Disentangling Market Access Effects for ASEAN Members Under an ASEAN-EU FTA

23 Pages Posted: 13 May 2009

See all articles by Celine Carrere

Celine Carrere

Université d'Auvergne - Clermont 1 - CERDI

Bolormaa Tumurchudur

University of Lausanne - School of Economics and Business Administration (HEC-Lausanne)

Jaime de Melo

University of Geneva - Department of Political Economics; Centre for Economic Policy Research (CEPR); World Bank

Date Written: October 2008

Abstract

The paper develops two synthetic measures at the HS-10 level to depict effective market access for a country receiving preferential access and applies these to the market access ASEAN members would receive on impact following the implementation of an FTA with the EU. These measures reveal quite a different picture than one that would be gleaned from the more usual ex-ante aggregate approaches. First, the measures show that current effective market access for ASEAN EBA members is cut in half by the preferences granted by the EU to countries that compete with these countries in the EU markets. Second, the small value of preferences is reflected in the pattern of preferential margins, the “significant” preferential margins almost always being for products that account for less than 1/10 of 1 percent of exports at the HS-10 level. Third the measures show that about one quarter of the preferential margin under the proposed FTA for EBA members would be lost as a result of preferential access granted to ASEAN GSP members. Fifth, disaggregated calculations on the restrictiveness of rules of origin not only confirm that rules are more restrictive for products with higher preferential margins, but also that, for a given preferential margin in the EU market, due to the product composition of their exports to the EU, ASEAN countries usually face tougher rules of origin in the EU.

Keywords: Market Access, Rules of Origin, preferential trade agreements, ASEAN

JEL Classification: F13, F15

Suggested Citation

Carrere, Celine and Tumurchudur, Bolorma and de Melo, Jaime, Disentangling Market Access Effects for ASEAN Members Under an ASEAN-EU FTA (October 2008). Centro Studi Luca d'Agliano Development Studies Working Paper No. 259. Available at SSRN: https://ssrn.com/abstract=1398749 or http://dx.doi.org/10.2139/ssrn.1398749

Celine Carrere

Université d'Auvergne - Clermont 1 - CERDI ( email )

65 Boulevard Francois Mitterrand
63000 Clermont-Ferrand Cedex 1
France

Bolorma Tumurchudur

University of Lausanne - School of Economics and Business Administration (HEC-Lausanne) ( email )

Unil Dorigny, Batiment Internef
Lausanne, 1015
Switzerland

Jaime De Melo (Contact Author)

University of Geneva - Department of Political Economics ( email )

40, boulevard du Pont-d'Arve
Geneva 4, CH-1211
Switzerland
+41 22 705 8273 (Phone)
+41 22 705 8293 (Fax)

HOME PAGE: http://www.unige.ch/ses/ecopo/demelo/Jaime.html

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

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