Rules of Origin and the Web of East Asian Free Trade Agreements

29 Pages Posted: 20 Apr 2016

See all articles by Miriam Manchin

Miriam Manchin

University College London; Centro Studi Luca d'Agliano

Annette O. Pelkmans-Balaoing

Erasmus University (Rotterdam)

Date Written: July 1, 2007

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.

Keywords: Free Trade, Trade Law, Rules of Origin, Trade Policy, Economic Theory & Research

Suggested Citation

Manchin, Miriam and Pelkmans-Balaoing, Annette O., Rules of Origin and the Web of East Asian Free Trade Agreements (July 1, 2007). World Bank Policy Research Working Paper No. 4273. Available at SSRN: https://ssrn.com/abstract=999483

Miriam Manchin (Contact Author)

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

Erasmus University (Rotterdam) ( email )

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

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