Logo - International Trade Centre
Title - Investment Map
For better foreign investment attraction and targeting
 

Glossary

Acknowledgement: Definitions contained on the WTO web site have been used as a source for some of the terms in this glossary. Other sources include UNCTAD and the web sites of organisations referred to in this glossary.

Achiever in Adversity #
A countries' sectoral export performance is classified in Investment Map as either: Champion; Achiever in Adversity; Underachiever; or Declining Sector. The term "Achiever in Adversity" refers to products in which the country has a growing share of the world import market while at the same time the world import market for this sector is either declining or growing below average. From a trade promotion perspective, niche marketing strategies are required to isolate the positive trade performance from the overall decline in these markets.
ACP #
African, Caribbean and Pacific Group containing 79 member states (Cuba is the 79 member). ACP has had an important trade and aid relationship with the European Union since 1975, first through the various Lomé Agreements. The Lomé IV Convention expired on 29 February 2000 and a new partnership agreement was signed in Cotonou, Benin, on 23 June 2000. It entered into force on 1 April 2003. Under the Cotonou Agreement, new trade agreements compatible with the WTO rules will be negotiated (negotiations for the new regional economic partnership agreement began in October 2003 with the Economic and Monetary Committee of Central Africa and the Economic Community of West African States). Trade between the ACP and EU will be liberalised, and will end the system of non-reciprocal trade preferences. The transition period for liberalisation will extend up until 2008 at the latest. The ACP member states are: Angola; Antigua and Barbuda; Bahamas; Barbados; Belize; Benin; Botswana; Burkina Faso; Burundi; Cape Verde; Cameroon; Central African Republic; Chad; Comoros; Congo; Congo, Democratic Republic of the; Cook Islands; Côte d’Ivoire; (Cuba); Djibouti; Dominica; Dominican Republic; East Timor; Equatorial Guinea; Eritrea; Ethiopia; Fiji; Gabon; Gambia; Ghana; Grenada; Guinea; Guinea-Bissau; Guyana; Haiti; Jamaica; Kenya; Kiribati; Lesotho; Liberia; Madagascar; Malawi; Mali; Marshall Islands; Mauritania; Mauritius; Micronesia, Federated States of; Mozambique; Namibia; Nauru; Niger; Nigeria; Niue; Palau; Papua New Guinea; Rwanda; Saint Kitts and Nevis; Samoa; Sao Tome and Principe; Senegal; Seychelles; Sierra Leone; Solomon Islands; Somalia; Saint Lucia; Saint Vincent and the Grenadines; (South Africa - not fully); Sudan; Suriname; Swaziland; Tanzania; Togo; Tonga; Trinidad and Tobago; Tuvalu; Uganda; Vanuatu; Zambia; and Zimbabwe. See web site for list www.acpsec.org
Ad valorem equivalent (AVE) #
An ad valorem equivalent (AVE) tariff is a tariff presented as a percentage of the value of goods cleared through customs. It is the equivalent of a corresponding specific tariff measure based on unit quantities such as weight, number or volume. There are several methodologies for calculating AVEs. The method chosen depends on the intended application of the data. Most important to the process of calculating an AVE is the way the Unit Value of the product is calculated. The Unit Value is the value of each unit quantity imported of a product. It’s based on the total value of imports of that product. In calculating it, one may use either bilateral trade flows, world imports or a country's imports of that product from a reference group of countries. In addition to being sensitive to the choice of methodology, the ad valorem equivalent will also vary when the price of a product varies.
Ad valorem tariff #
A tariff calculated as a percentage of the value of goods cleared through customs. For example, 15 percent ad valorem tariff means 15 percent of the value of the entered merchandise.
Affiliate enterprise #
An incorporated or unincorporated enterprise in which a foreign investor has an effective voice in management. Such an enterprise may be a subsidiary, associate or branch
AFTA #
ASEAN Free Trade Area comprising: Brunei Darussalam; Cambodia; Indonesia; Lao PDR; Malaysia; Myanmar; Philippines; Singapore; Thailand; and Viet Nam. See www.aseansec.org
AGOA #
African Growth and Opportunity Act. AGOA passed as part of The Trade and Development Act of 2000 provides beneficiary countries in Sub-Saharan Africa with liberal access to the U.S. market for a list of products. 37 countries have been designated as AGOA eligible. They are Angola; Benin; Botswana; Cameroon; Cape Verde; Chad; Republic of Congo; Côte d'Ivoire; Democratic Republic of the Congo; Djibouti; Ethiopia; Gabon; Gambia; Ghana; Guinea; Guinea-Bissau; Kenya; Lesotho; Madagascar; Malawi; Mali; Mauritania; Mauritius; Mozambique; Namibia; Niger; Nigeria; Rwanda; Sao Tome and Principe; Senegal; Seychelles; Sierra Leone; South Africa; Swaziland; Tanzania; Uganda and Zambia. See www.agoa.gov
ALADI #
The ALADI (Asociacion Latinoamericana de integracion) is the largest Latin-American group of integration. It has twelve member countries: Argentina, Bolivia, Brazil, Chile, Colombia, Cuba, Ecuador, Mexico, Paraguay, Peru, Uruguay and Venezuela. The 1980 Montevideo Treaty (TM80) is the global legal framework that constitutes and rules the ALADI and was signed on August 12th 1980. It establishes the following general principles: pluralism, convergence, flexibility, differential treatment and multiplicity. The ALADI promotes the creation of an area of economic preferences in the region, aiming at a Latin-American common market. See www.aladi.org
Andean Pact #
An arrangement between Bolivia; Colombia; Ecuador; Peru; and Venezuela for the coordination of economic policies; including the formation of a free trade zone in the Andean region. See www.comunidadandina.org
APEC #
The Asia-Pacific Economic Cooperation, or APEC is the premier forum for facilitating economic growth; cooperation; trade and investment in the Asia-Pacific region. It has 21 members and works to reduce tariffs and other trade barriers across the Asia-Pacific region. The members of APEC are Australia; Brunei Darussalam; Canada; Chile; China; Taiwan Province of China; Hong Kong (China); Indonesia; Japan; Republic of Korea; Malaysia; Mexico; New Zealand; Papua New Guinea; Peru; Philippines; Russia; Singapore; Thailand; Viet Nam and the United States of America. See www.apec.org
Applied tariff rates #
Considered to be the tariff rates applied by a customs administration on imported goods. They are the rates published by national customs authorities for duty administration purposes. These rates are often considerably lower than the bound rate arrived at as a result of trade negotiations or the rate listed in the national tariff schedules. They can also be lower than the MFN rate. Applied tariff rates also include the preferences that a country may apply to certain trading partners as a result of a bilateral or regional trade agreement. See also "bindings" and "nominal tariff rate".
ASEAN #
Association of Southeast Asian Nations. A regional trade agreement comprising: Brunei Darussalam; Cambodia; Indonesia; Lao PDR; Malaysia; Myanmar; Philippines; Singapore; Thailand; and Viet Nam. See www.aseansec.org
Associate enterprise #
An incorporated enterprise in the host country in which an investor, together with its subsidiaries and associates, owns a total of at least 10 per cent, but not more than half, of the shareholders' voting power (the figure may be less than 10 per cent if there is evidence of an effective voice in management).
Bangkok Agreement #
A regional trade agreement between Bangladesh, China, India, Republic of Korea, Lao PDR and Sri Lanka.
Bilateral quotas #
Quotas of imports reserved for a specific country.
Bilateral trade agreement #
An agreement between two countries setting out the conditions under which trade between them will be conducted. If both parties are already WTO members enjoying the attendant non-discrimination; market access and other benefits; the main additional reason for a bilateral agreement may be a programme of bilateral trade facilitation and trade promotion activities. If one party is not a member of the WTO; the agreement will normally provide for most favoured nation treatment and national treatment; protection of intellectual property rights; consultation and dispute settlement; and other principles and mechanisms necessary for ensuring smooth trade flows and the speedy resolution of problems. See also "multilateral".
Bindings #
A legal obligation not to raise tariffs on particular products above the specified rate agreed in WTO negotiations and incorporate in a country's schedule of concessions. Bindings are enforceable through the WTO. Their purpose is to provide greater commercial certainty through a ceiling on tariffs which cannot be breached without an offer of compensation to affected trading partners. These ceilings are often higher than the MNF rates as well as the applied (preferential) rates. In their schedules of tariff bindings, most WTO members specify their commitments in ad valorem terms, as a simple percentage of the value of the imported product. However, some countries specify some or all bound tariffs in specific or other non-ad valorem terms. Specific tariffs define the tariff as a monetary amount per unit of the import e.g. $3 per kg. Countries can also have a bound tariff that is a combination of ad valorem and non-ad valorem rates, such as 14 percent plus $3 per kg.
Branch #
An unincorporated enterprise in the host country which is one of the following: (i) a permanent establishment or office of the foreign investor; (ii) an unincorporated partnership or joint venture (defined below) between the foreign direct investor and one or more third parties; (iii) land, structures (except structures owned by government entities), and/or immovable equipment and objects directly owned by a foreign resident; (iv) mobile equipment (such as ships, aircraft, gas or oil-drilling rigs) operating within a country other than that of the foreign investor for at least one year.
CACM #
Central American Common Market. A preferential trade arrangement between Guatemala; El Salvador; Honduras; Nicaragua and Costa Rica.
CAEMC / CEMAC #
Central African Economic and Monetary Community (Communauté économique et monétaire de l'Afrique Centrale). A regional trade agreement comprising: Cameroon; Central African Republic; Chad; Congo; Equatorial Guinea and Gabon. See http://www.izf.net/izf/FicheIdentite/CEMAC.htm (in French only).
CAIRNS Group #
A group of agricultural exporting nations; comprising Australia; Argentina; Bolivia; Brazil; Canada; Chile; Colombia; Costa Rica; Guatemala; Indonesia; Malaysia; New Zealand; Paraguay; Philippines; South Africa; Thailand; and Uruguay - established to develop a common negotiating position for the Uruguay round. It aims to achieve fair trade in agricultural exports. See www.cairnsgroup.org
CAN #
Andean Community. Comprises Bolivia, Colombia, Ecuador, Peru and Venezuela. See "Andean Pact". See www.comunidadandina.org
CARICOM #
Consists of all the members of Caribbean Common Market (CCM) except the Bahamas. Caricom member states are: Antigua and Barbuda; Barbados; Belize; Dominica; Grenada; Guyana; Jamaica; Saint Lucia; St. Kitts and Nevis; St. Vincent and the Grenadines; Suriname; and Trinidad and Tobago. See www.caricom.org
CBI #
The Caribbean Basin Initiative (CBI) provides for tariff exemptions or reductions for most products from 24 participating countries in Central America and the Caribbean region. The CBI trade preferences are not subject to annual reviews. Countries can lose their CBI benefits under certain conditions. This program was enacted by the United States as the Caribbean Basin Economic Recovery Act. This Act became effective on January 1, 1984. For more information see www.ustr.gov
CCM #
Caribbean Common Market. Founded in 1973 as the replacement for the Caribbean Free Trade Association (CARIFTA). It currently is a customs union with a common external tariff. It consists of Antigua and Barbuda; the Bahamas; Barbados; Belize; Dominica; Grenada; Guyana; Jamaica; Montserrat; St Christopher and Nevis; St Lucia; St Vincent and the Grenadines; Suriname; and Trinidad and Tobago. The British Virgin Islands and the Turks and Caicos Islands have associate membership. See www.caricom.org
Champions - winners in growth markets #
A countries' sectoral export performance is classified in Investment Map as either: Champion; Achiever in Adversity; Underachiever; or Declining Sector. The term "Champions" refers to export products for which the country under review has performed very well. They comprise products that are growing faster than world trade in general, and for which the country has been able to outperform world market growth and has increased its share in world imports. Exporters of these products have proven their international competitiveness over recent years. Trade promotion efforts for these products are less risky, as there are national success stories which can serve as reference points. Promotional efforts should aim at broadening the supply capacity.
CIF #
A trade term (Incoterm) meaning Cost, Insurance and Freight. See www.iccwbo.org for more Incoterms.
CIS #
Commonwealth of Independent States. Formed in late 1991 with many of the Republics that had made up the Soviet Union. Its members are: Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, the Republic of Moldova, Russia, Tajikistan, Turkmenistan, Ukraine and Uzbekistan. In 1993 its members agreed on the creation of an economic union allowing the free movement of goods, services, labour and capital. See www.cis.minsk.by.
COMESA #
Common Market for Eastern & Southern Africa. Consists of countries in Eastern and Southern Africa including: Angola; Burundi; Comoros; Democratic Republic of Congo; Djibouti; Egypt; Eritrea; Ethiopia; Kenya; Madagascar; Malawi; Mauritius; Namibia; Rwanda; Seychelles; Sudan; Swaziland; Uganda; Zambia; and Zimbabwe. In trade liberation and customs cooperation members undertake; amongst other undertakings; to: establish a customs union; abolish all non-tariff barriers to trade among themselves; establish a common external tariff; and cooperate in customs procedures. South Africa and Botswana have been invited to join COMESA. Lesotho and Mozambique have withdrawn their membership of COMESA. See www.comesa.int
Common external tariff #
A tariff rate that is applied uniformly by a common market or customs union to imports from countries outside the union. The European Common market for example is a free internal trade area with a common external tariff applied to products imported from non-member countries. A common external tariff is not necessarily a feature of "free trade areas" and is seldom a feature of free trade agreements.
Compound tariff #
A rate of duty on a product which consists of two components. The first may be an ad valorem rate; expressed as a percentage of the value of the product. The second component may be a specific rate; expressed as a monetary value per article regardless of the value of the product. A hypothetical example would be one where a compact disc incurs a specific tariff of one dollar plus an ad valorem tariff set at 10%. Also called a mixed tariff.
COMTRADE database #
A database of trade statistics managed by the United Nations Statistics Division (UNSD). It is the world's largest trade database covering about 90% of world trade.
Cotonou Agreement #
Also called the ACP-EC partnership agreement. A partnership agreement between the members of the African; Caribbean and Pacific group of states of the one part; and the European Community and its members states; of the other part; signed in Cotonou; Benin on 23 June 2000. The agreement covers many aspects including trade cooperation. Its trade aspects will be renegotiated after eight years to make them fully compatible with WTO obligations. During this time (called the preparatory period) the European Community will give non-reciprocal preferential access free of duty and charges to products from ACP states. Special provisions apply to some agricultural products; especially sugar. See also "ACP".
Customs duty #
Charges levied at the border on goods entering or; much less often; leaving the country. These charges are specified in the national tariff schedule. They are usually based on the value of the goods; known as ad valorem tariffs and sometimes as a cost per unit in the form of a specific tariff.
Customs union #
An area consisting of two or more individual economies or customs territories which remove all tariffs and sometimes broader trade impediments between them. The members making up the area then apply a common external tariff.
Declining Sector #
A countries' sectoral export performance is classified in Investment Map as either: Champion; Achiever in Adversity; Underachiever; or Declining Sector. For products in "Declining Sectors" the export prospects tend to be bleak. World imports of the product concerned have been stagnating or have actually declined, and the market share of the country under review has gone down. Trade promotion efforts for product groups in this category face an up-hill task. They need to adopt an integrated approach to take into account bottlenecks both on the supply and on the demand side.
Developed economy #
A term usually applied to the more industrialized nations, including most of the OECD member countries. Developed economies include: Australia; Austria; Belgium; Canada; Denmark; Finland; France; Germany; Greece; Iceland; Ireland; Israel; Italy; Japan; Liechtenstein; Luxembourg; Malta; Monaco; the Netherlands; New Zealand; Norway; Portugal; San Marino; Spain; Sweden; Switzerland; United Kingdom; and the United States of America. Note the IMF uses a term advanced economies and in its list includes: Hong Kong (China); Republic of Korea; Singapore; and Taiwan Province of China..
Developing country #
An imprecise term based as much on economic and social foundations as on political perceptions and aspirations. It may be applied to a country that does not consider itself, or is not considered by others, in some or many respects as matching the characteristics of a developed country. Developing country status remains largely self declared. In Investment Map and Market Access Map, developing countries (excluding those classified as Least Developed Countries - LDC) are: Albania; Algeria; Anguilla; Antigua and Barbuda; Argentina; Armenia; Aruba; Azerbaijan; Bahamas; Bahrain; Barbados; Belarus; Belize; Bermuda; Bolivia; Bosnia and Herzegovina; Brazil; British Indian Ocean Territory; Brunei Darussalam; Bulgaria; Cayman Islands; Chile; China; Christmas Island; Cocos (Keeling) Islands; Colombia; Cook Islands; Costa Rica; Côte d'Ivoire; Croatia; Cuba; Cyprus; Czech Republic; Dominica; Dominican Republic; East Timor; Ecuador; Egypt; El Salvador; Estonia; Falkland Islands (Malvinas); Fiji; French Guiana; French Polynesia; French Southern and Antarctic Territories; Gabon; Georgia; Ghana; Greenland; Grenada; Guadeloupe; Guatemala; Guyana; Honduras; Hong Kong Special Administrative Region of China; Hungary; India; Indonesia; Iran, Islamic Republic of; Iraq; Jamaica; Jordan; Kazakhstan; Kenya; Korea, Democratic People's Republic of; Korea, Republic of; Kuwait; Kyrgyzstan; Latvia; Lebanon; Libyan Arab Jamahiriya; Lithuania; Macau; Macedonia, the Former Yugoslav Republic of; Malaysia; Marshall Islands; Martinique; Mauritius; Mexico; Micronesia (Federated States of); Moldova, Republic of; Mongolia; Montserrat; Morocco; Nauru; Netherlands Antilles; New Caledonia; Nicaragua; Nigeria; Niue; Norfolk Island; Northern Mariana Islands; Oman; Pacific Islands (Trust Territory); Pakistan; Palau; Palestine; Panama; Papua New Guinea; Paraguay; Peru, Philippines, Pitcairn, Poland, Qatar, Reunion, Romania, Russian Federation, Saint Helena, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Saudi Arabia, Seychelles, Singapore, Slovakia, Slovenia, Sri Lanka, Saint Pierre and Miquelon, Suriname, Syrian Arab Republic, Taiwan, Tajikistan, Thailand, Tokelau, Tonga, Trinidad and Tobago, Tunisia, Turkey, Turkmenistan, Turks and Caicos Islands, Ukraine; United Arab Emirates; Uruguay; Uzbekistan; Venezuela; Viet Nam; British Virgin Islands; U.S. Virgin Islands; Wallis and Futuna Islands; Western Sahara; Yugoslavia; and Zimbabwe.
Dun & Bradstreet #
D&B (www.dnb.com) is a worldwide leader for information in the fields of credit risk management, sales and marketing. The data on foreign affiliates located in developing countries available in Investment Map comes from D&B. For information on foreign affiliates located worldwide and access to larger databases on companies, D&B proposes several solutions such as the Global Reference Solution (solutions.dnb.com/grs/) or the Who Owns Whom (solutions.dnb.com/wow).
EAC #
East African Cooperation. A mechanism within the Common Market for Eastern and Southern Africa (COMESA). A regional trade agreement between: Kenya; Tanzania; and Uganda.
EAEC #
Eurasian Economic Community. A regional trade agreement between: Belarus; Kazakhstan; Kyrgyzstan; Russia; and Tajikistan.
EC #
European Communities. The 25 European Communities are: Austria; Belgium; Czech Republic; Cyprus; Denmark; Estonia; Finland; France; Germany; Greece; Hungary; Ireland; Italy; Latvia; Lithuania; Luxembourg; Malta; the Netherlands; Poland; Portugal; Slovakia; Slovenia; Spain; Sweden; and the United Kingdom. See also "EU".
ECOWAS #
The Economic Community Of West African States (ECOWAS) is a regional group of fifteen countries; founded in 1975. Its mission is to promote economic integration in all fields of economic activity; particularly industry; transport; telecommunications; energy; agriculture; natural resources; commerce; monetary and financial matters; social and cultural issues. Members include: Benin; Burkina Faso; Cape Verde; Côte d’Ivoire; Gambia; Ghana; Guinea; Guinea Bissau; Liberia; Mali; Niger; Nigeria; Senegal; Sierra Leone; and Togo. See www.ecowas.int
EFTA #
European Free Trade Association. Comprises Iceland, Liechtenstein, Norway and Switzerland. See www.efta.int
Endogeneity bias #
In theory, tariffs should be aggregated on the basis of imports occurring under a hypothetical situation of free trade. As this structure is unknown, an endogeneity bias appears when one aggregates different tariffs to measure the global level of protection of a sector or an economy. In aggregating tariffs, using the national imports as weights, causes an endogeneity bias since these imports depend on the tariff. That is, a high tariff generates limited imports and therefore the tariff's contribution to the overall protection level of the country is reduced. A low tariff produces the reverse effect. So, using national imports as weights leads to an under-valuation of the protection level of a country. Market Access Map manages this endogeneity bias by weighting the imports of a country by those of a reference group to which the country belongs. This is in order to get a fair idea of what the trade pattern of a particular country could be without the endogeneity bias. The 8 reference groups used in Market Access Map are defined on the basis of a hierarchical clustering analysis based on GDP per capita (in terms of purchasing power parity - PPP), exports per capita and imports per capita.
Equity capital #
The foreign direct investor's net purchase of the shares and loans of an enterprise in a country other than its own.
European Union (EU) #
Created by the treaty of Maastricht signed in 2002. The European Union consists of three parts: (i) the European Community, (ii) a common foreign and security policy, and (iii) cooperation in the fields of justice and home affairs. Only the European Community has a legal personality and can sign international agreements. The 25 members of the EU are: Austria; Belgium; Czech Republic; Cyprus; Denmark; Estonia; Finland; France; Germany; Greece; Hungary; Ireland; Italy; Latvia; Lithuania; Luxembourg; Malta; the Netherlands; Poland; Portugal; Slovakia; Slovenia; Spain; Sweden; and the United Kingdom. Member states have eliminated tariffs among themselves and established a common external tariff against non-members. See http://europa.eu.int/
Everything But Arms (EBA) #
A European Union initiative for duty-free and quota-free access to all products except arms originating in least developed countries. It took effect on 5 March 2001 for all products except sugar, rice and bananas. These will receive free access in stages by 2009.
Export restraint arrangements #
By virtue of an export restraint arrangement between an importer and an exporter, the latter agrees to limit exports in order to avoid imposition of mandatory restrictions by the importing country. The arrangement may be concluded at either government or industry level. These arrangements are known as voluntary export restraint arrangements (VERs), orderly marketing arrangements, etc.
FDI #
An investment involving a long-term relationship and reflecting a lasting interest of a resident entity in one economy (direct investor) in an entity resident in an economy other than of the investor. The direct investor's purpose is to exert a significant degree of influence on the management of the enterprise resident in the other economy. FDI involves both the initial transaction between the two entities and all subsequent transactions between them and among affiliated enterprises, both incorporated and unincorporated. FDI may be undertaken by individuals, as well as business entities.
FDI flows #
For associates and subsidiaries, FDI flows consist of the net sales of shares and loans (including non-cash acquisitions made against equipment, manufacturing rights, etc.) to the parent company plus the parent firm's share of the affiliate's reinvested earnings plus total net intra-company loans (short- and long-term) provided by the parent company.
For branches, FDI flows consist of the increase in reinvested earnings plus the net increase in funds received from the foreign direct vestor.
FDI flows with a negative sign (reverse flows) indicate that at least one of the components in the above definition is negative and not offset by positive amounts of the remaining components. For example, Germany recorded negative total inflows in 2004, due to a sizable repayment of a intra-company loan by a foreign affiliate located in Germany to its parent american company. The low value of the US$ againsit the € facilitated the repayment of the dollar-denominated debt (source: WIR 2005).
FDI stock #
For associate and subsidiary enterprises, it is the value of the share of their capital and reserves (including retained profits) attributable to the parent enterprise (this is equal to total assets minus total liabilities), plus the net indebtedness of the associate or subsidiary to the parent firm.
For branches, it is the value of fixed assets and the value of current assets and investments, excluding amounts due from the parent, less liabilities to third parties.
FOB #
An Incoterm (trade term) meaning Free on Board. See www.iccwbo.org for more Incoterms.
Free trade area #
A group of two or more countries or economies, customs territories in technical language, that have eliminated tariff and all or most non-tariff measures affecting trade among themselves. Participating countries usually continue to apply their existing tariffs on external goods. Free trade areas are called reciprocal when all partners eliminate their tariffs and other barriers towards each other. There are cases where developing countries are exempt from making equivalent reductions, as is the case with SPARTECA and the ACP-EU Partnership Agreement, even though they get free access to developed-country markets. These are called non-reciprocal free trade areas.
GCC #
Gulf Cooperation Council or formal name Cooperation Council of the Arab States of the Gulf. Established in 1981. It consists of: Bahrain; Kuwait; Oman; Qatar; Saudi Arabia; and the United Arab Emirates. These members have established a free trade area covering industrial and agricultural products; but not petroleum products. A customs union was established in 2003.
Global quotas #
Quotas of imports of specific products set as a total quantity or value. The quotas can be either unallocated, i.e. goods may be imported from all origins; or allocated by individual exporting countries. The global quotas may either be distributed among individual importers on a first-come, first-served basis or be allocated in advance to determined importers, often in proportion to their former performance.
GSP #
Generalized System of Preferences. First proposed at UNCTAD 11 in 1968 and in force since 1971, the GSP gives developing countries a margin of preference in the tariff rates their goods face in the markets of developed countries and in this way increases their competitiveness. To meet its GSP commitment, each developed country determined its own system of preferences, specifying the goods, the margins of preference, and in some cases, the value or volume of goods that would benefit from preferential treatment. Twenty-seven developed countries have GSP programs. The tariff reductions since 1971 as a result of multilateral trade negotiations and unilateral actions, as well as changes in productivity, have reduced the importance of the GSP to many developing country exporters, but it remains important in the trade policies of many developing countries. UNCTAD is the main forum for a discussion of GSP issues.
GSTP #
Global System of Trade Preferences among Developing Countries. It came into force in 1989 as an objective of the Group of 77 within the UNCTAD ECDC (Economic Cooperation Among Developing Countries) programme. Its aim is to promote the development of economic cooperation among developing countries through the exchange of tariff preferences and the reduction of non-tariff barriers. Least Developed Countries do not offer reciprocal concessions. The GSTP includes: Algeria; Argentina; Bangladesh; Benin; Bolivia; Brazil; Cameroon; Chile; Colombia; Cuba; Ecuador; Egypt; Ghana; Guinea; Guyana; India; Indonesia; Iran, Islamic Republic of; Iraq; Korea, Democratic People's Republic of; Korea, Republic of; Libya; Malaysia; Mexico; Morocco; Mozambique; Myanmar; Nicaragua; Nigeria; Pakistan; Peru; Philippines; Romania; Singapore; Sri Lanka; Sudan; Tanzania, United Republic of; Thailand; Trinidad and Tobago; Tunisia; Venezuela; Viet Nam; Yugoslavia; and Zimbabwe.
Harmonized System (HS) #
An international nomenclature for the classification of products. It allows participating countries to classify traded goods on a common basis for customs purposes. At the international level, the Harmonized System (HS) for classifying goods is a six-digit code system. The HS comprises approximately 5000 article/product descriptions that appear as headings and subheadings, arranged in 97 chapters, grouped in 21 sections. The six digits can be broken down into three parts. The first two digits (HS-2) identify the chapter the goods are classified in, e.g. 09 = Coffee, Tea, Maté and Spices. The next two digits (HS-4) identify groupings within that chapter, e.g. 09.02 = Tea, whether or not flavoured. The next two digits (HS-6) are even more specific, e.g. 09.02.10 Green tea (not fermented) in immediate packings of a content not exceeding 3 kg. Up to the HS-6 digit level, different countries classification codes are identical. Beyond this, countries are free to introduce national distinctions for tariffs by adding more digits to make the HS classification of products even more specific. This greater level of specificity is referred as the national tariff line level. For example the United States of America adds another four digits to its exports and imports to classify them in greater depth. The Harmonized System was formally known as the Harmonized Commodity Description and Coding System. It was developed by the World Customs Organization and the International Convention on the Harmonized System (HS Convention) entered into force on 1 January 1988 (HS88). It has been adopted by most trading nations. The HS In accordance with the preamble to the HS Convention, which recognized the importance of ensuring that HS be kept up to date in the light of changes in technology or in patterns of international trade, HS is regularly reviewed and revised. The headings and subheadings of HS are accompanied by interpretative rules, and section, chapter and subheading notes, which form an integral part of HS and are designed to facilitate classification decisions in general and to clarify the scope of the particular headings or subheadings. The most recent revision of the Harmonized System came into force on 1st January 2002. See http://www.wcoomd.org
Highest-ranking parent in the country #
Company name of the highest-ranking parent company in the country of the affiliate
Holding company #
A corporation that owns voting stock in another corporation and is able to influence its board of directors, and therefore control its policies and management. A holding company need not own a majority of the shares of the corporation or be involved in activities similar to those of the company it holds.
HS1996 #
HS1996 stands for the 1996 revision of the Harmonized System. HS1996 contains 5,113 subheadings and 1,241 headings, grouped into 97 chapters and 21 sections. As a general rule, goods are arranged in order of their degree of manufacture: raw materials, unworked products, semi-finished products and finished products. For example, live animals fall under Chapter 1, animal hides and skins under Chapter 41 and leather footwear under Chapter 64. The same order also exists within the chapters and headings.
Immediate parent company #
Company name for the immediate parent company of the affiliate. If the affiliate is a branch, the company name its superior headquarters is indicated here.
Import monitoring #
Monitoring of the import trends of specified products, sometimes through inscription in a register. It may be applied with the purpose of signalling concern over import surges and to persuade trading partners to reduce export growth. It may also be applied for environmental purposes. Sometimes it is a precursor to import restraints.
Intra-company loans #
Short- or long-term loans from parent firms to affiliate enterprises or vice versa. In the case of banks, deposits, bills and short-term loans are excluded.
ISIC #
*International Standard Industrial Classification of all Economic Activities, defined by the United Nations Statistics Division (unstats.un.org/unsd). It is a standard classification of economic activities (including both merchandise and services) arranged so that entities can be classified according to the activity they carry out. The classification was approved in 1948. The later is based on four levels. Level 1 includes 17 sections identified by alphabetical letters A to Q. Level 2 covers 62 divisions identified by two-digit numerical codes, while level 3 is defined by 161 groups identified by three-digit numerical codes. Investment Map is based closely to the latest revision (3.1) of ISIC. There are however additional residual categories in Investment Map, such as Unspecified secondary or Unspecified chemicals and chemical products which have been introduced primarily in order to capture FDI data that cannot be classified accurately.
ISIC revisions #
*The classification was approved in 1948. The following revisions have been made : ISIC Rev.1 (1958), ISIC Rev.2 (1968) and ISIC Rev.3.0 (1989). ISIC Rev.3.1 update - effective May 2002, supersedes ISIC Rev.3.0.
ITC #
International Trade Centre UNCTAD/WTO (www.intracen.org) The International Trade Centre (ITC) is the technical cooperation agency of the United Nations Conference on Trade and Development (UNCTAD) and the World Trade Organization (WTO) for operational, enterprise-oriented aspects of trade development. ITC supports developing and transition economies, and particularly their business sector, in their efforts to realize their full potential for developing exports and improving import operations. ITC works in six areas: Product and market development; Development of trade support services; Trade information; Human resource development; International purchasing and supply management; and Needs assessment, programme design for trade promotion.
Joint venture #
A joint venture involves share-holding in a business entity having the following characteristics; (i) the entity was established by a contractual arrangement (usually in writing) whereby two or more parties have contributed resources towards the business undertaking; (ii) the parties have joint control over one or more activities carried out according to the terms of the arrangements and none of the individual investors is in a position to control the venture unilaterally.
LAIA / ALADI #
Latin American Integration Association or Asociación Latinoamericana de Integración. Formed in 1980 by Argentina, Bolivia, Brazil, Chile, Colombia, Cuba, Ecuador, Mexico, Paraguay, Peru, Uruguay and Venezuela following the collapse of LAFTA (Latin American Free Trade Association). The objective of ALADI, as set out in the treaty of Montevideo, is to pursue the gradual and progressive establishment of a Latin American common market. Mercosur is seen as a step towards achieving this objective.
Least developed countries (LDC) #
A group of 50 developing countries so designated by ECOSOC on the basis of the following indicators: per capita GNP, life expectancy at birth, per capita calorie supplies, combined primary and secondary education enrolment ratio, adult literacy rate, share of manufacturing in GDP, share of employment in industry, per capita electricity consumption, and their export concentration ratio. The list currently includes: Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burma, Burundi, Cambodia, Cape Verde, Central African Republic; Chad; Comoros; Congo, Democratic Republic of; Djibouti; Equatorial Guinea; Eritrea; Ethiopia; Gambia; Guinea; Guinea-Bissau; Haiti; Kiribati; Lao People's Democratic Republic; Lesotho; Liberia; Madagascar; Malawi; Maldives; Mali; Mauritania; Mozambique; Nepal; Niger; Rwanda; Samoa; Sao Tome and Principe; Senegal; Sierra Leone; Solomon Islands; Somalia; Sudan; Timor-Leste; Togo; Tuvalu; Uganda; Tanzania, United Republic of; Vanuatu; Yemen; and Zambia. The list of least developed countries varies. See www.un.org/special-rep/ohrlls/ldc/list.htm.
Line of business #
Description of the main activity of the company which represents the highest share in percent in external turnover. The activities are based on the 4 digit numeric SIC Code.
Marking requirements #
Measures defining the information for transport and customs that the packaging of goods should carry e.g. country of origin, weight, special symbols for dangerous substances, etc.
MERCOSUR #
Mercado Común del Sur (South American Common Market). A customs union covering trade in goods except sugar and automobiles. Members are Argentina, Brazil, Paraguay, and Uruguay. Chile and Bolivia signed association agreements with the Mercosur countries in 1996 and 1997 respectively. MERCOSUR objectives include the free transit of all goods, services and the factors of production, and the lifting of non-tariff restrictions.
MFN tariff #
A Most Favoured Nation (MFN) tariff is the tariff applied by WTO members to goods from other WTO members. In the case of WTO non members, the application of these rates may be a requirement of a bilateral trade agreement. Article 1 of the General Agreement on Tariffs and Trade (GATT) lays down the principle of Most Favoured Nation treatment (MFN). The MFN clause states that a member of the GATT must treat all GATT members equally. The WTO is the successor of the GATT and the WTO’s rules derive from the outcome of the 1986–94 Uruguay Round negotiations which included a major revision of the original General Agreement on Tariffs and Trade (GATT). So the application of the MFN principle is required of WTO members. So every time a WTO member improves the benefits that it gives to one trading partner, it has to give the same "best" treatment to all other WTO members, so that they remain equal. Countries are to grant equal treatment – not more favourable or discriminatory – to goods and services from all WTO members. The MFN principle applies to all tariffs --whether or not they have been subject to negotiations between GATT members --as well as to all policy measures affecting imports or exports.
MFN treatment #
This is the rule, usually established through a trade agreement, that a country gives each of the trading partners with which it has concluded relevant trade agreements the best treatment it gives to any of them in a given product. MFN is not in itself an obligation to extend any favourable treatment to another party, nor is it an obligation to negotiate for better treatment. The fundamental point of MFN therefore is equality of treatment of other countries, and in some older treatises it is called "foreign parity".
Mixed tariff #
A rate of duty on a product which consists of two components. The first may be an ad valorem rate, expressed as a percentage of the value of the product. The second component may be a specific rate, expressed as a monetary value per article regardless of the value of the product. A hypothetical example would be one where a compact disc incurs a specific tariff of one dollar plus an ad valorem tariff set at 10%. Also called a "compound tariff".
Multilateral trade agreements #
Intergovernmental agreements aimed at expanding and liberalising international trade under non-discriminatory, predictable and transparent conditions set out in an array of rights and obligations. The motivation for taking on these obligations is that all members will increase their welfare by adhering to a common standard of conduct in the management of their trade relations. Typically, such agreements have numerous members representing small, medium-sized and large trading nations. Before the GATT entered into force in 1948, trade agreements were mostly bilateral, or they were preferential. In the WTO, the term "Multilateral Trade Agreement" refers to the arrangements and associated legal instruments contained in Annexes 1, 2 and 3 to the Marrakech Agreement Establishing the World Trade Organization (WTO).
Multilateral trading system #
The non discriminatory arrangement for international trade which came into existence with the GATT in 1947 and which is now represented by the WTO system.
NAFTA #
North American Free Trade Agreement. Established in 1994, its members are Canada, Mexico and the United States of America. NAFTA's objectives include the elimination of barriers to trade in goods and services and the phasing out of tariffs over 10 years. See www.nafta-sec-alena.org
National tariff line #
Refers to the classification codes, applied to merchandise goods by individual countries, that are longer than the HS six digit level. Countries are free to introduce national distinctions for tariffs and many other purposes. The national tariff line codes are based on the HS system but are longer than six digits. For example, the six digit HS code 010120 refers to Asses, mules and hinnies, live, where as the US National Tariff line code 010120.10 refers to live purebred breeding asses, 010120.20 refers to live asses other than purebred breeding asses and 010120.30 refers to mules and hinnies imported for immediate slaughter.
OCT #
Overseas Countries and Territories. They include: Greenland; New Caledonia; French Polynesia; French Southern and Antarctic Territories; Wallis and Futuna Islands; Mayotte; Saint Pierre and Miquelon; Aruba; Netherlands Antilles; Anguilla; Cayman Islands; Falkland Islands; South Georgia and the South Sandwich Islands; Montserrat; Pitcairn Islands; Saint Helena; Ascension Island; Tristan da Cunha; Turks and Caicos Islands; British Antarctic Territory; British Indian Ocean Territory; and British Virgin Islands.
OECD #
Organisation for Economic Co-operation and Development. Established in 1961 as the successor to the Organisation for European Economic Cooperation (OEEC). It's members account for more than 70% of global output. The OECD has 30 member countries consisting of: Australia; Austria; Belgium; Canada; Czech Republic; Denmark; European Communities; Finland; France; Germany; Greece; Hungary; Iceland; Ireland; Italy; Japan; Korea; Luxembourg; Mexico; the Netherlands; New Zealand; Norway; Poland; Portugal; Slovak Republic; Spain; Sweden; Switzerland; Turkey; United Kingdom; and the United States of America. See www.oecd.org
Outside quota tariff rate (OQTR) #
The tariff rate applicable to products imported in excess of a tariff quota. This rate is meant to discourage imports above the quota limit. It is usually much higher than the one applied to imports within the quota. See also "in-quota tariff".
Parent company #
Company name of the worldwide highest-ranking (or ultimate) parent company of the affiliate.
Parent enterprise #
An incorporated or unincorporated enterprise, or group of enterprises, which has a direct investment enterprise operating in a country other than that of the parent enterprise.
Preferences #
Favours extended to some trading partners, usually in the form of lower tariffs or non-application of some non-tariff measures. Preferential duties under multilateral or bilateral trade agreements may be extended without reciprocity by one group of countries to the other group of countries. These duties may be applied with no limitation of quantity or may be linked to a preferential tariff quota.
Preferential trade arrangement #
Trade arrangements under which a party agrees, either unilaterally or as a result of negotiations, to accord one or more other parties preferential treatment in trade in goods or services. The scope for establishing such arrangements is subject to reasonably precise WTO rules, though developing countries have more flexibility. They may give each other preferences in the form of reduced tariffs, their complete elimination or, in the case of services, partial liberalization. Developed countries must establish either a free trade area, a customs union or, in the case of services, an economic integration agreement. That is, they must remove substantially all barriers to trade among those receiving preferences. If for example, they wanted to give each other a preference in some product lines only, they would have to offer the same access conditions to all of their trading partners under the rule of most favoured nation treatment.
Product Map #
Product Map (www.p-maps.org) is a market analysis, research and international business development service provided by the International Trade Centre (ITC). Presents business information and intelligence in a product context for 72 product clusters. The product clusters range from agricultural machinery to wood products. Product Map includes market studies, price indicators in certain sectors, links to product information, trade data and links to over 20,000 companies and organisations. Companies can also create their own basic web site, which is hosted on the portal. Access is available upon subscription. Other market analysis, research and international business development service provided by the International Trade Centre (ITC) include TradeMap, Country Map and Market Access Map.
Protection #
The extent to which domestic producers and their products are shielded from the competition of the international market. Their incidence or cost of protection can be measured or estimated with a high degree of accuracy. Tariffs are the starting point in the case of goods, but the matter becomes more complicated where tariffs are accompanied by non-tariff measures, or if protection consists entirely of non-tariff measures, or government regulation in the case of services.
Quota #
Explicit limits on the quantity of a good that can be imported or exported during a specified time period. Such limits are usually measured by physical quantity but sometimes by value. A quota may be applied on a selective basis, with varying limits set according to the country of origin or destination or bilaterally (to a single trading partner), or on a global basis (to all countries) that specifies only the total limit and thus tends to benefit more efficient suppliers. Quotas are frequently administered through a system of licensing. Non-automatic licensing usually the means for administering a quota. GATT Article XI prohibits the use of quantitative restrictions, subject to specific exceptions. For example Article XIX permits quotas to safeguard certain industries from damage by rapidly rising imports. The following sites are useful resources for import quota information: www.customs.gov/xp/cgov/import/textiles_and_quotas Customs USA Customs and Border Protection Agency); http://sigl.cec.eu.int/ (information on quota levels for imports of clothing and steel products applied in the European Community)
Re-exports #
Re-exports are exports of foreign goods in the same state as previously imported; they are to be included in the country exports. They are also recommended to be recorded separately for analytical purposes, which may require the use of supplementary sources of information in order to determine the origin of re-exports, i.e., to determine that the goods in question are indeed re-exports rather than the export of goods that have acquired domestic origin through processing.
Re-imports #
Re-imports are goods imported in the same state as previously exported; they are to be included in the country imports. They are also recommended to be recorded separately for analytical purposes, which may require the use of supplementary sources of information in order to determine the origin of re-imports, i.e., to determine that the goods in question are indeed re-imports rather than the import of goods that have acquired foreign origin through processing.
Regional trade agreement (RTA) #
A free trade agreement, customs union or common market consisting of two or more countries. In the case of developed countries, duties and other restrictive measures of commerce have to be eliminated on substantially all the trade between the parties. More than 200 regional trade arrangements have been notified to the GATT under Article XXIV between 1947 and 2003.
Reinvested earnings #
The part of an affiliate's earnings accruing to the foreign investor that is reinvested in that enterprise.
Royalty payments #
Monetary payments for the use of copyrighted or patented materials and production processes, or payments for the right of extraction of natural resources to the owner of these materials, processes or resources. These may be payments to a Government or to another business enterprise.
Royalty receipts #
Receipts of monies for allowing the use of copyrighted or patented materials and production processes, or receipts from providing the right of extraction of natural resources by the owner of these materials, processes or resources. The owner may be a Government or another business enterprise.
Rules of Origin #
“Rules of origin” are the criteria used to define where a product was made. They are an essential part of trade rules because a number of policies discriminate between exporting countries: quotas, preferential tariffs, anti-dumping actions, countervailing duty (charged to counter export subsidies), and more. Rules of origin are also used to compile trade statistics, and for “made in ...” labels that are attached to products. This is complicated by globalization and the way a product can be processed in several countries before it is ready for the market. The Rules of Origin Agreement requires WTO members to ensure that their rules of origin are transparent; that they do not have restricting, distorting or disruptive effects on international trade; that they are administered in a consistent, uniform, impartial and reasonable manner; and that they are based on a positive standard (in other words, they should state what does confer origin rather than what does not). For the longer term, the agreement aims for common (“harmonized”) rules of origin among all WTO members, except in some kinds of preferential trade — for example, countries setting up a free trade area are allowed to use different rules of origin for products traded under their free trade agreement. For more information on the Rules of Origin Agreement for WTO members see www.wto.org
SACU #
Southern African Customs Union. It consists of Botswana, Lesotho, Namibia, South Africa and Swaziland. It covers the free flow of goods between the partners. A common external tariff is applied against non-members.
SADC #
Southern African Development Community. An association of 14 southern African states (Angola, Botswana, Democratic Republic of Congo, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe. They signed a protocol in 1996 to establish a free-trade area by 2008.
SAPTA #
South Asian Preferential Trade Arrangement made between the members of the South Asian Association for Regional Cooperation (SAARC). SAPTA consists of Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. SAARC was launched in 1993, as a first step towards a regional free trade area with a programme of tariff reductions on specified goods and commodities. The target date for regional free trade is 2005.
SIC-Code #
SIC stands for the 1987 Standard Industrial Classification Manual. It is an American nomenclature for classifying activities. There are 1004 industries at the most detailed (4-digit code) of the SIC. While this nomenclature has been replaced by the North American Industry Classification System (NAICS), most marketing research data is still published and encoded using SIC.
Special trade system #
The special trade system is in use when the statistical territory comprises only a particular part of the economic territory. The special trade system (strict definition) is in use when the statistical territory comprises only the free circulation area, that is, the part within which goods "may be disposed of without customs restriction". Consequently, in such a case, imports include all goods entering the free circulation area of a compiling country, which means cleared through customs for home use, and exports include all goods leaving the free circulation area of a compiling country. However, under the strict definition, goods imported for inward processing and goods which enter or leave an industrial free zone would not be recorded since they would not have been cleared through customs for home use. The compensating products after inward processing also would not be included in exports. Examples of these are when crude petroleum is brought into a country for refining under the inward processing procedure or when non-ferrous base metals are imported and smelted under the same procedure, and the resulting products are exported. From an economic standpoint, however, this kind of industrial activity does not differ from similar activities elsewhere in the economy. For this reason, it is recommended to include such activity in the record of special trade statistics. When this recommendation is applied, a "relaxed" definition of the special trade system is in use; i.e., the special trade system (relaxed definition) is in use when (a) goods that enter a country for or leave it after inward processing and (b) goods that enter or leave an industrial free zone are also recorded and included in international merchandise trade statistics.
Specific tariff #
A tariff expressed as a specific charge on the particular item to be imported. A hypothetical example of a specific tariff would be a rate of two dollars per pair of shoes regardless of their value. See also "ad valorem tariff".
Subsidiary enterprise #
An incorporated enterprise in the host country in which another entity directly owns more than half of the shareholders' voting power, or is a shareholder in the enterprise, and has the right to appoint or remove a majority of the members of the administrative, management or supervisory body.
Tariff #
A customs duty or tax levied on imports of merchandise goods. A tariff can be an ad valorem tariff (percentage of value) or a specific tariff (e.g. $100 per ton). Less often, a compound tariff made up of both of these elements applies. Tariffs are mostly levied on imports, but there are cases of tariffs on exports. Tariffs raise revenue for the government and increase the price of imported products, thus giving domestically produced products a price advantage.
Tariff binding #
A tariff is bound if there is a commitment not to increase the rate of duty beyond its bound level. If the rate is raised beyond this bound level, the affected parties must be compensated.
Tariff measures #
Tariff measures include: statutory customs duties; MFN duties; bound tariffs; tariff quota duties or rates; seasonal duties: temporary reduced duties; temporary increased duties; and preferential duties under trade agreements.
Tariff quota #
The application of a reduced tariff rate for a specific quantity of imported goods. Imports above this specified quantity face a higher tariff rate. So a tariff quota has two parts, the Inside Quota Tariff Rate and the Outside Quota Tariff Rate. Some claim that tariff quotas liberalize trade since, in contrast to import quotas, there is no ceiling on imports under this system. This assumption can be quite erroneous. The difference between the Inside Quota Tariff Rate and the Outside Quota Tariff Rate is often so large as to preclude any trade at the higher rate.
Technical barriers to trade #
The World Trade Organization states that "The Technical Barriers to Trade Agreement (TBT) is an agreement amongst WTO members that tries to ensure that regulations, standards, testing and certification procedures do not create unnecessary obstacles. The agreement recognizes countries’ rights to adopt the standards they consider appropriate — for example, for human, animal or plant life or health, for the protection of the environment or to meet other consumer interests. Moreover, members are not prevented from taking measures necessary to ensure their standards are met. In order to prevent too much diversity, the agreement encourages countries to use international standards where these are appropriate, but it does not require them to change their levels of protection as a result. Manufacturers and exporters need to know what the latest standards are in their prospective markets. To help ensure that this information is made available conveniently, all WTO member governments are required to establish national enquiry points. See also "sanitary and phytosanitary measures". For more information on the TBT see the World Trade Organization at www.wto.org
TNC #
A TNC is an enterprise, which is irrespective of its country of origin and its ownership, including private, public or mixed, which comprises entities located in two or more countries which are linked, by ownership or otherwise, such that one or more of them may be able to exercise significant influence over the activities of others and, in particular, to share knowledge, resources and responsibilities with the others. TNCs operate under a system of decision making which permits coherent policies and a common strategy through one or more decision-making centres. This definition does not regard the legal form and fields of activity of these entities.
Trade ratio #
The trade ratio is defined as (Exports-Imports) / (Exports+Imports), hence it ranges between +100% and -100%
TradeMap #
TradeMap (www.trademap.org) is a market analysis, research and international business development service provided by the International Trade Centre (ITC) www.intracen.org. TradeMap is an online database of global trade flows and market access barriers for international business development and trade promotion, providing detailed export and import profiles and trends for over 5,300 products in 200 countries and territories. Based on the world’s largest database COMTRADE, TradeMap presents import/export values and quantities, growth rates, market shares and market access information. It allows users to analyse markets, select priority countries for export diversification, review the performance of competing countries and assess opportunities for product diversification by identifying existing and potential trade between countries. Other market analysis, research and international business development service provided by the International Trade Centre (ITC) include Product Map, Country Map and Market Access Map.
TRAINS database #
TRAINS – The Trade Analysis and Information System, is a database of trade control measures maintained by UNCTAD. TRAINS holds information on tariff measures from the year 1988 to the present. Tariffs are presented at the national tariff line level for 155 countries and included also are preferential rates arising out of bilateral, regional and multilateral trade agreements. The primary data from TRAINS is sourced from UNTARMAC - the UN Tariff and Market Access Database - a collaboration of UNCTAD and the International Trade Centre (ITC). TRAINS contains information on non-tariff measures, which are classified according to UNCTAD’s Coding System of Trade Control Measures. TRAINS also contains import statistics. Imports at the HS-6 digit level can be presented in terms of those that are subject to duty, those that are duty free and those that are subject to non ad valorem duties. Mirror imports are constructed where necessary. TRAINS data can be accessed and analysed using WITS - The World Integrated Trade Solution - a software interface of the World Bank and UNCTAD. Using WITS, TRAINS data can be aggregated according to various product classifications including HS, SITC and ISIC. Users can also create their own country groups. The interface also enables the simulation of: tariff changes; trade creation and diversion effects; tariff revenue effects; and welfare effects. The simulation module assumes products are independent and that the same products from different suppliers are imperfect substitutes. Users may make assumptions about elasticities of demand, supply and substitution between suppliers. Governments and international and regional organizations can freely access TRAINS. Companies and other organisations may access TRAINS by making a contribution to the TRAINS Trust Fund. For more information contact wits@unctad-trains.org
UNCTAD #
United Nations Conference on Trade and Development. Established in 1964 as a permanent intergovernmental body, UNCTAD is the focal point within the United Nations for the integrated treatment of trade and development and the interrelated issues in the areas of finance, technology, investment and sustainable development. See www.unctad.org
Underachiever #
A countries' sectoral export performance is classified in Investment Map as either: Champion; Achiever in Adversity; Underachiever; or Declining Sector. Products classified as "Underachievers" present particular challenges for trade promotion efforts in the country under review. While international demand has been growing at above-average rates, the country has been falling behind. Its exports have either declined or grown less dynamically than world trade. As a result, the country under review has been losing international market share. In general, the bottleneck is not international demand, but supply factors. For these products, it is essential to identify and remove the specific bottlenecks which impede a more dynamic expansion of exports.
Unit value #
The Unit Value is the value of one unit quantity imported of a product. It’s based on the total value of imports of that product divided by the total quantity of imports. There are various ways to calculate a unit value. For example, one may use either bilateral trade flows; world imports or a country's imports of that product from a reference group of countries. Market Access Map www.macmap.org calculates the Unit Value based on bilateral trade at the HS-6 level.
UNSD #
United Nations Statistics Division provides a global centre for data on international trade, national accounts, energy, industry, environment, transport and demographic and social statistics gathered from many national and international sources. See www.unsd.org
WAEMU / UEMOA #
West African Economic and Monetary Union (Union économique et monétaire ouest-africaine). Established in 1994 with the aim of achieving full economic integration with a common external tariff, a common trade policy and harmonized economic policies. Its members are Benin, Burkina Faso, Côte d'Ivoire, Guinea Bissau, Mali, Niger, Senegal and Togo. See www.uemoa.int
World Bank #
The World Bank Group’s mission is to fight poverty and improve the living standards of people in the developing world. It is a development Bank which provides loans, policy advice, technical assistance and knowledge sharing services to low and middle income countries to reduce poverty. See www.worldbank.org
WTO #
World Trade Organization. Established in 1995, the WTO is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct their business. The WTO is the successor of the General Agreement on Tariffs and Trade (GATT) established in 1948. As of 13th October 2004, the WTO had 148 members. See www.wto.org