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Rules of origin and the web of East Asian free trade agreements

Author

Listed:
  • Manchin, Miriam
  • Pelkmans-Balaoing, Annette O.

Abstract

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.

Suggested Citation

  • Manchin, Miriam & Pelkmans-Balaoing, Annette O., 2007. "Rules of origin and the web of East Asian free trade agreements," Policy Research Working Paper Series 4273, The World Bank.
    • Handle: RePEc:wbk:wbrwps:4273
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    References listed on IDEAS

    as
    1. Hoekman, Bernard, 1993. "Rules of Origin for Goods and Services: Conceptual Issues and Economic Considerations," CEPR Discussion Papers 821, C.E.P.R. Discussion Papers.
    2. Manchin, Miriam & Pelkmans-Balaoing, Annette O., 2008. "Clothes without an Emperor: Analysis of the preferential tariffs in ASEAN," Journal of Asian Economics, Elsevier, vol. 19(3), pages 213-223, June.
    3. Antoni Estevadeordal & Kati Suominen, 2005. "Rules of Origin in Preferential Trading Arrangements: Is All Well with the Spaghetti Bowl in the Americas?," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Spring 20), pages 63-103, January.
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    Keywords

    Free Trade; Trade Law; Rules of Origin; Trade Policy; Economic Theory&Research;
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