Rules of Origin for Preferential Trading Arrangements : Implications for the ASEAN Free Trade Area of EU and U.S. Experience
With free trade areas (FTAs) under negotiation between Japan and the ASEAN Free Trade Area (AFTA) members and between the Republic of Korea and AFTA members, preferential market access will become more important in Asian regionalism. Protectionist pressures will likely increase through rules of orig...
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| Format: | Policy Research Working Paper |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2006/09/7151756/rules-origin-preferential-trading-arrangements-implications-asean-free-trade-area-eu-experience http://hdl.handle.net/10986/9025 |
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okr-10986-90252021-04-23T14:02:41Z Rules of Origin for Preferential Trading Arrangements : Implications for the ASEAN Free Trade Area of EU and U.S. Experience Cadot, Olivier de Melo, Jaime Portugal-Pérez, Alberto ADMINISTRATIVE COSTS AGRICULTURAL PRODUCTS APPAREL APPAREL SECTOR AVERAGE TARIFF BILATERAL CUMULATION COMMODITY CLASSIFICATION COMPLIANCE COSTS CONFERRING ORIGIN CONSUMER PRICES CONTENT REQUIREMENT CONTENT RULE CONTENT RULES CUSTOMS CUSTOMS UNION DIFFERENTIATED PRODUCTS DOMESTIC CONTENT DOMESTIC INDUSTRIES DOMESTIC PRODUCERS DUTY-FREE ACCESS ECONOMETRIC ESTIMATES EXPORTERS EXPORTING MEMBER STATE EXPORTS EXTERNAL TARIFF FINAL PRODUCT FINAL PRODUCTS FREE ACCESS FREE TRADE FREE TRADE AREA FREE TRADE AREAS GENERALIZED SYSTEM OF PREFERENCES GLOBAL TRADING GLOBAL TRADING PATTERNS IMPORT PRICE IMPORTING COUNTRY IMPORTS INDUSTRIALIZATION INDUSTRY TRADE INPUT COSTS INTERMEDIATE GOODS INTERMEDIATE PRODUCTS INTRA-ASEAN TRADE INTRA-REGIONAL TRADE LOCAL CONTENT LOCAL VALUE LOW TARIFFS LOW-INCOME COUNTRIES MANUFACTURING PROCESS MANUFACTURING PROCESSES MARGINAL EFFECT MARGINAL EFFECTS MARKET POWER MEMBER COUNTRY NON-ORIGINATING MATERIALS ORIGIN REQUIREMENTS ORIGINATING INPUTS OUTSOURCING PARTNER COUNTRIES PATTERN OF TRADE PATTERNS OF TRADE PREFERENTIAL ACCESS PREFERENTIAL MARGIN PREFERENTIAL MARGINS PREFERENTIAL MARKET ACCESS PREFERENTIAL RATES PREFERENTIAL REGIME PREFERENTIAL STATUS PREFERENTIAL TARIFF PREFERENTIAL TARIFF RATE PREFERENTIAL TRADE PREFERENTIAL TRADE AGREEMENTS PREFERENTIAL TRADING PREFERENTIAL TRADING AGREEMENTS PREFERENTIAL TRADING ARRANGEMENTS PREFERENTIAL TREATMENT PRIVATE SECTOR PRODUCT LEVEL PRODUCT PRICE PRODUCT-SPECIFIC RULES PRODUCTION COSTS PROFIT RATE PROTECTIONIST PRESSURES RATE OF TARIFF PREFERENCE RATES OF PROTECTION REGIONAL CONTENT REGIONAL INTEGRATION REGIONAL TRADE REGIONAL TRADING AGREEMENTS REGIONAL VALUE REGIONAL VALUE CONTENT REGIONALISM RESTRICTIVE RULE RULES OF ORIGIN SUBSTANTIAL TRANSFORMATION TARIFF CLASSIFICATION TARIFF CUTS TARIFF ELIMINATION TARIFF LINE TARIFF LINES TARIFF PREFERENCES TARIFF RATE TARIFF RATES TARIFF REDUCTIONS TARIFF REVENUE TARIFF SCHEDULES TECHNICAL REQUIREMENTS TEXTILE PRODUCERS TRADE BLOC TRADE DEFLECTION TRADE FLOWS TRADE POLICY TRADE POLICY INSTRUMENT TRADE VOLUMES TRADING ARRANGEMENT TRADING PARTNERS TRIPLE TRANSFORMATION UNDETERMINED ORIGIN VALUE ADDED VALUE OF OUTPUT VOLUME OF TRADE WORLD ECONOMY WORLD TRADING SYSTEM WTO ZERO PROFITS ZERO TARIFFS NAFTA With free trade areas (FTAs) under negotiation between Japan and the ASEAN Free Trade Area (AFTA) members and between the Republic of Korea and AFTA members, preferential market access will become more important in Asian regionalism. Protectionist pressures will likely increase through rules of origin, the natural outlet for these pressures. Based on the experience of the European Union and the United States with rules of origin, the authors argue that, should these FTAs follow in the footsteps of the EU and the U.S. and adopt similar rules of origin, trading partners in the region would incur unnecessary costs. Using EU trade under the Generalized System of Preferences with Africa, Caribbean, and Pacific partners, the authors estimate how the use of preferences would likely change if AFTA were to veer away from its current uniform rules of origin requiring a 40 percent local content rate. Depending on the sample used, a 10 percentage point reduction in the local value content requirement is estimated to increase the utilization rate of preferences by between 2.5 and 8.2 percentage points. 2012-06-26T14:47:27Z 2012-06-26T14:47:27Z 2006-09 http://documents.worldbank.org/curated/en/2006/09/7151756/rules-origin-preferential-trading-arrangements-implications-asean-free-trade-area-eu-experience http://hdl.handle.net/10986/9025 English Policy Research Working Paper; No. 4016 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific Europe and Central Asia United States |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ADMINISTRATIVE COSTS AGRICULTURAL PRODUCTS APPAREL APPAREL SECTOR AVERAGE TARIFF BILATERAL CUMULATION COMMODITY CLASSIFICATION COMPLIANCE COSTS CONFERRING ORIGIN CONSUMER PRICES CONTENT REQUIREMENT CONTENT RULE CONTENT RULES CUSTOMS CUSTOMS UNION DIFFERENTIATED PRODUCTS DOMESTIC CONTENT DOMESTIC INDUSTRIES DOMESTIC PRODUCERS DUTY-FREE ACCESS ECONOMETRIC ESTIMATES EXPORTERS EXPORTING MEMBER STATE EXPORTS EXTERNAL TARIFF FINAL PRODUCT FINAL PRODUCTS FREE ACCESS FREE TRADE FREE TRADE AREA FREE TRADE AREAS GENERALIZED SYSTEM OF PREFERENCES GLOBAL TRADING GLOBAL TRADING PATTERNS IMPORT PRICE IMPORTING COUNTRY IMPORTS INDUSTRIALIZATION INDUSTRY TRADE INPUT COSTS INTERMEDIATE GOODS INTERMEDIATE PRODUCTS INTRA-ASEAN TRADE INTRA-REGIONAL TRADE LOCAL CONTENT LOCAL VALUE LOW TARIFFS LOW-INCOME COUNTRIES MANUFACTURING PROCESS MANUFACTURING PROCESSES MARGINAL EFFECT MARGINAL EFFECTS MARKET POWER MEMBER COUNTRY NON-ORIGINATING MATERIALS ORIGIN REQUIREMENTS ORIGINATING INPUTS OUTSOURCING PARTNER COUNTRIES PATTERN OF TRADE PATTERNS OF TRADE PREFERENTIAL ACCESS PREFERENTIAL MARGIN PREFERENTIAL MARGINS PREFERENTIAL MARKET ACCESS PREFERENTIAL RATES PREFERENTIAL REGIME PREFERENTIAL STATUS PREFERENTIAL TARIFF PREFERENTIAL TARIFF RATE PREFERENTIAL TRADE PREFERENTIAL TRADE AGREEMENTS PREFERENTIAL TRADING PREFERENTIAL TRADING AGREEMENTS PREFERENTIAL TRADING ARRANGEMENTS PREFERENTIAL TREATMENT PRIVATE SECTOR PRODUCT LEVEL PRODUCT PRICE PRODUCT-SPECIFIC RULES PRODUCTION COSTS PROFIT RATE PROTECTIONIST PRESSURES RATE OF TARIFF PREFERENCE RATES OF PROTECTION REGIONAL CONTENT REGIONAL INTEGRATION REGIONAL TRADE REGIONAL TRADING AGREEMENTS REGIONAL VALUE REGIONAL VALUE CONTENT REGIONALISM RESTRICTIVE RULE RULES OF ORIGIN SUBSTANTIAL TRANSFORMATION TARIFF CLASSIFICATION TARIFF CUTS TARIFF ELIMINATION TARIFF LINE TARIFF LINES TARIFF PREFERENCES TARIFF RATE TARIFF RATES TARIFF REDUCTIONS TARIFF REVENUE TARIFF SCHEDULES TECHNICAL REQUIREMENTS TEXTILE PRODUCERS TRADE BLOC TRADE DEFLECTION TRADE FLOWS TRADE POLICY TRADE POLICY INSTRUMENT TRADE VOLUMES TRADING ARRANGEMENT TRADING PARTNERS TRIPLE TRANSFORMATION UNDETERMINED ORIGIN VALUE ADDED VALUE OF OUTPUT VOLUME OF TRADE WORLD ECONOMY WORLD TRADING SYSTEM WTO ZERO PROFITS ZERO TARIFFS NAFTA |
| spellingShingle |
ADMINISTRATIVE COSTS AGRICULTURAL PRODUCTS APPAREL APPAREL SECTOR AVERAGE TARIFF BILATERAL CUMULATION COMMODITY CLASSIFICATION COMPLIANCE COSTS CONFERRING ORIGIN CONSUMER PRICES CONTENT REQUIREMENT CONTENT RULE CONTENT RULES CUSTOMS CUSTOMS UNION DIFFERENTIATED PRODUCTS DOMESTIC CONTENT DOMESTIC INDUSTRIES DOMESTIC PRODUCERS DUTY-FREE ACCESS ECONOMETRIC ESTIMATES EXPORTERS EXPORTING MEMBER STATE EXPORTS EXTERNAL TARIFF FINAL PRODUCT FINAL PRODUCTS FREE ACCESS FREE TRADE FREE TRADE AREA FREE TRADE AREAS GENERALIZED SYSTEM OF PREFERENCES GLOBAL TRADING GLOBAL TRADING PATTERNS IMPORT PRICE IMPORTING COUNTRY IMPORTS INDUSTRIALIZATION INDUSTRY TRADE INPUT COSTS INTERMEDIATE GOODS INTERMEDIATE PRODUCTS INTRA-ASEAN TRADE INTRA-REGIONAL TRADE LOCAL CONTENT LOCAL VALUE LOW TARIFFS LOW-INCOME COUNTRIES MANUFACTURING PROCESS MANUFACTURING PROCESSES MARGINAL EFFECT MARGINAL EFFECTS MARKET POWER MEMBER COUNTRY NON-ORIGINATING MATERIALS ORIGIN REQUIREMENTS ORIGINATING INPUTS OUTSOURCING PARTNER COUNTRIES PATTERN OF TRADE PATTERNS OF TRADE PREFERENTIAL ACCESS PREFERENTIAL MARGIN PREFERENTIAL MARGINS PREFERENTIAL MARKET ACCESS PREFERENTIAL RATES PREFERENTIAL REGIME PREFERENTIAL STATUS PREFERENTIAL TARIFF PREFERENTIAL TARIFF RATE PREFERENTIAL TRADE PREFERENTIAL TRADE AGREEMENTS PREFERENTIAL TRADING PREFERENTIAL TRADING AGREEMENTS PREFERENTIAL TRADING ARRANGEMENTS PREFERENTIAL TREATMENT PRIVATE SECTOR PRODUCT LEVEL PRODUCT PRICE PRODUCT-SPECIFIC RULES PRODUCTION COSTS PROFIT RATE PROTECTIONIST PRESSURES RATE OF TARIFF PREFERENCE RATES OF PROTECTION REGIONAL CONTENT REGIONAL INTEGRATION REGIONAL TRADE REGIONAL TRADING AGREEMENTS REGIONAL VALUE REGIONAL VALUE CONTENT REGIONALISM RESTRICTIVE RULE RULES OF ORIGIN SUBSTANTIAL TRANSFORMATION TARIFF CLASSIFICATION TARIFF CUTS TARIFF ELIMINATION TARIFF LINE TARIFF LINES TARIFF PREFERENCES TARIFF RATE TARIFF RATES TARIFF REDUCTIONS TARIFF REVENUE TARIFF SCHEDULES TECHNICAL REQUIREMENTS TEXTILE PRODUCERS TRADE BLOC TRADE DEFLECTION TRADE FLOWS TRADE POLICY TRADE POLICY INSTRUMENT TRADE VOLUMES TRADING ARRANGEMENT TRADING PARTNERS TRIPLE TRANSFORMATION UNDETERMINED ORIGIN VALUE ADDED VALUE OF OUTPUT VOLUME OF TRADE WORLD ECONOMY WORLD TRADING SYSTEM WTO ZERO PROFITS ZERO TARIFFS NAFTA Cadot, Olivier de Melo, Jaime Portugal-Pérez, Alberto Rules of Origin for Preferential Trading Arrangements : Implications for the ASEAN Free Trade Area of EU and U.S. Experience |
| geographic_facet |
East Asia and Pacific Europe and Central Asia United States |
| relation |
Policy Research Working Paper; No. 4016 |
| description |
With free trade areas (FTAs) under negotiation between Japan and the ASEAN Free Trade Area (AFTA) members and between the Republic of Korea and AFTA members, preferential market access will become more important in Asian regionalism. Protectionist pressures will likely increase through rules of origin, the natural outlet for these pressures. Based on the experience of the European Union and the United States with rules of origin, the authors argue that, should these FTAs follow in the footsteps of the EU and the U.S. and adopt similar rules of origin, trading partners in the region would incur unnecessary costs. Using EU trade under the Generalized System of Preferences with Africa, Caribbean, and Pacific partners, the authors estimate how the use of preferences would likely change if AFTA were to veer away from its current uniform rules of origin requiring a 40 percent local content rate. Depending on the sample used, a 10 percentage point reduction in the local value content requirement is estimated to increase the utilization rate of preferences by between 2.5 and 8.2 percentage points. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Cadot, Olivier de Melo, Jaime Portugal-Pérez, Alberto |
| author_facet |
Cadot, Olivier de Melo, Jaime Portugal-Pérez, Alberto |
| author_sort |
Cadot, Olivier |
| title |
Rules of Origin for Preferential Trading Arrangements : Implications for the ASEAN Free Trade Area of EU and U.S. Experience |
| title_short |
Rules of Origin for Preferential Trading Arrangements : Implications for the ASEAN Free Trade Area of EU and U.S. Experience |
| title_full |
Rules of Origin for Preferential Trading Arrangements : Implications for the ASEAN Free Trade Area of EU and U.S. Experience |
| title_fullStr |
Rules of Origin for Preferential Trading Arrangements : Implications for the ASEAN Free Trade Area of EU and U.S. Experience |
| title_full_unstemmed |
Rules of Origin for Preferential Trading Arrangements : Implications for the ASEAN Free Trade Area of EU and U.S. Experience |
| title_sort |
rules of origin for preferential trading arrangements : implications for the asean free trade area of eu and u.s. experience |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2006/09/7151756/rules-origin-preferential-trading-arrangements-implications-asean-free-trade-area-eu-experience http://hdl.handle.net/10986/9025 |
| _version_ |
1764406599686815744 |