Transcript Slide 1

The Issue with NTBs
• As the demand for liberalization of tariff
regime continues to reduce market
protection, many countries are resorting to
the use of NTBs to regulate import flows or
for the purposes of guaranteeing health and
safety of their consumers.
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The Challenge for Africa
• Africa has been the beneficiary of market access either at
MFN level or in the context of Preferential Trade
Agreements (PTAs).
• However, it is on record that utilization rates of preferences
are minimal owing to the restrictive nature of the NTBs.
• As beneficiaries of the preferential schemes, NTBs are
increasingly becoming one of the main market access
concerns.
• It is crucial that they are addressed in the negotiations as
whatever gains made through tariff concessions may be
nullified by the incidences of this form of market access
barriers.
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Summary of Key Proposals
I. MINISTERIAL DECISION ON PROCEDURES FOR THE FACILITATION OF SOLUTIONS
TO NON-TARIFF BARRIERS
II. NEGOTIATING PROPOSAL ON NON-TARIFF BARRIERS IN THE CHEMICAL
PRODUCTS AND SUBSTANCES SECTOR
III. UNDERSTANDING ON THE INTERPRETATION OF THE AGREEMENT ON
TECHNICAL BARRIERS TO TRADE AS APPLIED TO TRADE IN FIREWORKS
IV. UNDERSTANDING ON THE INTERPRETATION OF THE AGREEMENT ON
TECHNICAL BARRIERS TO TRADE AS APPLIED TO TRADE IN LIGHTER
PRODUCTS
V. DECISION ON THE ELIMINATION OF NON-TARIFF BARRIERS IMPOSED AS
UNILATERAL TRADE MEASURES
VI. UNDERSTANDING ON THE INTERPRETATION OF THE AGREEMENT ON
TECHNICAL BARRIERS TO TRADE AS APPLIED TO TRADE IN ELECTRONICS
VII. REVISED SUBMISSION ON EXPORT TAXES
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VIII. UNDERSTANDING ON THE INTERPRETATION OF THE AGREEMENT
ON TECHNICAL BARRIERS TO TRADE WITH RESPECT TO THE
LABELLING OF TEXTILES, CLOTHING, FOOTWEAR, AND TRAVEL
GOODS
IX. PROTOCOL ON TRANSPARENCY IN EXPORT LICENSING TO THE
GENERAL AGREEMENT ON TARIFFS AND TRADE 1994
X. DECISION ON NON-TARIFF BARRIERS AFFECTING FORESTRY
PRODUCTS USED IN BUILDING CONSTRUCTION
XI. AGREEMENT ON NON-TARIFF BARRIERS PERTAINING TO THE
ELECTRICAL SAFETY AND ELECTROMAGNETIC COMPATIBILITY
(EMC) OF ELECTRONIC GOODS
XII. MINISTERIAL DECISION ON TRADE IN REMANUFACTURED GOODS
XIII. AUTOMOTIVE NTBS
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WORKSHOP ON WTO NAMA NEGOTIATIONS
ON NON-TARIFF BARRIERS
12th-14th April 2010
Nairobi, Kenya
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UNIDO’S ROLE IN ADDRESSING TRADE
CONSTRAINTS
Andrew EDEWA
United Nations Industrial Development Organization (UNIDO)
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UNIDO VISION & CORPORATE STRATEGY
UNIDO VISION
To reduce poverty in countries with
developing or transition economies through
sustainable industrial growth
UNIDO CORPORATE STRATEGY
Developing Industry: Productivity
Enhancement for Social Advancement within the
framework of UNIDO’s three thematic priorities
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UNIDO’S 3 THEMATIC PRIORITIES
AND 8 SERVICES MODULES
I. Poverty
Reduction
through
Productive
Activities
1) Private Sector Development
2) Agro-Industries
II. Energy and
Environment
3) Sustainable Energy and Climate Change
III. Trade
Capacity
Building
6) Industrial Governance and Statistics
7) Investment and Technology Promotion
8) Industrial Competitiveness and Trade
4) Montreal Protocol
5) Environmental Management
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UNIDO’s Trade Capacity Building
Programme
• The technical ability of developing countries to produce
competitive exportable products that comply with
international standards is key to their successful
participation in international trade
• UNIDO is one of the largest providers of trade related
services, offering focused advice and integrated technical
cooperation in the areas of
–
–
–
–
–
competitiveness,
industrial modernization and upgrading,
Compliance with trade standards,
testing methods and
metrology.
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No.10
KEY INTERVENTIONS NEEDED TO PROMOTE
SUSTAINABLE DEVELOPMENT
• Capacity building in the public sector to ensure informed
and timely trade-related policy making
• Strengthening the domestic private sector, improving
competitiveness and the supply capability of enterprises
• Establishing/strengthening institutions/ infrastructure that
are part of the enabling environment for effective trade
participation
• Promoting consumer, environmental and health protection
during the process of globalization
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UNIDO 3Cs approach.
These tools are based on accumulated expertise
and knowledge of challenges and opportunities of
developing countries in the process of integration
in the MTS with regards to their:
• Supply-capacity;
• Ability to comply with growing market demands
in
terms
of
standards
and
conformity
assessment;
• Capacity to access national, regional and
international markets
No.13
UNIDO 3Cs approach.
 “Countries must have marketable products to trade”
COMPETITIVITY of productive capacities
 “Products must conform to
requirements of clients and
markets”
CONFORMITY with standards
 “Rules for trade must be
equitable and customs
procedures harmonized”
CONNECTIVITY to markets
No.14
UNIDO TCB - Key Focus Areas
Supply side development (UNIDO)
Compete
Conform
• Industrial policy and supportive institutional structure
• Investment and technology transfer
• SME development and access to finance
• Cluster and export consortia development
• Productivity and quality
• Industrial Upgrading, sectoral technology support
• Cleaner Production, energy efficiency
Standards & Conformity Assessment/Compliance (UNIDO)
• Development
and harmonization of standards
• Development of testing services , PT Schemes
• Certification (products and enterprise systems)
• Metrology/Calibration chain
• Accreditation schemes
Connect
No.15
Integration in to the MTS (WTO, UNCTAD, ITC, WB…)
• Market access and linkages with buyers/markets
• WTO rules, negotiations
• Trade facilitation (customs, documentation)
• Infrastructure (transport, ports)
Partnerships
To respond to:
growing demand for greater coherence and to the
Paris Declaration on Aid Effectiveness,
UNIDO is increasingly cooperating with and
associating other bilateral and multilateral
organizations in the needs assessment and project
development and implementation process such as
the WTO, ITC, UNCTAD, STDF, World Bank etc.
No.16
We have established strategic partnerships with international
standards,
measurement,
accreditation
and
research
organizations, including:
• International Organization for Standardization (ISO),
• International Laboratory Accreditation Cooperation (ILAC),
• International Accreditation Forum (IAF),
• International Bureau of Weights and Measures (BIPM) and
• International Organization of Legal Metrology (OIML)
• World Associations of Industrial and Technological Research Associations WAITRO……
In addition, UNIDO is a founding member of the Joint Committee
on Coordination of Assistance to Developing Countries in
Metrology, Accreditation and Standardization (JCDCMAS).
No.17
UNIDO-WTO MoU
Module I
Remove
supply side
constraints
Module II
Module III
Prove
Conformity
with Technical
Requirements
Introduce
Set up
supporting
Strengthen
Support
legislation, supply capacity accreditation/ compliance with
international
policies and
to improve certification
standards
institutional competitiveness
systems
reform
Integrate
into the multilateral
trading
system
Strengthen
capacity for implementation of
the WTO agreements and trade
negotiations
UNIDO
Pilot Countries: Armenia, Bolivia, Cambodia, Cuba, Egypt,
Ghana, Jordan, Kenya and Mauritius.
WTO
Conformity Assessment Structure
Peer Evaluation
MRA
Pre-Peer
Accreditation
Bodies
Accreditation
Mutual
Recognition
Calibration,Calibration,
Testing Laboratories
Analytical,
Testing
and Inspection Bodies
Laboratories
and Inspection
Bodies
User
User
User
User
User
Joint Committee on Coordination of Assistance to
Developing Countries in Metrology, Accreditation
and Standardization
ITU-T
OIML
UNIDO
IAF
JCDCMAS
BIMP
IEC
ILAC
ISO
ITC
UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS
1. Context specific needs assessment
No.21
UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS
1. Context specific needs assessment
Based on the request for the formulation of a project, UNIDO undertakes
context-specific desk research as well as a preparatory/needs assessment
missions to clearly identify the challenges at the level of:
a)
government policy and regulatory framework (TBT/SPS, bilateral);
b)
institutional capacity specifically in the quality-related institutions dealing
with Standards, Metrology, Testing and Quality (SMTQ);
c)
sector(s)/value chains; and
d)
d) enterprises.
The desk research involves the review of available diagnostic studies:
No.22
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UNIDO competitiveness/technology studies (global/regional/country/macro/sectoral/value-chain/product)

DTIS (Diagnostic Trade Integration Study)

PRSPs (Poverty Reduction Strategy Papers)

Export Development Strategies, as well as any specific needs evaluations and technical assessment done
previously by UNIDO or other institutions.
UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS
1. Context specific needs assessment
The preparatory assistance often involves assessment of:
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Relevant legal and institutional framework
SMTQ institutions in the country
Collection of baseline data on the quality of targeted
products,
Quality and quantity of services provided by the relevant
testing laboratories and other service providers (sustainability),
Value-chain analysis of the sectors identified as strategic or
requiring support;
Diagnostic of group of enterprises and service providers
Needs of conformity to standards
UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS2-2. 2.
Trade Related Challenges Surveys at the enterprise level
No.24
UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS2-2.
Trade Related Challenges Surveys at the enterprise level
UNIDO has developed a methodology for enterprise-level surveys on “Trade
Related Challenges Faced by Exporters” aimed to:
Qualify and quantify the problems exporters in developing countries
are facing in the regional and international trade environment, by:
1.
2.
Identifying common trade barriers related to:

Supply side,

Standards and conformity assessment

Integration into the multi-lateral trading system
And reviewing the possibilities of overcoming these obstacles through Trade
Related Technical Assistance and Capacity Building (TRTA/CB)[1]
[1] For example please refer to : http://www.unido.org.lb/macle/downloads/macle_presentation.pdf or
http://www.un.org.pk/unido/trta-interventions.html.
No.25
UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS2-2.
Trade Related Challenges Surveys at the enterprise level
the survey aims to:
• Explore the nature and extent of challenges to the trade
capacity of exporters in the respective country.
• Determine the factors associated with standards
compliance across sub-sectors.
• Assess the impact of technical standards and regulations
on the value of export sales.
• Identify mechanisms through which export performance
could be enhanced.
No.26
UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS2-2.
Trade Related Challenges Surveys at the enterprise level
Based on the methodology developed, pilot surveys have been carried
out in various countries (including Armenia, Bahrain, Cambodia, Jordan,
Guinea, Ghana, Kenya, Lao PDR, Lebanon, Pakistan, Sri Lanka,
Vietnam, and also initiated in Bangladesh, Bhutan, India, Libya, Maldives,
and Nepal) from different geographical areas, on different levels of
economic development and having different economic structures.
No.27
EXAMPLE: UNIDO BT SURVEY of 100 food exporters 2004 (new
2007)
TOP 4 PROBLEMS:
•
Price Competition (internal and external)
•
tests certificates (recognition of local labs)
•
Trade facilitation (affecting import/export)
•
Tariffs
LOST ORDERS
42% of respondents (food processors) lost orders in the
last few years due to barriers to trade
No.28
EXAMPLE: UNIDO BT SURVEY of 100 food exporters 2004 (new
2007)
STANDARDS AND TESTING
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Tests and certificates from local labs: 52%
•
Access to standards information
29%
•
Compliance with standards (import)
15%
ADMINISTRATIVE AND BUREAUCRATIC OBSTACLES
(TRADE FACILITATION)
No.29
•
Irregular additional payments I/E:
46%
•
Custom formalities
37%
•
Improper administrative practices
31%
UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS
3. Key Export Sectors Supply-Side constraints – UNIDO Competitiveness Analysis Tool
No.30
UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS
Key Export Sectors Supply-Side constraints – UNIDO Competitiveness Analysis Tool
Since 2004, UNIDO has been building up a competitiveness
analysis programme to help countries identify:
• Sectors and products with competitive potential
• Supply-driven obstacles affecting their export growth.
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No.31
UNIDO’s approach in the competitiveness analysis programme
is to build the institutional capacity of national counterparts
through:
Awareness raising,
Training,
Transfer of databases and methodologies,
Creation and supervision of specialised inter-institutional units in
key Ministries and Chambers.
UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS
Key Export Sectors Supply-Side constraints – UNIDO Competitiveness Analysis Tool
 Nation-wide assessment of trade and industry competitiveness. It positions the
country in the international industrial scene and analyses the factors that drive national
manufacturing growth;
 Value chain analysis of key strategic sectors. It identifies high value-added stages
in the production process and the conditions under which a country can benefit from
specialisation. It also analyses the potential markets for export;

Product analysis methodology for trade negotiations. It gives negotiators an
objective tool to identify potential winning and vulnerable products in trade agreements;
 Cost and transactions of doing business. It presents the framework conditions that
influence investment decisions in key strategic sectors (e.g. labour and other industrial
costs, infrastructure and logistics, laws and regulations, institutional arrangements,
incentives in industrial zones, trade agreements, etc.);
 Industrial Observatory. It gives on-line access to all indicators of trade and industry
competitiveness (both national and sectoral) to benchmark a country’s performance
against main competitors, role models and global threats.
No.32
UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS
4- Analysis of Quality Infrastructure Constraints
No.33
UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS
4- Analysis of Quality Infrastructure Constraints
Specific DCs’ Conformity Assessment Problems
• Poor physical facilities/infrastructure
• Inefficient institutional set up (Standards and conformity
assessment functions, if existent, are scattered among too
many institutions)
• Labs established (even with donor support) are neither
sustainable, nor related to demand
• Donation of equipment with poor planning, training, and
lacking adequate local physical infrastructure/staff,
absorption capacity
No.34
UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS
4- Analysis of Quality Infrastructure Constraints
Specific DCs’ Conformity Assessment Problems
•
•
•
•
•
•
Lack of funding
Lack of demand
Low-level of manufacturing due to focus on commodities
Exposed to barriers to trade especially SPS measures
Poor and uneven quality of local products
National quality infrastructure lacks credibility, and tests and
certificates by local laboratories are not recognized in export
countries.
No.35
UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS
4- Analysis of Quality Infrastructure Constraints
Why a CA Infrastructure is Necessary for DCs
• To reduce the risk that domestic markets become a dumping
ground for sub-standard and unsafe products.
• To ensure protection of the environment and achieve higher
social responsibility.
• To improve consumer safety related activities (availability of
testing facilities, particularly microbiological and chemical
testing laboratories and legal metrology).
• To facilitate trade, access to export markets, and generate
hard currency.
• To increase custom revenue generation.
No.36
UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS
4- Analysis of Quality Infrastructure Constraints
Why a CA Infrastructure is Necessary for DCs
• To overcome risk of rejection of products in export markets due
to lack of conformity (TBS and SPS).
• To prevent unscrupulous traders from taking advantage of a
poor QC infrastructure, an enforced legal system for inspection
and custom control is necessary.
• To allow integration of producers/traders in the global economy
• To help the private sector to solve quality, compliance and
certification problems hampering its aspiration to gain access to
export markets and avoid multiple testing.
No.37
UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS
Analysis of Quality Infrastructure Constraints
In its efforts to contribute to make the Aid for Trade initiative a success for
Africa, UNIDO elaborated a questionnaire to identify the gaps and assess
the specific needs of African countries in the field of quality
infrastructure[1]:
Quality promotion,
Metrology,
Accreditation,
Standardisation
Conformity assessment
To allow better elaboration of trade capacity building projects at the
national and sub-regional levels.
[1] See for example: http://www.unido.org/file-storage/download?file_id=81710.
No.38
UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS
4- Analysis of Quality Infrastructure Constraints
The UNIDO survey of the existing situation of quality infrastructures
was the basis for the elaboration of an Action Plan for Africa to:
 Address the weaknesses of the infrastructure
 Build trade capacity in African countries
 Improve the prospects of economic development on the
continent.
The findings of this survey and the proposed UNIDO action plan
were presented and discussed during the “Standards Compliance
and Conformity Assessment for the Development of Sustainable
Trade in Africa” Expert Group Meeting organized jointly with the
African Union (AU) and held in Tunis in February 2007.
No.39
UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS
4- Analysis of Quality Infrastructure Constraints
Building up on the initial survey, which covered 32 African Countries,
UNIDO is currently updating the already received data while expanding at the
same time the scope as well as the geographic coverage - Besides
Africa, the current survey includes Asia, the Pacific Island
States as well as the Arab region.
In particular the survey aims to:
 Assess the priority needs for quality infrastructure upgrading
 Advocate more effective technical assistance
 Develop tailored projects for countries and sub-regions
No.40
UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS
4- Analysis of Quality Infrastructure Constraints
LABNET provides access and dissemination of laboratory and activity information to its
users. LABNET is under the umbrella of the UNIDO, and its primary function would be to
provide information to the laboratories and the persons associated with the laboratories.
The LABNET is covering the testing and calibration laboratories from all fields of science
and have a wide database to cover all laboratories both accredited and non-accredited
from all regions of the globe.
LABNET Vision
Provide access and dissemination of laboratory and activity information
Share experience with respect to laboratory design, management, development,
maintenance, capabilities
Interaction and response in various issues related to PT, CRM, traceability, trade related issues
Avenue for promotion / sourcing of laboratory and related services
Facilitate information to industry / trade on testing / calibration and product specific information
PARTNERS
UNIDO, WAITRO, Vinta Labs, India
No.41
UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS
5- Analysis of developing countries product refusals/notifications
No.42
UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS
5- Analysis of developing countries product refusals/notifications
Starting from the analysis of product refusals/notifications for developing
countries originated by:
1-The United States Food and Drug Administration (US-FDA),
2-European Union Rapid Alert System for Food and Feed (EURASFF) and
3-Japan (Ministry of Health, Labour and Welfare)
UNIDO worked out an enhanced classification of Non-Tariff Measures
(NTMs)/Non-Tariff Barriers (NTBs) to trade.
No.43
UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS
5- Analysis of developing countries product refusals/notifications
The classification was developed in the context of the Multi-Agency
Support Team established by the Group of Eminent Persons on Non-Tariff
Barriers (MAST) through the SPS/TBT Sub-Groups with the participation
of several international organizations (Codex Alimentarius, FAO, ITC,
OECD, UNCTAD, WTO, US-ERS, and US-ITC) led by OECD and UNIDO.
UNCTAD, UNIDO and ITC in cooperation with other MAST members (IMF,
FAO, OECD, WTO, WB) launched in 2007 a Pilot Project on Collection
and Quantification of Non-Tariff Measures (NTMs) Database (UNCTADDITC Draft, 18 July 2007).
No.44
UNIDO CAPACITY EVALUATION AND NEEDS ASSESMENT TOOLS
5- Analysis of developing countries product refusals/notifications
Aimed at developing a systematic methodology of definition and collection
of Non-Tariff Measures (NTMs) the project covers nine pilot countries
(Brazil, Chile, India, Kenya, Mozambique, Philippines, Switzerland,
Thailand and Zambia).
The objective is to initiate a country level data collection on NTMs that will
help MAST to draw up an analytical framework to carry out a multi-agency
effort in data collection process and prepare studies on the impact
assessment of NTMs.
No.45
Demand and Channels of Communication
No.46
Demand and Channels of Communication
With regards to the demand for advisory services and technical assistance, UNIDO projects are developed
through communications received via different channels, among them:
• Government requests for TBT/SPS-related TRTA to cover legal framework,
institutional and human capacity and physical infrastructures;
• Requests by business associations such as national/sectoral industrial
associations, chambers of commerce and industry, trade groups, clusters or local
institutions such as standards bodies, certifiers, inspection bodies, laboratories;
• Identification of new standards or conformity assessment procedures which
might have a significant impact on developing countries’ export or import;
• Request for action to overcome problems when products are banned to export
due non compliance; or
• Assistance required in the process of bilateral, regional or multilateral trade
negotiations.
No.47
Demand and Channels of Communication
Donors are associated with the project development process from the initial
phase. UNIDO allocates seed money either:
• to carry out the initial needs assessment
Or
• to contribute to trouble-shooting actions tackling urgent problems and
requests.
The UNIDO methodology for needs assessment involves both desk research
and field work and it is supported by the UNIDO field representation system
covering over 70 countries through UNIDO national/regional offices/desks and
technical networks which include:
•National Cleaner Production Centres,
•Technology Centres,
•Investment and Partnership Promotion Offices and Units
•Sub-Contracting Exchanges.
No.48
The Market linkage Challenge can be met
provided we avoid the 7 Sins
The sins are:
“wealth without work, pleasure without conscience,
knowledge without character, COMMERCE
WITHOUT MORALITY, science without humanity,
worship without sacrifice, and politics without
principle”.
M. Gandhi
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Thank You for your attention!