Presentation Supplemental Charts: Relative Comparison of APEC Economies

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1 Presentation Supplemental Charts: 1

2 BORDER MARKET Enabling Trade Index Framework The World Economic Forum has published The Global Enabling Trade Report, containing the Enabling Trade Index (ETI), on an annual basis since The ETI ranks 125 economies based on the extent to which they have developed institutions, policies and services facilitating the free flow of goods over borders and to destination. ETI FRAMEWORK MARKET ACCESS Domestic and foreign market access BORDER ADMINISTRATION Efficiency of customs processes TRANSPORT AND COMMUNICATION INFRASTRUCTURE Availability and quality of transport infrastructure Efficiency of import-export procedures Availability and quality of transport services of border administration Availability and use of KEY SUBINDEX BUSINESS ENVIRONMENT Pillar Regulatory environment Physical security 2

3 Supply Chain Chokepoints The ABAC Research Team categorized supply chain chokepoints as the following: TRANSPARENCY INFRASTRUCTURE LOGISTICS CLEARANCE DOCUMENTATION CONNECTIVITY STANDARDS & REGULATIONS TRANSIT MARKET ACCESS Lack of transparency/awareness of the full scope of regulatory issues affecting logistics; Lack of awareness and coordination among government agencies on policies affecting logistics sector; Absence of single contact point or champion agency on logistics matters. Inefficient or inadequate transport infrastructure; Lack of cross border physical linkages; Lack of physical linkages that connects businesses to and from the border (e.g. roads, bridges). Lack of capacity of local/regional logistics sub-providers. Inefficient (both costly & timely) clearance of goods at Customs; Lack of coordination among border agencies, especially relating to clearance of regulated goods at the border. Burdensome customs documentation and other procedures (including for preferential trade). Underdeveloped multi-modal transport capabilities; inefficient air, land, and multimodal connectivity. Variations in cross-border standards and regulations for movement of goods, services and business travellers. Lack of regional cross-border customs-transit arrangements. Lack of mutual recognition arrangement in customs regulations across Asian regions. NTBs,NTMs, and tariffs that increase transaction costs and prevent or delay market access. Source: Asia Pacific Economic Cooperation (2011, March). Supply-Chain Connectivity Action Plans, 23 rd Electronic Commerce Steering Committee Group. 3

4 Rankings by Economy The chokepoint incorporates issues of irregular payments for exports and imports, corruption perceptions, government online services, and ethics and corruption. Below are the ETI scores for these sub-pillars. Singapore New Zealand Canada Australia Hong Kong United States Japan Korea Chile Chinese Taipei Malaysia People's Republic of China Peru Mexico Thailand Viet Nam Indonesia Russia Philippines Irregular payments in exports and imports Corruption Perceptions Government Online Service Ethics and corruption Source: World Economic Forum (2010). The Global Enabling Trade Report. Increasing Magnitude of Barriers 4

5 Infrastructure Rankings by Economy The Infrastructure chokepoint is made up of the issues of airport density, paved roads, road congestion, quality of air transport infrastructure, quality of railroad infrastructure, and quality of roads. Below are the ETI values for these sub-pillars. Infrastructure Hong Kong Singapore Canada New Zealand Chinese Taipei Korea United States Australia Japan Malaysia Thailand People's Republic of China Chile Russia Mexico Indonesia Viet Nam Peru Philippines Airport density Paved roads Road Congestion Quality of air transport infrastructure Quality of railroad infrastructure Quality of roads Increasing Magnitude of Barriers 5

6 Transportation & Logistics Services Rankings by Economy The Logistics Services chokepoint is closely related to logistics competence, tracking and tracing ability, timeliness of shipments in reaching destination, and GATS commitments in the transport sector. Below are the ETI scores for those sub-pillars by economy. Transportation & Logistics Services Australia Japan Singapore Hong Kong, China Philippines Malaysia Canada United States Thailand People's Republic of China Viet Nam Chinese Taipei New Zealand Korea Chile Mexico Russia Indonesia Peru Logistics competence Tracking and tracing ability Timeliness of shipments in reaching destination GATS commitments in the transport sector Increasing Magnitude of Barriers 6

7 Documentation Rankings by Economy The Documentation chokepoint encompasses the burden of customs procedures and documents to import & export. Documentation Singapore Hong Kong Korea Canada New Zealand Thailand United States Chile Japan Australia People's Republic of China Mexico Chinese Taipei Malaysia Indonesia Viet Nam Peru Philippines Russia Burden of customs procedures Documents to import & export Source: World Economic Forum (2010) The Global Enabling Trade Report. Increasing Magnitude of Barriers 7

8 Connectivity Rankings by Economy The Connectivity chokepoint encompasses transshipment connectivity, liner shipping connectivity, and firm-level technology absorption. Below are the ETI scores for these sub-pillars. Connectivity People's Republic of China Hong Kong United States Singapore Korea Malaysia Japan Chinese Taipei Canada Australia Thailand Mexico Chile New Zealand Indonesia Viet Nam Russia Peru Philippines Transshipment connectivity Liner Shipping Connectivity Firm-level technology absoprtion Increasing Magnitude of Barriers 8

9 Regulations & Standards Rankings by Economy The Regulations & Standards chokepoint consist of questions surrounding property rights, ethics and corruption, undue influence, government efficiency, domestic competition, efficiency of the financial market, openness to foreign participation, ease of hiring foreign labor, prevalence of foreign ownership, business impact of rules on FDI, restriction on international capital flows, and openness to multilateral trade. Below are the ETI scores for these sub-pillars by economy. Regulations and Standards Singapore Hong Kong, China New Zealand Australia Canada United States Chile Chinese Taipei Malaysia Japan People's Republic of China Indonesia Peru Republic of Korea Mexico Thailand Viet Nam Philippines Russia Property rights Ethics and corruption Undue influence Government efficiency Domestic competition Efficiency of the financial market Openness to foreign participation Ease of hiring foreign labor Prevalence of foreign ownership Business impact of rules on FDI Restriction on international capital flows Openness to multilateral trade Source: World Economic Forum (2010). The Global Enabling Trade Report. Increasing Magnitude of Barriers 9

10 Custom Transit Arrangement Rankings by Economy The transit chokepoint encompasses issues around ease and affordability of shipment and multi-lateral trade. Below are the ETI values for those sub-pillars by economy. Customs Transit Arrangements Australia People's Republic of China United States Hong Kong Korea Japan Singapore New Zealand Chinese Taipei Philippines Canada Mexico Russia Malaysia Peru Chile Thailand Viet Nam Indonesia Ease and affordability of shipment Multi-lateral trade Increasing Magnitude of Barriers 10

11 Market Access by Economy The data presented below decomposes market access into its two forms: protectionism imposed by APEC economies on incoming goods and services, and protectionism faced by exporting firms. Market Access: Protectionism Imposed and Faced Economy Rank Domestic Protectionism Index Rank Foreign Protectionism Index Market Access: Protectionism Imposed and Faced Australia Canada Chile Chinese Taipei Hong Kong, China Indonesia Japan Malaysia Mexico New Zealand People s Republic of China Peru Philippines Republic of Korea Russia Singapore Thailand United States Viet Nam Domestic Protectionism Index Foreign Protectionism Index APEC EU Source: World Economic Forum (2009, 2010). The Global Enabling Trade Report. 11

12 Non-Tariff Measures/Barriers Imposed by APEC Economies The table below presents new estimates of NTBs by the World Economic Forum reported in the Global Competitiveness Report. The Prevalence of Trade Barriers index also combines both tariffs and NTMs to form a composite index. Prevalence of Trade Barriers Economy 2011 Global Rank 2011 Prevalence of Trade Barriers Australia Brunei Darussalam Canada Chile People s Republic of China Hong Kong, China Indonesia Japan Republic of Korea Malaysia Mexico New Zealand Peru Philippines Russia Singapore Chinese Taipei Thailand United States Viet Nam Prevelance of Trade Barriers, 2011 APEC EU Source: World Economic Forum (2011), The Global Competitiveness Report. 12

13 Presentation Supplemental Charts: 13

14 Economy Comparison with Peers, by ETI Index In the table below, ETI pillar scores are presented for each APEC economy (ETI data is not available for Brunei or Papua New Guinea). Each economy s ETI index score is presented in comparison to the mean of developed APEC economies or the mean of emerging economies, depending on the economy s economic stage of development. Viet Nam Comparison Against Peers As an emerging economy, Thailand is compared against the average scores for emerging economies in the APEC region. Strengths Compared to other emerging economies, Thailand has an above average Transport Infrastructure system. Weaknesses Compared to other emerging economies, Thailand has a below average Domestic Market Access system. Data 14

15 A Closer Look at Developed Economies The graphs below compare the ETI scores of APEC economies to the average ETI scores of developed economies in the APEC region. Australia Canada Chinese Taipei APEC Developed APEC Developed APEC Developed

16 A Closer Look at Developed Economies The graphs below compare the ETI scores of APEC economies to the average ETI scores of developed economies in the APEC region. Hong Kong, China Japan Republic of Korea Hong Kong, China Japan Republic of Korea APEC Developed APEC Developed APEC Developed

17 A Closer Look at Developed Economies The graphs below compare the ETI scores of APEC economies to the average ETI scores of developed economies in the APEC region. New Zealand Singapore United States New Zealand Singapore United States APEC Developed APEC Developed APEC Developed

18 A Closer Look at Emerging Economies The graphs below compare the ETI scores of APEC economies to the average ETI scores of emerging economies in the APEC region. Chile Chile People's Republic of China People s Republic of China Indonesia Indonesia APEC Emerging APEC Emerging APEC Emerging

19 A Closer Look at Emerging Economies The graphs below compare the ETI scores of APEC economies to the average ETI scores of emerging economies in the APEC region. Malaysia Mexico Peru Malaysia Mexico Peru APEC Emerging APEC Emerging APEC Emerging

20 A Closer Look at Emerging Economies The graphs below compare the ETI scores of APEC economies to the average ETI scores of emerging economies in the APEC region. Philippines Philippines Russia Russia APEC Emerging APEC Emerging

21 A Closer Look at Emerging Economies The graphs below compare the ETI scores of APEC economies to the average ETI scores of emerging economies in the APEC region. Thailand Thailand Viet Nam Viet Nam APEC Emerging APEC Emerging

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