How Restrictive Are ASEAN's Rules of Origin?

Cadot, Olivier; Ing, Lili Yan

doi:10.1162/asep_a_00461

Cited by 35 publications

(23 citation statements)

References 18 publications

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“…As Cadot and Ing, (p. 2) argue, RoO ‘constrain the sourcing choices of multinational firms along regional patterns dictated by [the PTA], whereas GVC optimization may call for different choices’. In other words, firms may have different preferences on RoO provisions in PTAs depending on the organization of their value chain.…”

Section: Global Value Chains and Firm Preferences Over Pta Designmentioning

confidence: 99%

Global Value Chains, Firm Preferences and the Design of Preferential Trade Agreements

Eckhardt

Lee

2018

Global Policy

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The conventional view in the literature is that only the largest and most productive firms in a country benefit, and hence support the signing of preferential trade agreements (PTAs), as they are able to take advantage of the key benefits such agreements offer. In this paper we argue that such firms may indeed be generally supportive of PTAs, but that their preferences often differ when it comes to the exact design of PTAs. These different preferences stem from the ways that firms have organized their value chains. We focus on one crucial issue where firms may hold different preferences, depending on the organization of their value chains: Rules of Origin (RoO). We test the plausibility of our argument through a detailed analysis of the preferences and political strategies of tobacco firms in the context of the North American Free Trade Agreement (NAFTA) negotiations.

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Section: Global Value Chains and Firm Preferences Over Pta Designmentioning

confidence: 99%

Global Value Chains, Firm Preferences and the Design of Preferential Trade Agreements

Eckhardt

Lee

2018

Global Policy

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“…Quantifying the potential benefits of applying such simplified RoO in the context of the CFTA would help to limit the extent to which RoO will act as NTMs and thus reduce the benefits for intra-regional trade. Techniques to undertake such analysis have been developed -e.g., Cadot and Ing (2016) -but have to our knowledge yet to be applied to African contexts.…”

Section: Rules Of Originmentioning

confidence: 99%

“… See Latrille and Lee (2012) for a discussion of RoO for services in a large number of trade agreements.19 This can be based on whether a minimum amount value added is embodied in a product as the result of activities in the last country in which the product was processed/produced according to different calculation techniques; whether a maximum percentage of non-originating materials has not been exceeded; or a minimum percentage of originating inputs has been used in the manufacturing of the finished product.20 Recent examples of non-Africa research includeCadot and Ing (2016) andConconi et al (2016).…”

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confidence: 99%

Integrating Africa: Some Trade Policy Research Priorities and Challenges†

Hoekman¹,

Njinkeu

2017

Journal of African Economies

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This paper discusses opportunities for trade policy research to contribute more to efforts to integrate African markets, a stated policy priority for African leaders. Much of the economic research in this area has sought to quantify aggregate trade costs and the potential welfare impacts of reducing such costs, including through regional integration. This is important, but we argue that more focus is needed on the 'micro' dimensions of regional integration. These center on the trade-restricting effects of nontariff measures and regulatory policies and their political economy underpinnings. Of particular importance is research on mechanisms to support market integration initiatives that recognize the multidimensional nature of the sources of trade costs in Africa, and the associated political economy forces within and between countries and regional economic communities.

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“…Estevadeordal and Suominen (2008) found that restrictive RoO in final goods encourage trade in intra-PTA inputs and diversion from extra-PTA sources of intermediates. More recently, Cadot and Ing (2016) found that ad valorem equivalents of ASEAN RoO are significant and that some rules appear particularly restrictive in the textile and apparel, footwear, prepared food and automobile sectors. 20 They argued that this hampers the development of GVCs and that those sectors could benefit from simplification of RoO.…”

Section: Box 2 Types Of Substantial Transformation Criterion In Roomentioning

confidence: 99%

Participation in Global Value Chains in Latin America

Cadestin

Gourdon

Kowalski

2016

OECD Trade Policy Papers

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This paper is published under the responsibility of the Secretary-General of the OECD. The opinions expressed and the arguments employed herein do not necessarily reflect the official views of OECD countries. The publication of this document has been authorised by Ken Ash, Director of the Trade and Agriculture Directorate This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law. This document has been declassified on the responsibility of the Working Party of the Trade Committee under the OECD reference number TAD/TC/WP(2015)28/FINAL.

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How Restrictive Are ASEAN's Rules of Origin?

Cited by 35 publications

References 18 publications

Global Value Chains, Firm Preferences and the Design of Preferential Trade Agreements

Global Value Chains, Firm Preferences and the Design of Preferential Trade Agreements

Integrating Africa: Some Trade Policy Research Priorities and Challenges†

Participation in Global Value Chains in Latin America

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