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Australia-Thailand Trade: Has the FTA Made a Difference?

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  • Prema-chandra Athukorala
  • Archanun Kohpaiboon

Abstract

This paper examines the impact of the Australia-Thailand free trade agreement (TAFTA) on bilateral trade between the two countries, paying attention to the implications of rules of origins (RoO) and the utilization of tariff preferences. It is found that trade has expanded faster following TAFTA came into effect, but the impact has heavily concentrated in a few product lines in Australian imports from Thailand, reflecting the influence of commodity specific, supply-side factors which have a bearing on the rate of preference utilization. The findings, inter alia, suggest that the use of officially announced preference rates in trade flow modeling is likely to exaggerate trade flow effects of FTAs.

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File URL: https://crawford.anu.edu.au/acde/publications/publish/papers/wp2011/wp_econ_2011_12.pdf
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Bibliographic Info

Paper provided by The Australian National University, Arndt-Corden Department of Economics in its series Departmental Working Papers with number 2011-12.

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Length: 35 pages
Date of creation: 2011
Date of revision:
Handle: RePEc:pas:papers:2011-12

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Keywords: free trade agreement; rules of origin; production fragmentation; Thailand; Australia;

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  1. Athukorala, Prema-chandra, 2010. "Production Networks and Trade Patterns in East Asia: Regionalization or Globalization?," Working Papers on Regional Economic Integration 56, Asian Development Bank.
  2. Peter J. Lloyd & Donald Maclaren, 2004. "Gains and Losses from Regional Trading Agreements: A Survey," The Economic Record, The Economic Society of Australia, vol. 80(251), pages 445-467, December.
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Cited by:
  1. Athukorala, Prema-chandra, 2012. "Asian trade flows: Trends, patterns and prospects," Japan and the World Economy, Elsevier, vol. 24(2), pages 150-162.

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