spotlight on the invisible barriers to trade · prohibition, etc. obstacles procedural obstacles...

Spotlight on the invisible barriers to trade

Capturing the experiences of Namibian exporters with non-tariff

measures

Samidh Shrestha & Cristian Ugarte

NTM Survey Launch

Windhoek, Namibia - 01 June 2016

1. Introduction to ITC

2. Introduction to non-tariff measures (NTMs)

3. The ITC project on NTMs

4. The survey implementation in Namibia

5. How you can support us

6. Feedback / Discussion

7. Results from surveys in other countries

What is ITC?

The UN body for design of

policy recommendations to

achieve economic and social

development through trade and

investment.

The forum to negotiate

multilateral trade rules, monitor

their implementation and handle

trade disputes

ITC works with local and regional

institutions and businesspeople to

build trade capacity.

ITC’s six focus areas and goals

ITC’s Market Analysis And

Research Services

1. Information transparency (Global Public Goods)

• Trade Map

• Market Access Map

• Investment Map

• Standards Map

2. Country-level trade diagnostics & research on

global trade trends

(including NTM Business Surveys)

3. Building Capacity in market analysis and

research

What are non-tariff measures (NTMs)?

Official policy measures on export and import, other than

ordinary customs tariffs, than can potentially have an effect on

international trade in goods, changing quantities traded, or prices

or both.

Mandatory requirements, rules or regulations legally set by the

national authorities of the exporting, importing or transit country (in

contrast to private standards which are not legally set)

Can affect both export and import

Include technical measures and standards, as well as regulations

on customs procedures, para-tariff measures, financial measures,

prohibition, etc.

Tra

de

Ob

sta

cle

s

Procedural Obstacles

Practical challenges or

administrative hurdles

which make compliance to

NTMs difficult.

NTMs and other trade obstacles

Excessively strict/

complex requirements

The requirements are too

strict or complex to comply

with.

NTMs

Regulations on trade and products,

other than tariffs, which may negatively

affect the international trade of goods.

NTBs

NTMs that have

a ‘protectionist or

discriminatory intent’

Business Environment

General operating conditions in the country that are not related to NTMs

but which may hinder a company’s ability to trade.

10

The NTM Survey classification

• International taxonomy used to classification different types of regulations

related to trade in goods.

• Prepared in a multi-agency framework under UNCTAD’s leadership.

• Covers

• mandatory, government-imposed regulations:

• both import and export of goods

• technical and non-technical measures

• Trade in services not covered

• Simplified version of the classification used for NTM business survey

Classification of NTMs



3. The ITC programme on NTMs





Three Pillars of ITC’s Programme on NTMs

Pillar 1

NTM Regulatory

Mapping

• Codifying and

classification of

national trade-related

regulations

• Data dissemination

through Market

Access Map

(MAcMap)

Pillar 2

Business

Surveys

• Large-scale surveys

of businesses on

their experiences

with government

regulations when

exporting or

importing

Pillar 3

Follow Up

Actions

• Design and

implementation of

actions to address

companies’

difficulties with NTMs

• E.g.: Trade Obstacle

Alert (TOA)

mechanism

Surveys Methodology: Scope

NTM Survey covers the following

sectors:

1. Fresh food and raw agro-based

products

2. Processed food and agro-based

products

3. Wood, wood products and paper

4. Yarn, fabrics and textiles

5. Chemicals

6. Leather

7. Metal and other basic manufacturing

8. Non-electric machinery

9. Computers, telecommunications;

consumer electronics

10. Electronic components

11. Transport equipment

12. Clothing

13. Miscellaneous manufacturing

Goods

• Covers companies involved in international

trade in goods.

• Products from all sectors included except

minerals and arms.

• Sectors with more than a 2% share in total

exports are included

• Cumulatively, sectors covered account for

at least 90% of country’s total export value

Services

• The survey does not cover companies

involved in cross-border trade in services

such as tourism, banking, finance,

telecommunication and BPO.

• A survey on trade in services requires a

different methodology

Two-step interview process

• 500 PS in Namibia

• 6-8 min per interview

• Identify products exported by the

company and partner countries

• Identify if the company face problems

with burdensome regulations

• Companies facing problems with NTMs

as identified in PS interviewed

• 200 face-to-face interviews in Namibia

• 40-60 min per interview

• All details of the problem faced by the

company recorded

Step 1

Phone Screens (PS) Step 2

Face-to-Face interviews (FTF)

Business Environment

Company perception on the current business environment in Namibia

• Identify various factors in the country that has restricted or limited

company’s ability to trade:

• Administrative burdens

• Transport or storage problems

• Infrastructure and production constraints

• Legal and financial issues

• Whether there has been an improvements or not in the past 5 years

19

20

Objectives of the survey

The NTM survey

…documents the private sector experience with NTM-related trade obstacles with

a view to identify feasible options to overcome these.

…is part of a wider, collaborative approach, beyond company perceptions, which

integrates all stakeholders of the import and export process. The survey report will

be finalized and published after this stakeholder consultation has taken place

through additional interviews and a validation meeting.

…aims at identifying concrete actions that enable Namibia to reach greater

efficiency in the export process and reduced trade cost.

The NTM survey is NOT

…a collection of or platform for complaints.

…intended to single out specific institutions to blame for inefficiencies.

Who will benefit from the ITC survey on NTMs?

1. Exporters • Channel for reporting the obstacles to trade they face in their daily business to raise

awareness among other exports and importers, trade support institutions and policy makers

• Exchange of experiences with other exporters and importers

• final beneficiaries of removal of NTM-related trade obstacles

2. Trade support institutions • Better understanding of sector-specific needs;

• Better support for business sector; fostering of transparent and dynamic commercial activity

3. Policy makers • Understanding specific needs of business sector; better formulation of national and

regional strategies and policies

• Removal of procedural obstacles

4. Researchers • Better understanding of the impact of NTMs on international trade – from the

perspective of the business sector

21

As of 26 October 2015

NTM Business Surveys in numbers

22,344 Phone Interviews

More than

21,000

reported trade obstacles…

Complete

Ongoing

Planned

From over

developing

countries

+ 28 EU countries

30 185

…concerning

trade with

partner countries

6,164 Face-to-face interviews

A MILLION DATA POINTS

TO EXPLOIT FOR HIGHER

TRTA IMPACT

ITC Survey results online:

www.ntmsurvey.org



3. The ITC programme on NTMs





In close collaboration with national and

international partners

The Ministry of Industrialization, Trade

and SME Development

National Partner

Survey Implementation Partner Main Donor

NTM survey in Namibia – the process (tentative dates)

1. Survey Inception and Preparation

• Survey design adjustment to country specific needs

• Sample size calculation*

• Face-to-face training of interviewers*

• First stakeholder meeting to inform about survey objectives and encourage participation

In collaboration with the Ministry of

Industrialization, Trade and SME Development

2. Interview

Period

• 500 phone-screen interviews with exporters and importers

• 200 face-to-face interviews with exporters and importers

• Data digitalization

• Data quality control*

In collaboration with

Vision Africa Research Services Namibia .

3. Data Analysis and Draft Report

• Preparation of analytical tables (by products and sectors, partner countries, types of NTMs and procedural

obstacles)*

• Additional research and complementing discussions and interviews with business associations and institutions involved in export / import process

• Drafting of country report

In collaboration with local expert(s)

(economist, trade specialists)

4. Results Validation and Dissemination

• Validation of survey results and formulation of policy options though a second stakeholder meeting

• Compilation of a matrix of action and definition of follow-up activities with a view to remove identified trade obstacles

• Finalization of country report

In collaboration and coordination with the

government, TSIs and other local stakeholders

(customs, certification bodies, etc.)

Until May 2016 June 2016 – August 2016

September 2016 –

October 2016 November 2016

*Activities implemented by ITC

ITC survey on NTMs – Methodology

• Global Methodology, adjusted to specific requirements of Namibia.

• The survey will prioritize companies that export the following products, deemed

of high importance by the Government of Namibia:

• Confidential

• Focus on exporting and importing companies; if required, further actors taken into consideration

• Representative by sector : covers all export sectors excluding services, minerals and arms that accumulatively account for +90% of country’s export value. Import sectors are also covered. Several geographic regions included.

NTM survey implementation in Namibia

• In collaboration with our local partner, responsible for the

implementation of interviews:

Vision Africa Research

(selected through ITC (UN) procurement process)

• Training of interviewers and testing interviews:

30 May – 03 June 2016

During the phone screening, Vision Africa will randomly contact

exporting and importing companies from the business register.

NTM survey Namibia: Sample

29

Active exporting companies in Namibia in 2014

Companies to be interviewed by phone

Companies to be interviewed face-to-face

~2000

~500

~200*

*Estimated number; actual number depends on results of

phone screening and company willingness to participate in

face-to-face interviews

Exporters by sector* 30

01. Fresh food and raw agro-based products

13%

02. Processed food and agro-based products

4%


6%


2%

05. Chemicals 4%

06. Leather and leather products

1%


9%


17%

09. Computer, telecommunications, consumer electronics

7%


8%


10%

12. Clothing 1%


13%

14. Minerals and other excluded

5%

*Sector based on the HS code of exported products.

Note: some companies may export products which may fall under multiple

sectors. Only the *main* products’ sector of a company is taken into

consideration for this chart

Total = 2152

Namibia Exports in 2014

31

14%

5% 1%

1% 1%

12%

3%

1% 1% 18%

0% 1%

42%





05. Chemicals




09. Computer, telecommunications, consumerelectronics10. Electronic components


12. Clothing


14. Minerals and other excluded

Total exports =

US$ 5.98 billion

Share of export valued and companies:

by sector – excluding mineral exports

32

14%

1%

10%

8%

7%

18%

10%

1%

5%

2%

7%

4%

14%

2%

0%

31%

1%

1%

6%

20%

1%

2%

0%

2%

9%

25%

0% 5% 10% 15% 20% 25% 30% 35%


12. Clothing



09. Computer, telecommunications,…




05. Chemicals





% Export Value % Number of Exporters

Survey sample by sector

33

Sector Export Value

(US$ '000), 2014 1

Export share, 2014 1

Number of companies

2

Phone screen

interviews

Face-to-face

interviews 01. Fresh food and raw agro-based products 863,749 24.7% 286 72 27

02. Processed food and agro-based products 313,395 9.0% 78 43 16

03. Wood, wood products and paper 73,597 2.1% 135 56 21

07. Metal and other basic manufacturing 692,233 19.8% 197 65 25

08. Non-electric machinery 194,741 5.6% 376 76 29

11. Transport equipment 1,084,135 31.0% 207 66 25

13. Miscellaneous manufacturing 76,791 2.2% 278 71 27

Others sectors

04. Yarn, fabrics and textiles 16,257

195,867

0.5%

5.6%

51

497 80 30

05. Chemicals 58,615 1.7% 93

06. Leather and leather products 30,940 0.9% 20

09. Computer, telecommunications, consumer electronics 51,271 1.5% 143

10. Electronic components 29,023 0.8% 167

12. Clothing 9,761 0.3% 23

3,494,508 2054 529 200

1/ Excludes export of Minerals 2/ Excludes companies exporting minerals and non-registered companies

Caveats

• Information collected from the survey is perception data

• Respondents may have different scale for judging what constitutes an

impediments.

• Perceptions across countries can differ due to cultural, political, social,

economic and linguistic differences.

• Companies may not have full understanding of the purpose of the regulation

• Scope of the survey limited to legally operating companies

• Informal trade not covered

Post-survey activities

• The study is on company perspectives on non-tariff measures BUT not just

• ITC will also talk to different:

– Public agencies (Customs, Standard Agency, etc),

– Business associations

– Development agencies etc

• Data quality control and analysis

• In collaboration with Namibian experts

• Validation of results during National Stakeholder Meeting

• Publication of Country report

• Preparation for activities to tackle difficulties identified – in close collaboration

with Government of Namibia and other development partners

35

Company contacts

Current situation

• List of active exporters and importers (2014)

• Contact details missing

• Namibia Trade Directory 2016

• Unindexed

• Manufacturing and Processing Directory

• Unindexed

• List of women owned business that ITC has worked with

• ACCESS! Namibia

37

Need for a comprehensive list of exporters with contact details

Spread the word!

The methodology hinges upon enterprises being willing to

participate in interviews.

Your potential role:

Inform exporting companies that they may be

contacted during the next weeks and months and

encourage their participation in the survey.





5. How you can help us



Your feedback on the survey scope in

Namibia and expected results

Current sector/Product coverage? (e.g. for

transportation sector?)

Sectors or products of specific importance?

Current trade concerns related to NTMs?

Specific expectations in relation to SACU or other

trading partners/regions?

Coverage of informal sector?





5. How you can help us



Share of companies affected by NTMs

39%

39%

44%

29%

15%

49%

38%

36%

37%

40%

44%

55%

62%

0% 10% 20% 30% 40% 50% 60% 70%

Miscellaneous manufacturing

Clothing

Transport equipment

Electronic components

Computer, telecommunications; consumer electronics

Non-electric machinery

Metal and other basic manufacturing

Leather and leather products

Chemicals

Yarn, fabrics and textiles

Wood, wood products and paper

Processed food and agro-based products

Fresh food and raw agro-based products

Source: ITC surveys on NTMs, 2010-2013.

Cross country average of 23 countries

Share of exporting companies affected and PPP

income per capita in surveyed countries

y = -0.3135x + 6.4613

R² = 0.6449

3

3.2

3.4

3.6

3.8

4

4.2

4.4

4.6

4.8

6.0 6.5 7.0 7.5 8.0 8.5 9.0 9.5 10.0 10.5

Income Level (log)

Affe

cte

dn

ess r

ate

(lo

g)

Source: ITC surveys on NTMs, 2010-2013 and World Bank for income per capita

Note: GDP per capita in purchasing power parity on the horizontal axis (log scale) and

100xaffectedness on the vertical axis (log scale). GDP is observed at starting year of the

survey for each country.

Distribution of NTM cases reported by exporters

across countries/regions applying the NTM

39%

20%

13%

28%

Agriculture

OECD countries Countries within RTA

31%

30%

13%

26%

Manufacturing

Other developing countries Home country

Share of cases of burdensome NTMs versus share

of exports across trading partners, by sector

54%

28%

18%

41%

18%

41%

0%

10%

20%

30%

40%

50%

60%

OECD countries Countries withinRTA

Other developingcountries

Agriculture

Share of NTM cases

41% 41%

18%

54%

22% 24%

OECD countries Countries withinRTA

Other developingcountries

Manufacturing

Share of exports to this region

Types of burdensome NTMs applied by

partner countries

22%

48%

5%

5%

5%

2% 11%

2%

Agriculture

Technical requirements

Conformity assessment

Pre-shipment inspection and other entry formalities

Quantity control measures

11%

23%

13%

4% 9% 3%

35%

2%

Manufacturing

Charges, taxes and price control measures

Finance Measures

Rules of origin and related certificate of origin

Other

Types of NTMs applied by home country

to exports

25%

21%

8%

18%

10%

11%

7%

Agriculture

Export inspection

Certification required by the exporting country

Other export technical measures

Licensing or permit to export

20%

12%

7%

19%

13%

9%

20%

Manufacturing

Other export quantity measures

Export taxes and charges

Other export related measures

Reason making NTMs burdensome for exporters,

by sector

40%

58%

25%

19%

35%

23%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Agriculture Manufacturing

Too strict

Both

Procedural obstacles

Morocco: creation of an inter-

ministerial steering committee to

address the identified obstacles

Jamaica: request to

ITC for assistance in addressing capacity building needs of SMEs as well as customs officials to increase compliance with NTMs and reduce procedural obstacles

Côte d’Ivoire: continued

public-private interaction through the creation of an online trade barriers reporter

Mauritius: elimination of the

need for Tea Board clearance of Rooibos tea imports resulting in reduced time for importing

Sri Lanka: successful application to WTO

STDF with a view to improve product quality

and cost of exporting

Follow-up: examples

Reduction of

NTM-related

trade

barriers

Question / Comments?

50

ITC Programme on Non-Tariff Measures

Market Analysis and Research

International Trade Centre

CH-1211 Geneva 10, Switzerland

Tel.: +41 (0)22 730 0184

Fax: +41 (0)22 730 0577

[email protected]

Thank you!

For further information:

www.ntmsurvey.org/namibia

ITCmarketanalysistools @ITC_MktAnalysis

http://www.ntmsurvey.org/kyrgyzstan

spotlight on the invisible barriers to trade · prohibition, etc. obstacles procedural obstacles...

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