Getting Down to Business: Making the Most of the WTO Trade Facilitation Agreement
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The Impact of Relevant Costing for Decision-Making in Ready- Made Garments (Rmgs) Industry of Bangladesh
IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 16, Issue 3. Ver. I (Mar. 2014), PP 01-07 www.iosrjournals.org The Impact of Relevant Costing for decision-making in Ready- Made Garments (RMGs) industry of Bangladesh. , 1(Department of Accounting, Hajee Mohammad Danesh Science and Technology University, Bangladesh. 2(Lecturer, Department of Accounting, Hajee Mohammad Danesh Science and Technology University, Bangladesh. Abstract: Relevant costing is a management accounting term that relates to focus on only the cost relevant to a specific decision being made. Irrelevant costs are excluded from any incremental decision-making problem because they are supposed to have equal effects on all the available alternatives ( Dillon, R. D. and, J. F. Nash, 1978). This study adopts an observation of quantitative method with primary and secondary data in view of the nature of the analysis. Relevant costing is often used in short-term decision-making and a number of specific practical examples are illustrated in this study. This study has designed to make the aim of assessing the level of perceptions of four areas such as (i) making and buying; (ii) dropping or retaining a segment; (iii) constrained resources; and (iv) special orders; in using relevant costing in Ready-Made Garments (RMGs) industry of Bangladesh. To meet this aim total 100 companies as a sample from Ready-Made Garments (RMGs) industry have been randomly selected. By using variance analysis, authors have found that all four factors have significant influence in using relevant costing. Last, the result of this study suggested that the strengthening the decision-making mechanism required a strong relevant costing benefits and its proper application. -
9.1 Financial Cost Compared with Economic Cost 9.2 How
9.0 MEASUREMENT OF COSTS IN CONSERVATION 9.1 Financial Cost Compared with Economic Cost{l} Since financial analysis relates primarily to enterprises operating in the market place, the data of costs and retums are derived from the market prices ( current or expected) of the transactions as they are experienced. Thus the cost of land, capital, construction, etc. is the ~ recorded price of the accountant. By contrast, in economic analysis ( such as cost bene fit analysis) the costs and benefits of a project are analysed from the point of view of society and not from the point of view of a single agent's utility of the landowner or developer. They are termed economic. Some effects of the project, though conceming the single agent, do not affect society. Interest on borrowing, taxes, direct or indirect subsidies are transfers that do not deploy real resources and do not therefore constitute an economic cost. The costs and the retums are, in part at least, based on shadow prices, which reflect their "social value". Economic rate of retum could therefore differ from the financial costs which are based on the concept of "opportunity cost"; they are measured not in relation to the transaction itself but to the value of the resources which that financial cost could command, just as benefits are valued by the resource costs required to achieve them. This differentiation leads to the following significant rules in conside ring costs in cost benefit analysis, as for example: (a) Interest on money invested This is a transfer cost between borrower and lender so that the economyas a whole is no different as a result. -
The Trade and Investment Effects of Preferential Trading Arrangements
This PDF is a selection from a published volume from the National Bureau of Economic Research Volume Title: International Trade in East Asia, NBER-East Asia Seminar on Economics, Volume 14 Volume Author/Editor: Takatoshi Ito and Andrew K. Rose, editors Volume Publisher: University of Chicago Press Volume ISBN: 0-226-37896-9 Volume URL: http://www.nber.org/books/ito_05-1 Conference Date: September 5-7, 2003 Publication Date: August 2005 Title: The Trade and Investment Effects of Preferential Trading Arrangements Author: Philippa Dee, Jyothi Gali URL: http://www.nber.org/chapters/c0193 5 The Trade and Investment Effects of Preferential Trading Arrangements Philippa Dee and Jyothi Gali The number of preferential trading arrangements (PTAs) has grown dra- matically over the last decade or so. By the end of March 2002, there were 250 agreements in force that had been notified to the World Trade Organi- zation (WTO), compared with 40 in 1990 (WTO 2002). The coverage of preferential trading arrangements has also tended to expand over time. The preferential liberalization of tariffs and other mea- sures governing merchandise trade remains important in many agreements. But they increasingly cover a range of other issues—services, investment, competition policy, government procurement, e-commerce, labor, and en- vironmental standards. This paper examines, both theoretically and empirically, the effects of the trade and nontrade provisions of PTAs on the trade and foreign direct investment (FDI) flows of member and nonmember countries. 5.1 Theoretical Review The first wave of PTAs in the 1950s to 1970s were generally limited in scope, with preferential liberalization of merchandise trade playing a cen- tral role (the European Union [EU] was an important early exception). -
RECENT STIMULUS PACKAGES and WTO LAW on SUBSIDIES Santiago Ibáñez Marsilla
World Customs Journal RECENT STIMULUS PACKAGES AND WTO LAW ON SUBSIDIES Santiago Ibáñez Marsilla Abstract Major world economies are simultaneously experiencing deep recession due to the world economic crisis, and in attempting to contain the extent of damage, governments have been introducing unprecedented stimulus packages. These stimulus programs raise many concerns from the perspective of international trade rules. This paper analyses those concerns in relation to possible conflicts with the World Trade Organization’s (WTO) Agreement on Subsidies and Countervailing Measures (ASCM). The concept of ‘subsidy’ in WTO law is discussed, together with the analysis of two salient measures, export credit support and the automobile industry, that are currently being adopted in response to the current crisis. A further critical analysis is provided on recent developments in the review of the ASCM as part of the Doha Round. 1. Introduction Amid the current economic crisis, that has thrown the major world economies into a simultaneous deep recession, governments are struggling to contain the extent of the damage. Due to the apparent failure of past economic policies that encouraged minimum State intervention and regulation of the markets, previously regarded as ‘heterodox’ economic policies are the order of the day and, as a result, unprecedented stimulus packages have been unleashed.1 These stimulus programs raise many concerns from the perspective of international trade rules. In this paper we will analyse possible conflicts with the World Trade Organization’s (WTO) Agreement on Subsidies and Countervailing Measures (ASCM). The relevance of this issue is highlighted by the fact that, in the context of the present financial and economic crisis, subsidies in developed countries have so far been the measure causing most concern for the international trade regime.2 In Section 2, we elaborate the concept of subsidy in WTO law3 and establish the elements for an analysis of different measures adopted in response to the current crisis, which is presented in Section 3. -
Estimates of the Cost of Capital Relevant for Investment Decisions Under Uncertainty
This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title: Determinants of Investment Behavior Volume Author/Editor: Robert Ferber, editor Volume Publisher: NBER Volume ISBN: 0-87014-309-3 Volume URL: http://www.nber.org/books/ferb67-1 Publication Date: 1967 Chapter Title: Estimates of the Cost of Capital Relevant for Investment Decisions Under Uncertainty Chapter Author: Merton Miller, Franco Modigliani Chapter URL: http://www.nber.org/chapters/c1236 Chapter pages in book: (p. 179 - 213) PART 11 Financial Aspects - Estimatesof the Cost of Capital Relevant for Investment Decisions Under Uncertainty MERTON H. MILLER UNIVERSITY OF CHICAGO AND FRANCO MODIGLIANI MASSACHUSETTS INSTITUTE OF TECHNOLOGY For discussion at the Conference, we distributed a lengthy and detailed paper in which we attempted to develop methods for estimating the cost of capital relevant for investment decisions under uncertainty and to apply these methods to a cross-sectional sample of large electric utilities for 1954, 1956, and 1957. Much of this material had a direct and important bearing on the subject of the conference, particularly the latter sections of the paper which contrasted our estimates with several of the alternative measures of the cost of capital currently used in empirical studies of investment behavior. Other parts of the paper, however—especially the review of the underlying theory of valuation under uncertainty, the discussion of the various theoretical and practical problems involved in the estimation, and the fairly extensive testing of the basic specification—were clearly of less direct concern to the Conference's central theme, except as sup- porting material for a critical evaluation by the discussants and those with a direct interest in the area of finance. -
Trade Facilitation and Tariff Evasion
Chapman University Chapman University Digital Commons ESI Working Papers Economic Science Institute 6-2020 Trade Facilitation and Tariff Evasion Cosimo Beverelli World Trade Organization, [email protected] Rohit Ticku Chapman University, [email protected] Follow this and additional works at: https://digitalcommons.chapman.edu/esi_working_papers Part of the Econometrics Commons, Economic Theory Commons, and the Other Economics Commons Recommended Citation Beverelli, C. & Ticku, R. (2020). Trade facilitation and tariff evasion. ESI Working Paper 20-24. https://digitalcommons.chapman.edu/esi_working_papers/319/ This Article is brought to you for free and open access by the Economic Science Institute at Chapman University Digital Commons. It has been accepted for inclusion in ESI Working Papers by an authorized administrator of Chapman University Digital Commons. For more information, please contact [email protected]. Trade Facilitation and Tariff Evasion Comments ESI Working Paper 20-24 This article is available at Chapman University Digital Commons: https://digitalcommons.chapman.edu/ esi_working_papers/319 Trade Facilitation and Tariff Evasion∗ Cosimo Beverelli†‡ Rohit Ticku§ This draft: June 2020 Abstract This paper investigates the extent to which trade facilitation measures included in the WTO Trade Facilitation Agreement affect tariff evasion. In a dataset covering 121 countries and the whole set of HS6 product categories in 2012, 2015, and 2017, the paper shows that trade facilitation measures that improve legal certainty for traders moderate tariff evasion. Holding tariff rate constant at its mean, one standard deviation improvement in trade fa- cilitation measures related to legal certainty reduces tariff evasion, as measured by missing imports in trade statistics, by almost 12%. In a counterfactual with full trade liberalization, countries with higher scores on facilitation measures related to legal certainty experience larger reductions in tariff evasion than countries with lower scores on these measures, even for similar initial tariff rates. -
The Dynamic Gravity Dataset: Technical Documentation Update
The Dynamic Gravity Dataset: Technical Documentation Update Note Version 2.00 Abstract This document provides an update to the technical documentation for the Dynamic Gravity dataset, describing changes from Version 1.00 to Version 2.00. For full descrip- tion of the contents and construction of the dataset, see full technical documentation for Version 1.00 on the dataset page at https://www.usitc.gov/data/gravity/dgd.htm. This documentation is the result of ongoing professional research of USITC Staff and is solely meant to represent the opinions and professional research of individual authors. It is not meant to represent in any way the views of the U.S. International Trade Commission or any of its individual Commissioners. It is circulated to promote the active exchange of ideas between USITC Staff and recognized experts outside the USITC, professional development of Office Staff and increase data transparency by encouraging outside professional critique of staff research. Please address all correspondence to [email protected]. 1 1 Introduction The Dynamic Gravity dataset contains a collection of variables describing aspects of countries and territories as well as the ways in which they relate to one-another. Each record in the dataset is defined by a pair of countries or territories and a year. The records themselves are composed of three basic types of variables: identifiers, unilateral character- istics, and bilateral characteristics. The updated dataset spans the years 1948{2019 and reflects the dynamic nature of the globe by following the ways in which countries have changed during that period. The resulting dataset covers 285 countries and territories, some of which exist in the dataset for only a subset of covered years.1 1.1 Contents of the Documentation The updated note begins with a description of main changes to the dataset from Version 1.00 to Version 2.00 in section 1.2 and a table of variables available in Version 1.00 and Version 2.00 of the dataset in section 1.3. -
10Chapter Trade Policy in Developing Countries
M10_KRUG3040_08_SE_C10.qxd 1/10/08 7:26 PM Page 250 10Chapter Trade Policy in Developing Countries o far we have analyzed the instruments of trade policy and its objectives without specifying the context—that is, without saying much about the Scountry undertaking these policies. Each country has its own distinctive history and issues, but in discussing economic policy one difference between countries becomes obvious: their income levels. As Table 10-1 suggests, nations differ greatly in their per-capita incomes. At one end of the spectrum are the developed or advanced nations, a club whose members include Western Europe, several countries largely settled by Europeans (including the United States), and Japan; these countries have per-capita incomes that in many cases exceed $30,000 per year. Most of the world’s population, however, live in nations that are substantially poorer. The income range among these developing countries1 is itself very wide. Some of these countries, such as Singapore, are in fact on the verge of being “graduated” to advanced country status, both in terms of official statistics and in the way they think about themselves. Others, such as Bangladesh, remain desperately poor. Nonetheless, for virtually all developing countries the attempt to close the income gap with more advanced nations has been a central concern of economic policy. Why are some countries so much poorer than others? Why have some coun- tries that were poor a generation ago succeeded in making dramatic progress, while others have not? These are deeply disputed questions, and to try to answer them—or even to describe at length the answers that economists have proposed over the years—would take us outside the scope of this book. -
The Trade Facilitation Agreement a Simple Guide
THE TRADE FACILITATION AGREEMENT A SIMPLE GUIDE The WTO Trade Facilitation Agreement (TFA) will improve trade efficiency worldwide, encouraging economic growth by cutting red tape at borders, increasing transparency and taking advantage of new technologies. The TFA will enter into force once two-thirds (110) WTO member economies ratify the agreement, after which the TFA will be binding on all WTO members. Border inefficiencies, complex customs rules and other trade barriers make it harder for businesses of all sizes to trade internationally, hurting small and medium-sized companies (SMEs) the most. Research by the World Economic Forum suggests TFA implementation could trigger a 60% to 80% increase in cross-border SME sales in some economies. The implementation of the TFA would have a greater impact on international trade than the elimination of all the world’s remaining tariffs. It will reduce average trade costs by up to 15% with developing countries benefiting even more. The business community is widely recognised to have an important role to play in the implementation of the TFA, ensuring that TFA reforms deliver measurable improvements in trading across borders. WHAT WILL THE TRADE FACILITATION AGREEMENT PROVIDE? PUBLICATION OF INFORMATION RELATING ENSURING INTERNAL COOPERATION TO TRADE RULES AND PROCEDURES AMONG AGENCIES Governments have agreed to publish a All government authorities and agencies wide range of customs-specific information responsible for border controls are required (including on the internet) relating to to coordinate in order to facilitate trade. trade procedures, including on duty rates Coordination includes alignment of working and taxes, forms and documents, rules for hours, alignment of procedures and goods classification and valuation, rules of formalities, sharing of facilities, and one stop origin, transit procedures, and penalties and border post controls. -
FTA Tariff Tool New Online Tool Highlights Tariff Benefits of Free Trade Agreements for American Businesses
U.S. Department of Commerce International Trade Administration FTA Tariff Tool New Online Tool Highlights Tariff Benefits of Free Trade Agreements for American Businesses http://www.export.gov/FTA/FTATariffTool/ • Are you an exporter seeking a market where the United States The FTA Tariff Tool: has an existing competitive advantage? • Are you spending time looking through pages of legal texts • consolidates and distills tariff to figure out the tariff under a trade agreement for your schedules down to a simple products? search function • Would you like to perform instant and at-a-glance searches • allows users to see how for trade and tariff trends in one easily accessed location particular sectors are treated online? under the agreements or recent trends in exports to the trade The Free Trade Agreement (FTA) Tariff Tool will ease your exporting agreement partner markets process and could help you increase your exports to U.S. trade agreement partner markets. It will streamline your industrial and • helps reduce costs and consumer product tariff searches by making information on tariff uncertainty for U.S. businesses benefits companies receive under U.S. trade agreements more accessible. The FTA Tariff Tool consolidates and condenses trade, tariff and sectoral information into a user-friendly public interface. The tool is provided free of charge by the U.S. Department of Commerce. Businesses are able to see the current and future tariffs applied to their products, as well as the date on which those products become duty free. By combining sector and product groups, trade data, and the tariff elimination schedules, users can also analyze how various sectors are treated across multiple trade agreements. -
Handbook on Preferential Market Access for Asean Least Developed Countries
UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT HANDBOOK ON PREFERENTIAL MARKET ACCESS FOR ASEAN LEAST DEVELOPED COUNTRIES Part III: ASEAN-FTA Agreements Layout and Printing at United Nations, Geneva – 2017833 (E) – March 2021 – 730 – UNCTAD/ALDC/2019/5 “Mazzarello - geometrie del dare, nuovo futuro” is the work of Maurizio Cancelli. Its architectural perspective emphasizes the interactions of governments, societies and economies from around the globe under the United Nations Framework. This collaboration highlights the earth, its resources and potentials, and fosters a recognition of local communities and their right to exist in their places of origin, with their own distinction and diversity. Maurizio Cancelli started his artistic research on the right to live in one’s place of birth more than thirty years ago. His work is inspired by the mountainous terrain surrounding the village of Cancelli in the heart of Umbria, Italy. UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT HANDBOOK ON PREFERENTIAL MARKET ACCESS FOR ASEAN LEAST DEVELOPED COUNTRIES Part III: ASEAN-FTA Agreements Geneva, 2021 © 2021, United Nations This work is available through open access, by complying with the Creative Commons licence created for intergovernmental organizations, at http://creativecommons.org/licenses/by/3.0/igo/. The findings, interpretations and conclusions expressed herein are those of the author(s) and do not necessarily reflect the views of the United Nations or its officials or Member States. The designations employed and the presentation of material on any map in this work do not imply the expression of any opinion whatsoever on the part of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. -
The Critical Role of Trade Facilitation in Supporting
CHAPTER 6 THE CRITICAL ROLE OF TRADE FACILITATION IN SUPPORTING ECONOMIC DIVERSIFICATION AND STRUCTURAL REFORMS Contributed by the World Bank, the United Nations Conference on Trade and Development and the Organisation for Economic Co-operation and Development Abstract: Two years after the entry into force of the WTO Trade Facilitation Agreement, it is time for an initial stock-taking. The experience of the World Bank Group Trade Facilitation Support Program (TFSP) and the UNCTAD Trade Facilitation Program, both major providers of trade-related assistance, as well as OECD’s analytical work provides relevant insights. In these early years, support has been generally directed to the “foundational” measures of the Agreement, such as National Trade Facilitation Committees. These will oversee implementation; time release studies, providing a baseline to measure progress; and risk management policies and procedures, a precondition for implementation of simplified control and release processes. Progress is being made. TFSP and OECD research find that the level of alignment with the Agreement is increasing, with notable improvements in publication of measures, automation and streamlining of procedures and engagement with the trade community. Positive impacts from these aid-for-trade supported reforms have also been registered. Country reports and periodic time release studies show reduction in customs physical inspections, elimination of unnecessary documents, automation of manual processing steps, and consequent reduction of clearance times. World Bank surveys (the Logistics Performance Index (LPI) and Doing Business) likewise show a positive trend in these aid-supported countries. AID FOR TRADE AT A GLANCE 2019: ECONOMIC DIVERSIFICATION AND EMPOWERMENT - © OECD, WTO 2019 161 CHAPTER 6.