Least developed countries (LDCs) that are members of the World
Trade Organization (WTO) can now benefit from free market
intelligence to help them gain market access and shape trade
negotiations. The United States Agency for International
Development (USAID) is investing US$ 200,000 in ITC's Market Access
Map so that LDCs can use this tool, free of charge, until 30
September 2006.
Prior to the WTO Ministerial Meeting in Hong Kong in December,
USAID is sponsoring three ITC workshops in Geneva to train LDC
trade policy analysts on how to use Market Access Map, as well as a
one-on-one help desk at ITC to assist trade officials in making
full use of it in the lead-up to the Ministerial.
"The Doha Development Agenda is an important opportunity for all
countries, including the world's poorest. LDCs need to analyse
their market access situation and identify new opportunities. But
they don't always have the information they need to make informed
decisions on their bargaining positions," says ITC Executive
Director J. Denis Bélisle. "Market Access Map helps them to do
this. It allows them to develop more effective bargaining positions
both at the World Trade Organization and in regional trade
talks."
Help for LDCs comes at the right moment. The overall share of
LDCs in world trade remains very low (less than 1%). While
developing countries as a whole are improving their market access,
the world's poorest countries are not. Market access for LDCs is
stagnating. Of all LDC exports (excluding oil), 77% were admitted
duty-free in developed markets in 1996; today this figure stands at
around 72%.
One step toward changing these trends and levelling the playing
field is to make tariff information more available to LDCs.
Normally this information is complex and scattered across many
sources.
Market Access Map brings this information together in one place,
making tariff analysis more transparent. This tool makes it easier
for LDCs to prepare their own bargaining positions - already in the
run-up to Hong Kong. For example, countries can simulate the impact
on tariffs of proposals tabled by other countries, and use that
information to identify their negotiation points.
Bird's-eye view of market access
Market Access Map, a web-based tariff analysis tool, provides a
comprehensive source of tariffs and market access measures applied
at the bilateral level by 170 importing countries to the products
exported by 239 countries and territories. Products are described
at the most detailed level, the national tariff line.
"This tool gives users a bird's-eye view of the world in terms
of their current market access situation," says Mr Bélisle. "It
allows them to plan for the future by optimizing trade strategies
based on the market access status quo, and can help them try to
change or improve current conditions."
Find your competitive niche
Several developing countries, including African, Caribbean and
Pacific (ACP) countries, are already using Market Access Map to
simulate tariff reductions or find products and markets that are
important in the current WTO Doha Development Agenda talks and
where they can be especially competitive.
Pinpoint vulnerable exports
Pinpointing which products and markets are vulnerable to
competition is an important step in planning trade negotiation
strategies. LDCs are often vulnerable to changes in market access
status conditions, in view of the limited number of products that
many of them export. In the case of Madagascar, for instance, 15%
of its exports are shrimp; 86% of these shrimp are exported to
France tariff-free, because of Madagascar's special ACP-related
trading status with the European Union. (The ordinary tariff
applied by France is 18%.) Market Access Map would enable
Madagascan trade negotiators to identify the risk they would face
if ordinary, or most-favoured nation, tariffs were drastically
reduced as a result of multilateral trade negotiations. The market
intelligence of Market Access Map would also enable Madagascar's
trade promotion organization to develop a market diversification
strategy by identifying alternative markets and sectors that offer
favourable market access conditions.
Used in over 90 countries
Market Access Map has been piloted by companies, associations
and governments in more than 90 countries and is contributing to
trade strategies.
Nigeria's Chamber of Commerce and Industry, for example,
finished a study in July to identify untapped markets with
favourable tariff rates for exports of cassava, cocoa and shrimp.
The Chamber analysed current export performance in traditional and
non-traditional markets, export performance of competitors, market
access conditions faced by Nigeria and competitors, as well as
products and markets where the country faces tariff escalation on
value-added products, particularly cocoa.
Moldova's Chamber of Commerce and Industry also completed a
study in July to identify market diversification opportunities for
wine exports, which traditionally have gone to the Russian
Federation. The study looked at promising markets in terms of size,
growth, geographical proximity and product acceptance. It also
identified market access negotiation strategies to penetrate these
markets.
Easy to access
As a web-based system, Market Access Map is easy to access, with
no need to install software. To get started, a user needs access
to the Internet and a password. Within seconds, the "Quick Search"
and "Compare Tariffs" modules display tariff information at the
most detailed product level and compare all possible import
destinations for the best tariff treatment. A glossary of tariff
and trade terms and links to additional sources of information are
also available.
For example, in just a few clicks using Compare Tariffs, a cocoa
butter exporter from Nigeria can confirm the 0% tariff in Belgium,
Canada and the United States, but learns of a 24.6% general tariff
in China.
The "Advanced Analysis" modules, designed for trade policy
analysts and negotiators, are easy to use, with instructions
explaining each step in the process. A tariff reduction simulation
is made easy through a menu of standard formulae or the option to
"plug-in" and test an alternative formula.
Free until end September 2006
ITC, together with USAID, will advise national ministries, trade
support institutions, industry chambers, exporters and other
stakeholders in LDCs that are members of the WTO of their free
access to Market Access Map and the back-up support available.
Normally, access like this would cost each country US$ 5,000. This
programme will continue until 30 September 2006.
Contact Friedrich von Kirchbach, Chief of ITC's Market
Analysis Section, at vonkirchbach@intracen.org or visit http://www.macmap.org for further
information.
Writers: Helen Lassen, ITC, and Dianna Rienstra, Phoenix Ink
Communications