Research Back

How Restrictive Are ASEAN's Rules of Origins?

Trade, ASEAN

How Restrictive Are ASEAN's Rules of Origins?

ASEAN's rules of origin (ROO) have a simple and transparent structure, with a large chunk of trade flows subject to a 40% regional value content or a change of tariff classification. The econometric analysis of trade flows discovers that the average ad-valorem equivalent (AVE) of ASEAN's ROO is 3.40% across all instruments and sectors. The trade-weighted average is 2.09%. This moderate estimate is in line with the existing literature. However, we also find fairly high AVEs for some sectors including leather, textile and apparel, footwear, and automobiles. We also find that some rules appear more restrictive than others; in this regard, the Textile Rule seems to stand out as a relatively more trade-inhibiting rule than others.

ERIA-PB-2017-04

Share this article:

Related Articles

Towards an Enabling Set of Rules of Origin for the Regional Comprehensive Economic Partnership

Towards an Enabling Set of Rules of Origin for the Regional Comprehensive Economic Partnership

20 January 2015

Abstract With overlapping, multiple FTAs, such as the case of ASEAN and the various ASEAN+1 FTAs, complications could arise that run counter to the economic …

ASEAN Rules of Origin:Lessons and Recommendations for Best Practice

ASEAN Rules of Origin:Lessons and Recommendations for Best Practice

02 June 2009

Abstract Rules of Origin (ROO) set the criteria in determining the nationality of a product and where a product was made. The importance of …

CHOOSE FILTER
Loading Loading