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Rules of Origin and Local Content in East Asia

Author

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  • Kuroiwa, Ikuo

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.

Suggested Citation

  • Kuroiwa, Ikuo, 2006. "Rules of Origin and Local Content in East Asia," IDE Discussion Papers 78, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper78
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    Citations

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    Cited by:

    1. Wignaraja, Ganeshan & Olfindo, Rosechin & Pupphavesa, Wisarn & Panpiemras, Jirawat & Ongkittikul, Sumet, 2010. "How Do FTAs Affect Exporting Firms in Thailand?," ADBI Working Papers 190, Asian Development Bank Institute.
    2. Meng, Bo & Fang, Yong & Yamano, Norihiko, 2012. "Measuring global value chains and regional economic integration : an international input-output approach," IDE Discussion Papers 362, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    3. Meng, Bo & Wang, Zhi & Koopman, Robert, 2013. "How are global value chains fragmented and extended in China's domestic production networks?," IDE Discussion Papers 424, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    4. Misa Okabe, . "The Impact of ASEAN +1 FTAs on ASEAN's Trade," Chapters, in: Lili Yan Ing (ed.), East Asian Integration (First Edition), chapter 2, pages 25-66, Economic Research Institute for ASEAN and East Asia (ERIA).
    5. Misa OKABE, 2015. "Impact of Free Trade Agreements on Trade in East Asia," Working Papers DP-2015-01, Economic Research Institute for ASEAN and East Asia (ERIA).
    6. Bullón, David & Mena, Tayutic & Meng, Bo & Sánchez, Natalia & Vargas, Henry & Inomata, Satoshi, 2015. "Using the input-output approach to measure participation in GVCs : the case of Costa Rica," IDE Discussion Papers 529, Institute of Developing Economies, Japan External Trade Organization(JETRO).

    More about this item

    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;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • F15 - International Economics - - Trade - - - Economic Integration
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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