Rationale Wits Smart
Rationale Wits Smart
system combining the database containing data drawn from UN TARMAC, a joint primary data collection
with the International Trade Centre, UNCTAD/WTO (ITC), and the WITS software. TRAINS is both a data
depository and an analytical tool designed for policy-makers and economic operators engaged in
international merchandise trade. It is also a powerful tool for multilateral or bilateral trade negotiations
as well as for general research on international merchandise trade.
TRAINS contains HS-based data for over 1,000 country/years, covering tariff and non-tariff measures as
well as imports flows by origin for more than 160 countries and the years since 1988. For tariffs, TRAINS
contains not only general applied tariff data but also information on applied preferential tariff including
the Generalized System of Preferences (GSP) and many regional and bilateral preferences.
TRAINS gives users the possibility of converting the HS data into other internationally recognized
nomenclatures such as the Standard International Trade Classification (SITC), the International Standard
Industrial Classification (ISIC) or the Broad Economic Categories (BEC) etc... It also provides a single
market, partial equilibrium trade simulation model (SMART model) with which users may simulate trade,
revenue and welfare effects of tariff changes by a single market country.
The TRAINS database is physically located at the World Bank server where WITS application is running,
but is directly maintained by UNCTAD. Neither UNCTAD, nor the World Bank, accepts the responsibility
for the accuracy or suitability of the information provided by in TRAINS database. The user assumes,
therefore, all risk associated with the use of the data in TRAINS. The designation employed and the
presentation of the material in this database do not imply the expression of any opinion whatsoever on
the part of the secretariat of the United Nations concerning the legal status of any country, group of
countries, territory, city or area, or of its authorities, or concerning the delimitation of its frontiers or
boundaries.
Access to TRAINS database is free of charge and unlimited. Users need simply to register with WITS and
the access is provided automatically.
This study attempts to model the potential impact of a 100 per cent tariff liberalization as proposed
under the AfCFTA on South African agricultural trade. To the best of my knowledge, this is the
first study of its kind to explore the potential implications of the AfCFTA tariff liberalization on
In order to create own country groups, name the group (e.g. APF3 as a short name of the group
with no space). Then give your group a description under New Group Description such as Asia
Pacific and Africa. Finally, select the member countries of the group from the individual country list
or pre-existing groups. In our example, we have selected India, Fiji and Nigeria. After having clicked Save,
a new country group APF3 has been added
SMART allows analysis of the impact of unilateral, preferential and multilateral trade reforms at home or
abroad on variables including trade flows (imports, exports, trade creation, trade diversion), world
prices, tariff revenues, and economic welfare. This market access analysis is a very useful tool that can
be used to anticipate the likely economic effects of various policy alternatives. You can use databases
from either UNCTAD or WTO. More details
...
The objective of this chapter is learned how to use the SMART – Partial Equilibrium model within WITS;
SMART- Rationale
This section motivates the need to for market access analyses. Next, it covers the important aspects of
using partial equilibrium analytical tools for market access analysis.
Despite successive rounds of multilateral, regional and unilateral trade liberation, some trade barriers
(including tariff) remain highly restrictive in many (both developed and developing) countries.
For any government, it is crucial to be able to access or to pre-empt the impact of different trade policy
options. Market access analysis is very useful tool that can be used to anticipate the likely economic
effects of various policy alternative
Impact of domestic trade reform. For political economy or social purpose, it is often important to
determine the distribution of the potential gains and losses from any contemplated policy changes. This
will assist in anticipating any adjustment costs associated with reform implementation.
Impact of foreign trade liberalization. For example, when preparing for trade negotiations market assess
analysis helps to identify the sensitivity where negotiation efforts should be focused. Also, it could be
useful in the formation of negotiating coalition in multilateral/ regional negotiation.
The market access analysis tool included in the WITS package allows the researcher to investigate the
impact of unilateral/ preferential/ multilateral trade reforms at home or abroad on various including;
World prices
Tariff revenue
Economic Welfare
Steps
Defining a Scenario
For you to define a Scenario, click on Modity to the right of the Scenario Box
When you have successfully added the scenario to the available scenario list, you will receive a
confirmation from a pop-up window as seen below
Further click on the Select button next to Partner. Select Least Developed Countries LDC from the list of
Predefined Country Groups
Click on Proceed. Further proceed by clicking on the Select button next to Products in the Secenerio
panel. Choses HS combination in the Nomenclature selection field, and select. Total Trade as an example
calls for a scenario where US is giving duty free access on all products