USER GUIDE

TRADE MAP
TRADE STATISTICS FOR INTERNATIONAL BUSINESS DEVELOPMENT

Trade Map - User Guide

January 2009

International Trade Centre UNCTAD/WTO Market Analysis and Research Division of Market Development 54-56 rue de Montbrillant Palais des Nations 1211 Geneva, Switzerland

Abbreviations CIF COMESA EBOPS FOB GATS HS ITC LDCs m. MERCOSUR MFN n.e.s. p.a. SITC TSI UNCTAD UNSD WTO Cost, insurance and freight Common Market for Eastern and Southern Africa Extended Balance of Payment Services Classification Free on board General Agreement on Trade in Services Harmonized System of product nomenclature International Trade Centre UNCTAD/WTO Least developed countries million Mercado Comun del Sur (South American Common Market) Most Favoured Nation not elsewhere specified per annum Standard International Trade Classification Trade Support Institution United Nations Conference on Trade and Development United Nations Statistics Division World Trade Organization explanations visit our online glossary at:

For additional terms and their http://www.trademap.org/stGlossary.aspx

Note: Please note that the statistics in Trade Map undergo annual updates, as well as updates throughout the year as new information becomes available. These updates may generate varying figures or trends from what is seen in this User Guide, however the principles and applications of Trade Map remain the same. Please contact marketanalysis@intracen.org or more information or assistance.

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Table of Contents
Chapter 1 Introduction ............................................................................................................................... 1 1.1 - Overview ................................................................................................................................................................. 1 1.2 - Why use Trade Map .............................................................................................................................................. 1 1.3 Product Nomenclature, Data Sources and Availability ................................................................................... 1 1.3.1 Product Nomenclature: ........................................................................................................................................ 1 1.3.2 Sources of information: ........................................................................................................................................ 2 1.3.3 Data availability in Trade Map ............................................................................................................................ 2 1.4 - Access to the tool .................................................................................................................................................. 2 Chapter 2 How to use Trade Map .............................................................................................................. 4 2.1 - How to enter the database ................................................................................................................................... 4 2.2 - Main Selection Menu ............................................................................................................................................ 5 2.2.1 How to select a product or a group of products ............................................................................................... 8 2.2.1.1 Select a product or a group of products in the main selection menu ......................................................... 8 2.2.1.2 Advanced Product Search ............................................................................................................................... 9 2.2.1.3 Create your own group of products ...............................................................................................................11 2.2.2 How to select a country, a region or a partner country ..................................................................................12 2.2.2.1 Select a country or a region in the main selection menu ............................................................................12 2.2.2.2 Create your own group of countries ..............................................................................................................13 2.3 - Navigation Menu in the Database ......................................................................................................................14 2.3.1 Product selection: ................................................................................................................................................15 2.3.2 Country selection .................................................................................................................................................15 2.3.3 Partner country selection ....................................................................................................................................15 2.3.4 Other criteria.........................................................................................................................................................15 2.3.4.1 Trade Indicators (by country) ..........................................................................................................................15 2.3.4.2 Trade Indicators (by product) .........................................................................................................................16 2.3.4.3 Time Series .......................................................................................................................................................17 2.4 - How to create a Table, a Graph or a Map ........................................................................................................18 2.4.1 How to create a Table .........................................................................................................................................18 2.4.2 How to create a Graph ........................................................................................................................................19 2.4.3 How to create a Map ...........................................................................................................................................22 Chapter 3 Product Analysis: Identifying New Export Markets For Your Product ............................... 26 An exporter of avocados from peru is looking for new markets ............................................................. 26 3.3 - Review current situation of the countrys exports ............................................................................................26 3.4 - Identify and analyse the worlds leading importers ..........................................................................................31 3.5 - Analyze the performance of competing suppliers ............................................................................................33 3.6 - Examine tariffs in potential new markets ..........................................................................................................35 3.7 - Investigate potential markets at the National Tariff Line Level ......................................................................37 3.7.1 Identify product differentiation at the tariff line level .......................................................................................37 3.7.2 Investigate competing suppliers to a potential market at the tariff line level. ..............................................39 3.7.3 Examine tariffs in potential new markets at the tariff line level .....................................................................40 3.7.4 Examine seasonal variation of the product at the tariff line level ..................................................................42 A Vietnamese exporter of apparel is looking to diversify his/her exports to a given market ............... 45 3.8 - Assess the performance of the products currently exported to the market ..................................................45 3.9 - Identify similar products imported by the given market ...................................................................................47 Chapter 4 - Country Analysis: Analysing a Countrys Trade Portfolio ................................................... 50 A government analyst from Madagascar wishes to identify national trade performance by sect ........ 50 4.1 - Gauge national trade performance by sector ...................................................................................................50 4.1.1 Analyse the export portfolio ...............................................................................................................................50 4.1.2 Identifying the importing markets. .....................................................................................................................52 4.2 - Analyse trends in a sub-sector (4-digit product groups) .................................................................................54 A trade adviser wishes to analyse Brazils export portfolio .................................................................... 58 4.3 - Overview of exported products by Brazil ..........................................................................................................58 Chapter 5 Bilateral Approach: Identifying Trade Opportunities With Your Countrys Trading Partner

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A trade support institution from Kenya wishes to identify opportunities to increase bilateral trade with Saudi Arabia 63 5.1 - Assess current bilateral trade between two countries at the product level ..................................................63 A trade analyst wants to analyse the intra-regional trade for rice in the Latin AmericanIntegrationAssociation region (ALADI) ...................................................................................... 67 5.2 - Review of existing intra-regional trade ..............................................................................................................68 Summary 72

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Tables
Table 1: List of tables available in Trade Map .................................................................................................. 5 Table 2: List of tables available in Trade Map .................................................................................................. 7 Table 3: Advanced Product Search options ..................................................................................................... 9 Table 5: Explanatory Notes for Trade Indicators by country .......................................................................... 16 Table 6: Explanatory Notes for Trade Indicators by product .......................................................................... 17 Table 7: Explanatory Notes for Times Series ................................................................................................. 18 Table 8: Explanatory Notes for Graph ............................................................................................................ 20 Table 9: Types of maps that can be generated: ............................................................................................. 24 Table 10: List of importing markets for the product exported by Peru in 2006 ............................................... 27 Table 11: Explanatory Notes for Table 10 ...................................................................................................... 29 Table 12: List of importing markets for a product exported by Peru Product: 080440 Avocados, fresh or dried ............................................................................................................................................................... 30 Table 13: List of importers for a selected product in 2006 Product: 080510 Avocados, fresh or dried........... 32 Table 14: List of supplying markets for the product imported by United States in 2006 Product: 080510 Avocados, fresh or dried ................................................................................................................................ 34 Table 15: Tariffs that different importing countries apply to the product (080440) Avocados, fresh or dried originating from Peru. ............................................................................................................................ 37 Table 16: Annual imported value of Avocados in the US ............................................................................... 39 Table 17: List of products imported by the US at the tariff line level .............................................................. 40 Table 18: Quarterly imported value of Oranges in the US ............................................................................. 42 Table 19: Quarterly imported value of Avocados in the US ........................................................................... 42 Table 20: Quarterly imported value of Avocados from countries supplying to the US, at the tariff line level .. 43 Table 21: List of supplying markets for a product imported by France in 2006 Product: 620463 Womens/girls trousers and shorts, of synthetic fibres, not knitted ........................................................................................ 46 Table 24: List of products at 2-digit level exported by Madagascar in 2006 (extract) ..................................... 51 Table 25: Explanatory Notes for Table 29 ...................................................................................................... 52 Table 26: List of importing markets for a product exported by Madagascar in 2006 ...................................... 53 Table 27: List of products at 4-digit level exported by Madagascar in 2006 ................................................... 54 Table 27: List of products at 4-digit level exported by Madagascar in 2006 ................................................... 55 Table 28: List of products at 6-digit level exported by Brazil in 2006 ............................................................. 58 Table 29: List of products at 6-digit level exported by Brazil in 2006 ............................................................. 59 Table 30: The leading products exported by Brazil in 2007 at the tariff line level .......................................... 62 Table 31: Existing and potential trade between Kenya and Saudi Arabia in 2006 ......................................... 64 Table 32: Explanatory Notes for Table 33 ...................................................................................................... 65 Table 33: Existing and potential intra regional trade in Latin American Integration Association (LAIA) for the rice LAIA ........................................................................................................................................................ 68 Table 34: List of supplying markets within the ALADI region for the rice HS-1006 for the period from 2001 until 2006 ....................................................................................................................................................... 70 Table 35: List of importing markets within the LAIA region for rice HS-1006 for the period 2001 to 2006 ..... 71 Table 36: List of importing markets for a product exported by Brazil in 2006 ................................................. 74 Table 37: List of importing markets for a product exported by Brazil in 2006- Mirror statistics ...................... 75

Annexes
Annex I: What Users Should Take into Consideration when they use Foreign Trade Statistics as a Basis for Strategic Market Research ............................................................................................................................... 73 Annex II: Harmonized System and HS Revisions ............................................................................................. 77 Annex III: Link to Investment Information .......................................................................................................... 78 Annex IV: Link to Market Access Information ................................................................................................... 79

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CHAPTER 1 INTRODUCTION
1 . 1 - O ve r vi e w
Understanding the structure and evolution of international markets is essential for both firms and trade support institutions (TSIs). As outwardly oriented firms scan world markets for opportunities to diversify products and export markets, as well as sources of foreign imports, they are confronted with questions such as the following: - What is the size of the world market for a product? - What are the trends for that market i.e. is the market growing and by how much? - With which countries does my country currently trade for certain products? - Are there opportunities to identify new or alternative markets? - What tariff barriers exist in a specific market? - Which countries compete to supply to a specific market and to the world? Trade Support Institutions need to identify which sectors and partner countries to prioritize and which development strategies to focus on. Detailed analysis of trade statistics helps them gauge a countrys competitiveness and identify priority products and export markets by answering questions such as: - What are my countrys priority products and markets for trade promotion? - What countries supply the majority of my countrys imports? - What alternative sources of supply are available? - What is my countrys current trade performance? - For what products is there potential to increase bilateral trade with a specific partner? - What are the trade flows between my country and a specific region or economic group?

1 . 2 - W h y u s e Tr a d e M a p
Trade Map was developed by the International Trade Centre (ITC) to help both trade support institutions and enterprises to answer these and related questions and thereby facilitate strategic market research. Trade Map organizes a large volume of primary trade data and presents them in an accessible, userfriendly, and interactive Web-based application. It provides users with indicators on country or product performance, demand, alternative markets and the performance of competitors. It presents information in tables, charts and maps, and allows export or import queries by: product, country, group of products or group of countries.

1 . 3 P r o d u c t N o m e n c l a t u r e , D a t a S o u r c e s a n d Av a i l a b i l i t y
1.3.1 Product Nomenclature:
Trade Map is based on the Harmonized System. The Harmonized System is an international nomenclature for the classification of products published by the World Customs Organization (www.wcoomd.org). 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 5,300 article/product descriptions that appear as headings and subheadings, arranged in 99 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, Mat 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)... Up to the HS-6 digit level, all countries classify products in the same way (a few exceptions exist where some countries apply old versions of the HS). Beyond the six-digit level, the classification becomes national. 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 to as the national tariff line level. For example Canada adds

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another two digits to its exports and imports to classify them in greater depth and the code 09023010 is the code for black tea, packaged as tea bags.

1.3.2 Sources of information:

Different sources of information are contained in Trade Map. First, Trade Map is based on the worlds largest database of trade statistics, COMTRADE, maintained by the United Nations Statistics Division (UNSD) http://unstats.un.org/unsd/comtrade. COMTRADE covers more than 90% of world trade or around 200 countries. Trade Map is able to present data for an even larger number of countries and territories (around 1 220) by using both reported and mirror statistics . Data is presented at the 2-, 4- or 6-digit level of the Harmonized System (HS) on a yearly basis. (See Annex II: Harmonized System and HS Revisions) Reported data and mirrors statistics Annual data is available not only for countries that report their own trade data, but also for the over 50 primarily low-income countries that do not report national trade statistics to COMTRADE. The trade of these countries has been reconstructed on the basis of data reported by partner countries or mirror statistics. Although using mirror statistics has its shortcomings (see Annex I), it does generate a wealth of information, which would otherwise be unavailable. This mix of direct and mirror statistics gives the best estimation of the worldwide market for all products. The user will notice that mirror data are presented in orange colour in order to be distinguished from direct data. Most detailed national statistics The Trade Map database also includes additional data for over 120 countries (mostly OECD) at the 8- and 10-digit level on a annual and monthly or quarterly basis and more than 50 countries on a quarterly or monthly basis. ITC collects data at the tariff line level directly from the institutions in charge in each country (national customs authorities, ministries of commerce etc). Import tariffs In addition, Trade Map contains tariff information expressed as Ad Valorem Equivalents applied by over 180 countries. These data are directly retrieved from the Market Access Map database. By clicking on the value corresponding the Tariff AVE, you will be automatically linked to ITCs online tool Market Access Map, (www.macmap.org), containing information on market access measures, trade agreements and rules of origin.

1.3.3 Data availability in Trade Map

You can check the countries for which Trade Map presents reported or mirror data by clicking on Data availability - http://www.trademap.org/stDataAvailability.aspx. This annex will also indicate how current the data is.

1.4 - Access to the tool

Thanks to financial contributions from the World Bank and ITCs Global Trust Fund, ITC has been able to provide free access to its market analysis tools Trade Map, Market Access Map, Product Map and Investment Map to users in developing countries in 2008 and 2009.This free access may be extended beyond December 2009. ITC is delighted to be able to respond to the growing demand for online access to its trade intelligence tools. Users in developing countries and economies in transition , can register to ITCs market analysis online tools through a common registration portal at http://www.intracen.org/mat/ For users in developed countries, Trade Map is available on a subscription basis. You may want to first register online for a one-week free trial to familiarise yourself with the tools. Please visit our web page for more information on subscription options and fees at http://www.intracen.org/mat/OptionsFees.aspx In the menu item Reference Material, the list of Developing and Developed countries is available.
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To create your personal account, click on the icon Register and complete all information before submitting the request form. You will receive an automatic answer in your mailbox to activate your account. If you are indeed from a developing country but ITCs registration system identifies you as a user from a developed country, please check the box on the screen as indicated below. Then follow the instructions in the automatic email you receive after registering.

Additional information such as a downloadable version of the Trade Map User Guide and Frequently Asked Questions (FAQ) are available on the main page.

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CHAPTER 2 HOW TO USE TRADE MAP

2 . 1 - H ow t o e n t e r t h e d a t a b a s e

Trade Map Homepage Choose your language (English, French or Spanish versions are available) and enter your username and password. On the Trade Map Homepage, you will see on the right the two boxes where you can enter your username and password. Please remember that usernames and passwords are case sensitive. By clicking on Log In, you will enter the database and see the Selection Menu page (see screen below). Note: the username is based on an email address. By selecting the box Remember me next time, you will have direct access to the selection menu the next time you go the Trade Maps URL www.trademap.org. You will not need to enter your username and password. Hereinafter the screen shots will always be of the ITC Generic English version of the tool. At the top right of the screen you will be able to switch from the English, to the French or Spanish version.

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2 . 2 - Ma i n Se l e c t i o n Me n u
These menu items provide you with access to other databases and resources

Selection Menu

Table 1: List of tables available in Trade Map

Access to other databases and resources Menu Item Home Description Link to the Trade Map Home Page: www.trademap.org and the MAT portal Link to the Main selection Menu - http://www.trademap.org/SelectionMenu.aspx Note: Once you are in a table, map or graph and click on the selection menu, the different options you selected in your query will already be displayed in the selection menu. Link to Investment Map: see 2.5 Link to Investment Link to Market Access Map: see 2.5 Link to Market Access - Data Availability: provides information about the data available for reporting and nonreporting countries at the Harmonized System level and Tariff line level. - Corresponding Product Codes: table with the corresponding product codes between the different HS revisions (see Annex 1). - Developing Countries: list of Developing Countries - Developed Countries: list of Developed Countries Glossary of items Terms & Conditions for using Trade Map Manage my Country Groups: see 2.2.2.2 Create your own group of countries Manage my Product Groups: see 2.2.1.3 Create your own group of products Contact us form Trade Map presentation

Selection Menu

Investment Market Access

Reference Material

Useful Links

My Account Contacts About

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Trade Map Selection Menu (English version) Data in Trade Map can be searched and analysed in three different ways: by product, by country and by a pair of countries. Searching by product will provide you with product-specific trade data at different levels of detail and aggregation. Searching by country will provide you with insight into a countrys export/import profile. Searching using a pair of countries/regions will allow you to analyze bilateral trade between two countries or regions. More details on each will follow. The menu allows you to view the export or import side of statistics. Note that by default the import side is selected in your query.

The three main selection options are Product, Country and Partners (Partners only appears if you select a country). The selection fields are all hyper-linked, you need to start writing in each of them and products or countries that match your search text of your interest will appear in the drop-down menu below. You can either type the name of the product or its HS code. The system automatically displays the corresponding description. Notes: - Selection: when typing a country, a product or a product code into any of the selection fields, you must click on a choice from the possible matches that appear in the drop-down menu below. If you do not, the system will think you have not selected anything. - Spelling: do not make any spelling mistakes. Trade Map searches through ALL product descriptions for an EXACT match. E.g. if the word apples is entered in the system, no results are generated. Data is only available for the word apple. - Synonyms: if the system does not present any possible matches for your product at search, try to think of another name that describes the product. E.g. Instead of the word beef, enter bovine or instead of raisin enter grapes. - Advanced Product Search: if you cannot find your product, click on Advanced Search Product . In order to proceed with your request, you will then need to select between two types of information by clicking on one of the following buttons: Trade Indicators: select this if you want to view raw data as well as trade indicators such as growth trends, market share..etc. (See table 9) Trade indicators are pre-calculated before uploading in the database and are updated twice a year

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Times Series: select if you want to view data over several years or several quarters or several months (See table 11) When you switch from value to different indicators, all the calculations on the times series are done online and every week new data are uploaded in the database. It is not necessary to select a product, a country and a partner country for every query. You need to select at least one product or one country/region and then to select the import/export side of statistics. The table below shows all possible selections from the selection menu and their corresponding screens. Note: If you select a product that has been created in the HS revision 2002 or 2007 and that is not available in HS revision 1996, it will not be possible to select the button trade indicators. Trade indicators have been calculated for products available in HS revision 1996. (Annex II)

Table 2: List of tables available in Trade Map

You select Product Country Partner Country Trade Indicators Time Series Import Export Imp Exp You will obtain: Trade Map Table World import market for the selected product in 2007* World export market for the selected product in 2007* World import market for the selected product since 2001 World export market for the selected product since 2001 List of supplying markets of the country in 2007* List of importing markets of the country in 2007* List of supplying markets of a country since 2001 List of importing markets of a country since 2001 List of supplying markets (countries and regions) for a specific product imported by a country/region in 2007* List of importing markets (countries and regions) for a service exported by a country/region in 2007* List of supplying markets (countries and regions) for a specific product imported by a country/region since 2001 List of importing markets (countries and regions) for a specific product by a country/region since 2001 Bilateral Trade in 2007* Bilateral Trade since 2001 Bilateral Trade for a specific product in 2007* Bilateral Trade for a specific product since 2001

Imp Exp Imp Exp Imp Exp Imp

Exp

Imp

Exp Exp

Exp Exp Exp

*or for the last year available

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2.2.1 How to select a product or a group of products

2.2.1.1 Select a product or a group of products in the main selection menu To select a product, type a keyword or HS product code in the selection field.

Select a product For example, if you enter coffee as keyword in the box Product, all the first twenty HS code with a label containing the word coffee will be displayed in the drop-down menu. If you enter 09 as product code, a list will appear of the first twenty products whose product code contains 09. To select a product, just click on the HS product code in the list available. Product codes at 2, 4 or 6-digit level of the Harmonized System HS in revision 1996, 2002 or 2007 can be selected (Annex 2).

To improve the speed of Trade Map, we only post in the drop down menu the first twenty products corresponding to the selection. If you cannot find your product in the twenty possible matches displayed, please use the advanced search. If you select a product code created in revisions 2002 or 2007 of the HS nomenclature, only the Times Series button is activated. You can check the HS corresponding product codes table by selecting Reference Material in the toolbar or going to http://www.trademap.org/stCorrespondingProductCodes.aspx Note: If you submit an empty field (both cases), you will get a list of the first twenty HS codes. You can also select a group of products from a predefined list by clicking on Group. Please refer to 2.2.1.3 Manage your product group to learn how to create your own group of products.

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2.2.1.2 Advanced Product Search Search by Keywords The Advanced Product Search by keyword helps you to look for the corresponding HS code of the product using one or several keywords in the HS product descriptions at 2, 4 and6 digit level of the Harmonized system and at the tariff line level. The main advantages of this Advanced Product Search are: This search engine can look for the product either written in singular or plural, and recognizes the similarities between words (example: freeze-frozen) Several keywords can be given for a specific product. You will be presented with all the possible codes (HS or tariff line level) of varieties/species for the same product, related products and product derivatives. There is no limitation to the first twenty products. Product labels are longer than on the Main Selection Menu.

Table 3: Advanced Product Search options

You select: Cases Solution Use different keywords Use different keywords

At the 2, 4, 6 digit levels

At the tariff line level

Country

Find the HS code of my product Find the HS code at the tariff line level for all countries Find the HS code at the tariff line level for a country I cannot find the HS code of my product at the 2,4,or 6 digit HS level. Find a product derivatives and its

By looking at the tariff line level, you might be able to identify the first HS 6-digit of your product See example 1 See example 2

Example 1: looking for the HS code of a specific product when you cannot find it in the selection menu If you cannot find the HS code of your product at the 2, 4 or 6 digit HS level, you may wish to look for your product at the tariff line level and to use several keywords. For instance, a trade adviser is looking for trade data about eucalyptus oil. By looking at the 2, 4, or 6 digit level, he could not find the HS code. In Search by Keywords, he selects at the tariff line level and types eucalyptus oil in the keyword text box. The search engine will first search product labels containing all the keywords and then keyword by keyword. The results are displayed in the table in ascending order. He can identify the HS codes containing eucalyptus (highlighted in yellow) and oil (highlighted in blue). The possible matches appearing first are those with the two keywords in the label. There are 5 countries with specific national tariff lines for essential oil of eucalyptus. In order to have a larger picture of the product group in which his product eucalyptus oil competes, the trade adviser just needs to take the first 6 digits of the code of those 5 countries: HS-330129. Note: Switzerland also has a tariff line but the product description is in French: Huile d'eucalyptus et huile de santal. It is important to note that tariff line level descriptions are not always translated in English. For South American countries, product labels are available in Spanish, for many French African speaking countries labels are only available in French and for some former USSR countries product labels are in Cyrillic.

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Example 2: find the HS code of a product and its derivatives to create a product group An interesting feature of the advanced product search is to look for the HS code of your product and its possible derivatives. In search by keywords, select At 2, 4 or 6 digit level and type the name (or different keywords) of your product: Orange. Then click on Search.

List of all HS description containing Orange All the HS codes containing the name of the product will be displayed as in the example below. In order to see all the HS codes in one page, click on Rows per page and select the maximum.

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The result is the complete list of HS codes containing orange in their description. There are 12 HS codes with orange representing the product and its derivatives: fresh fruit, juice and essential oil. In order to study the trends of these different products, you can create a product group: see 2.2.1.3 for an explanation of how to create a product group.

Search by Hierarchy in the Harmonized System.

2-digit 4-digit 6-digit

Search for a Product by HS hierarchy By clicking on the you can get into the classification of the Harmonized System starting from the 2digit level to the 6-digit level. Note: when you have found the HS code corresponding to your product, double click on it to select it and you will be taken back to the main selection menu where you will see the product box filled with your selection.

2.2.1.3 Create your own group of products In the top menu bar, click on My Account and then select Manage my Product Groups. You can create your own group of products in order to request specific data.

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For instance, you can create a new group name Fruit Juice and then select the products you want to include in this group just by clicking on their name, then click on the icon able to select your country group in the Selection Menu. and Save. You will then be

Note: when you select the products, you can only mix products of the same HS digit-level. In the example below, the group of product is at the 6-digit level of the Harmonized System. You can choose a maximum of 30 products by group.

Write the name of your group of products

Select the products

Select one product

Level of the group: 2, 4 or 6 digit level

Deselect one country Deselect all countries

2.2.2 How to select a country, a region or a partner country

2.2.2.1 Select a country or a region in the main selection menu To select a country or a region, type the name of the country or group of countries in the selection field.

Type country name then select the country

For instance, if you type the letters Fr as keyword in the box Country, all the country and groups of countries beginning with the letters Fr will be displayed in the drop-down menu. When you have selected a country, a box named Partner appears. Using the same system, you can select the partner countries of the country selected in the field country to identify the bilateral trade. You can also select a predefined group of countries by clicking on Region.

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Type region name then select the region

2.2.2.2 Create your own group of countries In the top bar menu, select Manage my Country Groups of the module My Account to create or modify your own country groups in order to request specific data.

For instance, you can create a new group name e.g. soybean-importers and then select the countries to include in this group just by clicking on their name and then on the icon . Then click Save. You will then be able to select your country group in the Selection Menu. Select one country Select all the countries. Deselect one country Deselect all countries

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Select from Individual Countries: You can select the countries from the complete list of countries.

Select from Standard Country Groups: You can select the countries from a standard country group, e.g., European Union (EU 15) or (EU27).

Select from your own Country Groups: You can manage your country list by adding or deleting countries from your own country list.

2 . 3 - N a vi g a t i o n M e n u i n t h e D a t a b a s e
Product

Country

Partner

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After submitting a query in the main selection menu, Trade Map generates a table providing the data you requested. At the top of the table, a navigation menu will: Remind you of the fields you have selected and allow you to modify them. Help you to research those countries or product groups you have created under My Account. Introduce other criteria, which you can use to enrich your research. Each click on the navigation menu will generate a new query in the database and provide a new table. By clicking on the arrow in the top left corner below the home button, a part of the navigation menu will be hidden, as shown below:

Navigation Bar Hidden

2.3.1 Product selection:

Group of products

2, 4 6-digit HS code and product description

2.3.2 Country selection

2.3.3 Partner country selection

2.3.4 Other criteria

2.3.4.1 Trade Indicators (by country)

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2.3.4.2 Trade Indicators (by product) The table below lists the different levels of product cluster corresponding to a product code selected at 2digit level, E.g. :08 (HS-2) Edible fruit and nuts; peel of citrus fruits or melons

Table 5: Explanatory Notes for Trade Indicators by country Criteria Imports Exports
Import data Export data Trade Indicators enable users to see different indicators pre-calculated by ITC to enrich the analysis of a product or a market.

Description

Analysis
See the Demand side See the Supply Side World Market: Value in a given year in USD thousand, Trade Balance (Exports minus Imports), Quantity, Quantity Unit, Unit Value, Annual growth in value over the last five years, Annual growth in quantity over the last five years, Annual growth in value for the last year, Share in world imports, Tariff equivalent ad valorem applied by the country. Country Specific: All the indicators above as well as: Share in Countrys imports (%), Ranking of partner country in world exports, Share of partner country in world exports (%), Total export growth in value of partner country over the last five years (%,p.a) See the trend of a market and specific trade indicators over time

Trade Indicators

Times Series By country By product Direct Data

Time Series data enable users to see product or market trends over time. Enables users to see the result by partner country Enables users to see the result by product This option is only available when a country has reported its trade data Enables users to get data for nonreporting countries using mirror statistics, also enable users to check the consistency of data of reporting countries (See Annex I)

Mirror Data

The trade of non-reporting countries has been reconstructed on the basis of data reported by partner countries or mirror statistics. Although using mirror statistics has its shortcomings (see Annex I), it does generate a wealth of information, which would otherwise be unavailable about certain countries

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Table 6: Explanatory Notes for Trade Indicators by product

Harmonized System or National Tariff Line Level HS-2: Product Chapter Lists all product groups at 2-digit level imported or exported by the country or the region E.g. :08 (HS-2) Edible fruit and nuts; peel of citrus fruits or melons HS-4: Groupings within the chapter (sub-sector) E.g: 0804 (HS-4) Dates, figs, pineapples, avocados, guavas, mangoes and mangosteens, fresh or dried HS-6: Product(s) within the grouping (product level) Product Cluster at 6-digit E.g. 080450 (HS-6) Guavas, mangoes and mangosteens, fresh or dried Used to determine the export / import portfolio of a country at the more specific level. Helps users to compare similar products between countries and over time Used for analysis at macroeconomic level to determine the export / import portfolio of a country at the sector level Level of analysis

At same level 2-digit

Product Cluster at 4-digit

National Tariff Lines (NTL) codes: Deeper classification of goods beyond the 6 digit level of the Harmonized System classification. Each country decides its own more detailed classification. Hence, National Tariff Line codes can be different from one country to another. Examples: National Tariff Line for Australia 08045000 (NTL) Fresh or dried guavas, mangoes and mangosteens Product Cluster at 10-digit National Tariff Line for Japan 080450011 (NTL) Mangoes, fresh 080450019 (NTL) Guavas and mangosteens, fresh National Tariff Line for the United States 0804508000 (NTL) Guavas, mangoes and mangosteens, dried 0804506080 (NTL) Guavas and mangosteens, fresh, if entered during the period from June 1 to august 31, of the following year, inclusive 0804504040 (NTL) Mangoes, fresh, if entered during the period from September 1, in any year, to the following may 31, inclusive

Data only available for countries that report their data at tariff line level. This information helps the user to know the exact product traded by countries

2.3.4.3 Time Series By selecting Times Series, you will be able to look at all the data available by year in the database (including for some countries, data for the current year).

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Table 7: Explanatory Notes for Times Series

Criteria Imports Exports Trade balance By country By product Product at 2 digits Description Import data Export data Defined as exports minus imports for that particular HS/NTL code. Enables users to see the result by partner country Enables users to see the result by product HS-2: Chapter of the good E.g. :08 (HS-2) Edible fruit and nuts; peel of citrus fruits or melons HS-4: Groupings within the chapter (subsector) E.g: 0804 (HS-4) Dates, figs, pineapples, avocados, guavas, mangoes and mangosteens, fresh or dried HS-6: Product(s) within the grouping (product level) E.g. 080450 (HS-6) Guavas, mangoes and mangosteens, fresh or dried National Tariff Lines (NTL) codes Analysis See the Demand side See the Supply Side This column indicates whether country is a net importer or exporter See Country Analysis See Product Analysis

the

Product at 4 digits

Harmonized System

Product at 6 digits

Product at 8 digits/ 10 digits Yearly data Quarterly data Monthly data Values Quantities Growth in value, in quantity, on unit value Share in value in %

NTL codes / descriptions give more specific information about a product Help to identify the seasonality of the market. Inform users about the most recent evolution of the markets

Values over a period on a yearly, quarterly or monthly basis Quantities over a period on a yearly, quarterly or monthly basis Annual growth rate of import/export value, quantity and unit value since 2001. Share of the importing/exporting partner country in the total export/import of the country under review. Currency used in Trade Map by default

This trend is calculated using geometric growth rate method.

the

This indicator takes into account all countries, whether or not they have reported For yearly data coming from Comtrade values are expressed in US dollars and exchange rate is available on Comtrade (http://comtrade.un.org/ Exchange rates: values are converted from US dollars to other currencies using average exchange rate over the period

US Dollar

Other Currencies

2 . 4 - H ow t o c r e a t e a Ta b l e , a G r a p h o r a M a p
2.4.1 How to create a Table
Table

The table corresponding to your query in the selection menu will be displayed after you click on Trade indicator or Times Series. Each time you modify an element in the navigation menu, the table will be automatically updated.

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Trade Indicators

Times series

Export the table in Word, Excel or Text format / Print the table

Extend the time period displayed in the table

Extend the numbers of rows in the table or click on the page number

2.4.2 How to create a Graph

Graph

Graph 1: Bar Chart example 19

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When Graph and Map are in grey, it means that it is not possible to create a Graph or Map from the corresponding table. The table below indicates the type of graphs that can be generated when trade indicators have been selected:

Table 8: Explanatory Notes for Graph

Import/ Exoprt Type of Graph Graph Options

Selection

Trade Indicators Second Trade Indicators - Imported Value Bar chart on imported value -Annual growth in value 3 Second trade indicator : between 2003-2007 - Ranking in world imports *Share in world imports Second Trade Indicators Exported Value Bar chart on exported value Annual growth in value between 2003-2007 Ranking in world exports Share in world exports Bubble graph on Country Xs increase in share of world imports vs. world export growth Bubble graph on Country Xs world import share vs world import growth Bubble graph on Country Xs increase in share of world exports vs. world import growth Bubble graph on Country Xs world market share vs world import growth Bar chart on value of imports Bar chart on share in Country Xs imports Bar chart on growth in value of imports between 20032007 Bar chart on value of export Bar chart on share in Country Xs exports Bar chart on growth in value of exports between 20032007 Bubble graph on prospects for diversification of suppliers for the selected imported product Bubble graph on Country Xs import growth vs partner export growth Bubble graph on prospect for market diversification Bubble graph on Country Xs export growth vs partner import growth

Specific Product and World Market by Countries Specific country and World market by Product Import

Bar chart

Select the number of countries

Bar chart Export

Import

Bubble Graph

Select the number of countries Zoom PortraitLandscape

Export Import

Bubble Graph

Specific Country + Specific Product By Country

Bar chart

Export

Bar chart

Select the number of countries

Specific Country + Specific Product By Product

Import

Bubble Graph

Select the number of countries Zoom

Export

Bubble Graph

PortraitLandscape

The table below indicates the type of graphs that can be generated when times series have been selected:

It is possible to add a second trade indicator on the same chart. In t e r n a t i o n a l T r a d e C e n t r e ( I T C )

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Import/ Export

Selection

Type of Graph Bar chart Or Curve Bar chart or Curve Bar chart or Curve

Times Series Bar chart on imported value Curve on imported value Bar chart on exported value Curve on exported value Bar chart on balance in value Curve on balance in value

Graph Options

Export

Specific Country + Specific Product By Country

Import

Select the number of countries Select the years Graph options

Graph Options: The following graph options are available for bar charts:

Save Chart Image

Trade Balance

Print Chart

Print Preview

Toggle 3D View

Select Chart Type

Select Color Palette

Reset Chart Appearance

Enable/ Disable Zoom

Graph Types When a bar chart is posted, a lot of graph types are proposed but some of them are not relevant.

Point FastPoint Series 100% Stacked Column Doughnut Range Column Graph Colours

Bubble

Line

Spline 100% Stacked Stacked Area Range Box Plot

Step Line

Fast Line Stacked Column Pie Gantt Pyramid

Bar Area Stock Radar

Stacked Spline Area Candle Stick Polar

Column 100% Stacked Area Spline Range Funnel

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2.4.3 How to create a Map

Map

When Map is in grey, it means that it is not possible to generate a Map Map 1: Map example based on Trade Indicators

Directions to move the map

Zoom

Legend

Export/ Import Value

Title of the Map

Selection of Trade Indicators for the Map

You can change or combine trade indicators displayed on the map. For instance you can combine two trade indicators, as in the map below, the first one is the Imported value represented by colour and the second one is the Share in world imports.

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Map 2: Map example based on two Trade Indicators

Zoom by clicking on the scale

The share in world imports is represented by bubble.

Map 3: Map example based on two Trade Indicators zoomed

Zoom

Identify partner countries for a given market For instance, we want to know who are the main supplying markets of France. By clicking on France area in the map, you will get a new map as below with the countries which export to France ranked in Share of Frances imports.

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Map 4: example based on two trade indicators (zoomed)

Selection of Trade Indicators for the Map

You can then change the trade indicator or combine two of them by using the drop down menu. By changing criteria selected in the navigation menu, you will automatically update the map accordingly

Table 9: Types of maps that can be generated:

Selection Specific Product And Export World Market by countries List of Exporters for the selected product in 2007 Exported value Unit Value Share in world exports Share in Country Xs imports Unit Value Total export growth in value of partner countries Imported value Share in world exports Share in Country Xs exports Unit Value Total import growth in value of partner countries Exported value Share in world imports *None *Exported value *Share in world exports Import

Title
List of Importers for the selected product in 2007

First Trade Indicators

Imported value Unit Value Share in world imports

Second Trade Indicators

*None *Imported value *Share in world imports

Specific country And Partners for a specific product

List of supplying markets for a product imported by Country X in 2007

*None *Share of partners countries in world exports *Share in Country Xs imports *Imported value *None *Share of partners countries in world imports *Share in Country Xs exports *Imported value

Import Export

List of importing markets for a product exported by Country X in 2007

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Map based on Times Series By using the other criteria in the Toolbar selection menu, you can switch from Trade Indicators to Times Series

The year available will be displayed in the drop drown menu as below. Map 5: Map example based on Times Series

Times Series

Note: by changing of reference year, the scale of the legend might change.

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CHAPTER 3 PRODUCT ANALYSIS: IDENTIFYING NEW EXPORT MARKETS FOR YOUR PRODUCT
Trade Map data can be looked at from three perspectives: product, country and bilaterally for any two countries. Focussing on a product allows users to analyse export markets and potential suppliers for this product and identify the structure of those markets including recent trends in supply and demand, opportunities to diversify into alternative markets or away from traditional sources of supply. This section describes product analysis in terms of answering a series of specific questions from the perspective of Trade Support Institutions (TSIs) and Exporters. Typical question could be: - What are the major importing countries for a product? - What are the trends? - Which countries are the major competitors in a specific market? - What are the tariff measures applied in a potential new market?

AN E X P O R T E R O F AV O C AD O S F R O M P E R U I S
L O O K I N G F O R N E W M AR K E T S

This section will deal with analysing trade data for a particular product using the example of an exporter of avocados from Peru wishing to identify new potential markets. Several initial steps are involved in identifying which market(s) may offer opportunities in terms of export development. In terms of analysing the trade data, the exporter wishes first to review Perus exports to identify current trading partners, how they rank as world importers and what are the general trends of those markets. He/she may then want to gauge the performance of Peruvian exports at the international level. As a next step, he/she might wish to identify the worlds leading importing countries for Avocados to select a shortlist of markets to concentrate his/her effort. Finally, once the exporter has identified those potential target countries, he/she should find out which countries currently supply those markets, his/her own countrys performance and if it has any comparative advantage in terms of tariffs it faces versus its competitors.

3.3 - Review current situation of the countr ys ex ports

As a first step, the Peruvian exporter of Avocados could use Trade Map to see which countries currently import Avocados from Peru. In order to do so, in the selection, the exporter should start entering Avocado 4 as key word and a list of product descriptions containing the word avocado will appear . Then the exporter chooses 080510-Avocados, Fresh or Dried (screen below) as the product under review and types Peru in the country box. Once the application produces the options, in this case only the country name Peru, he/she should then click on it to select it. In order to see the importing countries of avocados from Peru, he/she selects Exports, and clicks on Trade Indicators. The full list of importing countries for this product is generated (Table 10).

If none of the products satisfies the request, click on Advanced Search (see 2.2.1 Advanced Selection Menu) In t e r n a t i o n a l T r a d e C e n t r e ( I T C )

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Type the name of the product or its HS code

Select Exports

Type the name of the country

Table 10: List of importing markets for the product exported by Peru in 2006
Product: 080510 Avocados, fresh or dried

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Unit value, (USD/unit)

Exported value 2006, USD thousand

Importers

World Spain Netherlands United Kingdom France Canada Belgium United States of America Switzerland Germany Chile Guatemala Australia

38793 14335 9043 6794 6179 1531 522 219 64 43 31 31

38774 14335 9043 6794 6179 1531 522 219 64 43 12 31

100 37 23.3 17.5 15.9 3.9 1.3 0.6 0.2 0.1 0.1 0.1

31738 12291 8011 4757 4962 891 400 144 63 37 102 79

Tons Tons Tons Tons Tons Tons Tons Tons Tons Tons Tons Tons

1222 1166 1129 1428 1245 1718 1305 1521 1016 1162 304 392

56 52 108 66 27 216 144 2

54 52 109 60 23

66 89 35 46 69 363 120 6 4 3 2 8 12 1 13

100 5 7.3 9.8 18.4 3.9 1.3 29.2 1.1 4.1 0.1 0.2 2

19 47 37 26 8 25 -2 20 13 14 -12 16 28

211 39

220

-77

7 44

-6

30 9

In Table 10, the exporter can immediately see in the title that Peru ranks 6 in world exports and its exports represent 4.61% of world exports for the product 080510 Avocados, fresh or dried. In the first line of the table, the world imports from Peru of Avocados amounted to over US$ 38 million in 2006. This number is, quite clearly, also the total exports from Peru of that product. Spain and the Netherlands , are Perus major trading partners, consuming 60.3% of Perus exports of th th Avocados. They are also respectively the 6 and 4 largest importers of avocados in the world. We also rd notice the significant increase in United Kingdom imports from Peru (3 major trading partner) by soaring 66% pear year in terms of value over the five-year period from 2002-2006 and 46% in the last period 20052006. We also see that Europe absorbs around 95.3% of Peruvian exports in value in 2006. By contrast, the United States of America (USA) absorbs only 0.6% of Perus avocadoes in value terms while USA is the largest import market in the world for avocados with 29.2% share of world imports. Peruvian exporters of Avocados are mainly focused on European markets. This could point towards an interesting opportunity, but further research is required in order to validate this hypothesis. We further notice that Canada is becoming a promising target market for Perus exports. Imports of Avocados from Peru show positive trends in value over the 2002-2006 period and in particular in 2006.

th

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Tariff equivalent ad valorem faced by Peru

Trade Indicators
Exported growth in value between 20022006, %, p.a. Exported growth in value between 20052006, %, p.a. Share of partner countries in world imports, % Total import growth in value of partner countries between 2002-2006, %, p.a. Trade balance 2006 in USD thousand Exported growth in quantity between 2002-2006, %, p.a. Ranking of partner countries in world imports Exported quantity 2006

Share in Peru's exports, %

Quantity unit

ITCS MARKET ANALYSIS AND RESEARCH TRADE MAP USER GUIDE

Table 11: Explanatory Notes for Table 10

Title of the column Exported value 2006, USD thousand Trade balance 2006 in USD thousand Share in Peru's exports, % Exported quantity 2006 Quantity unit Unit value, (USD/unit) Definition Value imported (exported) in 2006 in current US$ thousand as reported by countries to the COMTRADE database or as calculated with mirror statistics. Exports minus imports for that particular HS/NTL code. This column indicates whether the country is a net importer or exporter. Share of partner countries in the exports of the country under review Quantity exported in 2006. Where mirror statistics are used, quantity may differ across reporting countries. The unit in which quantities are reported. Value in USD divided per quantity. This indicator can be used as a proxy for price. Does not take into account issues such as differences in product qualities, seasonal prices, currency fluctuations etc.. Annual growth rate of export value over the 5-year period. This indicator is calculated using the least squares method. If a country does not report trade data in any of the years being examined, the calculation is based on mirror statistics. No trend is calculated in cases where the reporting country data is not available for at least a four-year period. Annual growth rate of exports in quantity over the 5-year period. This indicator is calculated using the least squares method. If a country does not report trade data in any of the years being examined, the calculation is based on mirror statistics. No trend is calculated in cases where the reporting country data is not available for at least a four-year period. This growth rate is a good complement to the 5-year trend, indicating whether growth trends have been stable or volatile over the 5 years and showing the country performance over the most recent 12 month period available. This indicates the world ranking of the partner country as an importer in 2006. This indicates what percentage of world imports the partner country accounts for This indicates how much the partner countrys imports from the world have grown for the selected product. This indicator is calculated on data as reported by the importing country. This, combined with the indicator on export growth calculated above, allows the analyst to see how the market share of the country under review has changed. The effective level of protection faced by the exporter. By clicking on the link, the user can also see the tariffs applied by the partner to competing countries. This data is extracted from ITCs Market Access Map tool, www.macmap.org An exporter can use this module to scan the world for the best market access conditions offered to him/her by all possible importing countries.

Exported growth in value between 2002-2006, %, p.a.

Exported growth in quantity between 20022006, %, p.a.

Exported growth in value between 2005-2006, %, p.a. Ranking of partner countries in world imports Share of partner countries in world imports, % Total import growth in value of partner countries between 2002-2006, %, p.a.

Tariff equivalent valorem faced by exporting country

ad the

Using Times Series in the navigation bar, we can see in the table below that Peru has constantly increased the quantity it exports to European countries and had a 12 fold increase in the value of its exports of avocados over the period 2001-2006.

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Table 12: List of importing markets for a product exported by Peru Product: 080440 Avocados, fresh or dried

Graph approach: By clicking on the Graph, you can obtain the figures in bar chart that can help you refine the analysis (see 2.8 Graph)

Graph 2: Bar Chart on Exported Value. List of importing markets for a product exported by Peru
Product: 080440 Avocados, fresh or dried

By clicking on the box on the upper left-hand side, you can select different kinds of graph. For instance the Bubble graph for prospect market diversification. The graph below shows that the Perus exports of avocados are not geographically diversified, as there are few importing countries. Spain represents almost 40% and three other countries represent more than 15%. The size of the bubble indicates the size of the markets. We can also notice that Peru is winning market share in its largest importing partners, which also present high growth rate-. The most salient of these

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importing markets are the United Kingdom, the Netherlands and Spain. The United States buys few avocados from Peru. Graph: 3 Bubble graph of prospects for market diversification for a product exported by Peru in 2006 Product: 080510 Avocados, fresh or dried

Note: the graph above is only available if you select trade indicators in the selection menu.

By placing the mouse pointer over the bubble you will get more detailed information and by clicking on the bubble you will obtain the list of suppliers to that market.

3.4 - Identif y and anal yse the worlds leading importers

The Peruvian exporter can also use Trade Map to identify the situation of the world market for avocados and Perus position within that market. In order to do so, he/she has to select the different options in the navigation menu as showed in the screen below:

World

Imports

Trade Indicators

By Country

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Table 13: List of importers for a selected product in 2006 Product: 080510 Avocados, fresh or dried

The world aggregation represents the sum of reporting and non-reporting countries The data in this colour represents mirror figures based on trading partner data One of the key features of Trade Map is the World Total estimation, the first line of Table 13, which is the sum of imports from reporting and non-reporting countries for 080440 Fresh or Dried Avocados (abbreviated as Avocados below). This number gives an overall value for the world market for the product. Table 10 shows that the world import market for Avocados reached a value of US$ 960 million in 2006. Over the last five years (2002-2006), we notice an increase in value of the world market of 19% p.a. and an annual increase in quantity of 13%. The difference between those two average growth rates indicates upward pressure on the unit value of Avocados. Though not strictly a price, unit value can be used as a proxy to indicate a general increase in the price level in US dollars. However, the fact that the annual increase in value was 3% in USD over the 2005-2006 period calls for closer examination of the time series data, to understand what is happening in the market. We can see also that the market is highly concentrated, with two markets representing more than 85% of total imports. Europe buys 53% of total imports and North America (USA + Canada) buys 33%. The next biggest market is Japan with 6.5% of the world demand. This table also shows that demand for avocados in Spain and Canada has been very strong, with an increase in market size of 47% and 25% per year respectively between 2002 and 2006. We can also see that Spain has a positive trade balance, which means that they export more avocados than they import.

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3.5 - Anal yze the performance of competing suppliers

After identifying which are the most interesting potential markets, the next logical step for the exporter is to gather more information on those countries that supply Avocados to these potential markets. As an exporter from Peru, you may want to identify the main competitors youll face when entering the potential target markets. You can obtain the list of supplying markets of an importing country by clicking on the country name highlighted in blue in the list of importers for the selected product. For instance, the United States could be a market worth examining as it had an annual growth in value between 2002 and 2006 of 20% but contracted in value over the 2005-2006 period by 27% (i.e. growth was 27%). Click on United States in the table below in order to see which are the countries supplying avocados to the US.
Trade Indicators Value Trade imported balance in in 2006, in 2006 in USD USD thousand thousand 959657 279772 176412 93861 70185 63116 47675 39229 37560 26332 15137 12977 12010 10090 -117496 -262717 -139499 -89162 -8613 -63116 48814 -29707 -37560 -24060 -14680 -12822 -3875 -10071 Unit value (USD/ unit) 1615 1452 1851 1561 1838 2174 1686 2050 1717 2814 2161 1992 2049 2460 Annual growth in value between 20022006, % 19 20 8 26 37 22 47 14 25 28 29 15 -2 13 Annual growth in quantity between 20022006, % 13 17 1 25 28 18 42 4 9 21 17 9 -9 3 Annual growth in Share in value world between imports, 2005% 2006, % -3 -27 4 18 9 5 68 18 23 10 24 -23 -1 6 100 29.15 18.38 9.78 7.31 6.58 4.97 4.09 3.91 2.74 1.58 1.35 1.25 1.05

Importers

Quantity imported in 2006

Quantity Unit

World United States of America France United Kingdom Netherlands Japan Spain Germany Canada Australia Denmark Sweden Belgium Switzerland

594266 192725 95286 60123 38190 29032 28275 19137 21876 9359 7006 6516 5860 4102

Tons Tons Tons Tons Tons Tons Tons Tons Tons Tons Tons Tons Tons Tons

The table also shows that this country is already importing from Peru, Chile and Dominican Republic, which could make it easier for newcomers from these countries to enter the market. Once the Peruvian exporter knows that neighbouring countries are competitors, he/she could research what advantages those competitors may have, e.g. logistics, distribution channels, trade agreements, political ties, etc.

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Table 14: List of supplying markets for the product imported by United States in 2006 Product: 080510 Avocados, fresh or dried

Share in USAs imports, %

Exporters

World Mexico Chile Dominican Republic Peru France Israel Kenya New Zealand South Africa Canada

279772 -262717

100

192725 108975 71340 12398 12

Tons Tons Tons Tons Tons

1452 1742 1044 1244 2000

189839 -188549 67.9 74490 15418 24 -74389 26.6 -15418 -24 5.5 0

Imported growth in value between 20022006, %, p.a. Imported growth in quantity between 20022006, %, p.a. Imported growth in value between 20052006, %, p.a. Ranking of partner countries in world exports Share of partner countries in world exports, % Total export growth in value of partner countries between 2002-2006, %, p.a. 20 57 -5 7 17 51 1 1 -27 -20 -42 -21 1 3 12 6 7 5 9 8 10 100 39.1 11.4 2 4.6 4 4 2 3 2 20 34 8 8 56 9 5 9 25 5

Imported quantity 2006

Trade balance 2006 in USD thousand

Unit value, (USD/unit)

Imported value 2006, USD thousand

10926

In t e r n a t i o n a l T r a d e C e n t r e ( I T C )

Tariff equivalent ad valorem applied by USA 0 7.7 0 0 8.4 0 0 8.4 0 0

Trade Indicators

Quantity unit

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In this case, Mexico, Chile and Dominican Republic are the only suppliers of the US market. Mexico is the main supplier and accounts for 67.93% of the US imports of Avocado. Chile has a 26.6% share in US imports of Avocado and is located as far away from the market as Peru. However Chilean exports of avocados to the US showed declining growth rates over the 5 year period with a 5% reduction in value over the period (2001-2006) and 42% over the last year (2005-2006). It could be interesting to analyze why the US, which is the largest importer of avocados has only three suppliers. This could also mean that there is an export potential for a new trading partner. By clicking on Graph, then choosing Curve on imported value, we can see that Mexico is the only exporting country that significantly increased its exports between 2001 and 2007. Graph 4: List of supplying markets for a product imported by the USA

Mexico

Chile Dominican Republic

3 . 6 - Ex a m i ne t a r i f f s i n p ot e nt i a l n ew ma r k e t s
Trade Map also contains information on Ad Valorem Equivalent (AVE) tariffs applied by the country under review (last column on the right in the table above). These data are extracted from ITCs Market Access Map tool (www.macmap.org). This information allows the analyst to gauge market access conditions for any potential market and also to compare the market access conditions faced by Peru relative to its competitors. Definition of Ad Valorem Equivalent (AVE) tariff: Import tariffs can take a variety of forms- Most often they are expressed in ad valorem terms, i.e. a percentage of the value of the product however often they are expressed in specific terms e.g. $2 per kg or 4,000 Yen per pair of shoes or $0.88/kg on the sugar content of a product. This can make it difficult to compare tariffs. Hence, it is necessary to convert all tariffs to a comparable base i.e. express the effect of the tariff as a percentage of the unit value of the product More specifically: An Ad Valorem (AV) tariff is a tariff levied on the unit value of the product, and it is expressed as a percentage of that value. For example, a tariff of 15% will levy a duty of 15 percent of the value of the merchandise. Specific tariffs are tariffs levied on the volume or the number of units of the product, and are expressed as a monetary amount per unit of the import e.g. $3 per kg. Compound tariffs are a combination of ad valorem and specific rates, such as 14% plus $3 per kg.

All of these tariffs are converted to Ad-Valorem Equivalents, AVEs, using a standard methodology refined by ITC. It is therefore possible to calculate an AVE tariff at 2, 4 and 6-digits. (To read a more detailed explanation of how AVE tariffs are calculated in Market Access Map go to http://www.macmap.org/Reference.Methodology.aspx) AVEs presented in Trade Map are available at either the 2-digit, 4-digit or 6-digit level of the Harmonized System (HS). Tariffs at the national tariff line are also available in Trade Map but you first need to select an

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importing country product at the tariff line level and then click on the Market Access tab available on the top of the navigation menu. (see Annex IV) Tariff information at the 6-digit level allows the user to get a quick overview of the average level of protection applied to a group of products in order to quickly screen and rank markets. According to the last column on table 14, the Peruvian exporter faces an AVE of 0% on Avocados (HS 080440), the same as Mexico and the Dominican Republic, but much lower than that faced by Chile, which is 8.4%. To further screen the market the exporter would need to examine other market access measures possibly applied by US to Peruvian avocados such as sanitary and phytosanitary measures This information is not yet available in our databases but links to web sites offering information about non-tariff measures are available in the Useful Links section of Market Access Map at http://www.macmap.org/Useful.Links.aspx. In the table above, by clicking on the value highlighted in blue 0 corresponding to Peru in the column Tariff equivalent ad valorem applied by USA, we can find all the tariffs that importing countries apply to the product HS 080440- Avocados originating from Peru. (See table 15)

Ad valorem equivalent

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Table 15: Tariffs that different importing countries apply to the product (080440) Avocados, fresh or dried originating from Peru.

Compare Tariffs with Market Access Map: The second module of Market Access Map, Compare Tariffs has been designed to assist exporters, importers and trade support institutions. An exporter can use this module to scan the world for the best market access conditions offered to him/her by all possible importing countries. An importer can use the module to get a birds eye view of what tariff rates his/her country applies to all possible exporting countries in order to minimize tariffs on imported materials. A trade support institution (TSI) can use the Compare Tariffs module to identify products and markets that offer good prospects for trade promotion. It is important to note that the tariffs presented in the Compare Tariffs module are shown at either the 2-digit, 4-digit or 6-digit level of the Harmonized System (HS). They are not shown at the most detailed product level, the national tariff line, given this level does not allow for international comparison. In order to get more detailed information on tariffs in the selected country at the tariff line level, the exporter has to select the tab Quick Search in Market Access Map to find out about the type of regime, certification and rules of origin. We invite you to read the first two chapters of the Market Access Map User Guide in order to navigate the tool easily.

3 . 7 - I n ve s t i g a t e p o t e n t i a l m a r k e t s a t t h e N a t i o n a l Ta r i f f L i n e L e ve l 5
3.7.1 Identify product differentiation at the tariff line level
Trade Map also allows the user to analyze the HS-6 information at the more detailed national tariff line 6 level . The Tariff line level refers to more detailed classification codes that each country uses to classify traded products for the purpose of levying duties and otherwise to more precisely identify products. It usually

The trade data at the tariff line level appears through the Times Series approach. If you click on +in Trade Indicators, you get data at the tariff line level. 6 Sometimes the source of data published at tariff line level and source of data provided by UNSD at 6-digit level is not the same (see Annex 1)

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is a further break down of the product group covered at the HS 6 level. (Check online for the reporting and non-reporting countries at http://www.trademap.org/stDataAvailability.aspx) For instance, the HS 6 digit code 080440-Avocados, fresh or dried includes different types of avocados in the same group. There are three US national tariff line codes that fit within this 6-digit clusterthat distinguish between different varieties. For example, Hass avocado is medium-sized fruit, weighing 200-300 g. The skin turns a dark, purplish-black when ripe, while the skin of "green" cultivars remains green. Note that the third code finishes with 00 and contains no trade data in the past 5 years. -0804400010 Hass avocados and avocados determined by the secretary of USDA to be hass-like -0804400090 Avocados, fresh or dried, other -0804400000 Avocados, fresh or dried This information allows the user to refine his research and target specific products. There are different ways to access data at the tariff line level. You can use either the Advanced Search for a product (see 2.2.1.2 Advanced Product Search) or the Navigation Menu as in the example below. First, you have to click on the drop down menu (red square). If different specific tariff line code appears, it means that trade data at tariff line level is available for the country under review.

6-digit level USA National Tariff level

Then you click on By product in Other Criteria (red square below) to obtain the different products at the tariff line level.

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For some countries this information is also available on a quarterly or monthly basis. Click on Yearly Data to reveal the drop-down menu showing also options to get Quarterly and Monthly data (red square above).

Table 16: Annual imported value of Avocados in the US

Imported Value in 2003,US Dollar thousand 145806 10926 0 Imported Value in 2004,US Dollar thousand 180009 8828 0 Imported Value in 2005,US Dollar thousand Imported Value in 2006,US Dollar thousand 266602 13170 0 Imported Value in 2007,US Dollar thousand 600163 13154 0

Code

Product label

0804400010 0804400090 0804400000

Hass avocados/hass-like deter by sec usda frh/drid Avocados, fresh or dried, other Avocados, fresh or dried

369624 16132 0

For a Peruvian exporter, this more detailed data is very useful, because it allows the exporter to focus on the specific variety of avocados that the US imports. Here, we can see that imports of the variety of avocado Hass have increased between 2003 and 2007, albeit with a decrease in 2006. You may also want to click on Other Criteria, to obtain the data in terms of Values, Quantities, Growth in value, Growth in quantity, Share in value in %, Unit Value and Growth on unit value.

3.7.2 Investigate competing suppliers to a potential market at the tariff line level.
As we did before to find out who were the suppliers of avocados in the United States (4.3 Analyze the performance of competitors), by clicking on the product 0804400010- Hass avocados and hass-like we can see who are the main competitors for the supply of this particular variety of avocados to the US market. We can see that Peru doesnt export this variety of avocado to the US market. Most of the trading partners of the US have constantly increased their exports of 0804400010- Hass avocados and hass-like between 2003 and 2007.

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Table 17: List of products imported by the US at the tariff line level
Exporters World Mexico Chile New Zealand Dominican Republic Ecuador Brazil Imported value in 2003 145806 51752 89928 180 3926 20 0 Imported value in 2004 180009 63898 106521 315 9276 0 0 Imported value in 2005 369624 238029 127722 149 3611 0 114 Imported value in 2006 266602 189731 74255 0 2616 0 0 Imported value in 2007 600163 463695 126063 7079 3326 0 0

3.7.3 Examine tariffs in potential new markets at the tariff line level
In order to get the tariff applied to a product at the tariff line level, you just have to click on the icon Market Access available at the top of the navigation menu.

By clicking on Market Access, we will enter the online database Market Access Map. In this specific case, we want to identify what is the tariff applied by the US to any exporting countries for the product 0804400010- Hass avocados and hass-like. Those different criteria are automatically transferred to the following boxes: Select importing country (United States), National Tariff Line Code and Select a product (080440). We notice that the HS code automatically displayed in the box Select a Product just has 6digits instead of the 10-digit of the HS code 0804400010- Hass avocados and hass-like. This can happen when the tariff line codes are either more or less detailed than the codes used for trade data (in the case of the US the tariffs are applied at codes only 8 digits long, whereas trade data is segmented to 10 digitsl) This does not necessarily mean that the codes used for trade data are inconsistent with those for tariff data. Where tariff codes are shorter than the trade data, the user should infer that products with more detailed descriptions and codes in Trade Map data which nevertheless carry the same code up to the level at which the tariff is applied, simply face the same tariff. Conversely if the codes at which tariffs are applied are more detailed than the trade data shown in Trade Map, the user should look up the tariff corresponding more precisely to his / her product.

In t e r n a t i o n a l T r a d e C e n t r e ( I T C )

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In order to select the corresponding HS code at the tariff line level, you have to click on the drop down menu. The different HS codes and labels at the tariff line level will appear. In the case of the US, there is only one tariff line 08044000. Then click on it in order to select it and proceed. The table below shows the different trade regimes that the United States of America applies to imports of the product 08044000 Fresh or dried avocado. In the case of Peru, the Andean act would be the most favourable trade regime with a 0% Ad Valorem tariff.

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3.7.4 Examine seasonal variation of the product at the tariff line level
An interesting feature of Trade Map is to have the trade data at the national tariff line level on a quarterly and monthly basis. In the Time Series table, you can click on By product in Other Criteria (red square below) to obtain the different products at the tariff line level and then click on Quarterly and Monthly data.

Table 18: Quarterly imported value of Oranges in the US

Table 18 shows the list of products at the national tariff line level imported by the United States on a quarterly basis over the period 2005-2008. For a Peruvian exporter, this more detailed data is very useful, because it allows the exporter to identify the demand fluctuation by quarter. We can identify that the highest demand for 0804400010- Hass avocados and hass-like has been every fourth quarter over the last 2 years corresponding to the winter season in the United States.

Table 19: Quarterly imported value of Avocados in the US

Imported Value Code Product label
2005 Q1 2005 Q2 2005 Q2 2005 Q3 2005 Q4 2006 Q1 2006 Q2 2006 Q3 2006 Q4 2007 Q1 2007 Q2 2007 Q3 2007 Q4 2008 Q1

Hass avocados/hass 85192 60865 60865 103960 119608 70314 42523 46345 107420 145183 142036 136389 176554 176504 0804400010 like deter by sec usda frh/drid Avocados, 0804400090 fresh or dried, other 0804400000 Avocados, fresh or dried
5995 254 254 1512 8371 5665 442 1708 5355 7469 497 1205 3984 8319

In t e r n a t i o n a l T r a d e C e n t r e ( I T C )

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We can also examine imported value on a monthly basis and compare seasonal variation between competitors. Just click on 0804400010 - Hass avocados and hass-like to get the list of supplying countries to the US.

Click on the HS Code

Table 20: Quarterly imported value of Avocados from countries supplying to the US, at the tariff line level

Click on Monthly data Then click on Monthly data on Other criteria. You click on the icon below) to see the previous quarter.

To see previous quarter (see the red square in the table

An easy way to analyze monthly trade statistics is to export them to Excel (click on the Excel icon) and put all the monthly data available in one excel table. You can then build a line graph such as below. In the period 2005-2007, we can observe that Chileans exports of avocados to the US were very low between April (M-04) and July (M-07), and high between August and February. In the case of Mexican exports, we cannot identify any clear seasonal fluctuations. This low season for Chile could be an opportunity for Peruvian exporters provided they are able to supply this variety of avocado.

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Graph 5: List of supplying markets for a product imported by the US

List of supplying markets for a product imported by the US
60000
Imported Value in USD, thousand

50000 40000 30000 20000 10000 0

Dominican Republic Mexico Chile

Another interesting indicator to analyse is the unit price. Just click on Values and then select Unit Value. In the table below we can compare the unit value of the export product in US dollars per kilo between competitors on a quarterly basis. It is possible to extend the time period to get all the quarters available in Trade Map.

Then to facilitate the analysis, it is possible export the data to Excel (click on the

2005-M01 2005-M02 2005-M03 2005-M04 2005-M05 2005-M06 2005-M07 2005-M08 2005-M09 2005-M10 2005-M11 2005-M12 2006-M01 2006-M02 2006-M03 2006-M04 2006-M05 2006-M06 2006-M07 2006-M08 2006-M09 2006-M10 2006-M11 2006-M12 2007-M01 2007-M02 2007-M03 2007-M04 2007-M05 2007-M06 2007-M07 2007-M08 2007-M09 2007-M10 2007-M11 2007-M12 2008-M01 2008-M02 2008-M03
Month

Click to extend the period displayed Excel icon).

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In the period 2005-2007, we can observe that the unit price of Mexican avocados is at least 50% more expensive than its competitors. The unit value difference increased in 2007 and was almost the double of its competitors. We can also notice that the Mexican unit price is the lowest during the third quarter. Taking into account the geographic proximity of Mexico, this unit value difference requires a deeper analysis from the Peruvian exporter. Graph 6: Unit value per supplying countries for a product imported by the US on a quarterly basis
Unit value per supplying countries for a product im ported by the US on a quarterly basis

Unit Value (US Dollar/Kilogram)

3 2.5 2 1.5 1 0.5 0 2005- 2005- 2005- 2005- 2006- 2006- 2006- 2006- 2007- 2007- 2007- 2007- 2008Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Quarter Mexico Chile

A V I E T N AM E S E E X P O R T E R O F AP P A R E L I S L O O K I N G TO D IV ER SI FY H IS /H ER E XP O RT S T O A G I VE N
M AR K E T

An entrepreneur based in Vietnam has been exporting apparel to France for the past few years. Wishing to improve his/her performance, he/she may want to scan the French market to find opportunities for differentiating his/her production. Trade Map could be used first to monitor the current situation of Vietnamese exports on the French market compared to its competitors and then to look for similar products with growing demand in the same export market.

3.8 - Assess the performance of the products currentl y e x p or t e d t o t he m a r k e t

As a first step in the process of outlining an effective export strategy, the Vietnamese exporter of HS 620463 -not knitted womens/girls trousers and shorts of synthetic fibres may need to analyze his/her current situation in the French market. By selecting the product HS 620463, France and Import on the Selection Menu, he/she can obtain the table below, which describes the French market for the product under review.

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Table 21: List of supplying markets for a product imported by France in 2006 Product: 620463 Womens/girls trousers and shorts, of synthetic fibres, not knitted

In t e r n a t i o n a l T r a d e C e n t r e ( I T C )

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Exporters

World China Morocco Romania Tunisia Viet Nam Thailand Bulgaria Indonesia Turkey Italy Banglades h Cambodia Belgium

323,359 66,597 35,044 22,548 20,762 19,949 18,283 15,152 13,188 12,455 9,823 8,661 7,640 6,282

-205,565 -66,576 -34,809 -22,520 -20,107 -19,949 -18,242 -14,163 -13,188 -12,117 5,586 -8,661 -7,640 13,875

100

10,42 0

Tons Tons Tons Tons Tons Tons Tons Tons Tons Tons Tons Tons Tons Tons

31,033 31,033 31,040 31,015 31,034 31,025 31,041 31,049 31,031 31,060 30,987 31,043 31,057 31,099

20.6 2,146 10.8 1,129 7 6.4 6.2 5.7 4.7 4.1 3.9 3 2.7 2.4 1.9 727 669 643 589 488 425 401 317 279 246 202

The table indicates that Vietnam ranks 5th with 6.2% share of the French market, it experiences a positive trend. Over the last 5 years Vietnamese exports increased in value and in quantity by 55% and 60% respectively, and in the last year, while the French overall import trend in value decreased by 3%, they achieved an extremely high growth rate (+149%). In addition we can also see that Vietnam is faring better than all its competitors. China, the largest exporter to France for this product is also growing quickly while most competitors are losing market share.

3 . 9 - I d e n t i f y s i m i l a r p r o d u c t s i m p o r t e d b y t h e g i ve n m a r k e t
This favourable situation may lead the Vietnamese exporter to consider increasing sales by expanding the portfolio of products. To do so, that exporter should examine opportunities for product diversification in order to benefit from this promising trend for the product under review. He/she needs then to know what complementary products French imports and among them, what related products are experiencing growth. By clicking on By Product in the the Other Criteria bar, he/she can generate the list of potential products for diversification at the tariff line level for the corresponding 6-digit product. Trade Map will provide the exporter with a list of all products belonging to the same product cluster imported by France starting with HS 620463. (See table below). The trade data will be displayed for the most recent years available: in this case they cover the period 2003-2007.

47

In t e r n a t i o n a l T r a d e C e n t r e ( I T C )

Imported growth in value between 2002-2006, %, p.a. Imported growth in quantity between 20022006, %, p.a. Imported growth in value between 2005-2006, %, p.a. Ranking of partner countries in world exports Share of partner countries in world exports, % Total export growth in value of partner countries between 20022006, %, p.a. 3 27 1 7 -3 55 -1 2 4 -8 0 0 -4 -10 -3 21 -11 -3 -13 60 -2 -4 9 -17 9 -11 -4 -10 -3 -12 7 -7 5 149 24 14 13 -12 -21 -2 -38 -35 1 14 7 22 6 25 20 10 4 11 8 15 5 100 19.6 1.8 4.2 1.3 4.6 1 1.4 2.6 4.8 2.4 3.3 1.7 4.7 1 14 -14 -1 -14 33 13 0 4 -5 -6 3 13 -8

Tariff AVE applied by France

Trade Indicators Imported quantity 2006 Trade balance 2006 in USD thousand

Unit value, (USD/unit)

Imported value 2006, USD thousand

Share in France's imports, %

Quantity unit

ITCS MARKET ANALYSIS AND RESEARCH TRADE MAP USER GUIDE

Click on by product to get the data at the tariff line level

Table 22: List of products at 8-digit level imported by France in 2006

Code

Product label

Imported Value in 2003,US Dollar thousand

Imported Value in 2004,US Dollar thousand

Imported Value in 2005,US Dollar thousand

Imported Value in 2006,US Dollar thousand

Imported Value in 2007,US Dollar thousand

WOMEN''S OR GIRLS'' TROUSERS AND BREECHES, OF SYNTHETIC FIBRES (NOT OF CUT CORDUROY, OF DENIM OR KNITTED OR 62046318 CROCHETED AND EXCL. INDUSTRIAL AND OCCUPATIONAL CLOTHING, BIB AND BRACE OVERALLS, BRIEFS AND TRACKSUIT BOTTOMS) WOMEN''S OR GIRLS'' SHORTS OF SYNTHETIC

292781

309212

266400

254002

253431

62046390 FIBRES (EXCL. KNITTED OR CROCHETED,

PANTIES AND SWIMWEAR) WOMEN''S OR GIRLS'' TROUSERS AND BREECHES, OF SYNTHETIC FIBRES, 62046311 INDUSTRIAL AND OCCUPATIONAL (EXCL. KNITTED OR CROCHETED AND BIB AND BRACE OVERALLS) WOMEN''S OR GIRLS'' BIB AND BRACE OVERALLS, OF SYNTHETIC FIBRES (EXCL. AND INDUSTRIAL) WOMEN''S OR GIRLS'' BIB AND BRACE OVERALLS, OF SYNTHETIC FIBRES, KNITTED OR CROCHETED)

53769

65306

64169

70842

80033

2843

3689

3828

4909

5363

62046339 KNITTED OR CROCHETED, OCCUPATIONAL

1569

848

743

907

652

62046331 INDUSTRIAL AND OCCUPATIONAL (EXCL.

123

28

56

39

99

The exporter may want also to investigate trends of imported values and quantities of this specific market. He/she just needs to click on Other Criteria in the navigation bar to complement with annual growth rates in value and quantity. The information is also available in the local currency ().

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Click on values to get more about the trends at the tariff line level

Table 23: Importations growth in value on a yearly basis

Imported Value in 2007,US Dollar thousand 253431 80033 5363 652 99 importations growth in value between 2003-2004, % importations growth in value between 2004-2005, % importations growth in value between 2005-2006, % -4.65 importations growth in value between 2006-2007, % -0.22 12.97 9.25 -28.11 153.85

Code

Product label

62046318

WOMEN''S OR GIRLS'' TROUSERS AND BREECHES, OF SYNTHETIC FIBRES (NOT OF CUT CORDUROY, OF DENIM OR KNITTED OR CROCHETED AND EXCL. INDUSTRIAL AND OCCUPATIONAL CLOTHING, BIB AND BRACE OVERALLS, BRIEFS AND TRACKSUIT BOTTOMS) WOMEN''S OR GIRLS'' SHORTS OF SYNTHETIC FIBRES (EXCL. KNITTED OR CROCHETED, PANTIES AND SWIMWEAR) WOMEN''S OR GIRLS'' TROUSERS AND BREECHES, OF SYNTHETIC FIBRES, INDUSTRIAL AND OCCUPATIONAL (EXCL. KNITTED OR CROCHETED AND BIB AND BRACE OVERALLS) WOMEN''S OR GIRLS'' BIB AND BRACE OVERALLS, OF SYNTHETIC FIBRES (EXCL. KNITTED OR CROCHETED, OCCUPATIONAL AND INDUSTRIAL) WOMEN''S OR GIRLS'' BIB AND BRACE OVERALLS, OF SYNTHETIC FIBRES, INDUSTRIAL AND OCCUPATIONAL (EXCL. KNITTED OR CROCHETED)

5.61

-13.85

62046390

21.46

-1.74

10.4

62046311

29.76

3.77

28.24

62046339

-45.95

-12.38

22.07

62046331

-77.24

100

-30.36

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CHAPTER 4 - COUNTRY ANALYSIS: ANALYSING A COUNTRYS TRADE PORTFOLIO

Trade Map data can be analysed also by country. Analysing by country allows users to assess the national trade performance of a specific country or group of countries. It can also give an overview of national competitiveness vis--vis competitors. Trade Map data could serve as inputs for national export strategies, industry policy or trade support institutional planning. This section describes country analysis in terms of answering a series of specific questions from the perspective of Ministries, Research Institutes and Trade Support Institutions (TSIs). Typical question could be: - What are the major trading partners of a country? - What are the top exported and imported products of a country? - What are the most dynamics export sectors of a country?

A G O V E R N M E N T A N AL Y S T F R O M M AD A G A S C A R
W I S H E S T O I D E N T I F Y N AT I O N AL T R A D E P E R F O R M AN C E B Y S E C T O R

4 . 1 - Ga uge n a t i o n a l t r a de p e r f or ma nc e b y s e c t o r
The government of Madagascar may wish to investigate how the countrys exports compete in the world market in order to best prioritize efforts to attract foreign or domestic investment and/or to promote trade.

4.1.1 Analyse the export portfolio

By selecting Madagascar as the country in the Selection Menu and indicating Export then clicking on Trade Indicators (above), Trade Map generates a list of Madagascars exports sectors (at the 2-digit level of the Harmonized System) sorted by value.
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Table 24: List of products at 2-digit level exported by Madagascar in 2006 (extract)

Trade Indicators Annual Annual Annual Annual growth growth Exported Trade growth growth in of world Share in value balance in value in value Ranking quantity imports world 2006, 2006 in between between in world between between exports, USD USD 20022005exports 20022002% thousand thousand 2006, %, 2006, %, 2006, %, 2006, %, p.a. p.a. p.a. p.a. 1,008,158 -752,105 7 21 17 0.01 141

Code

Product label

TOTAL All products Articles of apparel, accessories, knit or crochet Articles of apparel, accessories, not knit or crochet Fish, crustaceans, molluscs, aquatic invertebrates nes Coffee, tea, mate and spices Mineral fuels, oils, distillation products, etc Meat, fish and seafood food preparations nes Pearls, precious stones, metals, coins, etc Printed books, newspapers,

61

183,443

181,530

34

17

10

0.13

55

62

160,651

155,226

23

0.1

63

03

139,150

106,705

-1

22

10

0.22

58

09

93,214

92,324

-24

30

16

0.42

38

27

80,427

-248,761

24

86

31

122

16

45,119

44,339

119

13

0.15

56

71

28,810

28,304

25

51

15

0.01

104

49

28,763

3,353

160

115

0.08

60

51

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pictures etc Wood and articles of wood, wood charcoal Cotton Edible fruit, nuts, peel of citrus fruit, melons Cocoa and cocoa preparations

44

20,921

17,948

45

-45

12

0.02

92

52

16,393

-61,115

17

17

0.03

90

08

13,826

13,466

-23

13

0.03

103

18

13,783

12,635

237

11

0.06

62

From the first line of this table the analyst can see that overall, Madagascar ranks 141 among the worlds exporters in goods, with a 7% p.a. growth in exports over the 2002-2006 period (compared with the average annual world import growth of 17% over the same period) and 21% p.a. over the 2005-2006 period. This would suggest that Madagascar over the 5 year period, has reduced its share in world trade overall. Looking at exports at the HS 2-digit level can serve to highlight the general performance of different sectors and possibly point to sectors interesting from the perspective of attracting foreign or domestic investment. Sectors such as "HS 61-Articles of apparel, accessories, knit or crochet and "HS 62-Articles of apparel, accessories, not knit or crochet are experiencing high growth in value (34% and 23% p.a. respectively), while world exports of these products are only growing at 10% and 9% p.a. respectively. These may be attractive sectors for investment.

Table 25: Explanatory Notes for Table 29

HS rev. 1 HS product code for product imported in 2006. HS. rev. 1 refers to Revision One of the Harmonized System (HS) nomenclature 1996. This distinguishes the codes from other revisions of the HS. BOP stands for the Extended Balance of Payments Services Classification (see Annex II: EBOPS) Abbreviated product description respectively corresponding to the HS nomenclatures. Value of 2006 exports in the selected product. These figures are as reported by countries to the COMTRADE database or as calculated with mirror statistics. Defined as exports minus imports for that particular HS/NTL code. This column indicates whether the country is a net importer or net exporter. Annual growth in the value of exports. This trend is calculated by the least squares method. If a country did not report trade data in 2006, the trend calculation is based on mirror statistics. No trend is calculated in cases where the reporting country data is not available for at least a four-year period. Annual growth in the quantity of exports. This trend is calculated using the same method as the growth in value. This growth over the most recent 12 month period is a good complement to the 5-year trend, indicating whether growth trends have been stable or volatile over the 5 years and showing the country performance over the last year. This indicator is calculated based on Trade Maps world estimation, which includes reported and mirror data. The world ranking in 2006 of the selected country in world exports of the product under review.

Product Exported thousand value 2006, USD

Trade balance thousand

2006

in

USD

Annual growth in value between 2002-2006, %, p.a.

Annual growth in quantity between 2002-2006, %, p.a. Annual growth in value between 2005-2006, %, p.a.

Share in world exports, %: Ranking in world exports

4.1.2 Identifying the importing markets.

In order to obtain the countries importing from Madagascar, select By country in Other Criteria in the navigation menu. Trade Map generates a list of Madagascars importing partners, sorted by value. Click on By Country to get the list of importing countries of Madagascar

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Table 26: List of importing markets for a product exported by Madagascar in 2006
Product: TOTAL All products

Importers

Exported value 2006, USD thousand

Trade balance 2006 in USD thousand

Share in Madagascar's exports, %

Exported growth in value between 20022006, %, p.a. 7 4 0 37 15 22 7 14 49 22 -7

Exported growth in value between 20052006, %, p.a. 21 39 -18 92 12 82 91 101 -35 128 38

Ranking of partner countries in world imports

Share of partner countrie s in world imports, % 100

Total import growth in value of partner countries between 2002-2006, %, p.a. 17 15 13

World France United States of America Area Nes*7 Germany Italy United Kingdom Spain China Belgium Singapore

1,008,158 398,726 150,785 71,906 60,402 41,985 30,705 24,165 22,188 22,030 19,626

-752,105 165,884 88,275 -1,568 17,254 15,087 13,783 -5,375 -290,349 -8,321 13,354

100 39.5 15 7.1 6 4.2 3 2.4 2.2 2.2 1.9

7 2

4.3 15.7

3 8 5 13 4 9 16

7.5 3.6 5 2.7 6.5 2.9 2

16 15 15 18 28 16 20

Area Nes: Area No where Else Specified: In t e r n a t i o n a l T r a d e C e n t r e ( I T C )

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Tariff AVE faced by Madagascar

Trade Indicators

ITCS MARKET ANALYSIS AND RESEARCH TRADE MAP USER GUIDE

4.2 - Anal yse trends in a sub-sector (4-digit product groups)

Alternatively, the analyst may prefer to have a more in depth look at each of the sectors listed in Table 27. By clicking on the +, in the first column called HS4, we can see all the products at HS 4-digit level included in this product cluster listed by code (Table).

Click on the + to get the list of product at the HS 4-digit level include in the product cluster HS-61. cluster listed by code (Table).

Table 27: List of products at 4-digit level exported by Madagascar in 2006

Product: TOTAL All products

In t e r n a t i o n a l T r a d e C e n t r e ( I T C )

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Table 27: List of products at 4-digit level exported by Madagascar in 2006

Product: TOTAL All products
Trade Indicators Annual Annual Annual Annual growth growth Exported Trade growth growth in of world value balance in value in value quantity imports 2006, 2006 in between between between between USD USD 2002200520022002thousand thousand 2006, %, 2006, %, 2006, %, 2006, %, p.a. p.a. p.a. p.a. 1,008,158 -752,105 7 21 17

Code

Product label

Share in world export s, %

Ranking in world exports

TOTAL

All products Jerseys, pullovers, cardigans, etc, knitted or crocheted T-shirts, singlets and other vests, knitted or crocheted Garments, knitted crocheted, nes or

0.01

141

6110

24,253

24,160

23

-26

0.06

63

6109 6114 6104 6103 6105 .

20,036 15,341 13,747 4,537 3,917

19,515 15,328 13,539 4,417 3,849

32 45 9 33 147

39 54 64 46 124

-5 -17 32 32 395

14 21 10 8 10

0.07 0.42 0.1 0.07 0.06

65 34 56 55 62

Women's suits,dresses,skirt etc&short, knit/croch Men's suits,jackets,trousers etc&shorts, knit/croch Men's shirts, knitted or crocheted Not complete

For instance, among the products listed, HS-6105 Men's shirts, knitted or crocheted appears to be a promising product group as it has shown substantial growth over both 5 years and the most recent-12 month period (147% and 395% p.a.), while world imports have grown 17% p.a. from 2002-2006. Madagascars high rate of export growth could be explained by looking at quarterly data. The analyst can generate a graphical representation in the form of a bubble graph by clicking on bubble 8 graph at the top of the screen .

By default 20 products appear in the graph. It is possible to reduce this number to ease the interpretation of the graph. In t e r n a t i o n a l T r a d e C e n t r e ( I T C )

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Graph 7: Growth of national supply and international demand for export products of Madagascar in 2006, HS 4-digit level

Graph 7 presents Madagascars export performance for all the HS 4-digit product codes within the "HS 61Articles of apparel, accessories, knit or crochet. The chart shows the export value of each product (size of the bubbles), and compares Madagascars annual increase in world market share since 2002 (horizontal axis) with the annual growth of international demand between 2002-2006 (vertical axis). This chart is showing the export performance in dynamic terms (dynamic analysis). The annual increase in world market share represents the Annual growth in value between 2002-06 minus the Average Annual growth of world imports between 2002-06 of the product. For instance, for the product HS6114-Garments, knitted or crocheted, nes: Annual growth in value between 2002-06 minus average Annual growth of world imports between 2002-06 = Annual increase in world market share 45% 21% 24%

The chart also indicates the average nominal growth of the total exports of the world for the period 2002 to 2006 (red horizontal reference line), which was 17%. Moreover, the vertical line indicates the 0% growth of Madagascars world market share (red vertical reference line). It should be noted that the criterion for distinguishing growing and declining products in this chart is the annual average nominal growth rate of total world imports from 2002 to 2006, which was 17%. Products, whose world imports have grown below this rate (i.e. 17% annually), are classified as declining products, as their shares in world trade are declining, while products located in the upper quadrants are growing products, as they are growing faster than the world market.
In t e r n a t i o n a l T r a d e C e n t r e ( I T C )

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The vertical and horizontal axis are particularly interesting in terms of trade development, since they divide the chart into four quadrants with different characteristics: Winners in growing sectors, Winners in declining markets, Losers in growing sectors, Losers in declining sectors. Each of these is described briefly below. Winners in growing sectors- (Champions): The upper-right quadrant contains Winners in growing sectors. These are export products with a relative high-growth in the countrys product portfolio and a world demand above the world average rate. They comprise products, which are growing faster than world trade in general, and for which Madagascar has been able to outperform world market growth and has, consequently, increased its share in world exports, such as HS6114. Exporters of these products have proven their international competitiveness over the period. Trade promotion efforts for these products are unlikely to be controversial, as they are national successes. Promotional efforts in these products might consider broadening supply capacity. Losers in growing sectors - (Underachievers): Located in the upper-left quadrant, these are sectors for which Madagascar has lost world market share while the world market has grown. Careful examination by entrepreneurs and trade promoters can help determine how resources (if any) might be invested to better profit from a growing international demand. These products can alert policy makers to opportunities for trade promotion and other efforts. To better understand however how one might respond, it would be necessary to examine the data at the most detailed level to determine which products in particular that offer the best growth and check whether indeed Madagascar is exporting these products and how Madagascars performance compares with the world average for each. Positive global trends at the 4-digit level of product detail can mask considerable variation at the 6-digit or tariff line level of detail. Reasons for underperformance may be many and include supplyside capacity constraints, product quality issues and market access barriers. Winners in declining markets: Products in this quadrant are characterized by growing shares of the countrys exporters in world export markets that are declining or growing below the world average rate. From a trade promotion perspective, niche-marketing strategies might help in pin-pointing the positive trade performance of specific products from the overall decline in these markets. For some countries, for which growth rates are not calculated, the chart is not available or not complete (some sectors may be not be displayed due to a lack of consistent time series data). World import markets for products in this quadrant, such as HS6105-Men's shirts, knitted or crocheted (10%), are growing below the world average rate (17%), but the market share of Madagascars exporters is growing (137%). Losers in declining sectors Products in this quadrant are characterized by declining shares of the countrys exporters in world import markets that are growing below the world average rate. World imports of the product concerned have increased at a below-average rate and Madagascars share of the world market has decreased. 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

Notes: growth rates are calculated using the least squares methods. In the charts, annual growth rates of world market share above 100% have been cut off and set at 100%.

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A T R AD E AD V I S E R W I S H E S T O A N A L Y S E B R AZ I L S
EX PO RT PO RT FO LI O

4 . 3 - O ve r vi e w o f e x p o r t e d p r o d u c t s b y B r a z i l
A trade advisor wants to have a quick overview of the export portfolio of Brazil. To refine the research, he can analyze the Brazilian exports at the 6-digit level of the Harmonized System to obtain an overview of the top products exported by Brazil. In the selection menu, type Brazil in the Country box, select Exports and click on Trade Indicators.

Selection Menu By default, you will get the table with the list of importing markets for the product exported by Madagascar in 2006. Then click on Product Cluster at 6-digit level in Other Criteria.

Table 28: List of products at 6-digit level exported by Brazil in 2006

In t e r n a t i o n a l T r a d e C e n t r e ( I T C )

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Table 29: List of products at 6-digit level exported by Brazil in 2006

Trade Indicators Annual Annual Annual Annual growth growth growth growth of in in Share in in value world Ranking value quantity world betwee imports in world betwee betwee exports, n 2005- betwee exports n 2002- n 2002% 2006, n 20022006, 2006, %, p.a. 2006, %, p.a. %, p.a. %, p.a. 24 42 11 16 66 17 31 1.15 0.72 22 25

Code

Product label

Exported value 2006, USD thousand

Trade balance 2006 in USD thousand

TOTAL 270900

All products Petroleum oils and oils obtained from bituminous minerals, crude Iron ores&concentrates,oth than roasted iron pyrites,nonagglomerated Soya beans Raw sugar, cane Petroleum oils&oils obtained from bituminous minerals,o/than crude etc Iron ores & concentrates,other than roasted iron pyrites,agglomerated Automobiles w reciprocatg piston engine displacg > 1500 cc to 3000 cc Coffee, not decaffeinated roasted, not

137,806,2 00 6,894,528

46,463,410 -2,168,026

260111 120100 170111 271000

5,750,496 5,663,424 3,935,802 3,607,543

5,750,477 5,653,669 3,935,802 -686,613

32 16 36 32

11 11 15 6

30 6 65 29

43 9 16 37

24.42 35.15 51.8 0.79

2 2 1 30

260112

3,198,375

3,198,375

37

12

34

33.16

870323

3,035,996

1,677,579

16

15

1.51

12

090111

2,928,218

2,928,218

28

-1

16

21

26.99

59

In t e r n a t i o n a l T r a d e C e n t r e ( I T C )

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852520

Transmission apparatus,for radioteleph incorporatg reception apparatus Commodities specified not elsewhere

2,816,168

2,279,945

27

48

10

27

1.49

15

999999 020230 470329

2,615,609 2,463,023 2,428,551

2,615,609 2,448,483 2,428,343

23 50 19 37 15

20 38 23

71 14 13

0.68 27.56 30

23 1 1

Bovine cuts boneless, frozen Chemical wood pulp,soda/sulphate,nonconiferous,semi-bl/bleachd,nes Soya-bean oil-cake&oth solid residues,whether or not ground or pellet Aircraft nes of an unladen weight exceeding 15,000 kg Refined sugar, in solid form, nes

230400

2,419,188

2,393,757

-16

21.24

880240 170199

2,362,329 2,231,158

2,354,464 2,231,127

102 26

87 5

30 45

10 20

2.76 20.75

5 1

From Table 29, a new type of chart can be generated, which follows the same structure of Graph 7, but with a few significant differences. First, the horizontal axis represents the World market share of Brazil in 2006 and the vertical axis represents the Annual growth of world imports over the last five years (2002-2006). Select the Bubble graph on Brazils world market share vs. world import growth in the drop-down menu.

The colour of the bubble allows us to easily identifying whether Brazil is increasing or decreasing its world market share for a particular product over the last five years 2002-2006 (see the legend below).

We are now able to assess the performance of Brazils 15 leading export products (HS 6-digit level) in world markets and evaluate their importance in term of world market share. Graph 8: Bubble graph on Brazils world market share vs. world import market share

By default 20 products appear in the graph. It is possible to reduce this number to ease the interpretation of the graph. In t e r n a t i o n a l T r a d e C e n t r e ( I T C )

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For instance, for the product HS26011-Iron ores & concentrates, other than roasted iron pyrites, nonagglomerated annual growth of world imports has grown by 43% over the last 5 years (2002-2006) and Brazilian exports represents 24% of world market share. The bubble is in yellow because Brazil has been losing market share in the world market over the last five years: Brazils export growth over the last five years (in table : 32%) is inferior to the world import growth (in table : 43%) over the last five years. By moving your mouse on the bubble, you will get the detailed information in term of World market share, Annual growth of world imports and the Export value in USD, of the products.

Please note that HS-99999 (upper left in the graph): The product HS-99999 is the last classification of the Harmonized System. This is used for two main reasons: (1) the country wants to protect its trade information or (2) reported data is incomplete. For more in depth analysis of the leading Brazilian export products, the analyst can click Times Series in Other Criteria in the navigation menu to examine the trade data of the products and specific trade indicators over time, shown as below in Table 30 (a minimum of a 5-year time period in the table). The total exports from Brazil to the world increased significantly from US$73 billion to US$160 billion between 2001 and 2007.

If a country has reported trade data at the tariff line level, it is possible to get all products at the tariff line level exported or imported by the country. A quick way to know it, is to click on Product Cluster in Other criteria, if Product Cluster at 10-digit is available, then you can have trade data a the tariff line level.

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Table 30: The leading products exported by Brazil in 2007 at the tariff line level

Note: the number of years available at the tariff line level is not the same as at the 6-digit level.

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CHAPTER 5 BILATERAL APPROACH: IDENTIFYING TRADE OPPORTUNITIES WITH YOUR COUNTRYS TRADING PARTNER
A T R AD E S U P P O R T I N S T I T U T I O N F R O M K E N Y A
W I S H E S T O I D E N T I F Y O P P O R T U N I T I E S T O I N C R E AS E B I L A T E R AL T R A D E W I T H S AU D I AR A B I A

A Trade Support Institution based in Kenya may wish to expand current trade between its country and a neighbouring country, such as Saudi Arabia. This organization is interested in identifying sectors and products on which to focus its trade promotion efforts. We will demonstrate how that TSI can analyze trade potential at the HS six-digit level.

5.1 - Assess current bilateral trade betw een tw o countries a t t h e p r o d u c t l e ve l

This example focuses on a TSI in Kenya analyzing the trade potential with Saudi Arabia. The first step would be to select Kenya as the country under review, Saudi Arabia as the partner country and Export in the selection menu (Screen above). The resulting table provides bilateral trade data at the sector level (HS 2digit).

Selection Menu: bilateral trade between Kenya and Saudi Arabia Trade Map also allows analysis of bilateral trade potential at the HS 6-digit level. By selecting by Product Cluster at 6 digit level, the analyst can generate a list of individual products exported from Kenya to Saudi Arabia and the respective indicative trade potential (Table X below) The analyst can sort this data by value or by indicative potential trade. Trade potential is defined as the lower of the value a selected country exports to the world or the value the partner country imports from the world minus the current trade between the two countries under review. The trade potential is indicative only and serves as a departure point for further research. It gives an overview of the complementarities of the two economies.

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To sort through Kenyas leading HS-6 products exported to Saudi Arabia, click on the link Indicative 10 potential trade, USD thousand on the last column on the right of the table.

Table 31: Existing and potential trade between Kenya and Saudi Arabia in 2006
Indicative potential trade, USD thousand 3,005,331 56,964 54,331 8,840 7,246 6,039 5,073 4,844 3,794 2,750 2,412 Kenya's exports to Saudi Arabia Product Code Value in 2006, USD thousand Saudi Arabia's imports from world Value in 2006, USD thousand Annual growth in value between 2002-2006, %, p.a. Kenya's exports to world Value in 2006, USD thousand

Annual growth in value between 2002-2006, %, p.a.

Annual growth in value between 2002-2006, %, p.a. 13 14 21 20

Share in Kenya's exports, %

Equivalent AVE applied by Saudi Arabia to Kenya

Share in world imports, %

Product Label

TOTAL

All products Coffee, not roasted, not decaffeinated

9,567 926

20 -1

0.32 0.6 0

69,800,240 57,890

22 24

0.57 0.51

3,014,89 8 154,652

090111

090240

Black tea (fermented) & partly fermented tea in packages exceed 3 kg

Cut flowers & flower buds for bouquets or ornamental purposes, fresh Chewing gum containing sugar, except medicinal Table, kitchen, household goods nes, of aluminium Pineapples nes,o/w prep or presvd,sugared,swe etened,spirited or not Fruits, fresh nes Guavas, mangoes and mangosteens, fresh or dried Salt (includg table salt&denaturd salt) pure sodium chloride&sea water Art funfair,game tab,pintab,sp tab casino game&auto bowl alley equip

2,411

43

0.56

56,742

3.09

429,927

7 25.34

060310

687

235

0.17

9,527

28

0.16

414,895

170410

500

28

6.45

10

9,759

-3

1.23

7,746

761519

55

-16

0.9

19,861

26

0.78

6,094

19

200820

37

15

0.07

5,110

15

0.54

52,551

081090

9 560

-23 7

0.19 12.86

0 0

9,712 27,634

20 6

0.79 2.69

4,853 4,354

8 28

080450

250100

33

0.46

2,783

0.12

7,147

-1

950490

0.02

2,413

0.02

6,275

18

ITC Calculations based on COMTRADE's statistics

10

Indicative Potential Trade is not available at 2 or 4-digit HS level. In t e r n a t i o n a l T r a d e C e n t r e ( I T C )

Share in world exports, % 0.03 1.43 6.79 1 0.25 6.36 0.47 0.54 0.43 0.06

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Kenya's exports have been reported by partners countries Saudi Arabia's imports have been reported by Saudi Arabia From Table 31, the TSI can see actual trade between Kenya and Saudi Arabia, Saudi Arabias imports from the world, and Kenyas exports to the world, both for overall trade and for individual products listed. Total exports from Kenya to Saudi Arabia amounted to over US$ 9.5 million in 2006 and grew at an annual growth rate of 20% over the 2002-2006 period. Saudi Arabias imports from the world were almost US$ 70 billion with an annual growth rate of 22%. Kenyas exports to the world were US$ 3 billion and grew annually by 13%. Overall, the bilateral trade between two countries is not much as it represents only 0,3% of Kenyas exports Over the 2002-2006 period, Saudi Arabian imports of black tea (HS-090240) have increased by 7% per annum while imports from Kenya have increased by 43% per annum. This means that Kenyas exporters have increased their market share in Saudi Arabia. However Saudi Arabia only represents 0.5% of Kenyas exports and Kenya represents 4% of Saudi Arabias imports. Therefore there is still a potential to grow bilateral trade. To estimate potential trade for black tea, we subtract Kenyas actual exports to Saudi Arabia from the lower of the two values: the value of Saudi imports from the world (56.7 millions) or Kenyas exports to the world (US$ 430 millions) and we get an indicative potential of US$ 54 millions. Saudi imports from the world - Kenya's exports to Saudi Arabia = Indicative potential trade US$ 56.7 million US$ 2.4 million US$ 54.3 million

We also should be aware of valuable information presented in the table in the column Equivalent AVE applied by Saudi Arabia to Kenya which allows the analyst to evaluate the tariff measures applied by Saudi Arabia to products coming from Kenya. The product HS-090240-Black tea exported by Kenya to Saudi Arabia faces no import tariff, as the AVE is zero. By clicking on the icon in the column of Saudis imports from the world corresponding to HS-090240Black tea (fermented) & partly fermented tea in packages exceed 3 kg, we can show a list of all supplying markets of that particular product to Saudi Arabia. Alternatively, by clicking on the icon in the column of Kenya's exports to world, we can view the importing markets for HS-090240 from Kenya.

Table 32: Explanatory Notes for Table 33

Product code: Product code for the product traded between the two countries under review. Product label: Abbreviated product description corresponding to the HS 6-digit code. Selected country exports to the partner country: Value 2006, in US$ thousand: The trade between the two selected countries, as reported by the selected country to the COMTRADE database or as reported by the selected partner country to the COMTRADE database if the selected country has not reported trade data. Annual growth in value over the last The growth of exports from the country to the selected partner five years (2002-2006), %: country. Annual growth rate of export value over the 5-year period. This trend is calculated using the least squares method. If a country reports trade data for all years except the most recent year, the trend calculation is based on mirror statistics. No trend is calculated in cases where there are not 4 consecutive years of reported data except in the case mentioned above where the last year is missing. If however the last 4 years of the period are reported but the first year is missing, the 5-year trend is based on only 4 years of reported data. Share in countrys exports, %: Share of the partner country in the exports of the target country for the selected product. Equivalent ad valorem tariff applied Average tariff faced by the exporter. This data is extracted from by the importing country to the ITCs Market Access Map - www.macmap.org exporting country Partner countrys imports from the world: Value 2006, in US$ thousand: The value imported by the partner country from the world for the product under review, as reported to the COMTRADE database or as calculated with mirror statistics. Annual growth in value over the last The growth of imports from the world for the selected partner country. five years (2002-2006),%: The trend is calculated using the least squares method. If the selected partner country does not report trade data in 2006, the trend calculation is based on mirror statistics. No trend is calculated in

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Share in world imports, % Selected country exports to world: Value 2006, in US$ thousand:

cases where there are not 4 consecutive years of reported data except in the case mentioned above where the last year is missing. If however the last 4 years of the period are reported but the first year is missing, the 5-year trend is based on only 4 years of reported data. Share of the partner country in the world import for the selected product. The value exported by the country to the world for the product group under review, as reported to the COMTRADE database or as calculated with mirror statistics. The growth of exports from the country to the world. Annual growth rate of export value over the 5-year period. This trend is calculated using the least squares method. If a country does not report trade data in 2006, the trend calculation is based on mirror statistics. No trend is calculated in cases where there are not 4 consecutive years of reported data except in the case mentioned above where the last year is missing. If however the last 4 years of the period are reported but the first year is missing, the 5-year trend is based on only 4 years of reported data. Share of the country in the world export for the selected product. The potential trade between the two selected countries as calculated in 2006. Trade potential is defined as the lower value of the amount a market exports (imports) to the world and the amount the partner country imports (exports) from the world, minus the existing trade between the two countries under review. In other words, high potential means that the partner countrys imports are significant and the countrys exports are also significant while at the same time the share of the country in the imports of the partner country is small.

Annual growth in value over the last five years (2002-2006),%:

Share in world exports, % Indicative potential trade, in US$ thousand:

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A T R AD E AN A L Y S T W AN T S T O AN A L Y S E T H E I N T R ARE GI ON AL T R AD E F OR R IC E IN T HE L AT I N AM E R I C AN I N T E G R AT I O N AS S O C I AT I O N R E G I O N ( AL AD I )
Trade Map also allows analysis of trade flows within a region. The trade analyst wants to analyze the current trade for the product Rice inside the Latin American Integration Association (LAIA) region. As a first step the trade analyst creates his own group of products related to rice. Identify the HS codes of each products and create your group of products:: First the trade adviser has to identify the HS codes at the 6-digit level of each product following the steps in 2.2.1.3 to create his own group of products. The trade adviser calls his product group Rice LAIA.

The following message will appear once your group of product is created: Select the region and region partner On the Selection Menu, if you select Region in the Partner box, you will have as first choice your own country groups then the set of pre-selected regional groups (e.g. COMESA, MERCOSUR, etc.). To see the full list of the pre-selected regional groups, go to the my Country Groups (2.2.2.2). In this case, the trade analyst would like to identify the intra regional trade in the Latin American Integration Association (LAIA). Select the product and regions in the main selection menu Select Group in the Product Box, type Rice LAIA and your product group will appear in the drop down menu. Select Region in the Country box and type Latin American Integration Association (LAIA). Select Region in the Partner box and type LAIA.

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Select Rice LAIA

Select Region

Type LAIA

Selection Menu: Intra-Trade in LAIA Region for product group Rice LAIA Note: Of the radio buttons Imports Exports, selectExports.

5 . 2 - R e vi e w o f e x i s t i n g i n t r a - r e g i o n a l t r a d e
Table 33: Existing and potential intra regional trade in Latin American Integration Association (LAIA) for the rice LAIA

ITC Calculations based on COMTRADE's statistics

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Latin American Integration Association (LAIA)'s exports to Latin American Product Product Integration Association code label (LAIA) Value in 2004 TOTAL products
Rice LAIA Rice in the husk 100610 (paddy or rough) Rice, All

Latin American Integration Association (LAIA)'s imports from world Value in 2004 Value in 2005 Value in 2006

Latin American Integration Association (LAIA)'s exports to world Value in 2004 Value in 2005

Indicative potential trade

Value in 2005

Value in 2006
87,885,935

Value in Potential Potential Potential 2006 in 2004 in 2005 in 2006

622,421,773 308,314,443 359,927,839 426,053,754

54,038,630 69,137,269

362,353,073 429,065,108 513,939,689

432,445,118 522,988,818

221,385

213,550

285,030

506,874

390,772

509,750

272,543

374,036

498,525

51,158

160,486

213,495

29,422

7,025

6,075

201,593

148,931

185,286

29,620

7,292

6,117

198

267

42

100620 husked
(brown) Rice, semimilled or wholly 100630 milled, whether or not polished or glazed

55,228

50,488

53,274

57,345

50,936

55,219

58,812

52,318

80,106

2,117

448

1,945

132,808

151,133

218,903

241,624

184,850

261,365

169,193

245,824

343,915

36,385

33,717

42,462

100640 broken

Rice,

3,927

4,904

6,778

6,312

6,055

7,880

14,918

68,602

68,387

2,385

1,151

1,102

Bilateral trade data have been reported by Latin American Integration Association (LAIA) Latin American Integration Association (LAIA)'s imports have been reported by Latin American Integration Association (LAIA) Latin American Integration Association (LAIA)'s exports have been reported by Latin American Integration Association (LAIA)

The first line of the table above presents total trade for all products within the LAIA region and its imports and exports with the rest of the world. The second line shows the trade statistics for the group of products Rice LAIA which is the sum of the trade data for the four HS-6 products selected. By looking at trade data for Rice-LAIA in 2006, we can see that rice valued at US$ 285 million has been traded in the LAIA region and that the LAIA imported US$ 509,748 million of rice from the world (this figure includes imports from the region). We can therefore deduce that half of the LAIA imports of rice (HS1006) come coming from countries within the region. LAIA s exports LAIAs exports
USD 213,495 213,495,000 (498,525,000- -285,030 ) (498,525 285,030,000) US Intr D a Intra-Trade 285 Tra USD 285,030,000 ,03 de 0

LAIA s imports LAIAs imports USD 224,720 (509,750,000285,030) (509,750 - - 285,030,000)

By looking at the trade data for HS 100630 Rice, semi-milled or wholly milled, whether or not polished or glazed, we can see that US$ 218,903 million of this particular rice has been traded in the LAIA region and that LAIA has imported US$ 261,365 million of this specific rice from the world. We deduce that 80% of the regions imports of HS-100630 Rice, semi-milled or wholly milled, whether or not polished or glazed come from within the region.

Now if we look at the trade data for HS100610- Rice in the husk (paddy or rough), we can see that the LAIAs imports represent US$ 185 million and that the intra-trade represents only US$ 6 million. For this particular type of rice, the intra-trade is very low compare to the total imports. Paddy rice is still raw; it has to be processed to be edible. LAIA countries might import it and then process it themselves. We can also deduce that almost all LAIA exports of HS100610- Rice in the husk (paddy or rough) are going to LAIA countries.

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Now the analyst might be interested to see who are the main exporting countries and importing countries in trade within the LAIA region. In order to look at the supply side, you have to use the navigation menu and select by reporting countries in the bar other criteria.

Table 34: List of supplying markets within the ALADI region for the rice HS-1006 for the period from 2001 until 2006

The table below presents the intra-regional exported value of HS-Rice LAIA for each country member of the LAIA region for the period from 2003 to 2007 (sorted by 2006 value, highlighted in red). The first line represents the total exports of rice within the LAIA region. The first three main intra-regional exporters within the LAIA are Uruguay, Argentina and Ecuador representing 90% of the intra-regional rice supply in 2006.

Notes: - 2007 trade data are missing in the table because those countries have not reported to Comtrade yet (only Brazil did). This is the reason why the value for LAIA is posted in red. - The indicators Quantity, Share in value, Growth in Quantity, Unit Values and Growth in unit values are not available when a country group is aggregated. In order to look at the demand side, you have to use the navigation menu and select by partner countries in the bar other criteria.

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The table below presents the intra-regional imported value of HS-Rice LAIA for each country member of the LAIA region for the period from 2003 to 2006 (sorted by 2006 value). The first line represents the total imports of rice within the LAIA region. The first three main intra-regional importers within the LAIA are Brazil, Colombia and Chile representing 94% of the intra-regional rice demand in 2006.

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Table 35: List of importing markets within the LAIA region for rice HS-1006 for the period 2001 to 2006

11

In this table, we only post the partner countries but the values are based on the exports provided by reporting countries this is the reason why Exported Value is the title of the column.

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SUMMARY
Trade Map provides information on trade flows in a user friendly and easily accessible format. Users have access to one of the worlds largest trade database, containing indicators on national export performance, international demand, alternative markets, and the role of competitors from both the product and country perspective. Users can quickly and easily: Analyze present export markets. Examine the performance and dynamics of a countrys export markets for any product, identifying the number and size of export markets and the concentration of exports and highlighting countries where market share has increased. Pre-select priority markets. View the worlds major importing countries, with indicators illustrating the extent of import concentration in the worlds markets and in which countries demand has increased significantly over the period. View competitors in the global market. Competing countries, exporting the same product, are ranked in terms of value, with additional indicators on quantities, growth and market share, highlighting the position of a country in world exports, as well as the position of neighbouring countries. Assess competitors in specific export markets. View a countrys competitors in any leading target market, with information on the export performance of these competitors, showing the number of supplying countries and their performance in the market. Find information on average tariff applied by countries by following a direct link to Market Access Map that provides tariff-line market access information such as ad-valorem and specific tariffs as well as tariff-rate quotas, MFN and preferential tariffs arising out of bilateral and regional trade agreements. View trade data at the tariff line level. Trade flows are described at the most detailed level for an average of 10,000 products and over 100 countries worldwide, covering almost 90% of world trade. Identify new sources of supply. Countries exporting a product both to the world and to a specific market are ranked against one another, allowing direct comparisons of current and potential national suppliers. Review opportunities for product diversification in a specific market by comparing import demand for related products in the market under review. Assess national trade performance. Make an overall evaluation of national trade performance and identify sectors and products to examine further in terms of their potential for investment and trade promotion. Identify existing and potential bilateral trade with any partner country or region. Bilateral trade opportunities can be identified by comparing actual bilateral trade, demand in terms of the global imports of partner countries and the global export supply capacity of the home country. Access trade data as recent as the previous quarter in the same year for some countries. Users can also analyze long time series on a monthly basis to see seasonality and better analyze the impact on trade of any event.

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Annex I: What Users Should Take into Consideration when they use Foreign Trade Statistics as a Basis for Strategic Market Research
Foreign trade statistics provide a differentiated picture of trade flows among countries. They are comprehensive in terms of product coverage (more than 5,300 products under the Harmonized System), geographical coverage (around 220 countries and territories covering 97% of world trade) and time series (data under the Harmonized System are available since 1990). Moreover, they are readily available at a moderate cost. This makes them an attractive source for market research and the assessment of trade performance. Against this background, ITC has developed a number of tools for international marketing and trade promotion based on trade statistics: Trade Map, Market Access Map, Investment Map and Product Map. All these tools strive to present trade statistics in an analytical and user-friendly format. Notwithstanding the attractiveness of this comprehensive source of information, users should factor in the following weak points of foreign trade statistics:

Trade data are never complete. Smuggling and non-reporting represent a serious problem in a number of countries. In addition, trade statistics, like any source of information, are not free of mistakes and omissions. Most countries include re-imports in their imports and re-exports in their exports. For example a lowincome country may show up as an exporter of airplanes simply because its national airline has sold secondhand planes. The export value refers to the total or contract value. According to international conventions for reporting trade statistics, the export value refers to the total or contract value, which may of course, be very different from local value-added. For many processing activities the local value added remains below 20% of the export value. Different products are categorized differently. Even at the lowest level of disaggregation, product groups in the trade nomenclatures do not necessarily reflect trade names and often contain a wide range of different products. Moreover, the product nomenclature is sometimes misleading. The labels of aggregated product groups are often very general and provide at times only limited guidance on the leading items within the group of products concerned. Exchange rate fluctuations are not always recorded. Exchange rate fluctuations are not always properly recorded in international trade statistics. Values are normally aggregated over the period of one year in local currency and converted into US dollars. Mirror statistics are sometimes used. For countries that do not report trade data to the United Nations, ITC uses partner country data, an approach referred to as mirror statistics. Mirror statistics are a second-best solution being better than having no data at all and allowing the coverage of the over 50 primarily lowincome countries that do not report national trade statistics to COMTRADE. At the same time, they have a number of shortcomings when compared to the first-best solution of nationally reported data. First and foremost, they do not cover trade with other non-reporting countries. As a result, mirror statistics hardly cover South-South trade and would not be a suitable source for an assessment of intra-African trade. Second, there is the problem of trans-shipments, which may hide the actual source of supply. Third, mirror statistics invert the reporting standards by valuing exports in c.i.f. terms (i.e. including transport cost and insurance) and imports in f.o.b. terms (excluding these items).

In an effort to make some of these discrepancies more transparent, we have included the option of viewing Mirror statistics within Trade Map (See bottom of Table 36). Table 36 presents the data of those countries that import Frozen Orange Juice from Brazil as reported by Brazil. While Table 30 presents the same data as reported by Brazilian partner countries.

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Table 36: List of importing markets for a product exported by Brazil in 2006
Product: 200911 Orange juice, unfermented spiritd ,whether/not sugard / sweet, frozen Brazil's exports represent 64.45% of world exports for this product, its ranking in world exports is 1

Source: ITC calculations based on COMTRADE statistics

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Table 37: List of importing markets for a product exported by Brazil in 2006- Mirror statistics
Product: 200911 Orange juice,unfermentd spiritd,whether/not sugard/sweet,frozen Figures are based on data reported to Comtrade by importing countries (mirror statistics)

Source: ITC calculations based on COMTRADE statistics In Table 37, providing data reported by Brazil (direct data), we note that Belgium and the Netherlands appear to be the first and fifth destination markets of Brazilian exports accounting for more than 51% of total export value. However, according to the import values those two countries declare, they do not even rank among the first 15 countries importing from Brazil (Table 37 mirror statistics). Belgium and the Netherlands are both reporting countries to the COMTRADE database and among the various reasons that generally account for those discrepancies, re-exports can explain this difference. In this specific case, we know that Brazilian exports mainly enter the European market through the two biggest ports located respectively in the Netherlands and in Belgium: the port of Rotterdam and the port of Antwerp. Brazil considers Belgium and the Netherlands as the two markets of destination for its orange frozen juices and therefore counts these flows as exports to those countries, whereas Netherlands and Belgium do not include those products as imports from Brazil but consider that those products are just transiting through their national territories. They are re-exporting the product under review to other continental markets and this fact also explains why Germany and France appear to be among the countries of destination in the mirror statistics table. It may also happen that countries are listed as main partners according to trade statistics provided by the selected exporting country, whereas they are not included in the table based on mirror statistics. This is mainly to be explained by the fact that they have not reported to the COMTRADE database. From tables above you may note that also import/export values declared for the same trade flow by Brazil and by a partner country do not coincide. This difference is common and there are over 20 reasons to

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explain this statistical phenomenon. http://legacy.intracen.org/countries/structural05/reliability03.pdf

Please

refer

to

In view of the above shortcomings, foreign trade statistics should never be the sole source of insight, but need to be complemented with other sources and in particular cross-checked by product specialists and industry insiders. Overall, ITCs experience suggests that trade statistics represent a very useful source of information and a valid point of departure for strategic market research, if analyzed with a healthy mix of scepticism and pragmatism vis--vis their strengths and shortcomings.

Time Series: When using the Time Series approach, the analyst should be aware that there could be a slight variation in the data because the source of the data at the tariff line level is sometimes the country or region itself rather than the United Nations Statistics Division (UNSD) (Please refer to Annex about Source of data). This can lead to some differences.

Reporting and Non-reporting countries when you create a group: In cases where some countries in a regional group do not report to COMTRADE, their trade statistics are estimated, as in the individual country case, by the use of mirror statistics (estimating exports based on partners imports and vice versa).

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Annex II: Harmonized System and HS Revisions

The Harmonized System (HS) is 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, Mat 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 has been developed by the World Customs Organization and the International Convention on the Harmonized System (HS Convention) and entered into force on 1 January 1988 (HS88). It has been adopted by most trading nations. The HS is regularly reviewed and revised in accordance with the preamble to the HS Convention, which recognized the importance of ensuring that HS being kept up to date in the light of changes in technology or in patterns of international trade. 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 2007. HS 1996 or HS Revision 1 HS1996 or HS revision 1 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 HS 2002 or HS Revision 2 HS2002 or HS revision 2 stands for the 2002 revision of the Harmonized System. For each revision, depending on the usage of product codes by customs, some codes are split in new product codes and some others are regrouped in a common code. HS 2007 or HS Revision 3 HS2007 or HS revision 3 stands for the 2007 revision of the Harmonized System. For each revision, depending on the usage of product codes by customs, some codes are split in new product codes and some others are regrouped in a common code. For more information go to http://www.wcoomd.org. In Trade Map, tables with trade indicators such as growth rate over the last 5 years are based on HS revision 1 to facilitate the comparisons between countries and products. The tables with time series are based on the revision reported by the country. As an example, the 2007 data reported by France are based on HS revision 3 while the 2007 data reported by Pakistan are based on HS revision 2.

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Annex III: Link to Investment Information

When an economic advisor is analysing a countrys exports, it is important to analyse the relationship between the exports for a specific sector and the foreign direct investment in that sector. Trade Map provides a direct link to the online database Investment Map developed by ITC which provides statistics on incoming and outgoing foreign direct investment stocks and flows, and information and statistics on foreign affiliates located in developing countries and economies in transition. By selecting a specific sector and an exporting country in the main selection and then clicking on Trade Indicators, you enter the table containing the trade statistics as in the example below. The sector is HS22Beverages, spirits and vinegar and the exporting country is Chile (export circle ticked).

Then click on Investment to go directly to the Investment Map database and obtain the FDI statistic. Table 38: Table of sectors with potential to attract investment - Chile

You can download the Investment Map User Guide at http://www.investmentmap.org/docs/invmapuserguide-en.pdf.

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Annex IV: Link to Market Access Information

Trade Map provides a direct link to the online database Market Access Map developed by ITC, which provides data on the tariff rates and other market access measures of over 180 importing countries to products from 239 countries and territories. Most favoured nation (MFN) and preferential applied import tariff rates are shown for products at the most detailed national tariff line level. By selecting a specific product and an importing country in the main selection and then clicking on Trade Indicators, you enter the table containing the trade statistics as in the example below. The product is HS080300-Bananas and the importing country is France (imports circles ticked). Table 39: Tariffs that France applies to imports of HS 080300 Bananas including plantains, fresh or dried originating from all possible countries.

1- Then click on Market Access (red square n 1 in table 39) in the tool bar to go directly to the Market Access Map database and obtain the tariffs, based on the most recent data using Harmonized System Nomenclature Rev. 07, that France applies to imports of HS-080300 Bananas including plantains, fresh or dried originating from all possible countries.

Important note: All tariffs shown in this module are shown at an aggregated product level, that is, either at the 2, 4 or 6-digit level of the Harmonized System. The average tariff at the 6-digit level is a simple average of the best tariff available for each of the national tariff line positions. So if some of the national tariff lines codes have preferences, the lowest tariff rate for each code is used in the aggregation process. When aggregating from the 6-digit to 4-digit (and similarly from 4 to 2-digit), the tariffs at the 6-digit level are weighted by the trade pattern of the importer country's reference group. See http://www.macmap.org/Reference.Methodology.aspx for more details.

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2- If you click on the tariff applied by France to Ecuador (red square n 2 in table 39), you will get all the tariffs that different countries apply to the product HS-080300 Bananas including plantains, fresh or dried originating from Ecuador

You can also see the example in 3.6 - Examine tariffs in potential new markets in the Trade Map User Guide page 35.

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Compare Tariff and Trade with Market Access Map: The second module of Market Access Map, Compare Tariff and Trade has been designed to assist exporters, importers and trade support institutions. An exporter can use this module to scan the world for the best market access conditions offered to him/her by all possible importing countries. An importer can use the module to get a birds eye view of what tariff rates his/her country applies to all possible exporting countries in order to minimize tariffs on imported materials. A trade support institution (TSI) can use Compare Tariffs and Trade module to identify products and markets that offer good prospects for trade promotion. It is important to note that the tariffs presented in the Compare Tariff and Trade module are shown at either the 2-digit, 4-digit or 6-digit level of the Harmonized System (HS) of product nomenclature. They are not shown at the most detailed product level, the national tariff line. In order to get more detailed information on tariffs in the selected country at the tariff line level, the exporter has to select the tab Quick Search in Market Access Map to find out about the type of regime, certification and rules of origin. We invite users of ITCs market analysis tools to read the first two chapters of the Market Access Map User Guide in order to navigate easily in the tool. The Market Access Map User Guide is available at: http://www.macmap.org/User.Guide.aspx

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