Non-tariff measures: Evidence from selected developing countries and future research agenda

166 Pages·2006·4.19 MB·English

by  United Nations Conference on Trade and Development

U
n
C
t
a
d
United nations ConferenCe on trade and development
n
o
n non-tariff measUres:
-t
a
r evidence from selected
i
f
f
developing Countries and
m
e
a
s future research agenda
U
r
e
s developinG CoUntries in international trade stUdies
:

e
The present publication brings to a culmination a four-year multi-agency v
id
e
n
effort to better understand NTMs. I am confident that such an initiative c
e

f
will provide practical help to UNCTAD member States, particularly deve- ro
m

loping countries. Such help can strengthen their capacity to understand s
e
le
c
non-tariff measures and the potentially negative spill-over effects of NTMs t
e
d

in trade, as well as support countries in formulating and implementing sound d
e
v
e
trade and development policies and strategies. lo
p
in
g
supachai panitchpakdi, secretary-General of UnCtad
C
o
u
n
t
r
ie
s

a
n
d

f
u
t
u
r
e

r
e
s
e
a
r
c
h

a
g
e
n
d
a
U
n
i
t
e
d

n
a
t
i
o
n
s
UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT
NON-TARIFF MEASURES:
Evidence from Selected
Developing Countries and
Future Research Agenda
DEVELOPING COUNTRIES IN INTERNATIONAL TRADE STUDIES
New York and Geneva
E
D
A NOTE
R
T
L
A
N
O The views expressed in this report are those of the authors and do not necessarily
TI
A refl ect the views of the United Nations Secretariat. The designations employed and
N
R the presentation of the material in this publication do not imply the expression of
E
T any opinion whatsoever on the part of the United Nations Secretariat concerning the
N
N I legal status of any country, territory, city or area, or of its authorities, or concerning
S I the delimitation of its frontiers or boundaries. This publication is under the Developing
E
RI Countries in International Trade Studies.
T
N
U
O
C
G
N
PI
O Symbols of United Nations documents are composed of capital lett ers with
L
E fi gures. Mention of such a symbol indicates a reference to a United Nations document.
V
E
D
Material in this publication may be freely quoted or reprinted, but full
acknowledgement is requested. A copy of the publication containing the quotation
or reprint should be sent to the UNCTAD secretariat at: Palais des Nations, CH-1211
Geneva 10, Switzerland.
UNCTAD/DITC/TAB/2009/3
UNITED NATIONS PUBLICATION
ISSN 1817-1214
© Copyright United Nations 2010
All rights reserved
ii
ii
D
E
V
E
L
O
P
IN
G
FOREWORD C
O
U
N
T
R
IE
S
IN
The severe contraction of world trade volume during the current global economic IN
and fi nancial crisis – the steepest since the Great Depression – put pressure on the trade T
E
policies of many importing and exporting countries around the world. One result of the R
N
crisis in developed and developing countries has been the contemplation or use of trade PA
policy instruments, mainly taking the form of non-tariff measures (NTMs), to protect aTIO
rN
domestic producers. tA
IL T
R
A
In spite of their growing importance in regulating trade, the exact implications D
E
of NTMs on trade fl ows, export-led growth and social welfare are not very well
understood. There are signifi cant gaps in the existing knowledge of NTMs and their
eff ects on international trade. It is for this reason that, in 2006, I established a Group of
Eminent Persons on Non-Tariff Barriers (GNTB) to consider the defi nition, classifi cation,
data collection and quantifi cation of NTBs, identify data requirements, as well as gain
a bett er understanding of the implications of NTMs on international trade. A Multi-
Agency Support Team (MAST) was also formed to work on a new classifi cation of NTMs
and advise on the feasibility of data collection.
In addition, UNCTAD, in collaboration with the International Trade Centre
(UNCTAD/WTO), fi elded a pilot project in seven developing countries (Brazil, Chile,
India, Philippines, Thailand, Tunisia and Uganda) to gauge how fi rms in those
countries were aff ected by NTMs. The project tested the new classifi cation of NTMs
prepared by MAST under the overall leadership of UNCTAD. This new classifi cation
is a signifi cant breakthrough for researchers and policymakers who now have a
homogeneous instrument that can facilitate data collection and play a supporting role
in trade negotiations.
The principal fi nancial support for the project was received from the Swiss Agency
for Development and Cooperation (SDC), Government of Switzerland, and contributions
were also received from the Department for International Development (UK-DFID) and
the Global Trust Fund of the International Trade Centre (UNCTAD/WTO).
The present publication brings to a culmination a four-year multi-agency
eff ort to bett er understand NTMs. I am confi dent that such an initiative will provide
practical help to UNCTAD member States, particularly developing countries. Such help
can strengthen their capacity to understand non-tariff measures and the potentially
negative spill-over eff ects of NTMs in trade, as well as support countries in formulating
and implementing sound trade and development policies and strategies.
Supachai Panitchpakdi
Secretary-General of UNCTAD
iii
iii

D
E
V
E
L
O
P
IN
G
ACKNOWLEDGEMENTS C
O
U
N
T
R
IE
S
This publication, Non-Tariff Measures: Evidence from Selected Developing Countries IN
and Future Research Agenda, was prepared by the Trade Analysis Branch, Division on IN
T
International Trade in Goods and Services, and Commodities (DITC), UNCTAD E
R
Secretariat with contributions from Sudip Ranjan Basu, Hiroaki Kuwahara, Samuel N
PA
Munyaneza, Alessandro Nicita, Victor Ognivtsev, Denise Penello Rial, Khalilur aTIO
Rahman, Fabien Dumesnil, Guillermo Abramowitz and Fatoumata Keita. Some useful rN
tA
ccoomormdiennattse dw ethree aplusob lrieccaetiiovned o ff rtohmis orethpeorr st.t aff members of UNCTAD. Sudip Ranjan Basu IL T
R
A
D
E
The UNCTAD-NTM team thankfully acknowledges intellectual support and
encouragement from the members of the Group of Eminent Persons on Non-Tariff
Barriers (GNTB): Alan V. Deardorff , Professor of Economics and Public Policy, University
of Michigan; Anne O. Krueger, Former First Deputy Managing Director, International
Monetary Fund (IMF); present Professor of International Economics, Johns Hopkins
School of Advanced International Studies; Amit Mitra, Secretary-General, Indian
Federation of Chambers of Commerce and Industry; Marcelo de Paiva Abreu, Professor
of Economics, Pontifi cal Catholic University of Rio de Janeiro; L. Alan Winters, Former
Director, Development Research Group, World Bank; Chief Economist, Department of
International Development (DFID), UK; and Rufus H. Yerxa, Deputy Director-General,
World Trade Organization (WTO).
The team also expresses appreciation to the participants from the MAST agencies
including: Noriko Iseki, Hansdeep Khaira, Masashi Kusukawa, Kazuaki Miyagishima,
Gladys Morales and Jamie Morrison of the Food and Agriculture Organization of the
United Nations (FAO); Annamaria Kokeny, Hans Peter Lankes, Brad McDonald, Dustin
Smith and Stephen Tokarick of the International Monetary Fund (IMF); Anders Aeroe,
Carolin Averbeck, Mondher Mimouni, Willem van der Geest and Poonam Mohun of
the International Trade Centre UNCTAD/WTO (ITC); Barbara Fliess and Frank van
Tongeren of the Organisation for Economic Co-operation and Development (OECD);
Ott o Loesener, Emilio Vento and Bernardo Calzadilla-Sarmiento of the United Nations
Industrial Development Organization (UNIDO); Elsa Gamberoni, Bernard Hoekman,
Richard Newfarmer and Peter Walkenhorst of the World Bank (WB); Marc Bacchett a,
Lee Ann Jackson and Ludivine Tamiott i of the World Trade Organization (WTO);
Maryse Coutsouradis and Joakim Reiter of the European Commission (EC); Michael
Ferrantino, Katherine Linton, Christopher Johnson and José Signoret of the United
States International Trade Commission (USITC); and Donna Roberts and John Wainio
of the United States Department of Agriculture (USDA).
The Country Reporting Offi cers (CRO) of the Pilot Project were instrumental
in providing guidance and logistics at the national level that helped complete this
initiative included: Roberto Iglesias, Brazil; Ronald Fischer and Pablo Serra, Chile;
Abhij it Das and Samir Gandhi, India; Gloria Pasadilla and Mike Palma, Philippines; Mr.
Santi Chaisrisawatsuk, Thailand; Ahmed Cheikh-Rouhou, Tunisia; and Noreen Kamoti
Balibali, Uganda.
The work has also received support and comments from the following regional
organizations: Blanca Brisci-Brause of ALADI, Uruguay; Susanna Manurung of ASEAN,
Indonesia; and Subash Sharma of the SAARC, Nepal.
v
v
E
D
A The Pilot project would not have seen daylight without the support of the Swiss
R
T Agency for Development and Cooperation (SDC) which provided fi nancial support to
L
A carry out the “Pilot Project on Collection and Quantifi cation of Non-Tariff Measures
N
O (NTMs) Database” (Project number: INT0T7BA) in four developing countries: Brazil,
ATI Chile, the Philippines and Thailand. In addition, the India project which was funded
N
R by the Department for International Development (UK-DFID). The International Trade
E
T Centre (UNCTAD/WTO) subsequently joined in this global initiative, and obtained
N
N I resources from its Global Trust Fund.
S I
E
RI Acknowledgements are also due to the United Nations Economic Commission
T
N for Latin America and the Caribbean (ECLAC), the United Nations Economic and
U
O Social Commission for Asia and the Pacifi c (ESCAP), as well as the national research
C
G institutions such as Philippines Institute of Development Studies (PIDS), National
N
PI Institute of Development Administration (NIDA), and the University of Chile and
O Centro de Estudos de Integraçãoe Desenvolvimento (CINDES). And, valuable support
L
E
V was received from Trade, Commerce and Industry Ministries of Brazil, Chile, India,
E
D Philippines, Thailand, Tunisia and Uganda during several national workshops and
offi cial briefi ngs, both in national capitals and Geneva.
Desktop publishing was done by Jenifer Tacardon-Mercado. Mark Bloch edited
the publication. Thanks are also due to the UNCTAD Printing Unit, Communication and
Press Offi ce for providing overall logistical, administrative and web-related support.
vi
vi
D
E
V
E
L
O
P
IN
G
TABLE OF CONTENTS C
O
U
N
T
R
Page IE
S
IN
FOREWORD ...................................................................................................................iii IN
T
ACKNOWLEDGEMENTS ......................................................................................................v E
R
OVERVIEW: UNCTAD initiatives on non-tariff measures ............................................xi N
PA
aTIO
rN
tA
PCAORUTN ITRY REPORTS ON NON-TARIFF MEASURES ....................................................1 IL T
R
A
D
E
BRAZIL ......................................................................................................................3
I. General Overview ...............................................................................................3
A. Current economic structure and growth ..............................................3
B. Trade structure ..........................................................................................4
C. Recent trade and tariff policies ...............................................................5
1. Tariff policy ...........................................................................................5
2. Tax policy on imports ..........................................................................7
3. Export policies ......................................................................................8
D. Recent and new commitments and regulations
related to SPS and TBT .............................................................................9
1. Technical regulations and standards ................................................9
2. Sanitary and phytosanitary measures ............................................11
3. Bilateral and regional trade agreements .........................................14
II. NTMs applied by Brazil ..................................................................................16
A. National data sources .............................................................................16
B. NTMs applied by Brazil .........................................................................16
III. Challenges ..........................................................................................................16
A. Business survey: Challenges faced and lessons learned ...................16
IV. Conclusions ........................................................................................................17
CHILE ....................................................................................................................19
I. General Overview .............................................................................................19
A. Country profi le ........................................................................................19
B. Trade and trade policies .........................................................................19
C. Trading partners .....................................................................................20
D. Recent and new commitments and regulations
related to SPS and TBT ...........................................................................21
II. Business Survey ...............................................................................................22
A. Survey methodology ..............................................................................22
1. Criteria for sample selection .............................................................22
vii
vii
E
D
A B. Survey implementation ..........................................................................22
R
T 1. Recruitment and selection of interviewers ....................................22
L
A 2. Training ...............................................................................................22
N
O 3. Obtaining interviews .........................................................................23
ATI 4. Application of the interviews ...........................................................23
N
R 5. Reception and revision on the survey ............................................23
E
T 6. Supervision .........................................................................................23
N
N I 7. Coding ..................................................................................................23
S I C. Survey results ..........................................................................................23
RIE 1. Profi le of interviewed companies ....................................................23
T 2. Reports on trade barriers ..................................................................24
N
U 3. Specifi c aspects related to sanitary and technical regulations ...25
O
C 4. Summary of results ...........................................................................26
G
N
OPI III. NTMs applied by Chile ..................................................................................26
L
E
V
E IV. Challenges .........................................................................................................28
D
A. Business survey: Challenges faced and lessons learned ...................28
V. Conclusions ........................................................................................................29
INDIA ....................................................................................................................31
I. General Overview .............................................................................................31
A. Overview of Indian economy ................................................................31
B. Foreign trade ............................................................................................31
C. Tariff policies ...........................................................................................32
D. Policies related to SPS and TBT measures ...........................................33
E. India’s mutual recognition agreements/arrangements
on trade in goods ....................................................................................34
II. Business Survey ...............................................................................................34
A. Criteria for sample selection ..................................................................34
B. Survey implementation ..........................................................................36
C. Survey results ..........................................................................................37
1. Profi les of interviewed exporting companies ................................37
2. Profi les of importing companies .....................................................37
3. Reported trade barriers .....................................................................38
4. Reports of NTMs by exporting companies ....................................38
5. Cases of NTMs reported by importing companies.......................40
D. Summary of results ................................................................................41
III. NTMs applied by India ..................................................................................43
A. Introduction .............................................................................................43
IV. Challenges .........................................................................................................43
A. Business survey: Challenges and lessons learned .............................43
V. Conclusions .......................................................................................................44
A. Conduct of the business survey ...........................................................44
B. Intensifying collaboration among stakeholders .................................46
1. Appointment of a single SPS enquiry point ...................................47
viii
viii
D
E
2. Addressing the issue of inadequate V
E
information dissemination ....................................................................47 L
O
3. Consultation and feedback on SPS and TBT notifi cations ...........47 PIN
4. Enquiry of complaints lodged by industries .................................48 G
C
5. Resolving SPS and TBT measures ...................................................48 O
U
C. Impact assessment of NTMs .................................................................49 N
T
D. Capacity-building and technical assistance........................................49 R
IE
S
IN
PHILIPPINES .............................................................................................................51 IN
T
E
R
I. General Overview .............................................................................................51 PNA
aTIO
A. Current economic structure and growth ............................................51 rN
tA
B. Trade structure ........................................................................................51 IL T
C. Recent trade and tariff policies .............................................................52 R
A
D. Recent and new commitments and regulations D
E
related to SPS and TBT ...........................................................................52
II. Business Survey ...............................................................................................53
A. Criteria for sample selection ..................................................................53
B. Survey implementation ..........................................................................54
C. Survey results ..........................................................................................54
1. Profi les of interviewed companies ..................................................54
2. Reports on trade barriers ..................................................................55
3. Specifi c aspects related to sanitary and technical regulations ...58
4. Summary of results ...........................................................................59
III. NTMs applied by the Philippines ................................................................60
A. National data sources .............................................................................60
B. NTMs applied by the Philippines ........................................................60
1. Types of NTMs ...................................................................................61
2. Aff ected products ...............................................................................61
3. Recent trends ......................................................................................61
C. Preliminary assessment of applied NTMs ..........................................62
D. Summary of results ................................................................................62
IV. Challenges .........................................................................................................63
A. Business survey: Challenges faced and lessons learned ...................63
B. Inventory on NTMs applied by the Philippines:
Challenges faced and lessons learned .................................................65
V. Conclusions .......................................................................................................66
THAILAND ................................................................................................................69
I. General Overview .............................................................................................69
A. Current economic structure and growth ............................................69
B. Trade structure ........................................................................................69
C. Recent trade and tariff policies .............................................................70
D. Recent and new commitments and regulations
related to SPS and TBT ...........................................................................71
ix
ix