Market Study of Leather Goods Industry in Spain by qqu19633

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									Market Access Issues: EU - Bangladesh Trade Regime
A Case Study on Market Access - Myths and Realities

          Hong Kong Trade and Development Symposium
                      December 17, 2005

                            By

                   Dr. A.K. Enamul HAQUE
                          Professor
                  Department of Economics
                    East West University

                       Azreen KARIM
                          Lecturer
                  Department of Economics
                    East West University

                     Wahid ABDALLAH
                          Lecturer
                  Department of Economics
                   North South University
    Presentation
      Coverage
Objective of the Study
Background of the Study
Research Problem
Research Methodology
Industry Analysis
  -Leather and Leather Goods
 - Knitwear
 - Shrimp Processing Industry
 - Pharmaceuticals
Concluding observations
        Objective

This Study aims at
Identifying the market access
barriers for the SMEs in four
selected industries
Evaluating the relative strength
of these barriers
      Background

What are the perspectives of
market access?
EU trade with Bangladesh
Why market access is an
important issue for
Bangladesh?
- GSP and EBA initiative
Why focus on the SMEs?
FIG 1: EU (European Union) trade with Bangladesh




Source: http://www.eudelbangladesh.org/en/trade/index.htm
             Research Problem
    For the purpose of this study, the NTBs have
    been segmented into four (4) broad
    categories:

    Type I: Government participation in trade and
    restrictive practices
•   state aid
•   countervailing duties
•   state trading enterprises
•   government monopoly practices
    Customs and administrative entry procedures
       - anti-dumping duties
       - customs valuation
       - classification
       - Formalities
       - rules of origin
          Research Problem
                  (contd…)
Type II: Technical Barriers to Trade or TBT
•   technical regulations
•   Standards
•   Testing
•   certification arrangement

Type III: Specific Limitations
•   quantitative restrictions
•   import licensing
•   Embargoes
•   exchange control
•   discriminatory sourcing
•   export restraints
•   measures to regulate domestic prices
•   requirements concerning marking, labeling
    and packaging
       Research Problem
           (contd…)

Type IV: Import Charges
• prior import deposits
• surcharges
• port taxes
• statistical taxes
• border tax adjustments
• safeguard measures
Research Methodology

Primary and Secondary data
has been used
In-Depth Interview of the
company executives of 20
companies (5 from each
sector of the selected four
industries)
Industry responses have been
used to identify the affected
groups – small or medium
sized enterprises
                              Industry Analysis
                  Industry for Leather and Leather goods

•   Bangladesh is capable of producing 180 million square feet of leather annually
    (source: http://epbbd.com/expprod/leather.htm)

•   In the year 2001-02, Bangladesh exported 346 million taka worth of raw hides and
    skins, leather fur skins, travel goods, handbags and similar items (Statistical
    Yearbook of Bangladesh, Bangladesh Bureau of Statistics, 2002).

•   In the year 2003-04, Bangladesh exported leather and leather manufactures
    amounting of 46.8 crore taka to Germany, 28.0 crore taka to the United Kingdom,
    41.2 crore taka to France, 255.8 crore taka to Italy and 53.1 crore taka worth of the
    same to Spain (Annual Export Receipts, Statistics Department, Bangladesh Bank,
    2003-04).
                       INDUSTRY ANALYSIS (Leather and Leather Goods)
                                  Table 1: Export Barriers to EU for the Leather industry
          Types of Barriers                 Lists of items within each type                   Barriers found in the
                                                                                                leather industry
 Type I: Government participation in           state aid                                customs valuation
      trade and restrictive practices,         countervailing duties                    formalities
      customs and administrative entry         state trading enterprises                rules of origin
      procedures                               government monopoly practices
                                               anti-dumping duties
                                               customs valuation
                                               classification
                                               formalities
                                               rules of origin
 Type II: Technical Barriers to Trade or       technical regulations                    technical regulations
          TBT                                  standards                                standards
                                               testing                                  certification arrangement
                                               certification arrangement
 Type III: Specific Limitations                quantitative restrictions                requirements regarding marking, labeling and
                                               import licensing                         packaging
                                               embargoes
                                               exchange control
                                               discriminatory sourcing
                                               export restraints measures to regulate
                                               domestic prices
                                               export taxes
                                               requirements concerning marking,
                                               labeling and packaging
 Type IV: Import Charges                       prior import deposits                    Not Found
                                               surcharges
                                               port taxes
                                               statistical taxes
                                               border tax adjustments
                                               safeguard measures

Source: In-Depth interview results
                                 INDUSTRY ANALYSIS (contd…)

    Table 2: The Affected Groups against the Types of Barriers in the Leather industry
                                                % of the Industry
              Types of Barriers                                        Types of Affected Groups
                                                      Responses
Type I: Government participation in trade and
                                                                    Both Small and Medium sized
   restrictive practices, customs and                 40%
                                                                    enterprises
   administrative entry procedures

                                                                    Both Small and Medium sized
Type II: Technical Barriers to Trade or TBT           80%
                                                                    enterprises

                                                                    Both Small and Medium sized
Type III: Specific Limitations                        60%
                                                                    enterprises

Type IV: Import Charges                                0%           Not found


Total                                                180%


Source: In-Depth interview results
                         Industry Analysis
                          Industry for Knitwear


•   Knitwear exports had increased to 31.26% in 1997-98. Knitwear
    export was 42661.75 million taka in 1997-98 which had increased
    from 32501.13 million taka in 1996-97 (Bangladesh Export Promotion
    Bureau).

•   In the year 2003-04, Bangladesh exported ready-made garments
    amounting of 5679.7 crore taka to Germany, 3114.8 crore taka to the
    United Kingdom, 2384.2 crore taka to France, 1231.4 crore taka to
    Italy and 1069.7 crore taka worth of the same to Spain (Annual Export
    Receipts, Statistics Department, Bangladesh Bank, 2003-04).
                                           INDUSTRY ANALYSIS (Knitwear)
                                 Table 3: Export Barriers to EU for the Knitwear industry
         Types of Barriers                    Lists of items within each type               Barriers found in the
                                                                                             knitwear industry
Type I: Government participation in trade      state aid                                   customs valuation
     and restrictive practices, customs and    countervailing duties                       rules of origin
     administrative entry procedures           state trading enterprises                   formalities
                                               government monopoly practices
                                               anti-dumping duties
                                               customs valuation
                                               classification
                                               formalities
                                               rules of origin
Type II: Technical Barriers to Trade or        technical regulations                       certification arrangement
     TBT                                       standards                                   standards
                                               testing                                     testing
                                               certification arrangement
Type III: Specific Limitations                 quantitative restrictions                   Not Found
                                               import licensing
                                               embargoes
                                               exchange control
                                               discriminatory sourcing
                                               export restraints measures to regulate
                                               domestic prices
                                               export taxes
                                               requirements concerning marking, labeling
                                               and packaging
Type IV: Import Charges                        prior import deposits                       Not found
                                               surcharges
                                               port taxes
                                               statistical taxes
                                               border tax adjustments
                                               safeguard measures

Source: In-Depth interview results
                                 INDUSTRY ANALYSIS (contd…)
        Table 4: The Affected Groups against the Types of Barriers in the Knitwear industry

           Types of Barriers                % of the Industry      Types of Affected Groups
                                                 Responses

Type I: Government involvement in trade           80%           Small sized enterprises
   and restrictive practices, customs and
   administrative entry procedures

Type II: Technical Barriers to Trade or           60%           Small sized enterprises
   TBT


Type III: Specific Limitations                     0%           Not found


Type IV: Import Charges                            0%           Not found

Total                                             140%



Source: In-Depth interview results
                       Industry Analysis
                   Shrimp Processing Industry

• In the year 2002-03, Bangladesh exported 4,788,553 thousand taka
worth of shrimps to the United Kingdom, 4,788,553 thousand taka
worth of shrimps to Germany, 3,16,604 thousand taka worth of
shrimps to France and 47,979 thousand taka worth of shrimps to Italy
(source: www.epbbd.com).

• There are 124 shrimp processing factories in Bangladesh, mostly in
Khulna and Chittagong, and around 60 hatcheries basically located in
Cox’s Bazar (Haque, 2004).
                         INDUSTRY ANALYSIS (Shrimp Processing Industry)
                  Table 5: Export Barriers to EU for the Shrimp Processing Industry
          Types of Barriers                 Lists of items within each type                    Barriers found in the
                                                                                            shrimp processing industry
Type I: Government participation in       state aid                                         rules of origin
     trade and restrictive practices,     countervailing duties
     customs and administrative entry     state trading enterprises
     procedures                           government monopoly practices
                                          anti-dumping duties
                                          customs valuation
                                          classification
                                          formalities
                                          rules of origin
Type II: Technical Barriers to Trade or   technical regulations                             technical regulations
     TBT                                  standards                                         standards
                                          testing                                           testing
                                          certification arrangement
Type III: Specific Limitations            quantitative restrictions                         requirements concerning marking,
                                          import licensing                                  labeling and packaging
                                          embargoes
                                          exchange control
                                          discriminatory sourcing
                                          export restraints measures to regulate domestic
                                          prices
                                          export taxes
                                          requirements concerning marking, labeling
                                          and packaging
Type IV: Import Charges                   prior import deposits                             Not found
                                          surcharges
                                          port taxes
                                          statistical taxes
                                          border tax adjustments
                                          safeguard measures

 Source: In-Depth interview results
                                 INDUSTRY ANALYSIS (contd…)

Table 6: The Affected Groups against the Types of Barriers in the Shrimp Processing Industry
         Types of Barriers              % of the Industry        Types of Affected Groups
                                              Responses

Type I: Government involvement in             60%           Both Small and Medium sized
   trade and restrictive practices,                         enterprises
   customs and administrative
   entry procedures

Type II: Technical Barriers to Trade         100%           Both Small and Medium sized
   or TBT                                                   enterprises

Type III: Specific Limitations                40%           Both Small and Medium sized
                                                            enterprises


Type IV: Import Charges                        0%           Not Found


Total                                        200%



 Source: In-Depth interview results
                         Industry Analysis
                    Industry for Pharmaceuticals


• In the year 2003-04, Bangladesh exported pharmaceutical products
worth of 14,591 thousand taka to France and 13,400 thousand taka worth
of to Germany (Annual Export Receipts, Statistics Department,
Bangladesh Bank, 2003-04).


• Bangladeshi pharmaceutical companies have got the potential to
become major players
                            INDUSTRY ANALYSIS (Pharmaceutical)
                  Table 7: Export Barriers to EU for the Pharmaceutical Industry
        Types of Barriers          Lists of items within each type        Barriers found in the
                                                                        pharmaceutical industry
Type I: Government participation in       state aid                                   rules of origin
     trade and restrictive practices,     countervailing duties
     customs and administrative entry     state trading enterprises
     procedures                           government monopoly practices
                                          anti-dumping duties
                                          customs valuation
                                          classification
                                          formalities
                                          rules of origin
Type II: Technical Barriers to Trade or   technical regulations                       technical regulations
     TBT                                  standards                                   certification arrangement
                                          testing                                     standards
                                          certification arrangement
Type III: Specific Limitations            quantitative restrictions                   Not found
                                          import licensing
                                          embargoes
                                          exchange control
                                          discriminatory sourcing
                                          export restraints measures to regulate
                                          domestic prices
                                          export taxes
                                          requirements concerning marking, labeling
                                          and packaging
Type IV: Import Charges                   prior import deposits                       Not found
                                          surcharges
                                          port taxes
                                          statistical taxes
                                          border tax adjustments
                                          safeguard measures
Source: In-Depth interview results
                                     INDUSTRY ANALYSIS (contd…)

  Table 8: The Affected Groups against the Types of Barriers in the Pharmaceuticals Industry
        Types of Barriers                 % of the Industry       Types of Affected Groups
                                               Responses
Type I: Government involvement                  80%           Both Small and Medium sized
   in trade and restrictive                                   enterprises
   practices, customs and
   administrative entry
   procedures
Type II: Technical Barriers to                 100%           Both Small and Medium sized
   Trade or TBT                                               enterprises

Type III: Specific Limitations                   0%           Not found


Type IV: Import Charges                          0%           Not found


Total                                          180%


Source: In-Depth interview results
  Table 9: Ranking of the Types of Barriers by the Affected groups in the Selected Industries

     Types of Barriers           Ranking by the Small sized enterprises in   Ranking by the Medium sized
                                     the selected industries                     enterprises in the selected
                                                                                 industries


                                    LI*        KI*         SPI*        PI*      LI*        SPI*         PI*


Type I: Government
    involvement in trade and
    restrictive practices,           +         +++         ++          ++        +          ++          ++
    customs and administrative
    entry procedures
Type II: Technical Barriers to
    Trade or TBT                   +++          ++         +++         +++     +++          +++         +++


Type III: Specific Limitations
                                    ++          0           +           0       ++           +           0


Type IV: Import Charges
                                     0          0           0           0        0           0           0


NOTE: + means the degree of barriers exists in each industry.
         * LI = Leather industry, KI = Knitwear industry,
           SPI = Shrimp Processing industry, PI = Pharmaceuticals industry
Source: In-Depth interview results
              Concluding observations

Type II are the most important barriers for the SMEs in Bangladesh.

Type I barrier is the second most important barrier.

Type III barriers or specific limitations has been cited as the third
important barrier in market access.

Type IV barriers are not found to exist.
     Market Access Issues:
 EU - Bangladesh Trade Regime
A Case Study on Market Access –
      Myths and Realities

 Hong Kong Trade and Development Symposium
             December 17, 2005
Thank You

								
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