1. Market Access Map Information on tariffs and other market access conditions

2. 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

3. 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

4. Ad valorem tariffs E.g. Australian tariff of 5% on imported wine (22.04.21.20.70) New Zealand wine: AUD 6 / litre French wine: AUD 8 / litre Tariff paid: AUD 0.30 /litre Tariff paid: AUD 0.40 /litre Tariff per unit = CIF value per unit x Tariff Rate

5. 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: 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%)

6. Before border CHF3 / kg beef CHF12 / kg Argentine prime quality beef The prime beef is 4 times the price of the low quality beef, but also 4 times the quality After the border = 18/3 equates to a 600% ad valorem tariff Now Regular beef Costs CHF21 / kg Now Argentine prime beef Costs CHF30 / kg The prime beef is now only 1.4 times the price of the low quality beef, but still 4 times the quality = 18/12 equates to a 150% ad valorem tariff CHF18 specific tariff per kilo At border Specific tariffs change relative prices E.g. Suppose Switzerland's tariff on beef is CHF18 / kilo (02.01.30)

7. 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: Levied on the basis of volume or weight 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%) Combined tariffs: Contain both ad valorem and specific rates Eg: 10% of the value + $2 per kilogram (Japan, EU, Canada)

8. Compound tariffs Chocolate from Switzerland: USD 6,356 / ton Chocolate from Brazil: USD 3,181 / ton Tariff: 4.3% Ad ValoremUS$ 273 Tariff + USD528/ton SpecificUS$ 528 Tariff Tariff: 4.3% Ad ValoremUS$ 137 Tariff + USD528/ton SpecificUS$ 528 Tariff Tariff = USD801 AVE = 801/ 6356 =13% Tariff = USD665 AVE = 665/ 3181 = 21% E.g. USA tariff on chocolate of 4.3% and US$ 528 / ton (18.06.32.08)

9. Types of tariffs Mixed tariffs: Minimum or maximum of two kinds of tariffs Eg: Min or Max (10%, $2/kg) (Canada, EU, Japan)

10. Mixed tariffs Manolo Blahnik shoes: USD1,000 /pair Clark's shoes: USD30 /pair Tariff: the maximum of 30% Ad ValoremUS$ 300 Tariff Or JPY4,300/pair (USD36) SpecificUS$ 36 Tariff Tariff: the maximum of 30% Ad ValoremUS$ 9 Tariff Or JPY4,300/pair (USD36) SpecificUS$ 36 Tariff Tariff = USD36 AVE= 36/30 =120% Tariff = US$ 300 AVE= 300/1000 = 30% e.g. Japanese tariff on shoes: Max. of 30% or JPY4,300 Yen / pair

11. Types of tariffs Mixed tariffs: Minimum or maximum of two kinds of tariffs Eg: Min or Max (10%, $2/kg) (Canada, EU, Japan) Variable tariffs: Levied on the basis of the composition of the products Eg:US$ 5/unit if lead content of paint > 2% on toys US$ 200/unit on fridges if cooling system is not CFC-free

12. Types of tariffs Mixed tariffs: Minimum or maximum of two kinds of tariffs Eg: Min or Max (10%, $2/kg) (Canada, EU, Japan) Variable tariffs: Levied on the basis of the composition of the products Eg:USD5/unit if lead content of paint > 2% on toys USD200/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.

13. MAcMap includes ad valorem equivalents Ad Valorem Equivalents – AVE: effect 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 and anti- dumping rates and countervailing duties 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

14. 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 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.

15. 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…

16. Proliferation of RTAs Source: ITC

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

18. Proliferation of RTAs

19. 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

20. Features of MAcMap Wide geographical coverage: tariffs applied by 191 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

21. 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

22. Quick search module Mandatory fields Quick Search of tariffs – quick and easy search

23. 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

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

25. Click ‘print report’ to see the full list of countries The rest of the regimes can be seen by clicking on the numbers Chose more records per page to see the entire list in one screen Quick search

26. When in doubt click on Glossary for definitions and concepts

27. Glossary Search alphabetically

28. 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

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

30. Example of a rule of origin

31. Example of a certificate of origin

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

33. Compare tariffs module Scroll through the importing countries alphabetically, or…

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

35. Compare tariffs: Market Access Map If you leave your mouse over any given country, a mouse over pops up with the applied tariff and existing trade relationship between the countries Trade = Exports