Rules of Origin and the Web of East Asian Free Trade Agreements

The authors provide an overview of the preferential rules of origin in East Asia, highlighting the aspects that might possibly generate some trade-chilling effects. They review characteristics of existing preferential trade agreements with special emphasis on lessons from the European experience, and analyze some important features of the existing rules of origin in East and South-East Asian regional integration agreements. The empirical analysis of the effectiveness of preferentialism on intra-regional trade flows focuses on the ASEAN Free Trade Area (AFTA), with the aim of providing a rough estimate of the costs of requesting preferences. The results suggest that preferential tariffs favorably affect intra-regional imports only at very high margins (around 25 percentage points). This points to the likelihood of high administrative costs attached to the exploitation of preferences, particularly with regard to the compliance with AFTA's rules of origin.

Bibliographic Details

Main Authors:	Manchin, Miriam, Pelkmans-Balaoing, Annette O.
Language:	English
Published:	World Bank, Washington, DC 2007-07
Subjects:	ADMINISTRATIVE COSTS, ADMINISTRATIVE PROCEDURES, ADVERSE CONSEQUENCE, AGREEMENT ON TRADE, AGREEMENT ON TRADE IN GOODS, AGRICULTURAL PRODUCTS, APPAREL, AUTOMOTIVE PRODUCTS, BILATERAL AGREEMENTS, BILATERAL CUMULATION, BILATERAL FREE TRADE AGREEMENTS, BILATERAL TRADE, BLOC TRADE, CHEMICAL PRODUCTS, COMPETITIVENESS, COMPETITIVENESS OF FIRMS, COMPLIANCE COSTS, CONCESSIONS, CONFERRING ORIGIN, CONTENT REQUIREMENT, CONTENT REQUIREMENTS, CONTENT RULE, COST ANALYSIS, CUSTOMS, CUSTOMS AUTHORITIES, CUSTOMS DUTIES, CUSTOMS MECHANISMS, CUSTOMS OFFICIALS, CUSTOMS VALUATION, DETERMINING ORIGIN, DUTY DRAWBACK, DUTY DRAWBACKS, DUTY REDUCTION, ECONOMIC COOPERATION, ECONOMIC EFFECTS, ECONOMIC INTEGRATION, ECONOMIC RELATIONS, EXPORT PRODUCTION, EXPORTERS, EXPORTING COUNTRY, EXPORTS, EXTERNAL TRADE, FINAL PRODUCT, FINAL PRODUCTS, FINANCIAL SERVICES, FOREIGN DIRECT INVESTMENT, FOREIGN FIRMS, FREE ACCESS, FREE CIRCULATION, FREE TRADE, FREE TRADE AGREEMENT, FREE TRADE AGREEMENTS, FREE TRADE AREA, GENERAL SYSTEM OF PREFERENCES, GRAVITY MODEL, HARMONIZED RULES, IMPACT OF TRADE, IMPACT OF TRADE INTEGRATION, IMPORT DUTIES, IMPORT DUTY, IMPORTED INPUTS, INSPECTION, INTERMEDIATE INPUTS, INTERNATIONAL RULES, INTRA-REGIONAL TRADE, LAST PROCESS, LOCAL CONTENT, MANUFACTURING PROCESS, MANUFACTURING PROCESS REQUIREMENT, MANUFACTURING PROCESSES, MARGINAL COSTS, MINIMIS RULE, MOST FAVORED NATION, MULTILATERAL LIBERALIZATION, NON-ORIGINATING INPUTS, NON-ORIGINATING MATERIAL, NON-ORIGINATING MATERIALS, ORIGIN CRITERIA, ORIGIN DETERMINATION, ORIGIN REQUIREMENTS, ORIGIN RULE, ORIGIN RULES, ORIGIN SCHEME, ORIGINATING INPUTS, ORIGINATING MATERIALS, ORIGINATING PRODUCTS, OUTSOURCING, POLICY RESEARCH, PREFERENTIAL ACCESS, PREFERENTIAL AGREEMENT, PREFERENTIAL AGREEMENTS, PREFERENTIAL MARKET ACCESS, PREFERENTIAL RATES, PREFERENTIAL REDUCTION, PREFERENTIAL RULES, PREFERENTIAL RULES OF ORIGIN, PREFERENTIAL SCHEME, PREFERENTIAL TARIFF, PREFERENTIAL TARIFF REDUCTION, PREFERENTIAL TARIFFS, PREFERENTIAL TRADE, PREFERENTIAL TRADE AGREEMENT, PREFERENTIAL TRADE AGREEMENTS, PROCESS OF DEVELOPMENT, PRODUCT-SPECIFIC RULES, PRODUCTION COSTS, PRODUCTION PROCESS, PRODUCTION PROCESSES, PROVING ORIGIN, REGIONAL CONTENT, REGIONAL IMPORT SUBSTITUTION, REGIONAL INTEGRATION, REGIONAL TRADE, REGIONAL TRADE AGREEMENTS, REGULATORY BARRIERS, RESTRICTIVE RULES, RESTRICTIVE RULES OF ORIGIN, RULES OF ORIGIN, RULES OF ORIGIN REGIMES, SUBSTANTIAL TRANSFORMATION, SUBSTANTIAL TRANSFORMATION RULE, SYSTEM OF PREFERENCES, TARIFF BARRIERS, TARIFF CLASSIFICATION, TARIFF DATA, TARIFF LINES, TARIFF NOMENCLATURE, TARIFF REDUCTION, TECHNICAL REQUIREMENTS, TEXTILE PRODUCTS, TEXTILE SECTORS, TOURISM, TRADE BARRIERS, TRADE DEFLECTION, TRADE DIVERSION, TRADE FACILITATION, TRADE FLOWS, TRADE MINISTRIES, TRADE PARTNER, TRADE PARTNERS, TRADE PATTERN, TRADE PREFERENCES, TRADING PARTNERS, TRANSITION ECONOMIES, VALUE ADDED, VALUE OF IMPORTS, VALUE-ADDED CRITERIA, VALUE-ADDED METHOD, VALUE-ADDED RULE, WTO,
Online Access:	http://documents.worldbank.org/curated/en/2007/07/7848005/rules-origin-web-east-asian-free-trade-agreements https://hdl.handle.net/10986/7456
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