How Restrictive Are ASEAN's Rules of Origin?

Olivier Cadot and Lili Yan Ing

Chapter 5 in East Asian Integration (First Edition), pp 121-154 from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: We use a product-level gravity approach to estimate the effect of the Association of Southeast Asian Nations (ASEAN)’s product-specific rules of origin (ROO) on regional trade, using original data on rules applicable at the six-digit level of the harmonized system. Overall, we find that the average tariff ad-valorem equivalent (AVE) of ASEAN’s ROO is 3.40 percent across all instruments and sectors. The trade-weighted average is 2.09 percent. This moderate estimate is in line with the existing literature. However, we also find fairly high AVEs for some sectors including leather, textile and apparel, footwear, and automobiles. We also find that some rules are more restrictive than others; in this regard, the Textile Rule stands out as a relatively more trade-inhibiting rule than others.

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Related works:
Working Paper: How Restrictive Are ASEAN's Rules of Origins? (2017)
Journal Article: How Restrictive Are ASEAN's Rules of Origin? (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:era:chaptr:2014-rpr-6-5

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