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

Author

Listed:
  • 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.

Suggested Citation

  • Prema-chandra Athukorala & Archanun Kohpaiboon, 2011. "Australia-Thailand Trade: Has the FTA Made a Difference?," Departmental Working Papers 2011-12, The Australian National University, Arndt-Corden Department of Economics.
  • Handle: RePEc:pas:papers:2011-12
    as

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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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    References listed on IDEAS

    as
    1. 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.
    2. Prema-chandra Athukorala, 2011. "Production Networks and Trade Patterns in East Asia: Regionalization or Globalization?," Asian Economic Papers, MIT Press, vol. 10(1), pages 65-95, Winter/Sp.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Ganeshan Wignaraja, 2013. "Regional Trade Agreements and Enterprises in Southeast Asia," Trade Working Papers 23718, East Asian Bureau of Economic Research.
    2. Athukorala, Prema-chandra, 2012. "Asian trade flows: Trends, patterns and prospects," Japan and the World Economy, Elsevier, vol. 24(2), pages 150-162.
    3. Wignaraja, Ganeshan, 2014. "The determinants of FTA use in Southeast Asia: A firm-level analysis," Journal of Asian Economics, Elsevier, vol. 35(C), pages 32-45.

    More about this item

    Keywords

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

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations

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