How Restrictive Are ASEAN's Rules of Origins?

Olivier Cadot and Lili Yan Ing

No PB-2017-04, Working Papers from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: ASEAN's rules of origin (ROO) have a simple and transparent structure, with a large chunk of trade flows subject to a 40% regional value content or a change of tariff classification. The econometric analysis of trade flows discovers that the average ad-valorem equivalent (AVE) of ASEAN's ROO is 3.40% across all instruments and sectors. The trade-weighted average is 2.09%. 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 appear more restrictive than others; in this regard, the Textile Rule seems to stand out as a relatively more trade-inhibiting rule than others.

Pages: 4 pages.
Date: 2017-11
New Economics Papers: this item is included in nep-int and nep-sea
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Related works:
Journal Article: How Restrictive Are ASEAN's Rules of Origin? (2016)
Chapter: How Restrictive Are ASEAN's Rules of Origin?
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