Capacity building for MoT staff in Trade in

Services and Non-Tariff Measures

Workshop No 1
Non-Tariff Measures

Monday, 4th of July 2022

Pablo Quiles
SESSION 3: OVERVIEW OF PREVALENCE AND
IMPACTS OF NTMS
Ria Roy and Pablo Quiles
Defining NTMs

In very general terms NTMs are defined as government

policies that affect international trade. A formal
definition of NTMs is:
"Non-tariff measures (NTMs) are policy measures,
other than ordinary customs tariffs, that can potentially
have an economic effect on international trade in
goods, changing quantities traded, or prices or both”
(UNCTAD, 2010).
Defining NTMs

• A more practical way to identify a policy measure as

an NTM is to rely on a ‘proper’ classification.
• For this purpose, UNCTAD, in collaboration with
other international organizations, has developed a
detailed classification of policy measures that can be
considered NTMs.
• In this classification NTMs are categorized according
to their scope and/or design.
Some points to consider

• A measure classified as an NTM does not necessarily

have negative effects on trade or protectionist
intents.
• Policy measures where the protectionist intent is
manifest are generally referred to as non-tariff
barriers (NTBs).
• In addition to the commonly used classification as
shown above, NTMs can be categorized in other
ways. [NTMs can be classified according to whether
they are applied at customs (border measures) or
elsewhere (behind-the-border)].
DATA ON NTMS
NTM Data Collection
• Given the scarcity of available information, UNCTAD began to
identify and classify NTMs in 1994.
• In 2006, UNCTAD established the Group of Eminent Persons on
Non-Tariff Barriers (GNTB) and a Multi- Agency Support Team
(MAST).
• Their main purpose was to develop a definition and classification to
facilitate the collection, quantification and understanding of NTMs
• The MAST classification of NTMs, version 2013, (UNCTAD, 2015) has
16 chapters of different measure categories. Chapters A to O refer
to import-related NTMs, whereas chapter P covers measures that
countries impose on their own exports. Another essential
distinction is made between technical measures (chapters A, B and
C) and non-technical measures (chapters D to O).
 UNCTAD-MAST Classification
Multi Agency Support Team
(FAO, IMF, ITC, OECD,
UNCTAD, UNIDO,
World Bank, WTO).
Initiated by UNCTAD
Updated NTM classification
 Data collection
• Data collection on NTMs requires the
classification of legal documents (regulations,
directives, rules) to appropriate predefined
NTM codes.
• These codes follow the International
Classification of NTMs, which enables a
comprehensive and comparable collection,
analysis and dissemination of NTM data.

9
 Data classification
• Agreed definitions
• 16 chapters
– A-O import related
– P export related
• Technical vs non-technical
– SPS and TBT
– Quotas, price mechanisms, contingent protection, etc.
• Classified into one of the 178 detailed NTM codes
• Identify the relevant product (~5200)
• 109 countries, including Indonesia
• 65,000 measures
• ERIA and UNCTAD in ASEAN

10
Data sources
National legislation
Collected, collated and matched with
trade data by international institutions
• UNCTAD
• World Bank
• OECD
• ITC
• ESCAP
NTM Data Coverage
As of June 2018, UNCTAD’s NTM data includes 109 countries, covering 90 per cent of
global trade. The map below illustrates the current country coverage as well as
ongoing data collection efforts.
 Data dissemination
• UNCTAD TRAINS Portal
(https://trainsonline.unctad.org/home)
• The World Integrated Trade Solution (WITS)
(https://wits.worldbank.org/)
• The Global Trade Helpdesk
(https://globaltradehelpdesk.org/en)
• Others
•

13
The challenge
- Many NTMs aim primarily at legitimately
protecting public health or the environment
- Impose information, compliance and
procedural costs
- Need convergence of regulations to reduce
compliance costs
- Increase transparency and understanding of
NTMs
- Promote regulatory frameworks and
collaboration
Non-Tariff Barriers
- And many restrictions are discriminatory,
protecting domestic producers, known as
non-tariff barriers (NTBs)
- UNCTAD research shows that NTMs have
become more restrictive than existing
tariffs.
 Basic indicators
From UNCTAD TRAINS
• Frequency index
– share of traded product lines subject to at least one NTM
• Coverage ratio
– share of trade subject to NTMs
• Prevalence score
– average number of distinct NTMs applied on regulated
products
• Regulatory Intensity
– adjusts for the fact that some products are more traded and
regulated than others

16
Basic indicators by status

Source: UNCTAD The Unseen Impact of Non-Tariff

Measures: Insights from a new database (unctad.org)

17
Basic indicators by status

Source: UNCTAD The Unseen Impact of Non-Tariff

Measures: Insights from a new database (unctad.org)

18
Basic indicators by sector

19
Basic indicators by chapter

20
NTM usage and GDP per capita

21
Are NTMs a substitute for tariffs?

22
 UNCTAD TRAINS Portal
• TRAINS provides data on NTMs at the HS 6-digit
product classification
• Search by:
– country
– type of NTM
– affected product
– partner country
• Output
– regulatory source
– descriptions of the measures.
– download a STATA dataset

23
Detailed search

TRAINS Online (unctad.org)

24
TRAINS DEMO

Visit: https://trainsonline.unctad.org/home
 WITS
Link: (https://wits.worldbank.org/)
• Integrated database
• WITS offers an interface that provides
access to databases covering imports,
exports and protection data — tariff and
non-tariff measures
• Need trade data to know how important
NTMs are
•

26
WITS

NTMs_data_Quick_Search.pdf (worldbank.org)
27
WITS DEMO

Visit: https://trainsonline.unctad.org/home
Global Trade Helpdesk
Link: https://globaltradehelpdesk.org/en
• This portal is a multi-agency initiative jointly led by the
International Trade Centre, UNCTAD and WTO.
• It aims to simplify market research for companies, especially
microenterprises and small and medium-enterprises, by
integrating trade and business information into a single online
portal.
• The initiative builds on existing data from the three
organizations and draws on additional information from
partner organizations, including the following: African
Development Bank; Food and Agriculture Organization of the
United Nations; Inter-American Development Bank; World
Bank; and World Customs Organization.
Exercise

TRAINS:
- Find the list of SPS NTMs from Indonesia that affect
agricultural products of all countries (Export NTMs)
Exercise

WITS:
Q1. What is Indonesia’s NTM coverage ration and NTM
frequency ratio for imports and how does it compare to
the world average?
Q2. What are the top 3 most imposed NTMs by
Indonesia in terms of NTM affected trade?
Q3. For imports of textiles and clothing, what is the
most imposed NTM in terms of NTM affected trade
 Ria ROY Pablo QUILES
International Economics Ltd International Economics Ltd
roy@tradeeconomics.com quiles@tradeeconomics.com

Gain insights from our free Country Dashboards & Trade Insights