedures are not excessively complex or constitute an

unnecessary, unreasonable or disproportionate obstacle Proportional to the risk

Negotiate MRAs on accreditation of laboratory The impact on exporters to be considered

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3. Chemical & substances (EU)

OECD (testing, data acceptance etc), UNSCE GHS (classification & labeling) & ISO as ISSB

Harmonize national TRs on GHS with IS by 2015 Requirement on collection & registration of data to

be permissible to meet legitimate objectives Data registration also for chemicals in imported

articles for release or with scientific evidence Plurilateral system of mutual acceptance of data

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4. Textiles, clothing, footwear, travel goods (EU, Mauritius, SLK,

UKR, US) Multiple/excessive labeling requirements &

certification requirement unrelated to int’l stds Rebuttable presumption of necessity

Fibre content, country of origin (T&C, travel goods) Predominant materials of core parts, country of origin

(footwear) Rebutable presumption of unnecessary obstacle

Prohibition of the use of more than one language Label pre-approval, registration & certification No use of brand names

Permit any required info on non-permanent label

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Issues for consideration 1

Existing trade pattern suggests uneven effects of possible NTB reforms for Africa: greater on imports, & auto, electronics & chemical

Implications of different approaches for domestic regulations >> Some proposals appear to require greater domestic regulatory adjustment than others

Can be opportunity to incorporate best practice but challenging given institutional constraints

Effective flexibilities & SDT deserve attention

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Issues for consideration 2

Regulatory barriers encountered by exporters in existing & dynamic markets form the basis for offensive agenda

Surplus sectors (T&C, fish, forestry), growing sector or unaddressed area (SPS)?

Lessons to be drawn from other DCs like ARG/BRA on chemicals, Mauritius & Sri Lanka on textiles

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Thank You

ContactsTaisuke Ito

E-mail: [email protected]: +41 22 917 4893Fax: +41 22 917 0044