Clothes Without an Emperor: Analysis of the Preferential Tariffs in ASEAN

Centro Studi Luca d'Agliano Development Studies Working Paper No. 223

32 Pages Posted: 20 Feb 2007

See all articles by Miriam Manchin

Miriam Manchin

University College London; Centro Studi Luca d'Agliano

Annette O. Pelkmans-Balaoing

Erasmus University (Rotterdam)

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Date Written: January 2007

Abstract

This paper examines the current state of intra-ASEAN trade under the preferential regime of the AFTA. It partly addresses some data problems and employs a gravity model to arrive at alternative ways of gauging the importance of preferences in the absence of data on the actual utilisation of AFTA preferential tariffs. Our results confirm the wide-spread notion that the AFTA preferential scheme is of very little consequence to intra-regional trade. However, in that limited range of products where AFTA might have an influence, preferences seem to matter only when the differential margin between the MFN and preferential tariff rates reaches a critical amount, allowing regional exporters to cover the costs of requesting preferences.

Keywords: ASEAN trade policy, free trade areas, empirical estimates of preference utilisation

JEL Classification: F13, F14, F15

Suggested Citation

Manchin, Miriam and Pelkmans-Balaoing, Annette O., Clothes Without an Emperor: Analysis of the Preferential Tariffs in ASEAN (January 2007). Available at SSRN: https://ssrn.com/abstract=964161 or http://dx.doi.org/10.2139/ssrn.964161

Miriam Manchin

University College London ( email )

Gower Street
London, WC1E 6BT
United Kingdom

Centro Studi Luca d'Agliano ( email )

Via Conservatorio 7
Milan, 20122
Italy

Annette O. Pelkmans-Balaoing (Contact Author)

Erasmus University (Rotterdam) ( email )

Burgemeester Oudlaan 50
3000 DR Rotterdam, Zuid-Holland 3062PA
Netherlands

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