ASEAN WITS World Integrated Trade Solution Usage and

ASEAN WITS (World Integrated Trade Solution): Usage and Data Requirements ASEANstats Presentation High-Level Seminar on ACSS Strategic Plan 2016 -2020 Bogor, Indonesia, 17 -18 June 2014

Introduction o Part of the Support to the AIMO: AEC Integration Monitoring Report (AIMR) 1. In-depth analysis of services liberalization and FDI 2. Merchandise trade analysis – development (customization) of the WITS for ASEAN o To facilitate trade data analysis o Facilitate trade negotiation o To perform various kinds of simulation

WITS Customization o Funded by AADCP II, Technical support from World Bank o Dialogue with WB since mid/late 2011 o Key issue: o Accessibility of the data: should be for wider public, not only for ASEC, AMSs government and World Bank staff concerned o Under construction

ACSS Committee-Related Decisions ACSS Committee 2 nd Session, Siem Reap, Cambodia, September 2012: o Endorsed a policy to provide access to IMTS data at 6 -digit HS level to wider public and 8 -digit AHTN for ASEAN purposes o Endorsement of data support for the ASEAN WITS is pending, subject to further understanding about the usage and WITS capability

ACSS Committee-Related Decisions ACSS Committee 3 rd Session, Brunei Darussalam, September 2013 o Adopted the ACSS Policy on Data Sharing, Confidentiality and Dissemination of Statistics o Reiterated its support to the development of the WITS-ASEAN module o Noted that ASEANstats will utilize IMTS at 6 -digit Harmonised System (HS) on per country level for this purpose

Brief about the WITS (Extract from Regional Workshop on IMTS 23 -24 October 2012) o A software developed by the World Bank, in close collaboration with UNSD, WTO, UNCTAD, ITC o A Data consultation and extraction software with simulation capabilities o integrate several trade-related databases and provide easy access international trade and protection related data o offers built-in analytical tools to assess the impact of tariff changes

Brief about the WITS (Extract from Regional Workshop on IMTS 23 -24 October 2012) o International Trade and Protection related data • The UNCTAD TRAINS. ü Annual tariffs structures (MFN Applied and Preferential tariffs, Ad Valorem or not) ü Non-Tariff Barriers information (1988) • The WTO IDB/CTS; ü Annual imports (values) ü tariff structures (current and final Bound, MFN Applied and Preferential tariffs, Ad Valorem or not) since 1996

Brief about the WITS (Extract from Regional Workshop on IMTS 23 -24 October 2012) o International Trade and Protection … (contd) • The UNSD COMTRADE. ü Annual trade flow information covering gross-imports, gross -exports, Re-Imports and Re-Exports. ü Subject to technical restriction of number of downloadable records per query. ü 170 countries since 1962

WITS Functionality • Data retrieval and analysis • Quick query • Advanced query • Tariff Change Simulations • Other options – Utilities – Support materials

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WITS Functionality • Quick Search: – To define a simple query and obtain results quickly • Advance Query: – Offers a lot of flexibility and options to define large and complex queries. • Tariff change Simulations: – The SMART simulation tool to estimate the impact of tariff changes on tariff structures, on trade, tariff revenues and welfare.

WITS Functionality • Results: – to check the status of your submitted queries and simulations, view results, add/remove indicators/columns to your results, and download the data. • Utilities: – gathers various tools aimed at increasing your productivity with WITS like definition and sharing of product and country groups, you often use in your queries. • Support materials: – give access to reference material like database catalogs, nomenclatures and concordances

Quick Query To define a simple query and obtain results quickly – By country and/or by product – Export raw data – Extraction by criteria

Quick Search-by Country

Quick Search-by Product

Advance Query • Multi country/period/product extractions of trade data as well as product or country aggregations. • According to 5 listed dimensions: Importers/Reporters, Products, Exporters/Partners, Years, Tariffs/trade flows • Building our own country/product groups

Utilities o Create country groups o Create product groups o Define tariff changes o Share Groups üTo share the country and product groups created by you with other users. o Data Visualizer üMap visualizer üBubble visualizer 17

Building and Managing Product Groups

Building and Managing Country Groups

WITS Data visualizer Indonesia exports to ASEAN and its main trading partners, 2000

WITS Data visualizer High-technology exports of ASEAN-4, China and India, 2000

Tariff and Trade Simulations: SMART Simulation tool • Estimate the impact of tariff changes on tariff structures, on trade, tariff revenues and welfare. • Trade creation (TC) – Increased exports as a results of changes in demand prices • Trade diversion (TD) – Changes in market shares/substitution of goods from different exporters, due to changes in relative prices • Total trade effect = TC + TD • Other effects – Tariff revenue changes, welfare effects

Tariff and Trade Simulations v. A Scenario to be defined: • Products for which the tariff is changed • Partners that will be affected by the tariff reform. • Formula on how tariffs are to be affected üUser defined cut (new rate) üMaximum Rate üLinear Cut - certain percentage cut over all products. üSwiss Formula v. Elasticity is to be assumed, which define behaviors and affect the magnitude of the impact (Demand, Supply and Substitution between two suppliers)

WITS Tariff and Trade Simulation Indonesia, SITC Rev 3, The Impact of Tariff on Revenue

WITS Tariff and Trade Simulation Indonesia, SITC Rev 3, The Impact of Tariff on Trade Creation

Data Requirements Clearly identified o o o 6 digit HS level of details Export, Import, Re-export Tariff information (MFN, Preferential, Val, Non-Adval) NTM Entire trade and tariff information on the non-ASEAN reporters are available in the ASEAN WITS server (WTO, UNTACD, COMTRADE database, CTS) Note: in most other cases, users could not clearly define the data needs/requirements.

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