Rules of Origin and Local Content in East Asia

Ikuo Kuroiwa

No 78, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: Rules of Origin (RoO) are an integral part of all trade rules. In order to be eligible for Common Effective Preferential Tariffs (CEPT) under AFTA and similar arrangements under the ASEAN-China FTA, a product must satisfy the conditions relative to local content. The paper tries to calculate local content as well as cumulative local content in East Asian economies, with use of the Asian International Input-Output Tables; it also investigates factors of change in local content by applying decomposition analysis. The paper finds that the cumulation rule increased local content of the electronics industry more significantly than local content of the automotive industry, and the contribution of the cumulation rule increased in the period 1990-2000, due to rising dependency on neighboring ASEAN countries and China.

Keywords: Rules of origin; Local content; International input-output tables; Southeast Asia; East Asia; China; ASEAN; Trade policy; International trade; International agreements; Manufacturing industries; 国際産業連関表; 東南アジア; 東アジア; 中国; アセアン; 貿易政策; 貿易; 国際協定; 製造業 (search for similar items in EconPapers)
JEL-codes: C67 F15 L60 (search for similar items in EconPapers)
Date: 2006-11-01
New Economics Papers: this item is included in nep-int and nep-sea
References: View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Published in IDE Discussion Paper = IDE Discussion Paper, No. 78. 2006-11-01

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