How Preferential are RCEP Tariffs?

Kazunobu Hayakawa

Chapter 2 in Dynamism of East Asia and RCEP: The Framework for Regional Integration, pp 13-37 from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: This study discusses the extent to which the tariffs provided in the Regional Comprehensive Economic Partnership (RCEP) are preferential. RCEP does not necessarily adopt a common concession rule in tariffs, and the speed and depth of tariff reduction/elimination also differ by country. We show that RCEP tariffs become the best choice in trading some specific products with some specific countries in some specific years. Furthermore, there are some specific cases where the use of RCEP tariffs becomes beneficial even if RCEP tariffs are not lower. Therefore, we demonstrate that RCEP tariffs are beneficial in specific types of supply chains. In short, this study aims to enhance our comprehensive understanding of how preferential RCEP tariffs are compared with other types of available tariffs.

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Persistent link: https://EconPapers.repec.org/RePEc:era:chaptr:2022-rcep2-2

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