Ministry of Commerce And Supplies - Enhanced Integrated ...

N T I S2010B. Data SourcesThe analysis of the export potential sectors combines desk research with fieldwork and is based on quantitativeand qualitative information.Quantitative information includes mainly trade statistics and market access data. For market access conditions, the tariff data is taken from ITC’s Market Access Map database (www.macmap.org). Market Access Map is a comprehensive source of tariffs and market access measuresfor over 170 importing countries. It includes MFN tariffs as well as multilateral, regional, and bilateralpreferential tariff rates. Though not used for this study, the database also contains bound tariffs,multilateral and bilateral tariff quotas, anti-dumping duties and detailed information on rules of origin.Manual adjustments were made in cases where more detailed data was required. Trade data comes primarily from ITC’s Trade Map (www.trademap.org), which provides detailed exportand import profiles and trends for over 5,000 products in 200 countries and territories. Based on theworld’s largest trade database COMTRADE, Trade Map presents import/export values and quantities,growth rates, market shares and market access information. It allows users to analyse markets,review the performance of competing countries and assess opportunities for product diversification byidentifying existing and potential trade between countries. Due to a lack of data from Nepal, ‘mirror data’ was also used, i.e. data from importing countries ratherthan Nepalese export data. Nepal has not reported trade data to the United Nations’ Statistical Division(UNSD) for the years 2004 to 2008. Therefore, no export data is available from the COMTRADE databasefor those years. However, data is available for practically all countries that are current or potentialexport destinations for Nepal. There are also a number of good reasons to use import data instead ofexport data because they are often more accurate. Export data is often less reliable because customsadministrations tend to be more concerned about the accuracy of import data (for fiscal reasons).Also, export data does not give reliable information on the final export destination. For example, manyNepalese products are transshipped through India before they reach their final destinations. Thesetransactions might appear as exports to India in the Nepalese data, even though the final destinationmight be, for example, Pakistan. Using Pakistan import data could be a better solution. However,Pakistan import data could show India as the source of import and not Nepal if the product was nottrans-shipped “directly” through India, but first exported to India.In many cases, we also used estimates from a range of other sources, including some data availablefrom Nepal’s authorities. Qualitative information includes a review of relevant literature and information collected fromcompanies and business associations through fieldwork. The latter is used to validate the results andto gain first-hand insights into the domestic business and policy environment that affects enterprisesin the various product sectors.It should be noted that sector rankings should be interpreted with caution, especially when absolute differencesare small, since many indicators lack precision.C. Selection of 19 Goods and Services Export Potential SectorsThe 19 export potential sectors selected for the study were identified through intensive discussions betweenthe team involved in the preparation of Chapter 2 and representatives from the MoCS, from TEPC, and fromNepalese business associations. This was done through two consecutive workshops organized in late 2009.The previous Export Potential Assessment (EPA) prepared by ITC in 2007 served as an initial basis for selectingsectors, but some sectors were removed and others added. It was decided to include major agricultural andmanufacturing products, as well as several service sectors which were not covered in the previous EPA.NEPAL TRADE INTEGRATION STRATEGY 2010BACKGROUND REPORT295