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					Market Analysis Tools
   and Services

 UNCTAD Virtual Institute Visit to ITC
Market Analysis and Research
Enhancing Understanding of International Trade Opportunities and
Obstacles
ITC’s Market Analysis and Research (MAR) section produces and disseminates online market analysis
tools, conducts market research and trade analysis, and delivers capacity building programmes in market
analysis for the business community, trade support institutions and policy makers in developing countries.


MARKET ANALYSIS TOOLS
Enhancing transparency with statistics on global trade, market access and Foreign Direct Investment
(FDI)
ITC has created for developing countries a range of market analysis tools – Trade Map, Market Access
Map, Investment Map and Trade Competitiveness Map.

Developing countries can use these tools to help grow their exports by identifying opportunities for
product and market diversification. A wide range of navigation options, combined with a powerful set of
analytical outputs – tables, maps and charts - make it easy to analyse trade-related information for sets of
products, sectors or countries.
Users in developing countries can benefit from FREE access to the tools thanks to financial
contribution from donors to ITC’s Trust Fund. To get your free password, register at
                                 www.intracen.org/marketanalysis
INTERNATIONAL TRADE CENTRE



 Trade Map

     Includes time series trade statistics (HS 2, 4 and 6-digit), market shares, trends, and other trade
 indicators for 220 countries and territories. More detailed statistics – at national tariff line level – are
 available for 120+ countries, and current monthly or quarterly data is included for more than 78 countries.

 Market Access Map

     Includes customs tariffs (including tariff preferences) applied by 187 countries and faced by 239
 countries and territories; rules/certificates of origin; and bound tariffs of WTO members. Enables the
 aggregation of products and countries as well as simulation of tariff reduction scenarios. A new version
 will be launched in 2011 bringing together functionality of Market Access Map and the World Bank’s
 WITS.

 Investment Map

     Includes statistics on FDI flows and stocks by country and industry (ISIC Rev. 3) for 100 countries,
 together with information on the operations of foreign affiliate companies active in developing countries.

 Standards Map
      Improves information transparency about voluntary sustainability standards, covering 30 standards
 and up to 60 product groups. The tool enables producers in developing countries, public procurement
 officials and SME procurers to better understand the requirements, costs and benefits of standards
 including Fair Trade, Rainforest Alliance, IFOAM, and Global Gap among others.

 COUNTRY-LEVEL TRADE DIAGNOSTICS & CUSTOMIZED MARKET RESEARCH
 AND ANALYSIS

 ITC’s research and analysis helps trade policy makers allocate scarce resources towards sectors and
 markets with greatest export potential. They also help in refining trade negotiation positions, modeling the
 impact of economic and trade trends and assessing the impact of trade agreements. Our analysts bring
 together the most current and detailed trade-related data with state-of-the-art analytical survey
 methodologies and models. Our core competencies include:

     Assessment of Non-Tariff Measures (NTMs) as barriers to export, through comprehensive
 national surveys of enterprises and official NTM sources
  Customized analysis and reports on other market access issues, including tariffs, and
 support in preparing negotiation positions in multilateral or regional trade talks.
  Assessments of export diversification opportunities by sector, country or region through
 detailed statistical analysis and qualitative research
  Assessment of national trade competitiveness vis-à-vis benchmark countries

 CAPACITY BUILDING SERVICES
 Providing foundations for successful export strategies


                                                  ITC’s Market Analysis and Research offers a wide range
                                                  of capacity building activities for export oriented
                                                  managers, trade support institutions and trade policy
                                                  makers to support market analysis, one of the
                                                  foundations of successful export strategies and trade
                                                  policies.


                                                  Workshops, seminars and mentoring activities take place
                                                  in partner countries, in Geneva or by web conferencing
                                                  (Webinar).
INTERNATIONAL TRADE CENTRE




Capacity Building Workshops:

                Introduction to Researching & Analysing Export Markets
                Introduction to ITC’s Market Analysis Tools
                Analysing Export Opportunities for a Target Market
                Preparing a Market Profile
                Mentoring on Export Potential Assessment
                Advanced Market Access Analysis
                Analysing Voluntary Sustainability Standards
 More in-depth capacity building programmes can also be customized to partners’ specific needs.



 PUBLICATION COLLABORATIONS:

 World Tariff Profiles – Published annually by ITC, WTO and UNCTAD
 A 200-page comprehensive overview of bound and applied tariffs for WTO member countries and applied
 tariffs for non-WTO members.
 MAR also contributes to:
 World Trade Indicators - a World Bank publication
 The Global Enabling Trade Report - a World Economic Forum publication
 The Global Trade Analysis Project (GTAP): data and aggregations


 For more information about any of our activities – including costs where relevant, please contact:
 marketanalysis@intracen.org or visit www.intracen.org/marketanalysis
Introduction
ITC's Market Analysis Tools and trade
analysis




What is ITC?

The UN body for design of policy
                                                                        The forum to negotiate multilateral
recommendations to achieve
                                                                                 trade rules, monitor their
economic and social development
                                                                         implementation and handle trade
through trade and investment.
                                                                                                 disputes


                                    ITC works with local and regional
                                   institutions and businesspeople to
                                       promote exports and trade.
• 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
  ITC activities

                                                                 ITC Development
             Activities     ITC Clients    ITC Beneficiaries
                                                                    Outcomes
Business and Trade Policy     Policy
                              Makers
Export Strategy                                                 Export Impact for Good
                                                Micro,            Generating sustainable
                               Trade
                                              Small and          incomes and livelihoods
Trade Intelligence            Support
                                             Medium-Sized           especially for poor
                            Institutions
Trade Support Institution                     Exporters         households, by connecting
                                                               enterprises to global markets
                             Business
Exporter Competitiveness    Community




              One           One                         Many




  ITC organisational chart
MAR activities
                                                          III. Capacity Building and
I. Market Analysis Tools    II. Tailored Analysis
                                                               Training
                            Trade Competitiveness
Trade Map                                                 Introduction to Market Analysis
                            Assessment

Market Access Map           Export Potential Assessment   Preparation of Market Profiles

Investment Map              Export Opportunity Scan       Training–of–Trainers

                                                          Mentoring for Tailored
Trade Competitiveness Map   Sector Competitiveness Scan
                                                          Analyses

                            Customised analyses           Face-to-face and E-training

                                                          Customised training




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




Trade is enormous...



$12,650,000,000,000
             or $401,128 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
...and it's more dynamic than the economy...
                                   World Trade vs. GDP Growth
     13%
                                                    1960-2009


     11%




     9%
                         GDP   Trade


     7%




     5%




     3%




     1%



            1960- 1970- 1980- 1991- 1995-   1999   2000   2001   2002   2003   2004   2005   2006   2007   2008   2009
     -1%     70    80    90    94    98

                                                    Source: WTO




... but it's not immune to the downturn...
           Annual Growth of Imports by Level of Development of Countries
                                                    2002-2007




                                               Source: ITC Trade Map
...although downturn is not uniform...
          GDP and merchandise trade by region, 2005-07
                    Annual % change at constant prices




                                    Source: WTO




... TRADE GREW STEADILY THIS DECADE
UNTIL 2008     Growth of trade volumes
                               Annual % change




                  Source: World Bank, Global Economic Prospects 2009
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 their regions
• However many regions trade more with other regions than
  internally: Africa, South and Central America, Middle East and
  CIS




...with developing countries gaining ground...
                               Share in total world exports, percentages
               Developing countries                      LDCs                    Developed countries


80%


70%


60%


50%


40%


30%


20%


10%


 0%
      1991   1992   1993   1994    1995   1996    1997    1998    1999    2000   2001   2002    2003    2004    2005   2006    2007    2008

                                                                 Source: ITC
                           LDC list comes from UN. Developed countries are current OECD countries less Chile, Korea, Mexico and Turkey. The
                           remainder are developing. Graph is based on data reported by 198 countries and territories. The composition of groups can
                           vary slightly depending on the data availability
…and increasingly trade with other
developing countries…
  50%
                    33%           35%              39%                      Share of Developing
                                                                     43%
   40%                                                                      Countries exports that are
   30%                                                                      exported to China, Hong
               16%                                                          Kong, Chinese Taipei and
   20%                      18%                                             India
                                              19%                  22%
   10%
                                                                            Share of developing countries
       0%                                                                   exports that are exported to
             2002                                                           other developing countries
                           2005
                                             2008
                                                                   2009




 50%                                                                         Share of exports of Least
                                               44%                   47%
                                 34%                                         Developed Countries that go
 40%               28%                                                       to China, Hong Kong,
 30%                                        30%                              Chinese Taipei and India
                          24%                                      32%
 20%         15%
  10%
                                                                             Share of exports of Least
   0%
                                                                             Developed Countries that go
            2002                                                             to Developing countries
                          2005
                                            2008
                                                                  2009




The mix of products traded is changing...
                                       Global trade by type of commodity
                                                     % of total trade




                                                    Source: ITC Trade Map
…partly due to commodities prices…
     Real prices of internationally traded commodity prices in developing countries
                                       CPI-deflated Indices, Jan. 2000=100

                                                                                                            Energy




                                                                                                                   Food

                                                  Metals and
                                                   minerals




                                      Source:World Bank, Global Economic Prospects 2009




... but not all sectors are equally successful
The best performing exports from developing country exporters tend to be manufactured
                          products, with high value-addition
             Top export industries for high-                      Top export industries for struggling
           performance developing countries                             developing countries
           (but not from 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
Market access issues are changing:
• Trade agreements proliferate...
             Number of Free Trade Agreements Notified to WTO
                                        1958 – 2009




                                          Source: WTO




… reducing tariffs…
                  Applied MFN Tariffs, All Products, By Level of Income




                            Source: World Trade Indicators, World Bank
… and making NTMs more important
Unprompted, Combined Mentions in ITC 2008 client survey




                                                                                                             2009 Survey– NTMs still an
                                                                                                             issue for exporters but
                                                                                                             overshadowed by the
                                                                                                             economic crisis – finance
                                                                                                             and fall in demand




Trade in services grows quickly...
                                            Trade in Services as % of GDP
           12                                                     1975 – 2007


           11



           10



            9



            8



            7



            6
                1975


                       1977


                              1979


                                     1981


                                            1983


                                                    1985


                                                           1987


                                                                   1989


                                                                          1991


                                                                                 1993


                                                                                        1995


                                                                                               1997


                                                                                                      1999


                                                                                                               2001


                                                                                                                      2003


                                                                                                                             2005


                                                                                                                                    2007




                                               Source: World Development Indicators, World Bank
...significantly due to FDI...
• In spite of quick growth in 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 trade in services statistics
• FDI data shows that more than half of FDI flows are in the
  services sector
• FDI keeps on growing globally...




…which is ever more important
                           FDI as % of World GDP
                                      1985 – 2007




                       Source: World Development Indicators, World Bank
Business environment affects trade




               Source: World Trade Indicators 2008, World Bank




Register to access ITC’s
Market Analysis Tools
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/marketanalysis
Free to users from developing countries




              Coming soon – New MAcMap
Trade Map
Trade statistics for international business development
 Trade Map - www.trademap.org - is an interactive online database on international trade statistics and
 presents indicators on export performance, international demand, alternative markets and the role of
 competitors from both the product and country perspective.

 Trade Map covers the annual trade flows (mirror and direct) of over 220 countries and territories and
 5,300 products defined at the 2, 4 or 6-digit level of the Harmonized System with different trade indicators
 (indices, values, quantities, trends, market share and unit values) and times series since 2001 displayed
 in graphic, map or tabular format. Trade values can be selected from 16 different currencies. 2010
 monthly trade statistics for over 80 countries are updated on a constant basis as well as 2010 first and
 second quarter data are available for more than 60 countries.

 Trade Map's features include:

    Analysis of present export markets: Examine the profile and dynamics of export markets for any
 product, assess the value, size and concentration of exports and highlight countries where market shares
 have increased.

     Pre-selection of priority markets: View the world’s major importing countries, illustrate the extent
 of import concentration and in which countries demand has increased over the past five years.

     Overview of competitors in global and specific markets: Identify the leading exporting countries
 for a given product; highlight a country’s position in world exports or in the imports of partner and
 neighbouring countries.

    Review of opportunities for product diversification in a specific market: Make a comparative
 assessment of import demand for related products in an export market; identify imports of similar
 products and possible synergies.

     Visualisation of trends and seasonality: display the monthly data on graphs and identify slopes
 and regular peaks in values as well as in quantities and in unit values.

     Identification of existing and potential bilateral trade with any partner country: Identify product-
 specific opportunities by comparing actual bilateral trade, the total import demand of partner countries
 and the overall export supply capacity of the home country.

    Data export: convert all what you get from Trade Map into a file; download not only trade data as
 Excel or text files but also graphs as images.

    Information on tariffs: View information on tariff equivalent ad valorem faced by countries in their
 exportations or applied by importing countries.

 Thanks to financial contributions from ITC's Global Trust Fund and the World Bank, users in developing
 countries and territories can register at www.intracen.org/marketanalysis to access ITC’s market
 analysis tools free of charge. Users in developed countries and territories can register to get a one-week
 free trial access or subscribe for a longer access.
 The Market Analysis and Research Section of ITC also conducts tailored studies and training
 programmes on market analysis. Please visit our website for more information:
 www.intracen.org/marketanalysis
INTERNATIONAL TRADE CENTRE




          See below, some examples of tables and graphs generated by Trade Map
Trade Map
A web-based trade flow analysis tool




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
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




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 170
      countries and territories (not all have reported each year)
   • Data for non-reporting countries is derived 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 150 countries (~85% of world trade)
• What is Trade Map’s time horizon?
   • Yearly, quarterly and monthly data
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
  • Revisions in 1996, 2002 and 2007




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              HS-2
    can compare HS data between countries.
  • Is broken down into 3 clusters:                          HS-4
      • HS-2: the chapter of the good (sector)
          • E.g. 09 = Coffee, Tea, Mate and Spices
      • HS-4: groupings within the chapter (sub-sector)      HS-6
          • E.g. 0902 = Tea, whether or not flavoured
      • HS-6: product(s) within the grouping (product
        level)
          • E.g. 090210 = Green tea (not fermented)
 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.
                                                                          HS-2
 • Why use the HS and NTL classification?
                                                                          HS-4
     • The HS classification is standardised
        internationally
     • The NTL classification is not standardised                         HS-6
        internationally.
                                                                          NTL
        Each country decides its own further
        classification after the Harmonized System.
        Hence, National Tariff Line codes can be
        different from a country to another.




 Data classification
                  08               Edible fruit and nuts; peel of citrus fruit or melons.
    HS            08.04            Dates, figs, pineapples, avocados, guavas,
(Internationa                      mangoes and mangosteens, fresh or dried.
 l standard)
                  08.04.50         Guavas, mangoes and mangosteens.

                  Australia
                  08.04.50.00      Fresh or dried guavas, mangoes and mangosteens
                  Japan
                  08.04.50.01.1    Mangoes, fresh
   NTL            08.04.50.01.9    Guavas and mangosteens, fresh
   (NON           United States:
 standard)        08.04.50.40.40   Mangoes, 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, mangoes and mangosteens, dried
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/marketanalysis
Free to users from developing countries




Trade Map selection menu
Trade Map selection menu
                                     Direction of flow

                                        Product
                                        selection




                                         Country/Region
                                           selection




                                    Partner country
                                       selection

               Data visualisation




Advanced search




             This is the option to use if you haven't
                found the product code for your
                             product



            Three options to
           search for product
                codes
Advanced search

                             "Search by
                             Hierarchy"
                             allows you to
                             display the
                             entire HS
                             system up to
                             the HS6 level
                             and to identify
                             the specific
                             description of
                             each code




Managing groups




                  Create your own product or
                  country groups to suit your
                            needs
Select product and/or market




                                        Two options:
                                        1. Type in the product
                                            code
                                        2. Type in first letters of
                                            keyword
                                        Then select code to analyse




Select product and/or market
                                Bear in mind:
                         No country/product selection
                                 means ALL
                         countries/products selected




                 Click here to get trade
                indicators that facilitate
                        analysis
World demand for pineapples




                           Always read title
                           of the table first!!




World demand for pineapples




               Situation                      Structure
                                   Trends
World demand for pineapples

                                 Trade               Quantity
                               balance=           imported in the
               Value of
                               exports –           last available
              imports, in
                                imports                 year
            thousands of
Countries   US Dollars, in
                                                          Quantity unit,
                the last
                                                        depends on type of
            available year
                                                              good




                                                             Unit Value=
                                                           Value/Quantity;
                                                             provides an
                                                        indication of average
                                                         value of one unit of
                                                          the product; NOT
                                                          actual price of the
                                                               product




World demand for pineapples
                                  Average annual
                               growth of the imported
                               quantity over the past       Growth rate of
                                      5 years                the imported
                                                            value over the
               Average annual                                  past year
            growth of the imported
             value over the past 5
                    years
World demand for pineapples


                      Share of world maket held by each
                      country. Shows how concentrated
                              the world supply is.




World demand for pineapples


                            Chose a target market
                           based on different criteria
                               (size, dynamism,
                                proximity, etc.)
Assess performance in market




Assess performance in market




          Situation in     Trends in      Performance of
         target market   target market   partner countries
Assess performance in market




        Competitors in the target market




Assess performance in market



                                                       Selecting National
                                                       Tariff Line level...

       ... automatically changes the output format to time series
Assess performance in market




        Alternatives for displaying data




Assess performance in market - NTL




                   NTL codes under the HS6 code provide
                  first glimpse at market segmentation and
                             consumer preferences
Assess performance in market - NTL




                               Competitors
                               currently in
                               this market


                               Global
                               competitors
                               NOT present
                               in this market




Analyse time series
Analyse time series




                 Identify and understand seasonality
                through quarterly and/or monthly data




Analyse time series in graphic format

                                  Seasonality!
Graphic analysis




Graphic analysis
Graphic analysis




Graphic analysis




                   Japan losing importance as a
                     market for partner country




                         Japan gaining importance as a
                           market for partner country
Graphic analysis            Who are alternative suppliers
                           that Japan could source from?




Analyse potential for bilateral trade
                                     Select your
                                   countries/regions
Analyse potential for bilateral trade




              Initial approach at the HS-2 level




Analyse potential for bilateral trade




                   Brazil's imports from Malaysia –
                    Existing demand in Brazil for
                   products coming from Malaysia
Analyse potential for bilateral trade




      Malaysia's exports to the world
      – Existing supply potential from
                  Malaysia




Analyse potential for bilateral trade




      Malaysia's exports to the world –
       Countries currently importing
           Malaysia's products
Analyse potential for bilateral trade




      Brazil's imports from the world –
        existing demand in Brazil for
       products that could potentially
         be sourced from Malaysia




Analyse potential for bilateral trade




      Brazil's imports from the world –
         countries which Brazil is
            currently buying from
Analyse potential for bilateral trade




                     Refine analysis at HS6 level




Analyse potential for bilateral trade




    Further refine analysis at NTL level –
      for base country only, obviously
 Trade Map Graphs
  Bubble Charts:
  Positioning products according to growth
  rates and changes in market share




 Boston Consulting model or matrix
  Portfolio model of product selection based on stage in life cycle
     High



                    Babies                           Stars

Market                 Product Life Cycle
Growth



                     Dogs                      Cash cows

    Low
            Low                                                 High
                             Relative Market Share
 Boston Consulting model or matrix
                    Bubble size is proportional to sales of product

     High
             Farm-direct Organic coffee

                       Babies                            Stars
                             Specialty coffee
Market
Growth


                                                    Cash cows
                        Dogs

    Low
                                                          Instant coffee High
            Low
                                 Relative Market Share




 Bubble graphs in Trade Map
 • Same logic applies, but adapted to specific needs:
     • Instead of products, HS codes (2, 4, 6 digits) or
         countries.
     • Adapted to each analytical need:
          • National supply vs. international demand
          • National supply vs. international demand growth
          • Export performance relative to market demand
          • Prospects for market diversification
National supply vs. world demand




National supply vs. world demand
Prospects for market diversification




Growth in demand for a local product
TradeMap helps users…
• Search for new markets or suppliers
• Assess competition or diversify sources
• Benchmark their trade performance
• Set priority products for trade promotion and development
• Evaluate tariffs and trade barriers
• Assess product diversification potential with a partner
  country
Market Access Map
Making market access barriers transparent
Market Access Map is an interactive web-based analysis tool containing information on customs
tariffs and other market access measures applied by 187 importing countries to the products
exported by more than 239 countries and territories.

Market Access Map aims to enhance market transparency, to support international trade
promotion, and to facilitate the analysis of trade-related policy issues. It has been designed to
support exporters, importers, trade promoters, policy analysts and trade negotiators. It allows users
to analyze market access measures by geographic and/or sectoral aggregation. It also offers the
possibility of simulating tariff reductions applying various negotiation formulae.

The strengths of Market Access Map lie in its wide geographic coverage, taking into account
almost all regional and bilateral trade agreements, and in its rapid updating. 2009 data are
available for over 120 countries and 2008 data are available for 30 countries in total. The tool
provides ad valorem equivalents for bound tariffs and applied tariffs so to allow tariff comparison
across countries. Moreover the tool covers information on rules of origin for 80% of trade
arrangements currently in-force in the world.

Market Access Map includes:
                Applied and bound tariffs;
                Ad valorem equivalents (AVEs) for all specific tariffs;
                Tariff quotas;
                Anti-dumping duties and other trade remedies;
                Certificates and rules of origin.

Market Access Map can help you to:
              Identify a tariff applied by any country to a product originating from a particular
                 country.
              Compare the tariff treatment of products exported by your country with the market
                 access conditions faced by your competitors in your target markets.
              Obtain by a single click all relevant material on rules of origin.

Or you can use its advanced features for the following analysis:
              Tariff aggregation at any sectoral and regional level
              Tariff reduction simulations, using various formulae
Coming Soon:
In 2011 Market Access Map will be replaced by a new integrated application offering comprehensive
solution for analysing market access measures worldwide, including tariffs, non-tariff measures
(compulsory regulations) and trade data. It is developed using advanced technologies, and is based
on broader set of databases. The application will include the enhanced version of all existing Market
Access Map functionalities, and additional features. The new application is currently being developed
by ITC, UNCTAD and the World Bank in close collaboration with the WTO and UNSD.

Thanks to financial contributions from ITC's Global Trust Fund and the World Bank, users in
developing countries and territories can register at www.intracen.org/marketanalysis to access
ITC’s market analysis tools free of charge. Users in developed countries and territories can
register to get a one-week free trial access or subscribe for a longer access.
INTERNATIONAL TRADE CENTRE


Tariff applied by France to (HS-030613) Shrimps and prawns, frozen, in shell or not,
                  including boiled in shell originating from Ecuador




                     Trade Regimes applied by France to Ecuador




   World Map of Tariffs faced by Ecuador to export (HS-030613) Shrimps and prawns, frozen,
                            in shell or not, including boiled in shell
Market Access Map
Information on tariffs and other
market access conditions




Market Access
• Information on market access conditions allows
  companies to:
  • Evaluate the market access advantage of an exported
    product in a particular market relative to suppliers from other
    countries who face different tariff conditions

  • Select export markets offering favourable tariff conditions
  • Adapt, where necessary, the product to conform to the target
    market‟s import regulations

  • As an importer, identify country sources of supply that face
    preferential market access to minimise the cost of inputs
Types of tariffs
• Ad valorem tariffs
• Specific tariffs
• Compound tariffs
• Mixed tariffs
• Variable tariffs




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
• Compound tariffs
• Mixed tariffs
• Variable tariffs
Ad valorem tariffs
   E.g. Australian tariff of 5% on imported wine (22.04.21.20.70)

            French wine:                                   New Zealand wine:
            • AUD 8 / litre                                • AUD 6 / litre



           Tariff per unit = CIF value per unit
                       x Tariff Rate

            Tariff paid:                                   Tariff paid:
            AUD 0.40 /litre                                AUD 0.30 /litre




Types of tariffs
• Ad valorem tariffs

• Specific tariffs:
   • Levied on the basis of volume, weight or other unit
   • 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%)

• Compound tariffs
• Mixed tariffs
• Variable tariffs
Specific tariffs change relative prices
E.g. Suppose Switzerland's tariff on beef is CHF18 / kilo (02.01.30)
 Before border                                                      After the border
                                                      The prime beef is now only
  The prime beef is 4                               1.4 times the price of the low
  times the price of the                             quality beef, but still 4 times
  low quality beef, but          At border                              the quality
  also 4 times the quality                                            = 18/12 equates to a
                                    CHF18          = 18/3 equates
                                                                      150% ad valorem tariff

                                   specific         to a 600% ad
                                                    valorem tariff
                                     tariff
                                   per kilo                                    Now
                                                                            Argentine
                                                                            prime beef
                  CHF12 / kg                                                   Costs
                                                        Now
                   Argentine                                                CHF30 / kg
                                                     Regular beef
                     prime
                                                        Costs
 CHF3 / kg beef   quality beef
                                                      CHF21 / kg




Types of tariffs
• Ad valorem tariffs
• Specific tariffs

• Compound tariffs:
    • Contain both ad valorem and specific rates
    • Eg: 10% of the value + $2 per kilogram (Japan, EU, Canada)
• Mixed tariffs
• Variable tariffs
Compound tariffs
E.g. USA tariff on chocolate of 4.3% + US$ 528 / ton (18.06.32.08)
• Chocolate from Switzerland: US$ 6,356 / ton
         Tariff:
          4.3%                     US$ 273 Tariff

         + US$ 528/ton             + US$ 528 Tariff
                                                       Tariff = US$ 801
                                                       AVE = 801/ 6356 =13%
• Chocolate from Brazil: US$ 3,181 / ton
         Tariff:
         4.3%                      US$ 137 Tariff
         + US$ 528/ton             + US$ 528 Tariff
                                                       Tariff = US$ 665
                                                       AVE = 665/ 3181 = 21%




Types of tariffs
• Ad valorem tariffs
• Specific tariffs
• Compound tariffs
• Mixed tariffs:
   • Minimum or maximum of two kinds of tariffs
   • Eg: Min or Max (10%, $2/kg) (Canada, EU, Japan)
• Variable tariffs
Mixed tariffs
  e.g. Japanese tariff on shoes: Max. of 30% or JPY4,300 Yen / pair
• Manolo Blahnik shoes: US$ 1,000 /pair
    Tariff: the maximum of
    30%                               US$ 300 Tariff
    Or JPY4,300/pair (US$ 36)          US$ 36 Tariff
                                                          Tariff = US$ 300
                                                          AVE= 300/1000 = 30%
• Clark's shoes: US$ 30 /pair
                                                          Tariff = USD36
    Tariff: the maximum of                                AVE= 36/30 =120%
    30%                                  US$ 9 Tariff
    Or JPY4,300/pair (US$ 36)           US$ 36 Tariff




Types of tariffs
• Ad valorem tariffs
• Specific tariffs
• Compound tariffs
• Mixed tariffs
• Variable tariffs:
   • Levied on the basis of the composition of the products
   • Eg: US$ 5/unit if lead content of paint > 2% on toys
   •     US$ 200/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.




MAcMap includes ad valorem equivalents
• Ad Valorem Equivalents – AVE:
   • Are a common measure of the effect 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
   • Are calculated by:
                AVE =       Specific Tariff per Unit
                          Value of the Product per Unit
   • 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
Methodologies for Calculating AVEs
• There are many methodologies for calculating AVEs. The most important
   difference is the way the Unit value is calculated.

• The unit value of a product is based on total value of imports of the product
   divided by the quantity. One can use the value / quantity of bilateral trade
   flows, world imports or a country‟s imports of the product from a reference
   group of products


                 Unit Value =      value of imports
                                  quantity of imports




Methodologies for Calculating AVEs
• Unit values in MAcMap are calculated on a bilateral basis and at the most
   detailed product level - the national tariff line (where possible). The Specific
   tariff per unit is then divided by the bilateral unit value.

• This is important because the value of a product can vary widely depending
   on the supplying country. For specific tariffs, the lower the unit value, the
   higher the effect in ad valorem terms of a specific tariff.
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…




Proliferation of RTAs
                       Number of Regional Trade Agreements Notified to WTO
                                                                                        1958 – 2009
          200

          180

          160

          140

          120

          100

           80

           60

           40

           20

           0
                1958
                       1960
                              1962
                                     1964
                                            1966
                                                   1968
                                                          1970
                                                                 1972
                                                                        1974
                                                                               1976
                                                                                      1978
                                                                                             1980
                                                                                                    1982
                                                                                                           1984
                                                                                                                  1986
                                                                                                                         1988
                                                                                                                                1990
                                                                                                                                       1992
                                                                                                                                              1994
                                                                                                                                                     1996
                                                                                                                                                            1998
                                                                                                                                                                   2000
                                                                                                                                                                          2002
                                                                                                                                                                                 2004
                                                                                                                                                                                        2006
                                                                                                                                                                                               2008




                                                                        Source: World Trade Organization
EU existing trade regimes
                  GSP
                                                                                                                                                                                          MFN
                                                        EBA                                     Maldives               China               Qatar     U.A.E         Bahrain                WTO
               Afghanistan                                                           Djibouti
                                                                                                   Bangladesh                         Kuwait       Oman      Saudi Arabia
                                                 Ethiopia               Benin                                            Macao
   Yemen                           Sudan                                        Senegal
                  Somalia                                           Togo                                                                                                                 Australia
        Bhutan                                                            Congo Dem.Rep.                  Nepal
                                     Eq. Guinea                Angola                                                                                                                                      New Zealand
                                                                                                                                                          Honduras
                   Kiribati                                         Chad    Gambia Mauritania                                            GSP+
         Laos                                         Burkina Faso                                                     Panama                                                            United States
                                                    Myanmar*                                                                                                     El Salvador                                       Canada
                                                                   Cape Verde     Guinea-Bissau
    Samoa                Sao Tome                 Sierra Leone                                                                                       Georgia
                                                                                                                         Cuba                                      Guatemala                      Japan
                                                Malawi      Niger    Mali          Ctrl. Afr. Rep.                                       Pakistan                                                                     Hong Kong
         Tuvalu                                                                                                                                      Armenia
                         Eritrea                                                                                                                                     Nicaragua
   Vanuatu                                                                                         Cambodia            Argentina                                                           Singapore         Taiwan          Korea, Rep.
                                                Interim EPA                Lesotho                                                    Mongolia         India
                                                                                                                                                                     Costa Rica
         East Timor
                                                                      Mozambique                                           Brazil        Paraguay
                                       Madagascar        Zambia                           Uganda                                                       Sri Lanka      Bolivia
     Liberia                                                                                     Rwanda
                                                                                        Burundi                                                                                                              Norway
                   Comoros                                                                      Tanzania                    Uruguay         Venezuela               Peru
                                     Haiti      Solomon Isl.                                                                                                                                              Iceland        EEA
                                                                                                                                                               Ecuador
                                      Grenada Jamaica                                                                                                                                                     Liechtenstein
                                                                 Guyana       Belize            Kenya        EU-EAC                                    Colombia
Greenland
                                                        Barbados               Trinidad
Guam                                                                                               Fiji                                    Nigeria                                                Switzerland
                                                 St. Vincent St. Kitts       St. Lucia                                           Tonga
Montserrat        EU-                                                                      Namibia
                                                                                                          Papua NG
                                                                                                                                                                             Mexico      Albania           Chile     Croatia
Palau    Nauru    CARIFORUM                                                                           Swaziland             Ukraine                                                                San
                                                                                 Ivory Coast                                                                           South Africa                           Macedonia
F. Polynesia                                                                                     Botswana                             Kyrgyzstan                                                 Marino
            Cook Is.                                           Mauritius     Ghana                                                                                                         Andorra
                                                                                                                       Vietnam                                       Euro-                             Bosnia
Micronesia                     Seychelles                          Zimbabwe            Cameroon
             Marshall Is.                                                                                                                Brunei                      Med
Tokelau                                                                                                           Philippines                                                           Turkey         Moldova
          Cayman Is. Antartica                                                                   Malaysia                                                          Jordan     Egypt
Bermuda
                                    Libya                                                                                           Thailand                                             Israel                 Serbia      Others non-
Aruba     Am. Samoa St. Piere.                                 Azerbaijan                                            Indonesia                                               Tunisia                                        reciprocal
                               Mayotte                                         Belarus*                                                                            Morocco                                   Kosovo
St. Helena Gibraltar          Niue     Iran      Iraq    Uzbekistan        Russia      Turkmenistan
                                                                                                                                                                     Algeria Syria      Palestine
     Norfolk Is.  Pitcairn Anguilla Turks    Tajikistan  Kazakhstan    Wallis Cocos Is.    McDonald Is. B.I.O.T.                                                                                          Montenegro
      N. Mariana Is. New Caledonia Bouvet Is. Christmas Is.  Netherlands Antilles   S. Sandwich Is. Falkland Is.                                                     Lebanon

EAC         East African Community                                                                                                                                                                   Bilateral
EBA         Everything but arms
EEA         European Economic Area
SGP         Sistema General de Preferecias
Euro-Med Euro-Mediterranean Partnership
* Belarus and Myanmar (LDC) are temporarily
suspended from the GSP regime




Proliferation of RTAs
                                                            Trade Agreements in Goods by Country Groups
                                                                                                                    2006-2009
                  250



                  200



                  150



                  100



                   50



                     0
                            2006 2007 2008 2009 2006 2007 2008 2009 2006 2007 2008 2009 2006 2007 2008 2009 2006 2007 2008 2009 2006 2007 2008 2009

                                             Africa                         Americas                                Asia                           Europe(1)                      Middle East                 Across groups


                                                                             Notified to WTO                In-Force            Signed         Under Negotiation             Consultation (2)


                  (1) The 27 Member States of the European Union are considered as one single trading
                  entity
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




Features of MAcMap
• Wide geographical coverage:
   • tariffs applied by 187 countries to the products exported by 239 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
MAcMap
• 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).

• Access MAcMap through the Market Analysis portal at:
  http://www.intracen.org/marketanalysis




Quick search module




                             Quick Search of tariffs – quick and easy search


                                                                Mandatory fields
Quick search: chose your product



Fill the search boxes with the
 first few letters of the data
        you're looking for

                                           Select your desired level
                                            of information: HS-6 or
                                              National Tariff Line




                                  Hit „Enter‟ or „Tab‟ to
                                 confirm your selection




Quick search
                                                     Read
                                                     carefully,
                                                     critical
                                                     information
                                                     here!!
Quick search

                             Click „print report‟ to see the full list of countries




         Chose more records per page to
         see the entire list in one screen


                                                                                 The rest of the
                                                                                regimes can be
                                                                                seen by clicking
                                                                                on the numbers




Quick search


                  When in doubt click on Glossary for definitions and concepts
Glossary


                           Search alphabetically




Quick search: trade regimes, rules of origin




                                   See all trade regimes that
                                   a country applies or faces
                                      and rules of origin for
                                    those regimes, to get an
                                    initial insight into issues
                                     concerning compliance
Quick search: trade regimes, rules of origin



                         Click on „print report‟ or select more records
                        per page to see all trade regimes in one page




    There might be
     several trade
  regimes applicable
                                                             Review the certificates of origin
   for one product in
                                                            and the texts of the rules of origin
   any one importing
        country




Example of a rule of origin
Example of a certificate of origin




Compare tariffs module



          Which countries offer the best market access for cocoa beans?
Compare tariffs module


                            Scroll through the importing countries alphabetically, or…




Compare tariffs module


…click on the column heading “level of                                         …or click on the map
protection” or on "Total ad valorem
equivalent tariff (estimated) to sort table by
level of applied tariff in ascending order
Compare tariffs: Market Access Map




        If you leave your mouse over any given country,     Trade = Exports + imports
        a mouse over pops up with the applied tariff and    Overall trade taking place,
        existing trade relationship between the countries   NOT trade balance
Investment Map
For better identification of investment opportunities
Investment Map is an interactive web-based analysis tool that combines statistics on foreign
direct investment (FDI), international trade and market access into a single portal. Investment
Map allows analyses by country, trading partner and industry. It also includes relevant information
on activities of foreign affiliates in developing countries and economies in transition.

This portal aims to assist investment promotion agencies (IPAs) in pinpointing the sectors that
have successfully attracted FDI in a country as a guide to identifying priority sectors for
promotion. It also helps them identify the countries with whom they compete for foreign
investment attraction in a targeted sector and which countries are investing abroad by sector.
Moreover, information on foreign affiliates can be useful to domestic enterprises looking to supply
to transnational corporations as a stepping stone to accessing international markets and wider
export activities.

The strengths of Investment Map lie in its sectoral level investment data and the combined
information on investment flows and stocks, trade and tariff data, and activities of foreign
affiliates. Moreover, Investment Map is also linked to other tools such as the World Investment
Directory, Market Access Map and Trade Map.

Investment Map includes:

                  Total FDI flows and stocks for around 200 countries and territories
                 FDI flows and stocks, broken down by industry (ISIC rev. 3) for around 100
            countries

                 Export and import data and indicators of trade performance for around 227
            countries and territories
                   Tariff data applied by 187 countries and faced by 200 exporting countries and
            territories
                 Information on the location, sales, employment and parent company for over
            130,000 foreign affiliates located in developing countries and economies in transition

The definition of industries in Investment Map is based on the ISIC rev 3 nomenclature. Tariff and
trade data are available for more than 5,300 products (6-digit level of the Harmonised System).
Information on foreign affiliates covers 1,000 lines of business (US SIC nomenclature). Data on
trade and FDI are available for the last four years.

The Market Analysis and Research section of ITC has developed Investment Map jointly with
UNCTAD, (www.unctad.org), and in partnership with the Multilateral Investment Guarantee
Agency (MIGA) and the World Association of Investment Promotion Agencies (WAIPA). The
portal includes information from UNCTAD, COMTRADE of UNSD, Dun & Bradstreet; Trade Map
and Market Access Map.

Thanks to financial contributions from ITC's Global Trust Fund and the World Bank, users in
developing countries and territories can register at www.intracen.org/marketanalysis to
access ITC’s market analysis tools free of charge. Users in developed countries and territories
can register to get a one-week free trial access or subscribe for a longer access.
        INTERNATIONAL TRADE CENTRE                                                                 Page 2


  The Market Analysis and Research section of ITC also conducts tailored studies and training
  programmes on market analysis. Please visit our website for more information:
  www.intracen.org/marketanalysis .



Locations competing for Investment Attraction in selected industry (selected by level of income)




Countries with potential to invest abroad in selected industry




      Parent Companies                                                   Foreign Affiliates
Investment Map
For an improved identification of
opportunities for FDI attraction




INVESTMENT MAP

Key functionalities
• Helps identifying target sectors for investment promotion
• Helps identifying countries competing for        inward     FDI
  attraction in a particular sector
• Help defining who are the actual/potential investor countries
  in that given sector
• Provides information on multinational corporations’ foreign
  affiliates, investing in a particular sector




                       Investment Map Overview
                             Project Title
                              City, date
What is Investment Map

• Launched in 2004

• A joint undertaking
   • Between the International Trade Centre (ITC)
                        and
     the United Nations Conference on Trade and
     Development (UNCTAD)

   • In partnership with:
       • Multilateral Investment Guarantee Agency (MIGA)

       • World Association of Investment
         Promotion Agencies (WAIPA)




Coverage




                            Investment Map Overview
                                  Project Title
                                   City, date
  • It is an interactive tool that
  Geographic coverage combines statistics on FDI (flows
     and stocks), international trade, tariffs and information on
     foreign affiliates:
      • It currently includes harmonized FDI data detailed by sector and/or
        country for about 100 countries and territories. Data is updated to 2008
        for about 70 countries (United Nations International Standard for
        Industrial Classification - ISIC rev 3)

  • Information on multinational corporations:
      • Location, sales, employment and parent/affiliate company
      • Data on about 130’000 foreign affiliates established in developing
        countries

      • United States Standard Industrial Classification - US SIC87

Key characteristics:   - most recent annual FDI data available (including bilateral data)
                        -harmonized data in an interactive tool




  Defining FDI

  • FDI takes place when a company invests directly in facilities
    to produce and/or market a product/service in a foreign
    country.



  • Investment involving a long-term relationship and a lasting
    interest by an entity in one country in an enterprise located in
    a different country.




                              Investment Map Overview
                                    Project Title
                                     City, date
Types of investment

• Greenfield: establishment of a wholly new operation in a
  foreign country
• Merger or acquisition of an existing firm in a foreign country

• Sales offices

• Representative offices

• Non-equity investment




Types of FDI
• Horizontal:
   • Within same industry/sector across different countries:

       • Wal-Mart (Supermarkets), Deutsche Post (Logistics), GM (Automotive).

   • Maximizes market access and share.

• Vertical:
   • Within same value chain:

       • Dell (Design: US; Production: China; Distribution: Global hubs; Support: India, etc.)

   • Maximizes efficiency along one value chain.




                                Investment Map Overview
                                      Project Title
                                       City, date
Measuring FDI
FDI flows
• It is the total amount of FDI undertaken over a given period of
  time, and it comprises:
   • Equity capital: purchase of shares of an enterprise in a foreign country
     (10% participation threshold)
   • Reinvested earnings: part of an affiliate’s earnings accruing to the
     foreign investor that is reinvested in that enterprise
   • Intra-company loans: short- and long- term borrowing and lending




Measuring FDI
FDI stocks
• It is the total accumulated value of foreign-owned assets at a
  given time, and it comprises:
   • The value of the share of their capital and reserves belonging to
     foreign companies
   • The net indebtedness with the parent companies




                            Investment Map Overview
                                  Project Title
                                   City, date
Measuring FDI
                                                     • Stocks and flows are
                                                       related over time:
                                       Flow                 • Stockt = Stockt-1 + Flowt



                                                            • Flowt = Stockt – Stockt-1



                                           Stock

                                          Flow
                              (reimbursement of intra-company loans, disinvestment)




Potential impact of FDI
•   Benefits:                                        •    Risks:
     • Increased employment                                 • Lack of sufficient technology
                                                              transfer
     • Upgraded infrastructure: utilities,
       logistics, business services                         • Enclave investment with no links
                                                              to domestic economy
     • Fast transfer of technology and                      • Excess fiscal incentives
       managerial skills, that:                               jeopardize local investment
         • Increase labour productivity                     • Race to the bottom and unethical
         • Contribute to innovations                          behavior:
     • Increased market competition:                              • Child labour employment
       push for further innovation and                            • Cross-border "shipment" of
       efficiency                                                   environmentally costly activities

     • Greater consumer choice at lower
       prices




                                  Investment Map Overview
                                        Project Title
                                         City, date
Data limitations - FDI
• Difficult to capture due to intangibility of financial flows
• Level of agregation varies due to confidentiality issues
• Countries that report often do so with considerable time lag
• International reporting practices (IMF, OECD) are not followed
  uniformly
   • all 3 components (equity, reinvested earnings, intra-company loans)
     may not be included

• Differences in time periods over which the FDI transactions
  were recorded




Data limitations – Distortion of information
• Book value of FDI stocks

• Identification of ultimate owner

• Role of Special Purpose Entities (SPEs)
• Round-tripped investment

• Transhipped investment




                           Investment Map Overview
                                 Project Title
                                  City, date
Data limitations - foreign affiliates
• Data on foreign affiliates vary from country to country

• Fields not systematically reported
   • Sales and number of employees

• Data available only for developing countries




Data limitations – classification
• FDI data cannot always be allocated accurately to a given
  industry or a given country
   • “Unspecified secondary” or “Unspecified European Union”

• Foreign affiliates are based on the United States
  nomenclature, US SIC87
   • Its conversion to the ISIC nomenclature can only be approximate

• Trade data (HS 6 digit level) are converted into the ISIC
  classification
   • Hybrid group called “mixed goods (trade data )”




                           Investment Map Overview
                                 Project Title
                                  City, date
Conclusion
• Identify sectors with potential to attract FDI in a given country
• Identify potential country sources of investment
• Identify locations competing for investment
• Identify potential company sources of investment




                   THANK YOU!
 Please do not hesitate to contact us should you have questions,
 doubt or comments:

                  marketanalysis@intracen.org




                        Investment Map Overview
                              Project Title
                               City, date
Standards Map
Comparative analysis and review of information on
private standards




Introduction
A Ghanaian exporter of pineapples is looking to diversify its exports into
new niche markets...
What standards are recognized in his/her current destination markets?
Which standards apply to pineapples grown in Ghana?
What are the requirements for certification, and what are the associated
costs?
An investor from Canada is considering India for his new investment in
the Indian agriculture sector…
Which standards operate in India that are applicable to the product he
will grow?
What are the potential impacts of these standards in India, and how
does this impact the investor’s risk profile?
Introduction
A Trade Support Institution in Peru wants to further support its clients in
exporting their products to Northern markets...
What standards operate in Peru?
Which sectors/products can be certified by these standards?
What export markets recognize these standards?
How can the TSI help its clients understand if certification makes sense
as a business decision?
A Policy Maker in Malaysia wants to strategize on how local companies
can use private standards to their advantage…
What is the mission and goal of the standards that operate in Malaysia?
What support and capacity building do they offer to Malaysian
companies?
                                     Initial answers to these questions and many
                                          more are easily found in Standards Map




Standards Map
An interactive tool that provides detailed information on “private
standards”
    “Private or “voluntary” standards are developed by non-governmental entities,
    incl. non-governmental organisations, industry associations, companies, among
    others. As such, compliance to these standards is not legally required by national
    governments or multilateral regulations as opposed to public standards.”

 As of February 2011, Standards Map contains information on:
     30 standard systems operational in over 160 countries that cover
     over 40 sectors;
     150 research materials, including academic papers, dissertations,
     scientific articles…
 Work is in progress to add another 15 standards, as well as 50 new
 research materials by the end of March 2011.
Key characteristics

Where does the standards information come from?
   • Publicly available data from standards
   • Desk research (ITC)
   • External Quality Control (independent experts)
   • Final verification and sign-off on the data (each standard organization)


The website will also be fully translated into French and Spanish by April
2011.




Key features




      • Standards Overview « at a glance »
      • Reference material (training, useful links…)
      • Glossary of terms and expressions
      • For registered users only:
           – Interactive module to analyse and compare standards;
           – Direct access to relevant research material;
           – Tailored information on standards depending on users’ needs;
           – Comparison tables across standards.
  One global database – multiple applications

                                                                     Public procurement
     Producers -                                                           website
    TSI - Exporters                                                   (Germany, Switzerland)

      Standards
          Map                       Integrated approach                   SME buyers
                                 Common taxonomy, interlinked              website
                                         databases                    (Germany, Switzerland)


Information on voluntary
                                Standards                Research
standards including:
                                Database                 Database
• Scope of standard               (SD)                      (RD)
• Requirements
• Enforcement mechanisms
• Governance / implementation
• Research materials                                                 Future front-ends
                                           Data Entry Tool              (Retail, trade
                                          A web application         associations, chambers
                                         that automates data           of commerce...)
                                           collection, review
                                            and processing




                                                                                               7




 Classification of Standards




                                       What is
                                     behind these
                                       logos?
Classification of Standards
Various perspectives to classify private standards…
   • Are the standards based on multi-stakeholders participation?
   • Do the standards stand for certification or verification?
   • Is there a specific claim associated with the standard – in which case is it
     on-product or off-product (B2B versus B2C)?
   • Are the standards specific to certain products, industries and countries, or
     do they apply across sectors and countries?
   • Do the standards verify/certify themselves, or is there an independent
     certification process?
   • Is there formal accreditation of the certification/verification bodies?
   • Do the standards focus primarily on specific areas – such as biodiversity,
     labor rights, food safety…?
   • What are the implementation mechanisms used by the standards –
     centralised versus de-centralised?...




Classification of Standards
Main components of the standards database
Classification of Standards




                                                                           12



Analysis and Comparison of Standards
One major challenge when comparing standards… taxonomy issues!
  • Examples:
      • Fairtrade « Minimum » versus « Progress » requirements
      • 4C Association « Traffic Light System »
      • UTZ Certified « Scoring system »
      • GlobalG.A.P « Major must » versus « Minor must »
  • Each standard has its own way to define compliance policies;
  • Standards may use different terms with same intention, or same terms
    with different intentions…

                         Standards Map offers a unique approach based on
                               a set of criteria to “translate” standards
                             requirements and policies into one common
                                taxonomy used across all standards.
                                                                                        13



Analysis and Comparison of Standards




             Requirements

          Compliance policies

          Assessment methods



                                                Standards Map
                                     Analysis and Comparative Framework




                                                                                        14



Analysis and Comparison of Standards
A common taxonomy was developed to classify standards requirements:
Immediate requirement: Compliance must be met immediately or entity is
excluded from certification.
Short-term requirement: Compliance must be met in less than 12 months after
initial registration/certification formalities.
Medium-term requirement: Compliance must be met in less than 36 months
after initial registration/certification formalities.
Long-term requirement: Compliance must be met in a period of time that is
defined but more than 36 months after initial registration/certification formalities.
Recommendation: Compliance is recommended when criteria or principles are
identified that “should” be met but non-compliance is not a matter of exclusion.
                                                                                  15



Analysis and Comparison of Standards
A common taxonomy was developed to classify compliance policies:


Compliance at principle level: Compliance to the standard requirement is
assessed based on a general principle – e.g. « …the production unit shall
not drain waste water to the river...”


Compliance at indicator/criterion level: Compliance to the standard
requirement is assessed based on measurable indicators or criterion – e.g.
« …workers shall be paid extra hours, a minimum of 20% more than the fee
rate applied for normal work hours... »




                                                                                  16



Analysis and Comparison of Standards
A common taxonomy was developed classify assessment methods :
Pass or Fail: This method is black and white: one may pass or fail, hence
not become certified or be suspended from certification. Corrective actions
may be taken depending on the standard.
Threshold: Compliance to the standard requirement is assessed based on a
specific objective to be met, which is made explicit in the standard document.
Scoring: Compliance to the standard requirement is assessed based on a
scoring system against which auditors are working.
Traffic light system: Compliance to the standard requirement is based on
traffic light set of indicators: « Red » / « Orange » / « Green » that indicate
good or bad practices and provide guidance to improve business practices
over time.
Free Access to users from developing countries

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




              http://www.standardsmap.org


       http://www.intracen.org/marketanalysis
Practical Exercise on TRADE MAP
   A. PRODUCT ANALYSIS

IDENTIFYING THE HS OF THE PRODUCT

Identify the harmonized system code of the product you want to focus on.

1. Name of the product: _________________________________________________________

2. Provide the harmonised system (HS) code for both the product group and product in
   question
Note: To avoid ambiguities throughout your analysis, it is important to ensure that the
description and corresponding trade classification, or tariff code is correct.
        4-digit HS:                            6-digit HS:
Note: In the selection menu of Trade Map, click on Advanced Search. You can search by
keyword the corresponding HS code of the product using one or several keywords through
the HS label at 2,4,6 digits level of the Harmonized system and at the national tariff line level.

3. Provide the national tariff line code of the product (NTL) for the exporting country (indicate
   if several):
         NTL code:
         NTL code:
         NTL code:

4. Provide the national tariff line code of the product (NTL) for USA (indicate if several):
         NTL code:
         NTL code:
         NTL code:

5. Is there any information provided at the NTL lines of the exporter or for the US?
Note:
Practical exercice

 ANALYZE WORLD TRADE FOR YOUR SELECTED PRODUCT

6. How much in total of this product is imported in the world?
         US$:        ____________                      Quantity:     ____________ tons/units
Note: In Trade Map, Select the product for which you want to do market research. Select
“Imports” and then click on Trade Indicators

7. Have the world imports grown or declined between 2005 and 2009?

Your answer:




8. Approximately how many countries import and export the selected product?
Note: To find out, you need to export the table into Excel or click on “300 rows per page” on
the top right end corner of the table to count the total number of importing and exporting
countries.
Your answer:




9. Does the unit value vary significantly for your product from country to country? If yes,
   account for the reasons that could explain the disparities above.

Your answer:




Note: This unit value is calculated by dividing the total import value by the total import
quantity.

10. Is there a difference between the world’s growth rate in value and world’s growth rate in
    quantity? Explain what this difference could mean.

Your answer



11. Which countries are the 3 largest importers (in value in 2008) of the product?

Ranking                       Importers                     Share in World Imports, %

     1


     2

     3
Practical exercice

12. What share of world total imports do the 3 main importers make up together? ____%

13. Does this indicate that the world demand for this product is concentrated?
         YES or NO

14. Which countries are the 3 largest exporters (in value in 2008) of this product? What is the
    value of their exports?

Ranking                   Exporters                      Share in World Exports, %

     1

     2

     3

15. What share of world total exports do the 3 main exporters make up together?
         ____%

16. Does this indicate that the world supply for this product is concentrated?
         YES or NO


CHOOSE AN EXPORTING COUNTRY AND TRADE PERFORMANCE FOR YOUR
SELECTED PRODUCT

17. Does the country already export this product? YES or NO

18. If yes, what is the country’s ranking in world exports and world market share of this
    product?
         Ranking: ____________ World Market Share: ____________

19. How much in total of this product is exported by this country to the world?

         US$ Value:    ____________ US$              Quantity:        ____________ tons/units
Note: To easily find your country among all countries listed, click twice on the title of the
column entitled “Importers”. The list of countries will no longer be sorted by “Value imported
in 2008”. It will be sorted alphabetically. Don’t forget that if your country is not listed on the
first page, you can click on the numbers “1 2 3 4…” underlined on the top right hand side of
the table. Once you have found the answer to this question, click on the title “Value imported
in 2008” to sort data again.

20. Have the exports grown or declined between 2005 and 2009?

Explain your reasoning:



21. Is the exporting country GAINING or LOSING market share in the world market?

Explain your reasoning:
Practical exercice

Note: compare the growth rate of your country to the world export’s growth rate.

22. What are the three biggest importers of the exporting country (in US$ value) in 2009?
1. __________________              2. __________________       3. __________________

Note: Click on the name of your country or go back to the selection menu, enter the name of
your country in the country search box and select when it appears in the drop down menu.
Submit with “Trade Indicators”. Trade Map should show the list of importing countries of your
product.

ANALYZE YOUR CHOSEN COUNTRY’S TRADE PERFORMANCE FOR YOUR
SELECTED PRODUCT IN THE US

23. Is the US among of the importing countries?

24. YES (go to question 25) or NO (go directly to question 26)

25. If yes, how much the US has imported in 2009?
       US$:          ___________                      Quantity:       ____________ tons/units

26. Is the exporting country GAINING or LOSING market share in the US market?

Explain your reasoning:



27. Who are the three biggest exporters to the US market in 2009?
1. __________________              2. __________________       3. __________________


28. Have the US’ imports grown or declined between 2008 and 2009?

Explain your reasoning



Note: Look at the first row of the table “List of supplying markets for the product imported by
   the US in 2009”.

29. What happened between 2009 and 2010?

Explain your reasoning


Note: Click on Times Series

30. Investigate the US market at the most detailed product level of import trade statistics, the
    national tariff line level (NTL) to identify possible product specification and refine your
    analysis by using the most appropriate NTL.

Describe the differences between NTL.


Note: Click in “other criteria”, by product.
Practical exercice

31. Examine import seasonal variation of the product at the tariff line level between 2005 and
    2010.

Comments:




Note: You can use graphs to analyse seasonality. Go back to the view by Country. In “Other
criteria”, click on monthly or quarterly data, and then click on graph, and tick the box “Show
world data”.

SCREEN GLOBAL MARKET
Note: Go back to the table with the Total World Imports of your products (List of importers for
the selected product in 2009).

32. Which importing countries have the highest imported value in 2009 for each region? And
    what are their respective annual growth rates in value and in quantity between 2005 and
    2009?
Note: By clicking on “Country group”, you can directly select the region.

                                                Annual growth in            Annual growth in
      Importing       Imported value in
                                               value between 2005-          quantity between
       country       2009 (millions USD)
                                                     2009, %”                2005-2009, %”

In Asia

1


2

In Europe

1


2

In Africa

1

2

In Latin America

1


2
    Practical exercice

    33. Which countries would you consider as potential markets? Are there any new/other
        interesting importing markets besides the main global importers?

    Your answer




    SELECTING ATTRACTIVE MARKETS

    34. Which are two potential attractive markets for exporting this product?
    Note: Do not choose these markets only on the basis of the size of the importing market and
    dynamism, or because the country already exports to those current markets but take also
    into account other parameters such proximity, cultural similarities, trends etc.
    You can gather the relevant key indicators in one table as below according to your own
    analysis. Don’t hesitate to adapt the table to your needs and add other indicators.

                     Value                  World       Annual     Annual Growth     Other criteria
      Target       Imported    Unit Value            Growth Rate      Rate in
                                            Market                                   (Market size,
     Country        (million                           in value      quantity
                               (US$/unit)   Share                                   Consumption,
                      $)                     (%)     2005-09 (%)     2005-09 (%)    Distance...etc)

     United
     States
A




B




C


    Comments:




    35. Who would be your main competitors in these countries and why?
    Note: In Trade Map, click on each country, and identify three countries who you feel are
    your main competitors and explain why. You should formalise this opinion not only based on
    all the indicators provided in Trade Map (unit values, annual growth, trends and tariffs), but
    also on your prior knowledge of the situation. Don’t hesitate to adapt the table to your need.
    Practical exercice



         Target Country       Your country’s main competitors in target market


                          1


A         United States   2


                          3


                          1

B                         2

                          3

                          1

C                         2

                          3
Practical exercice

B. COUNTRY ANALYSIS - ANALYSING TRADE PERFORMANCE

EXPORT AND IMPORT PRODUCTS COMPOSITION AND PERFORMANCE
Note: On the Main Selection Menu, click on the search box next to “Country”. As you do
this, a drop down menu appears. Type the name of the exporting country you’ve selected in
the search box. Once you see the appropriate country name appearing in the drop down
menu, click on it to select it. Then select, “Exports” and “Trade Indicators”. Leave the product
box as blank, by default it represent “TOTAL-All products”.

36. Is the country GAINING or LOSING market share in the world market?

37. What is the annual growth of total world imports for all products in value between 2005 and
    2009? _______

38. What is the annual growth of total export of the country between 2005 and 2009?      _______

39. Was the total value of exports of the country MORE or LESS dynamic than the import world
    average between 2005 and 2009?

40. Explain you reasoning: __________________________________________________
    _____________________________________________________________________________

41. What can we conclude? ________________________________________________________

    _____________________________________________________________________________

42. What are the top three export/imported products in value in 2009 at the 2-digit level and at
    the 6-digit-level?
Note: Rather than having the “Products at 2 digits” under the secondary selection menu,
select “Products at 6 digits”. This generates a table providing information on the top exports
at the 6-digit level. In the secondary menu, in the line “Other criteria”, you can easily switch
from import to export.
                     EXPORTS                                          IMPORTS
     HS-2       Product name                         HS-2     Product name
1                                               1

2                                               2

3                                               3

     HS-6       Product name                         HS-6     Product name

1                                               1

2                                               2

3                                               3
Practical exercice

43. In the top 10 exported sectors at the HS-2 digit level, which sectors have gained market
    share in the world market?

Your answer: list export sectors (HS-2 digit):




44. Which of those sectors would you consider as dynamic?

Your answer: list export sectors HS-2 digit:




Note: Compare the annual growth of total world imports in value between 2005 and 2009 of
each sector to the annual growth of total world imports in value between 2005 and 2009
(question 43)

45. Compare your result with the bubble graph “Bubble graph on Country X’s export growth
    vs. World Import Growth”.

46. Using the “Bubble graph on Country X’s export growth vs. World Import Growth”, identify
    which exported product at the HS-2 digit level (among the top 20 exported in value) could
    be considered as “winners in growing sectors”.

Your answer: list export sectors HS-2 digit:




Note: Create the “Bubble graph on Country X’s export growth vs. World Import Growth”. You
need to select in “other criteria”: “Exports”, “Trade Indicators”, by product” and “the same
level (2-digit)”. Identify the sectors in top right quadrant “Winners in Growing Sectors” and
compare the list of sectors with the results of question 44.

DESTINATION OF EXPORTS AND ORIGIN OF IMPORTS

47. Which countries are the primary export markets/main suppliers (in value) for all products?

                     IMPORTERS                                    SUPPLIERS

1                                                1


2                                                2

3                                                3

Note: Under the Secondary Selection Menu, in the line “other criteria, select “by country”.
Trade Map shows you the country’s trade with the rest of the world for all products.
Practical exercice

48. Export mapping: create a map to illustrate the list of importing markets for all products
    exported by the selected country in 2009.

Your answer: insert the map here




Note: Click on the tab “Map”, and then do a “print-screen” to insert the map into the Word
format.
Comments about the map:




Interesting: by selecting different types of first and second trade indicators and using the
zoom function, you can easily illustrate which country are the main importing countries in
terms of value and dynamism.

49. Export Dynamism: create a graph to illustrate the import dynamism of the top ten importing
    markets for all the products exported by the selected country in 2009.
 Your answer: insert the graph here




Note: Click on the tab “Table”, then select the Bar chart on exported value. Insert the bar
chart into the Word format.
Comments about the bar chart:




Interesting: by selecting different type of first and second trade indicators, you can easily
illustrate which countries are the main importing countries in terms of value and dynamism.



50. Export Concentration: create the bubble graph on “Prospect for market diversification” to
    illustrate the share in the country’s total exports of the top 20 importing countries
    compared to their overall import dynamism.
Your answer: insert the bubble graph here




 Comments about the map:
Practical exercice

51. Potential for export destination diversification: create the “Bubble graph on Country X
    export growth vs. Partner import growth“ to identify among the top 20 importing countries
    in value the most dynamic importing countries in which Country X is gaining market share.
Your answer: insert the bubble graph here




Comments about the map:




52. Identify one attractive importing market considered as a “dynamic market” and in which
    the country is gaining market share:
Name of the country: ________________________________________________________

Annual growth of Country X’s exports to the partner countries between 2005 and 2009:
_________

Annual growth of partner countries’ imports from the world between 2005 and 2009: __ ____



ANALYSE TRADE BETWEEN TWO COUNTRIES

55. When analysing trade between two countries Trade Map allows you to
    simultaneously see for each product:
        (1)          The actual trade between the two countries;
        (2)          How much the importing country imports from the world.
        (3)          How much the exporting country exports to the world;
Note: These three items shown together give a rough estimate of how much the two
countries could “theoretically” trade, by putting the total demand and total export capacity in
isolation. For example:

53. Assess the trade situation concerning the country’s exports to the most attractive market
    selected above (in question 54) for all products exported.
Note: Under the Main Selection Menu, under the “Country” field, enter the name of the
exporting country and click on it to validate your entry. Under “Partner”, follow the same
procedure to select the attractive market. Make sure you have selected Exports and then
click on Trade Indicators. Make sure you have cancelled the product selection.

54. Which is the most important sector in value in 2009 (HS-2 digit) exported by the country to
    the attractive market?
HS-2 digit: ________ Sector Name:________ Exported value in 2009:_______________
Practical exercice

55. Which is the most important sector in value in 2009 (HS-2 digit) imported by the attractive
    market from the world?
HS-2 digit: _________ Sector Name:__________ Exported value in 2009:_______________
Note: click on the title on the Value in 2009 under “Attractive country’s imports from world”
(fifth column) to rank the imported value in descending order.

56. Which is the most important sector in value in 2009 (HS-2 digit) exported by the exporting
    country to the world?
HS-2 digit: _________ Sector Name: _________ Exported value in 2009:_______________
Note: Click on the title on the Value in 2009 under “Exporting country’s exports to world”
(eight column) to rank the exported value in descending order.


Identify indicative potential trade between two countries:

Note: In the table showing Bilateral trade between the Exporting country and the selected
attractive country in 2009, click on “Product cluster at 6-digit” in the row “other criteria”.
A new column will appear to the right of the table, “Indicative potential trade, USD thousand”.


The indicative potential trade has been computed based on the following logic, which is valid
for each six-digit product:
- The supply capacity is represented by the exports of the selected country to the world.
- The demand is represented by the imports of the selected partner country from the world.
- Trade potential is defined as the lower of the value between a selected country exports to
the world or the value the partner country imports from the world minus the current trade
between the two countries under review.
The trade potential is indicative only and serves as a departure point for further research. It
gives an overview of the complementarities of the two economies.
Only the positive values of the potential trade are displayed. Indeed there could be a
negative result in case the data of the two selected countries are in conflict (in the case
where a country reports a bilateral trade value greater than the unilateral trade value (i.e.
with the entire world) reported by the partner country).



57. For which products (HS-6 digit) the two countries present indicative potential trade?

List the five first products (HS-6 digit with the highest indicative potential trade):




58.

Comments about the results:
Practical exercice




59. Select a product for which there scope for increase exports to the attractive market
HS-6 digit: ______________             Name:      _______________          Exported value in
2009:_______________


Note: The product has to present a relatively important indicative potential trade and also an
existing export value which demonstrates the exporting country’s competitiveness in the
market.

60. To what other countries does the exporting country export the selected product (in
    question above)?

Note: Click on       of the line of product (HS-6 digit) in the part “Exporting country’s exports
to the world”; you can view where the country is exporting to.
__________________________________________________________________________
__________________________________________________________________________
Practical Exercise on MARKET ACCES MAP
We suggest you visit the “Glossary” “User Guide” “Methodology” “Useful Links” and “Data
Availability” (all located under the menu item “Reference Material”). In the Glossary you will
find a number of tariff terms explained. The Data Availability page explains how often the
data in Market Access Map is updated and the Useful Links page has links to other
information sources, for example on non-tariff barriers.

MODULE QUICK SEARCH – TARIFF SEARCH

61. Identify the tariff applied by the US to the selected product originating from the exporting
    country.
Note: When you first enter the Market Access Map application, the Quick Search Tariff
Search module will be open. Next to the heading “Select Importing Country” type only the
first three letters of the country name i.e. “uni” in the selection box. Notice how those
countries starting with the letters “uni” appear in the drop-down menu box below. Select the
“United States” by clicking on it in the drop-down box. It will appear in full in the selection
box. If you simply type the full name of a country but forget to then select the match from the
drop-down menu, the database will not recognise what you have typed.

Practice using the HS code of the selected product at the most detailed level - the
national tariff line identified in question 4.
Note: The one for HS Level 6 is automatically pre-selected. Select instead the button for
“National Tariff Line Code”. Then type the name of your product into the product selection
box. Wait a few moments for the system to load the product nomenclature, and then click on
the matching product that appears in the drop-down menu box below.
Important: the HS code used for trade statistics and the HS code used for the tariff can be
different as the revision used in Trade Ma to harmonize all data is Rev 2002 whereas other
country can report their tariff in different revisions, including the most recent 2007 revision.


NTL                                             Original tariff applied Total   Ad     Valorem
           Trade Regime
code                                            by the US               Equivalent (estimated)




62. What is the lowest tariff applied by the US to the exporting country and the name of the
    related trade regime?

Comments:
Practical exercice

63. What is the highest tariff rate applied by the US to imports of the selected product
    originating from the world?

Trade Regime Description: ______________________ Highest Tariff Rate: _____

Note: Click on “New Search”. Select the importing country as “United States”. Select the
product code at the NTL”. Leave the exporting country blank. Then click “Proceed”. You will
see a table with all the possible tariffs applied by the US to imports of this product. By
clicking on the numbers in the top right-hand corner of the table, you can view the other
pages of the table.

MODULE QUICK SEARCH – TRADE REGIMES & RULES OF ORIGIN

64. Does the exporting country benefit from other types of trade(s) agreement(s) for any other
    exported products with other importing countries?                          YES o NO

65. How many trade agreements can you identify?

Comments:


Note: Under “Quick search”, in the selection menu of the second tab “Trade regime & Rules
of Origin”, select the exporting country as the exporter. Do not select an importing country.
Click “Proceed”.

Identify tariff advantages in attractive markets

66. Identify the lowest tariffs applied and corresponding trade regimes that your country faces
    in the three attractive markets identified in the last section (question 35)
Note: Login to Market Access Map at www.macmap.org
Use the tab “Quick search” to look for all the trade regimes (MFN tariff and preferential
regimes) applied by one country to any other country and the corresponding rules and
certificates of origin. Select only the importing country, you will see all trade regimes applied
by that country to the rest of the world. If you select only the exporting country, you will see
all trade regimes faced by that country when it exports to the rest of the world

       Target Country                  Trade Regime                   Lowest Tariffs applied


A       United States



B



C
Practical exercice

MODULE COMPARE TARIFFS

Compare ad valorem equivalent (AVE) tariffs that different markets apply to the
selected product exported by the country

67. What is the highest total ad valorem equivalent (AVE) tariff faced by the exporting country
    for the selected product and which country applies this tariff?

Country: ___________ AVE Tariff the country applies to the exporting country: _________ %

Note: Click on the tab “Compare Tariffs and Trade”. Select “the exporting country” as the
exporter. Select the product at the HS-6 digit level. You can find the product by either typing
the product code or name. Then select the match that appears in the drop-down menu. Click
“Proceed”. You get a table showing all importing countries starting with “Albania”. If you click
on the heading of the last second column “Level of Protection”, the table will be sorted
showing countries applying the lowest rate of protection first. If you click on the heading of
the column a second time, the table will be sorted showing countries applying the highest
rate of protection first. If you click on the icon representing a map, the results will be
displayed on a world map.

68. Then compare the AVE tariff rates applied by the three attractive markets to the exporting
    and its main competitors (identified in question 35):

                        Tariffs Ad                              Tariffs Ad       AVE faced by
                         Valorem                                 Valorem          exporting
       Target        Equivalent faced        Competitors        Equivalent           MINUS
      Country
                     by the exporting                            faced by        AVE faced by
                         country                               competitors       competitors

                                        1.

A   United                              2.
    States
                                        3.

                                        1.

B                                       2.

                                        3.

                                        1.

C                                       2.

                                        3.
Note: Click on the tab “Compare Tariffs, select as the importer one of the three attractive
markets identified in question 35. Select the product at the HS-6 digit. You will then get a
table showing all exporting countries starting with “Albania”. Scroll down until you identify the
names of the exporting country and the three main competitors in the attractive markets (also
identified in question 35).
Practical exercice

69. Is the tariff Ad Valorem Equivalent faced by the exporting country in the US different from
    the tariff identified at the national tariff line level in the US, in question 63? YES o NO
If YES, why?
If NO, could it be different? 
Comments:




70. Do you have tariff advantages/disadvantages vis a vis your main competitors in the three
    target markets?

Comments:




 COUNTRY ANALYSIS
In this module you can create a variety of tariff and trade reports on a country specific basis.

Compare the average tariffs applied by different countries.

71. What are the average tariffs applied by France, Japan and the USA to: all products;
    agricultural products; and industrial products?


Note: Open the “Country Analysis” module by clicking on it. It will become yellow. Select the
country “France” from the drop-down list of countries. Click on the button located next to the
heading “Average tariff applied by the country”. Click “Proceed”. The average tariffs applied
by France to imported products will be displayed. To view other countries, it is not necessary
to perform a new search. Just select the new country from the drop-down list and click on the
button “change”.

The average tariff applied by:

France: all products = _____%;        agricultural products = _____%;      industrial products =
_____%;

Japan:  all products = _____%;        agricultural products = _____%;     industrial products =
_____%;

USA:    all products = _____%;        agricultural products = _____%;      industrial products =
_____%;
Practical Exercise on INVESTMENT MAP
Note: Please consider that not all types of data are available for all countries. As a result,
you may not be able to respond to all questions. Hence, if some information is not available
for a particular question, just leave the answer blank.


COUNTRY SELECTION

72. Select the country you would like to do your analysis on
Note: When you log into the Investment Map portal you will see four modules, each of which
are indicated by a tab at the top of the page. By default, you will be directed to the first
module: “inward investment”. Select a country to analyze in the scroll down menu.

Country: ______________________

INTRODUCTION TO FDI DATA

Consider FDI global trends and characteristics for the country you selected:
Note: Please note that not all countries have reported their data for 2009 yet, therefore
throughout this exercise, we will look at the last year for which data is available.

73. How much FDI has this country attracted in the last available year?

Growth in value in US$:        ____________

74. Indicate last year’s total inward stock?
Note: Inflows refer to the total amount of FDI undertaken over a given year whereas inward
stock is the total accumulated value of foreign-owned assets over a given year.

Value in US$: ____________

75. Has FDI grown or declined on a yearly basis since 2006?

Value in %:    ____________

76. How many foreign affiliates are established in the selected country? Also, indicate the
    number of parent companies.

______________ foreign affiliates and ____________ parent companies

77. What is your interpretation?
Note: Respond to this question in the light of the answers to questions 72 and 76.
____________________________________________________________________________
____________________________________________________________________________
Practical exercice

ANALYSE SECTORS WHICH HAVE A POTENTIAL TO ATTRACT INVESTMENT

Identify industrial sectors for inward investment.
Note: Continue to base your research on the country you selected in question 74.

78. Which are the top three industrial sectors that have attracted the most investment in the
    last year for which data is available? Please also indicate the exports’ and imports’ values
    for each industry, if they are available. For tertiary sectors trade data will not be available.
Note: By default, economic activities (or industries) are ranked in descending order
according to the amount of inward investment flows. Therefore, for the country which you
have selected, the industries that have attracted the most foreign investment in the last year
are displayed at the top of your screen.


                Industry                Inflows in $US        Exports in $US        Imports in $US

 1.

 2.

 3.

79. What type of activity (primary in yellow, secondary in blue, tertiary in pink) has attracted
    the most investment in the last year for which data is available? Please also indicate
    exports’ and imports’ values for each type of activity.
Note: You can analyze the information at the aggregate level, by type of activity (primary in
yellow, secondary in blue, services in pink) by clicking on the sign “+” at the top of the left
column.



                                                                                       Imports in
       Type of activity            Inflows in $US            Exports in $US
                                                                                         $US

            Primary

          Secondary

            Tertiary

80. Which industrial sectors have exported the most? Please also indicate inflows’ values for
    each industry.
Note: Press the back button once. You can also sort the industries by different criteria (e.g.
exports, number of foreign affiliates etc), by clicking on the arrow located next to the
columns’ title which you want to rank. To answer this question, please click on the arrow
related to exports.
Practical exercice


                       Industry                          Export in $US           Inflow $US




81. Are FDI inflows concentrated in this country?
Note: To answer this question, please refer to the number of industries which have attracted
FDI in your country and their respective shares of total FDI.
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________

82. Are the exports of this country concentrated? Are these exports emanating from industries
    attracting the most FDI flows?
Note: To answer this question, please refer to the export value.
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________

83. Consider the number of foreign affiliates for these industries? Please also indicate both
    inflows’ and exports’ values.
Note: To sort the industries by number of foreign affiliates click on the arrow at the top of the
column or on the link “number” located next to the arrow.


                                                    Number of
                                                                   Inflows in       Exports in
                     Industry                        Foreign
                                                                      $US             $US
                                                     Affiliates

 1.

 2.

 3.

84. What can you conclude from the historical data between FDI and trade flows?
Note: To answer this question look at and compare the evolution of both Exports and FDI
growth and see if there is evidence of an emerging pattern.
__________________________________________________________________________
__________________________________________________________________________
Practical exercice

HAVE ACCESS TO MICRO LEVEL INFORMATION

Identify and find information on the companies established in the country you have
selected.
Note: Although not exhaustive, this data is a useful complement to the data on FDI (see data
limitations).

85. Which Multinational Corporations (MNC) have majority-owned foreign affiliates in industry
    A?
Note: Click on the “+” sign on the “Foreign Affiliates” heading, information on the activities of
foreign affiliates located in the country is presented. The second column from the right shows
the list of the leading parent companies for each industry. After clicking on the name of an
industry’s leading parent company, you obtain a list showing all of the parent companies with
affiliates in the country for that specific industry.


                                                                                       Number of
  Leading parent companies for Industry A                  Parent country
                                                                                        affiliates

 1.

 2.

 3.

 4.

 5.

86. What can you tell about the concentration of the source of FDI in industry A?
Note: To answer this question, look at the country of origin of the main parent companies
and see whether the FDI is concentrated. E.g. if 80% of FDI comes from only 2 sources, it is
indeed concentrated.
__________________________________________________________________________
__________________________________________________________________________



87. Write specific details for the leading foreign affiliate in the country for industry A.
Practical exercice

Note: You can view even more details on each affiliate of the selected parent company by
clicking on that affiliate.

				
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posted:10/10/2012
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