steps towards developing an fta negotiating plan for goods
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Steps towards developing an FTA negotiating Plan for goods. Tamanna Chaturvedi Consultant Indian Institute of Foreign Trade New Delhi. The confusion begins… …..so many products..so many markets !!. Group A: Analyzing your Country’s position. - PowerPoint PPT PresentationTRANSCRIPT
Steps towards developing an FTA negotiating Plan for goods
Tamanna ChaturvediConsultantIndian Institute of Foreign TradeNew Delhi
The confusion begins… …..so many products..so many markets!!
Identify the sectors of Export interest Identify major ASEAN market for each product Check out the consumer preference in the
importing Country At what price are you entering that market? What import duty rates is your product facing
in each of these markets? What is the final landing price of your product
in that market?
Group A: Analyzing your Country’s position
Who are the other competing suppliers? Are they WTO members? Are they Developed/developing/LDC Do they have any RTA with that Country? What is the duty rate faced by your
competing suppliers? At what price is your competing supplier
entering into that market?
Group B: Analyzing competition
If for a particular product, your competing supplier in any ASEAN market is a WTO member and is an LDC, then you need to consider that product under Priority sector for tariff reduction. Since the benefit that your country gets as LDC, you will get under RTA.
Identify 5 major sectors/products of Import interest to your country
From which ASEAN market are you importing?
Since these are the sectors of import interest to your country, you will not require negotiating tariff duty reduction on these tariff lines with these markets.
Group 3: Analyzing Import status
Lao Myanmar
VietnamThailand
Exploring Intra EWEC Trade prospects
Export Import
China
AquaticCerealsSoybean
Animal fatVegetable prducts
Cambodia
Soybean oilMaizeSesame
Lao Coffee Edible oil
Thailand Rice
TobaccoBeveragesVeg oil
Vietnam
BeveragesTobaccoVeg oilRiceCoffee Crude oil
Identify 5 major sectors/products of Import surge in your country
What is the import duty that you have decided as of now for other ASEAN countries?
From which ASEAN market are you importing What is the import growth from these markets
for last five years?
Note: For products where the import growth has been very high from the ASEAN markets, you will like to keep it in negative/sensitive list.
Look for products in which you have Comparative advantage?
Rice from Lao PDR Vietnamese Rice Thai rice
……….Current GI list from Vietnam
PHAN THIET FISH SAUCETHANH HA LITCHIHAI HAU TAM XOAN RICE
• Thanh Ha Lychee from Hai Duong Province,
• Lai Vung Mandarin Orange from Dong Thap Province
• Hoa Loc Mango from Tien Giang Province.
• Mangosteen from Cai Mon• Durian from Cai Mon• Plum Hau from Bac Ha• Grapefruit from Doan
Hung• Grapefruit from Canh Dien
• Grapefruit from Phuc Trach
• Longan Long from Hung Yen
• Litchi Thieu from Thanh Ha
• Sapodilla from Canh Dien• Dragon fruit from Binh
Thuan• Vegetables from Dalat• Perfumed rice Tam Thom
(Xoan) from Hai Hau
Methodology and Interpretation
P d / Pb
P d = domestic price of the commodityP b = border or the adjusted reference price (adjusted for relevant transportation, handling and marketing costs.)
*NPC less than 1 depicts competitiveness
NPC as a competitive measure
Where can I look for this information?
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18
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www.trademap.org www.macmap.org www.aric.adb.org www.adb.org www.intracen.org www.standardsmap.org Centre for the Promotion of Imports from
developing countries (CBI): www.cbi.nl CIA Factbook
www.odci.gov/cia/publications/factbook Country Watch www.countrywatch.com www.economist.com/countries
First Step
Find out the HS CODE of the products identified by you for your country/province?
List of HS Code [2 digit level]
• 01-05 Animal & Animal Products• 06-15 Vegetable Products • 16-24 Foodstuffs• 25-27 Mineral Products • 28-38 Chemicals & Allied Industries • 39-40 Plastics / Rubbers • 41-43 Raw Hides, Skins, Leather, & Furs• 44-49 Wood & Wood Products• 50-63 Textiles • 64-67 Footwear / Headgear• 68-71 Stone / Glass • 72-83 Metals • 84-85 Machinery / Electrical• 86-89 Transportation • 90-97 Miscellaneous • 98-99 Service