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New measures of FTA liberalization level

Kazunobu Hayakawa () and Nuttawut Laksanapanyakul

No 437, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: This paper proposes new measures of the liberalization level of free trade agreements (FTAs). Our measures take three issues into account. First, in order to identify the differences in FTA liberalization level over time, we compute the annual liberalization level rather than the level during the whole period. Second, our measure includes information on tariff margins, i.e. the difference between FTA rates and most favoured nation rates. Third, the restrictiveness of rules of origin (RoOs) is also taken into account in order to penalize the liberalization level of products with more restrictive RoOs. In this paper, we compute such measures of FTA liberalization level for three FTAs in Thailand.

Keywords: Thailand; International trade; Free Trade Agreement (FTA); Tariff; Trade policy; Rules of origin; FTA utilization (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: 2013-12-01
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Published in IDE Discussion Paper = IDE Discussion Paper, No. 437. 2013-12-01

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