NTBs Under NAMA NTBs Under NAMA Negotiations Negotiations A South Asian Perspective A South Asian Perspective By By CUTS-CITEE Research Team CUTS-CITEE Research Team Pranav Kumar Pranav Kumar Simi T B Simi T B Chandan Mukherjee Chandan Mukherjee
Transcript
1. NTBs Under NAMA Negotiations A South Asian Perspective By
CUTS-CITEE Research Team Pranav Kumar Simi T B Chandan
Mukherjee
2. Presentation Coverage
Theory
Definition, Classification & Measurement Problems
NTBs in Multilateral Trade Negotiations
Tokyo, Uruguay and Doha Round
Progress on NTBs Negotiations in Doha Round
Approach, Notification
Notification by South Asian Countries
India, Pakistan and Bangladesh
Composition of Mfg. Exports from South Asia
3. Definition of NTBs
Baldwin (1970), Walter (1972), Mayer & Gevel (1973), and
Deardorff & Stern (1997) have provided their definitions to
NTBs.
UNCTAD, OECD, PECC too contributed in formulation of the term
NTBs
No legal definition of NTBs in WTO Agreements
NTB are measures, other than tariffs, that are connected with
state (administrative) activity and influence prices, quantity,
structure and/or direction of international flows of goods and
services as well as resources used to produce these goods and
services.
4. Non-tariff Measures (NTMs) Vs. Non-tariff Barriers (NTBs)
For several countries both NTB and NTMs are mere synonymous
terms, for others these two are quite different.
As per OECD, NTMs are defined as policy measures that have the
effect of limiting trade, with no implied judgment on the
legitimacy. Whereas, NTBs are defined as instruments that are in
violation of WTO law.
The raison d'tre for using the term measure instead of barrier
is primarily due to the reality of few cases where policies that
stimulate the volume of trade rather than retard trade, such as
exports subsidies, cannot be held as a barrier. A barrier means
prevention of something, now here it is the trade.
5. Classification of NTBs
UNCTADs Coding System of Trade Control Measures is the most
comprehensive classification system
At its most detailed level, the classification identified over
100 different types of NTBs at its most detailed level though it
does not incorporate any measures applied to production or to
exports.
This classification comprises of six categories/chapters of
NTBs, including price control measures, finance measures, automatic
licensing, quantity control measures, monopolistic measures and
technical measures.
These chapters on NTBs begin from chapter 3 to chapter 8, while
chapter 1 and 2 are on tariff and Para-tariff measures.
6. Measurement of NTBs
Frequency-type measures
QRs and similar specific limitations
Non-tariff charges and related policies
Govt supports and other restrictive practices
Customs and administrative procedures
Technical barriers to trade
Price-comparison measures
Quantity-impact measures
7. NTBs in Multilateral Trade Negotiations
In Tokyo Round, there was a comprehensive effort to reduce
trade obstacles stemming from tariffs and NTMs
New or reinforced agreements called codes, were reached on the
following NTMs:
subsidies and countervailing duties;
government procurement;
technical standards;
import licensing procedures;
customs valuation; and
antidumping.
8. NTBs Negotiations Under Uruguay Round
WTO (URA) does not ban the use of all NTMs
In many ways URA on NTMs are an ext. of Tokyo Round
Binding multilateral agreements signed on AD, subsidies, SPS,
TBT, safeguards, MFA etc.
The objective was to discipline and allow only legitimate
NTMs
UR results see a reduction in the use of some important NTMs
ERAs, QRs, export subsidies etc.
9. Doha Mandate on NTBs
Seeks reduction or elimination of NTBs in particular on
products of export interest to developing countries
Elaborated further in July Package and Hong Kong
Declaration:
Notification
Identification
Examination
Categorisation
To begin negotiations
10. Progress on NTBs Negotiations
Tariff reduction has been the main thrust area, discussion on
NTBs has received less attention
At the WTO General Council meeting in July 2004, Members
reiterated the importance of NTBs to the NAMA negotiations in the
Annex B The agreement reads as follows:
"We recognise that NTBs are an integral and equally important
part of these negotiations and instruct participants to intensify
their work on NTBs. In particular, we encourage all participants to
make notifications on NTBs by 31 October 2004 and to proceed with
identification, examination, categorization and ultimately
negotiations on NTBs. We take note that the modalities for
addressing NTBs in these negotiations could include request/offer,
horizontal, or vertical approaches; and should fully take into
account the principle of special and differential treatment for
developing and least-developed country participants."
32 WTO Members submitted notifications, 19 of which are
developing countries. So far only three African countries (Egypt,
Kenya, and Senegal), and one LDC (Bangladesh) have submitted
notifications.
Following this, the WTO Secretariat provided compilations of
the proposals submitted regarding NTBs. The compilation, dated 29
October 2004, consolidated 26 submissions and distilled three
central issues for discussion: whether to address the broad range
of NTMs identified or whether to limit the focus; the appropriate
WTO Committee or negotiating group in which to address the NTBs;
and the appropriate modalities (in other words, methodology) for
negotiation of NTBs.
11. Notifications from South Asia
Till February 2006, countries like Japan, Korea, US, Argentina,
Croatia, US, Cuba, Egypt, India, Mexico Singapore, Taiwan,
Bulgaria, Norway, Venezuela, Hong Kong and some others have made
notifications to the WTO on NTBs.
The notifications are mostly in the areas/sectors like
automobiles, chemicals, electrical, energy, environmental goods,
fish and fish products, LAB foods, forest products, LAB Generic,
Health and safety, REG Leather, Minerals, Petroleum,
Pharmaceuticals, Phyto sanitary and textiles. The notifications are
submitted to technical Barriers to Trade (Agreement/Committee),
NGMA, Sanitary and Phytosanitary (Agreement / Committee),
Negotiating group on Rules and others.
From South Asia India, Bangladesh and Pak have notified
12. Notification from India
India has submitted notifications on NTBs along with other
countries to the NGMA. India in its submission has stated that
restrictive standards , burdensome regulations and procedures in
several countries have been acting as barriers that significantly
affect exports as also the capacity to trade. Several issues are
involved with the NTBs; some of the measures clubbed together
affect individual consignments, while some like those involving
costs put additional burden on exports.
13. Notification from Bangladesh
Regarding the inventory of non-tariff barriers, the authorities
of Bangladesh gathered information from Chambers, associations and
individual exporters. The NTBs faced by exporters are of different
nature, and are categorised in the following broad areas:
(a) NTBs similar to SPS measures; (b) NTBs related to TBT
measures; (c) Quantitative restrictions including ban; (d) Labeling
requirement; (e) Rules of Origin; (f) Visa requirement
14. Notification from Pakistan
Notifications put forward by Pakistan to the Negotiating group
on market access for the NTBs faced by its exporters includes:
Due to the pre-shipment inspection required by certain
countries for certain goods, shipments get delayed and importers
avoid sourcing from Pakistan.
Non-transparent procedure for registration of drugs provides
undue protection to domestic pharmaceutical firms in many countries
and the foreign pharmaceutical companies and drug suppliers are
denied market access.
The registration procedures as laid down by the Agreement on
Trade-related intellectual property rights needs to be made
transparent.
Quarantine certification; food labeling and packaging
regulations [description of food ingredients; indication of
nutritional claims-substantiated and specified], high rate of
inspection etc raises the cost of export and delays the shipment of
consignments for the countries not having preferred status through
bilateral MOU;
The food sanitation law requirements are also too stringent and
need to be brought at par with internationally accepted
standards.
This trade restrictive requirements needs to be eliminated for
products like Art silk fabrics and art silk garments. The Azo Dyes
certification test results differ from laboratory to laboratory and
this leads to denial of market access and also increases costs to
exporters.
15. Categorising NTBs
In its compilation of proposals submitted by Members on NTBs,
the Secretariat identified four categories of NTBs
Category 1 are those that are covered by an existing WTO
Agreements and do not have a specific separate negotiating
mandate.
Category 2 are those that are covered by a specific WTO
Agreement and are also subject of a specific separate negotiating
mandate.
Category 3 are defined as barriers that are not specifically
covered in an existing WTO Agreement, but that are related to
aspects of the Doha Work Programme.
NTBs in Category 4 are classified as barriers that are not
covered in a specific WTO Agreement, and are not the subject of a
separate negotiating mandate.
16. Categorising NTBs
Category 1: SPS, TBT, RoO, Import Licensing etc.
Category 2: Anti-dumping and Subsidies & Countervailing
Measures (SCMs)
Category 3: Trade Facilitation measures
Category 4: Outside the existing WTO agreements and Doha
Agenda
17. Composition of Mfg. Exports from South Asia
Bangladesh:
RMG (Woven and Knitware), Jute products, Frozen foods and
Leather & leather products
India:
textiles and RMG, gems and jewelry, engineering goods,
transport equipments, machinery, chemical products, leather
products, handicrafts etc.