Measuring the costs of FTA utilization: evidence from transaction-level import data of Thailand

Kazunobu Hayakawa, Laksanapanyakul Nuttawut and Shujiro Urata

No 541, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: In this study, we measure the utilization costs of free trade agreement (FTA) tariff schemes. To do that, we use shipment-level customs data on Thai imports, which identify not only firms, source country, and commodity but also tariff schemes. We propose several measures as a proxy for FTA utilization costs. The example includes the minimum amount of firm-level savings on tariff payments, i.e., trade values under FTA schemes multiplied by the tariff margin, in all transactions. Consequently, the median costs for FTA utilization in 2008, for example, are estimated to be approximately US$2,000 for exports from China, US$300 for exports from Australia, and US$1,000 for exports from Japan. We also found that FTA utilization costs differ by rule of origin and industry.

Keywords: Thailand; International Trade; International Agreements; Costs; Imports; FTA; Fixed Costs (search for similar items in EconPapers)
JEL-codes: F13 F53 (search for similar items in EconPapers)
Date: 2015-10-01
New Economics Papers: this item is included in nep-int and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

Published in IDE Discussion Paper = IDE Discussion Paper, No. 541. 2015-10-01

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https://ir.ide.go.jp/record/37638/files/IDP000541_001.pdf First version, 2015 (application/pdf)

Related works:
Journal Article: Measuring the costs of FTA utilization: evidence from transaction-level import data of Thailand (2016)
Working Paper: Measuring the Costs of FTA Utilization: Evidence from Transaction-level Import Data of Thailand (2015)
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