Practical Exercise on MARKET ACCES MAP

Practical Exercise on MARKET ACCES MAP

We suggest you visit the “Glossary” “User Guide” “Methodology” “Useful Links” and “Data Availability” (all located under the menu item “Reference Material”). In the Glossary you will find a number of tariff terms explained. The Data Availability page explains how often the data in Market Access Map is updated and the Useful Links page has links to other information sources, for example on non-tariff barriers.

PART III: DETAILED ANALYSIS

In this module you can create a variety of tariff and trade reports on a country specific basis.

Compare the average tariffs applied by different countries.

1.You are an exporter of garments from Bangladesh and you wish to compare tariffs across a range of garment products (women’s blouses and shirts) for a number of markets (Germany, Japan, and the USA). You wish to compare the tariffs faced Bangladesh with those faced by competing supplier Mauritius in each market.

Note:Open the “Detailed Analysis” module by clicking on it. It will become yellow. Select the sub-tab “Applied Tariffs. To set up your query, start by selecting the three importer countries: Germany, Japan and the USA. Next select the following products: 610610 “Women/girls blouses and shirts of cotton, knitted”; 610690 Women/girls blouses and shirts of other materials, knitted”. Next select Bangladesh and Mauritius as “Exporters”. Then click proceed. You will see the results page with three alternative viewing tabs “Products”; “Importers”; and “Exporters”.

1.aWhat is the best tariff granted by Germany to Bangladesh for each of the national tariff line codes within the product clusters “610610” and “610690”?

Note: look at the table entitled “Tariffs applied by Germany to products originating from Bangladesh”. You will see a list of products where each tariff line code is repeated. Check the column entitled “Trade regime description” and then the applicable tariff in the next column. You will see in the case of Bangladesh exports of these products that they indeed face a preferential rate because of Bangladesh’s least developed country status. What is this rate?

1.bDoes the USA grant preferential accessto Bangladesh for any of the national tariff line codes within the product clusters “610610” and “610690”? If you wished to face the lowest tariff in order to maximize your competitiveness in the market, which fabric would be the most advantageous to use – cotton, wool or silk?

Note: Switch from viewing the “Selected Importer” “Germany” to “United States of America” in the combo box in the middle of the page. Don’t forget to click the button “Show Results”. The table should refresh and the title of the table will change to “Tariffs applied by United States of America ....to products originating from Bangladesh”. You will see that the USA applies only the MFN rate to Bangladesh. Notice the variation in tariffs depending on the composition of the blouses.

1.cWhat is the name of the trade regime under which the USA grants preferential accesstoMauritiusfor the national tariff line codes within the product clusters “610610” and “610690”? If Mauritius wished to maximize its margin of preferential tariff advantage over Bangladesh, which fabric would be the most advantageous to use – cotton, wool or silk?

Note: Switch from viewing the “Selected Exporter” “Bangladesh” to “Mauritius” in the combo box in the middle of the page. Don’t forget to click the button “Show Results”. The table should refresh and the title of the table will change to “Tariffs applied by United States of America ....to products originating from Mauritius”. You will see that the USA indeed applies preferences to Mauritius for each product. Read the trade regime description for the preferential rates. Notice also the difference between the preferential rate and the MFN rate. The product for which this difference is greatest is that for which Mauritius has the highest margin of tariff advantage over other exporters like Bangladesh that receive no preferences.

1.cWhich exporter (Bangladesh or Mauritius) has a tariff preference advantage in the Japanese marketfor the national tariff line codes within the product clusters “610610” and “610690”? If Mauritius wished to minimize the tariffs it faces in the Japanese market, which fabric composition would be the most advantageous to use?

Note: Switch from viewing the “Selected Importer” “United States” to “Japan” in the combo box in the middle of the page. Don’t forget to click the button “Show Results”. The table should refresh and the title of the table will change to “Tariffs applied by Japan...to products originating from Mauritius”. View the table and then repeat the exercise,however this time change the exporter to “Bangladesh”. Refresh the table. Make sure you are now looking at the title of the table “Tariffs applied by Japan....to products originating from Bangladesh” You will see that Japan does not apply preferences to Mauritius but it does apply them to Bangladesh (so it is the reverse of the case with the US market). Notice the differences between the tariff rates depending on the product composition. Note how cotton shirts face comparatively low tariffs compared with shirts containing lace and embroidery or shirts made from wool and animal hair. You will recall that cotton shirts in the US market faced the highest tariffs, so this is the opposite of the case in Japan.

2.What are the average tariffs applied by France, Japan and the USA to: all products; agricultural products; and industrial products?

Note:Open the “Country Analysis” module by clicking on it. It will become yellow. Select the country “France” from the drop-down list of countries. Click on the button located next to the heading “Average tariff applied by the country”. Click “Proceed”. The average tariffs applied by France to imported products will be displayed. To view other countries, it is not necessary to perform a new search. Just select the new country from the drop-down list and click on the button “change”.

The average tariff applied by:
France: all products = _____%; agricultural products = _____%; industrial products = _____%;

Japan: all products = _____%; agricultural products = _____%; industrial products = _____%;

USA: all products = _____%; agricultural products = _____%; industrial products = ____