Trade Issues in East Asia : Preferential Rules of Origin
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Rules of origin are a necessary feature
of any regional trade agreement. They ensure that
preferences are available only to the signatories of the
agreement and that imports from non-members do not avoid
customs duties by entering through the member with the
lowest tariff. The rules of origin define the amount of
local processing, or the extent of the transformation of the
product, that must be undertaken in the country from which
the product claiming preferences is exported. The definition
of these requirements to prevent trade deflection is not
straightforward. If the rules are too onerous and complex
and are costly to comply with, they will limit the impact of
tariff reductions on trade. Indeed, import competing
industries have often been successful in obtaining
restrictive rules of origin that dilute the impact of the
loss of tariff protection. This is most apparent in
agreements between developed countries and lower wage
countries. As FTAs multiply in the region, putting in place
rules of origin (ROO) that are simple, transparent, and easy
to implement becomes important. The experience in the
implementation of the AFTA rules of origin can provide some
lessons for the upcoming FTAs.
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ABSORPTION PRINCIPLE, ADMINISTRATIVE COSTS, ADMINISTRATIVE PROCEDURES, AGRICULTURAL COMMODITIES, AGRICULTURAL PRODUCE, AGRICULTURAL PRODUCTS, AGRICULTURAL SECTOR, APPAREL, APPAREL PRODUCERS, APPLIED STUDIES, AUTHENTICATION, AVERAGE TARIFF, AVERAGE TARIFF RATES, AVERAGE TARIFFS, BILATERAL CUMULATION, BILATERAL MARKET ACCESS, BILATERAL TRADE, BILATERAL TRADE AGREEMENTS, BORDER TRADE, CERTIFICATION PROCEDURES, CHAMBERS OF COMMERCE, COMMERCIAL POLICY, COMPLIANCE COSTS, CONCESSIONS, CONTENT RULES, CUSTOMS, CUSTOMS AUTHORITIES, CUSTOMS CLASSIFICATION, CUSTOMS CODES, CUSTOMS DUTIES, CUSTOMS PROCEDURES, DOMESTIC FIRMS, DOMESTIC INDUSTRIES, DOMESTIC MARKET, DOMESTIC PRICES, DOMESTIC PRODUCERS, DOMESTIC REGULATIONS, DUTY DRAWBACK, DUTY REBATES, DUTY-FREE TREATMENT, ECONOMIC COOPERATION, ECONOMIC ENVIRONMENT, ECONOMIC WELFARE, EXCHANGE RATE, EXCHANGE RATE FLUCTUATIONS, EXPORT COUNTRY, EXPORT PROCESSING, EXPORT PROCESSING ZONES, EXPORTERS, EXPORTING COUNTRY, EXPORTING MEMBER STATE, EXPORTS, EXTERNAL TARIFFS, EXTERNAL TRADE, FINAL PRODUCT, FINAL PRODUCTS, FINANCIAL CRISIS, FINISHED PRODUCT, FRAMEWORK AGREEMENT, FREE TRADE, FREE TRADE AGREEMENTS, FREE TRADE AREA, FREE TREATMENT, HARMONIZATION, IMPORT COSTS, IMPORTED INPUTS, IMPORTS, INCREASING POLICY COORDINATION, INTERMEDIATE GOODS, INTERMEDIATE INPUT, INTERMEDIATE INPUTS, INTERNATIONAL COMPETITIVENESS, INTRA-ASEAN TRADE, LABOR COSTS, LOCAL CONTENT, LOCAL VALUE, LOW TRADE, MARKET ACCESS, MEMBER COUNTRIES, MEMBER COUNTRY, MEMBER STATES, MERCHANDISE TRADE, METAL PRODUCTS, MULTILATERAL ARENA, NATIONAL TREATMENT, NON-ORIGINATING INPUTS, NON-ORIGINATING MATERIALS, NON-TARIFF BARRIER, NON-TARIFF BARRIERS, NON-TARIFF MEASURES, ORIGIN DETERMINATION, ORIGIN REQUIREMENT, ORIGIN RULES, ORIGINATING COUNTRY, ORIGINATING PARTS, ORIGINATING PRODUCTS, PACIFIC REGION, PARTNER COUNTRIES, PATTERN OF TRADE, POLICY RESEARCH, PREFERENTIAL ACCESS, PREFERENTIAL AGREEMENT, PREFERENTIAL AGREEMENTS, PREFERENTIAL MARGIN, PREFERENTIAL RATES, PREFERENTIAL RULES, PREFERENTIAL RULES OF ORIGIN, PREFERENTIAL STATUS, PREFERENTIAL TARIFF, PREFERENTIAL TARIFF TREATMENT, PREFERENTIAL TRADE, PREFERENTIAL TRADE AGREEMENT, PREFERENTIAL TRADE AGREEMENTS, PREFERENTIAL TRADING, PREFERENTIAL TRADING ARRANGEMENTS, PRIVATE SECTOR, PROCESSING REQUIREMENTS, PRODUCT SPECIFIC, PRODUCT-SPECIFIC RULES, PRODUCTION COSTS, PRODUCTION NETWORKS, PRODUCTION PROCESSES, PROVING ORIGIN, RAW MATERIALS, REASONABLE MANNER, RECIPROCAL BASIS, REDUCING TARIFFS, REGIONAL AGREEMENTS, REGIONAL CONTENT, REGIONAL INTEGRATION, REGIONAL MARKETS, REGIONAL PREFERENCES, REGIONAL PRODUCERS, REGIONAL TRADE, REGIONAL TRADE AGREEMENT, REGIONAL VALUE, REGIONAL VALUE CONTENT, REGIONALISM, REGULATORY BARRIERS, REMOVING TARIFFS, RESTRICTIVE RULES, RESTRICTIVE RULES OF ORIGIN, SUBSTANTIAL TRANSFORMATION, TARIFF BARRIER, TARIFF BARRIERS, TARIFF CLASSIFICATION, TARIFF EQUIVALENTS, TARIFF HEADING, TARIFF LEVELS, TARIFF LINES, TARIFF PREFERENCES, TARIFF PROTECTION, TARIFF RATES, TARIFF REDUCTIONS, TECHNICAL REQUIREMENTS, TERRITORIAL WATERS, TRADE AGENDA, TRADE AGREEMENT, TRADE CREATION, TRADE DEFLECTION, TRADE DIVERSION, TRADE FACILITATION, TRADE FLOWS, TRADE IN GOODS, TRADE ISSUES, TRADE LIBERALIZATION, TRADE NEGOTIATIONS, TRADE NEGOTIATORS, TRADE PERFORMANCE, TRADE POLICY, TRADE PREFERENCES, TRADING PARTNER, TRADING PARTNERS, TRADING SYSTEM, TRANSACTION COSTS, TRANSNATIONAL CORPORATIONS, TRANSPARENT RULES, UNDETERMINED ORIGIN, UNILATERAL TRADE, UNILATERAL TRADE LIBERALIZATION, VALUE-ADDED REQUIREMENT, VALUE-ADDED RULE, VALUE-CONTENT REQUIREMENT, WORLD PRICE, WORLD PRICES, WORLD TRADE, WORLD TRADE ORGANIZATION