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Impacts of common rules of origin on FTA utilization

Kazunobu Hayakawa () and Nuttawut Laksanapanyakul

No 429, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: This paper examines empirically the impacts of sharing rules of origin (RoOs) with other ASEAN+1 free trade agreements (FTAs) on ASEAN-Korea FTA/ASEAN-China FTA utilization in Thai exports in 2011. Our careful empirical analysis suggests that the harmonization of RoOs across FTAs play some role in reducing the costs yielded through the spaghetti bowl phenomenon. In particular, the harmonization to "change-in-tariff classification (CTC) or real value-added content (RVC)" will play a relatively positive role in not seriously discouraging firms’ use of multiple FTA schemes. On the other hand, the harmonization to CTC or CTC&RVC hinders firms from using those schemes.

Keywords: Thailand; China; South Korea; International trade; FTA; Tariff; International agreements; Exports; Free trade agreement; Rules of origin; Spaghetti bowl phenomenon (search for similar items in EconPapers)
JEL-codes: F10 F13 F15 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int and nep-sea
Date: 2013-09-01
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Published in IDE Discussion Paper = IDE Discussion Paper, No. 429. 2013-09-01

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Journal Article: Impacts of common rules of origin on FTA utilization (2017) Downloads
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