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Some practical guidance for the computation of free trade agreement utilization rates

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  • Hayakawa, Kazunobu
  • Nuttawut, Laksanapanyakul
  • Shiino, Kohei

Abstract

The literature on the use of free trade agreements (FTAs) has recently been growing because it is becoming more important to encourage the use of current FTAs than to increase the number of FTAs. In this paper, we discuss some practical issues in the computation of FTA utilization rates, which provide a useful measure to discover how much FTA schemes are used in trade. For example, compared with the use of customs data on FTA utilization in imports, when using certificates of origin data on FTA utilization in exports, there are several points about which we should be careful. Our practical guidance on the computation of FTA utilization rates will be helpful when computing such rates and in examining the determinants of those rates empirically.

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File URL: http://ir.ide.go.jp/dspace/bitstream/2344/1293/1/ARRIDE_Discussion_No.438_hayakawa.pdf
File Function: First version, 2013
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Bibliographic Info

Paper provided by Institute of Developing Economies, Japan External Trade Organization(JETRO) in its series IDE Discussion Papers with number 438.

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Date of creation: Dec 2013
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Publication status: Published in IDE Discussion Paper. No. 438. 2013.12
Handle: RePEc:jet:dpaper:dpaper438

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Related research

Keywords: Thailand; Asia; International trade; Free Trade Agreement (FTA); Certificates of Origin; FTA Utilization;

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References

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  1. Hayakawa, Kazunobu, 2014. "Impact of diagonal cumulation rule on FTA utilization: Evidence from bilateral and multilateral FTAs between Japan and Thailand," Journal of the Japanese and International Economies, Elsevier, vol. 32(C), pages 1-16.
  2. �aglar Özden & Gunjan Sharma, 2006. "Price Effects of Preferential Market Access: Caribbean Basin Initiative and the Apparel Sector," World Bank Economic Review, World Bank Group, vol. 20(2), pages 241-259.
  3. Ozden, Caglar & Sharma, Gunjan, 2004. "Price effects of preferential market access : the Caribbean Basin Initiative and the apparel sector," Policy Research Working Paper Series 3244, The World Bank.
  4. Hayakawa, Kazunobu & Kim, HanSung & Nuttawut, Laksanapanyakul & Shiino, Kohei, 2013. "FTA utilization : certificate of origin data versus customs data," IDE Discussion Papers 428, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  5. Olivier CADOT & Jaime MELO DE & Céline CARRERE & Bolormaa TUMURCHUDUR, 2005. "Product Specific Rules of Origin in EU and US Preferential Trading Arrangements: An Assessment," Working Papers 200508, CERDI.
  6. AUGIER Patricia & GAZIOREK Michael & LAITONG Charles, 2004. "The Impact of Rules of Origin On Trade Flows," International Trade 0404001, EconWPA.
  7. Demidova, Svetlana & Krishna, Kala, 2008. "Firm heterogeneity and firm behavior with conditional policies," Economics Letters, Elsevier, vol. 98(2), pages 122-128, February.
  8. Olivier Cadot & Céline Carrère & Jaime de Melo & Alberto Portugal-Pérez, 2005. "Market Access and Welfare under Free Trade Agreements: Textiles under," World Bank Economic Review, World Bank Group, vol. 19(3), pages 379-405.
  9. Jean-Christophe Bureau & Raja Chakir & Jacques Gallezot, 2007. "The Utilisation of Trade Preferences for Developing Countries in the Agri-food Sector," Journal of Agricultural Economics, Wiley Blackwell, vol. 58(2), pages 175-198, 06.
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