1. UNCTAD/CD-TFT 1 1 NTB Proposals under NAMA Negotiations - An Overview - ECA Workshop for the African Group on NTBs under NAMA Negotiations 12-14 April 2010 Taisuke ITO, UNCTAD

2. UNCTAD/CD-TFT 2 2 Outline 1. 1.Economic significance for Africa 2. 2.Existing proposals (vertical TBT-related) 3. 3.Some issues for consideration

3. UNCTAD/CD-TFT 3 3 Existing NTB Proposals   Facilitation of solutions on NTBs (horizontal)   Electronics   Automotive products   Chemical & substances   Textiles, clothing, footwear & travel goods   Forestry products in building construction   Remanufactured goods   Fireworks / lighter products   Unilateral trade measures   Export taxes / export licensing (Vertical)

4. UNCTAD/CD-TFT 4 4 Significance of NTB sectors for Africa Share of NTB sectors in total African non-ag imports, 2008 Source: TRAINS/WITS

5. UNCTAD/CD-TFT 5 5 African import growth since 1995 Evolution of African imports in proposed NTB setor, 1995-2008 (1995=100) Source: TRAINS/WITS

6. UNCTAD/CD-TFT 6 6 Africa’s net-exports African trade balance by NTB sector as % of exports, 2008 Source: TRAINS/WITS

7. UNCTAD/CD-TFT 7 7 Major import sources Source: TRAINS/WITS

8. UNCTAD/CD-TFT 8 8 Significance for Africa's exports Share of NTB sectors in total world non-ag imports from African, 2008 Source: TRAINS/WITS

9. UNCTAD/CD-TFT 9 9 Growth in African exports Evolution of African exports in proposed NTB setor, 1995-2008 (1995=100) Source: TRAINS/WITS

10. UNCTAD/CD-TFT 10 10 Major importers from Africa (export markets)

11. UNCTAD/CD-TFT 11 11 How do NTBs matter for exports? – NTM data Total counts of NTMs by HS chapter, Japan, 2009 (Total 21554, av 2.9 per TL) Source: TRAINS/WITS Organic chemicals Fish Forestry AutoElectronics Textiles etc Chemicals

12. UNCTAD/CD-TFT 12 12 NTM coverage rates 1 - Tariff line Share of TL subject to at least one NTM in total TL by HS Chapter by HS Chapter, Japan, 2009 Source: TRAINS/WITS

13. UNCTAD/CD-TFT 13 13 NTM coverage rates 2 - African exports Share of SSA imports subject to at least one NTM in total imports by HS chapter, Japan, 2009 Source: TRAINS/WITS

14. UNCTAD/CD-TFT 14 14 Types of TBT Share of sub-categories in total TBT measures, Japan, 2009 Source: TRAINS/WITS

15. UNCTAD/CD-TFT 15 15 When NTMs become NTBs..   Lack of transparency & openness   Discriminatory treatment (remanufactured, forestry)   Overly stringent TR (chemicals, textile labeling)   Burdensome & duplicative conformity assessment procedures for low-risk products (auto, electro)   Non-recognition of international standards – diversity across jurisdictions (auto, electro)

16. UNCTAD/CD-TFT 16 16 TBT Agreement   Technical regulation, standards & conformity assess.   Transparency   Non-discrimination (MFN/NT)   Necessity test – legitimate objectives & risks  National security, deceptive practices, human, animal, plant life safety or health, environment   Harmonization – International standards  TR “based on” IS = Rebuttable presumption  Body unspecified (<> SPS)

17. UNCTAD/CD-TFT 17 17 1. Electronics - Electrical safety & EMC (EU/CH)   Objective - Increased use of suppliers ’ declaration of conformity (SDoC) for low-risk ICT & consumer electronics   ISO/IEC/ITU as relevant ISSBs >> harmonization of national TRs through regular review  Greater choice of testing laboratories if required  Based on certain accreditation schemes (IECEE CB etc)  No requirement for them to be in importers ’ territories  Prohibit or discourage (list & reduce) mandatory third-party certification

18. UNCTAD/CD-TFT 18 18 1. Electronics - Electrical safety & EMC (US)   No a priori determination of ISSB (TBT Com Dec)   Innovation / time-to-market important in the sector   Enhanced transparency (>TBT)   Non-discrimination of CABs in accreditation   SDoC – to be based on relevant IS, may be refused   Third-party certification allowed for scheduled products

19. UNCTAD/CD-TFT 19 19 2. Automotives (EU)   Objective - One global set of international standards   1958/1998 Agreements by WP29 UNECE   Harmonization of national TR with IS within 10 yrs   New technology or new features >> No undue delay   Scheduling national TRs with functional equivalence & mutual recognition as per IS   Promotion of plurilateral system of recognition of CA

20. UNCTAD/CD-TFT 20 20 2. Automotives (US)   No a priori determination of IS   ISSBs = as per TBT Com Dec, including membership openness to all WTO members & effectiveness & relevance (regulatory & market needs, scientific & tech developments)   TR to consider costs of compliance & (non) regulatory alternatives (market incentives et)   Expanded transparency requirements   No requirement for testing to be done in the territory & acceptance of third party certification if deemed

21. UNCTAD/CD-TFT 21 21 3. Chemical & substances (ARG/BRA)   Registration requirement (cf. EU REACH)  Cost & benefits - Other available (non) regulatory alternative  Costs are not an unnecessary, unreasonable or disproportional obstacle  Procedures are not excessively complex or constitute an unnecessary, unreasonable or disproportionate obstacle  Proportional to the risk   Negotiate MRAs on accreditation of laboratory   The impact on exporters to be considered

22. UNCTAD/CD-TFT 22 22 3. Chemical & substances (EU)   OECD (testing, data acceptance etc), UNSCE GHS (classification & labeling) & ISO as ISSB   Harmonize national TRs on GHS with IS by 2015   Requirement on collection & registration of data to be permissible to meet legitimate objectives   Data registration also for chemicals in imported articles for release or with scientific evidence   Plurilateral system of mutual acceptance of data

23. UNCTAD/CD-TFT 23 23 4. Textiles, clothing, footwear, travel goods (EU, Mauritius, SLK, UKR, US)   Multiple/excessive labeling requirements & certification requirement unrelated to int’l stds   Rebuttable presumption of necessity  Fibre content, country of origin (T&C, travel goods)  Predominant materials of core parts, country of origin (footwear)   Rebutable presumption of unnecessary obstacle  Prohibition of the use of more than one language  Label pre-approval, registration & certification  No use of brand names   Permit any required info on non-permanent label

24. UNCTAD/CD-TFT 24 24 Issues for consideration 1   Existing trade pattern suggests uneven effects of possible NTB reforms for Africa: greater on imports, & auto, electronics & chemical   Implications of different approaches for domestic regulations >> Some proposals appear to require greater domestic regulatory adjustment than others   Can be opportunity to incorporate best practice but challenging given institutional constraints   Effective flexibilities & SDT deserve attention

25. UNCTAD/CD-TFT 25 25 Issues for consideration 2   Regulatory barriers encountered by exporters in existing & dynamic markets form the basis for offensive agenda   Surplus sectors (T&C, fish, forestry), growing sector or unaddressed area (SPS)?   Lessons to be drawn from other DCs like ARG/BRA on chemicals, Mauritius & Sri Lanka on textiles

26. UNCTAD/CD-TFT 26 26 Thank You Contacts Taisuke Ito E-mail: taisuke.ito@unctad.org Tel: +41 22 917 4893 Fax: +41 22 917 0044