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Policy Issues for the ASEAN Economic Community: the Rules of Origin

Author

Listed:
  • Yap, Josef T.
  • Medalla, Erlinda M.

Abstract

Striking a balance between trade facilitation and preventing trade deflection is the single most difficult challenge with regard to the issue of rules of origin (ROO). ASEAN ROO is already considered as among the simplest in the world and still, in practice, results fall short of expectations. ASEAN is fully cognizant that in order to achieve its goal of a single market and production base, progress in eliminating tariffs within ASEAN is not enough. It needs to be accompanied by an enabling ROO regime. Indeed, the AEC Blueprint explicitly provides for instituting reforms in ASEAN ROOs toward the direction of less restriction and simplification. In the medium term, ASEAN member countries can push for an East Asia Free Trade Area that will consolidate the various bilateral and subregional FTAs and therefore overcome the noodle bowl syndrome. This would be a direct result of harmonizing the various ROOs. It goes without saying that the ultimate or long-term objective would be an equitable and efficient multilateral trading system anchored on lower MFN rates under the auspices of the WTO.

Suggested Citation

  • Yap, Josef T. & Medalla, Erlinda M., 2008. "Policy Issues for the ASEAN Economic Community: the Rules of Origin," Discussion Papers DP 2008-18, Philippine Institute for Development Studies.
  • Handle: RePEc:phd:dpaper:dp_2008-18
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    File URL: https://www.pids.gov.ph/publication/discussion-papers/policy-issues-for-the-asean-economic-community-the-rules-of-origin
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    References listed on IDEAS

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    1. Cadot, Olivier & Carrere, Celine & De Melo, Jaime & Tumurchudur, Bolormaa, 2006. "Product-specific rules of origin in EU and US preferential trading arrangements: an assessment," World Trade Review, Cambridge University Press, vol. 5(2), pages 199-224, July.
    2. Richard E. Baldwin, 2008. "Managing The Noodle Bowl: The Fragility Of East Asian Regionalism," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 53(03), pages 449-478.
    3. Céline Carrère & Jaime de Melo, 2015. "Are Different Rules of Origin Equally Costly? Estimates from NAFTA," World Scientific Book Chapters, in: Developing Countries in the World Economy, chapter 12, pages 277-298, World Scientific Publishing Co. Pte. Ltd..
    4. de Melo, Jaime & Cadot, Olivier & Carrère, Céline & Tumurchudur, Bolormaa, 2005. "Product Specific Rules of Origin in EU and US Preferential Trading Agreements: An Assessment," CEPR Discussion Papers 4998, C.E.P.R. Discussion Papers.
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    Cited by:

    1. Medalla, Erlinda M. & Balboa, Jenny D., 2009. "ASEAN Rules of Origin: Lessons and Recommendations for Best Practice," Discussion Papers DP 2009-36, Philippine Institute for Development Studies.
    2. Chirathivat, Suthiphand & Srisangnam, Piti, 2013. "The 2030 Architecture of Association of Southeast Asian Nations Free Trade Agreements," ADBI Working Papers 419, Asian Development Bank Institute.
    3. Siow Yue Chia, 2010. "Trade and Investment Policies and Regional Economic Integration in East Asia," Trade Working Papers 21878, East Asian Bureau of Economic Research.
    4. Siow Yue Chia, 2010. "Trade and Investment Policies and Regional Economic Integration in East Asia," Working Papers id:2993, eSocialSciences.
    5. Medalla, Erlinda M. & Rosellon, Maureen Ane D., 2012. "Rules of Origin in ASEAN+1 FTAs and the Value Chain in East Asia," Discussion Papers DP 2012-37, Philippine Institute for Development Studies.

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