Brexit and the EU–UK free trade agreement: dos and don’ts when drafting rules of origin

Purpose The purpose of this paper is to highlight the pros and cons of different models of the European Union (EU)-style Rules of Origin (RoO) that could be chosen by negotiators for a future UK–EU Free Trade Agreement (FTA). It will also underline the impact that any choice would have on economic operators and certain criteria that should be evaluated before taking any decisions on the adoption of RoO. Design/methodology/approach The paper will describe three different RoO models that could be chosen by negotiators. For each of them, it analyses the pros and cons and the impact on economic operators. Findings The choice of a RoO would have an impact on future EU–UK trade relations. It will affect the utilization rate of the FTA as well as investment (and divestment) corporate strategies in the UK and EU. Originality/value The paper introduces different criteria to evaluate the impact of RoO that should be taken into consideration by negotiators. It emphasizes that RoO should be simple, predictable, coherent, IT compatible and easily adaptable.

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Impact of FTA on Trade in ASEAN and Australia Using Customs Level Data

Journal of Economic Integration ◽

10.11130/jei.2021.36.3.437 ◽

2021 ◽

Vol 36 (3) ◽

pp. 437-461

Author(s):

Shandre M. Thangavelu ◽

Dionisius Narjoko ◽

Shujiro Urata

Keyword(s):

Free Trade ◽

Free Trade Agreement ◽

Trade Agreement ◽

Utilization Rate ◽

Rules Of Origin ◽

Asean Member ◽

Preferential Tariff ◽

Level Data ◽

Asean Countries ◽

The Impact

This study examines the impact of the Association of Southeast Asian Nations (ASEAN)-Australia-New Zealand Free Trade Agreement (AANZFTA) on Australian trade with a particular focus on imports from ASEAN member countries to Australia. We examine the AANZFTA’s utilization by ten ASEAN countries at the six-digit trade classification level from 2012 to 2016 using Australian customs data. We implement Ando and Urata’s (2018) and Hayakawa et al.’s (2014) framework of free trade agreement (FTA) utilization based on preferential tariff margins. We also account for overlapping FTAs that are likely to impact the AANZFTA’s utilization. The results indicate that preferential tariff margins positively impact FTA utilization. However, the results also indicate that the AANZFTA’s utilization rate across ASEAN countries is low relative to Australia’s bilateral FTAs with Malaysia, Thailand, and Singapore. We also find evidence that co-sharing rules of origin positively impact FTA utilization.

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Liberalization and tariff dismantling

British Food Journal ◽

10.1108/bfj-03-2015-0087 ◽

2016 ◽

Vol 118 (2) ◽

pp. 250-271

Author(s):

Fernando González Laxe ◽

Federico Martín Palmero ◽

Domingo Calvo Dopico

Keyword(s):

Free Trade ◽

Value Chain ◽

Free Trade Agreement ◽

Trade Agreement ◽

Trade Liberalisation ◽

The European Union ◽

Production Sector ◽

Content Type ◽

Mussel Farming ◽

The Impact

Purpose – The purpose of this paper is to assess the impact that the free trade agreement between the European Union (EU) and Chile and its resulting dismantling of tariffs has had on the mussel cultivation industry, particularly in Galicia. Specifically, the authors examine how trade liberalisation has affected the mussel farming industry. Design/methodology/approach – The authors aim to observe the general panorama of both the evolution of production, distinguishing between fresh and industrial usage, and the evolution of prices at source depending on destination (fresh or industrial in the period 2003-2012). In order to analyse the relationships between different agents of the value chain, Porter’s model has been used as a reference. Findings – There is a loss of competitiveness in the mussel farming-production sector following the liberalisation agreement of 2006 and huge bargaining power of the processing sector vs the production sector. Practical implications – There is an opportunity to implement traceability programmes and develop a more differentiated product. In addition, it is profitable to promote Galician mussels through generic advertising and promoting exports. Originality/value – There is a lack of empirical studies about the impact that the new free trade agreement between the EU and Chile has had on the Spanish mussel industry. Particularly, the study analyses economic repercussions, managerial implications and new challenges stemming from the new context of trade liberalisation.

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Modelling welfare effects under Pakistan–China free trade agreement

Journal of Chinese Economic and Foreign Trade Studies ◽

10.1108/jcefts-07-2018-0028 ◽

2018 ◽

Vol 11 (3) ◽

pp. 202-218 ◽

Cited By ~ 1

Author(s):

Lubna Uzair ◽

Ahmad Nawaz

Keyword(s):

Trade Policy ◽

Free Trade ◽

Free Trade Agreement ◽

Academic Research ◽

Trade Agreement ◽

Policy Formulation ◽

Trade Creation ◽

Content Type ◽

The World ◽

The Impact

PurposeThis paper aims to empirically examine the trade creation and diversion impacts on merchandise imports of Pakistan under the Pakistan–China Free Trade Agreement (FTA). The analysis of Pakistan’s preferential treatment with its largest trade partner as well as the most substantial exporter of the world will help to shape trade policy, open windows for academic research and also gives an immense contribution in literature.Design/methodology/approachA disaggregated panel data on the imports of Pakistan from China and other WTO member countries and tariff concessions at Harmonized System (HS) two-digit level used for the agreement period of 2006-2012. The empirical analysis takes care of bias through robust and panel-corrected standard errors with time, industry-specific effects and controlling for multilateral trade resistance.FindingsEvidence found in support of trade creation under the Pakistan–China FTA. It means overall this agreement increased the welfare of Pakistani consumers.Practical implicationsFindings are in favour of negotiations and signing for the next round of this agreement and with other major trade partners like the US and Saudi Arabia.Originality/valueIt is worth investigating empirically the impact of preferential trade liberalization between Pakistan – a developing country – and China – the largest importer of the world – explicitly, in the form of trade creation or diversion. The empirical assessment of this FTA signed with the world’s largest exporter will not only contribute immensely to the literature but also help in trade policy formulation and open windows for academic research. Another unique aspect of this study is the use of disaggregated data consisting of all goods imports along with tariff concessions at two-digit Harmonized System (HS) code.

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IMPACTO DEL TLC PERU – UNION EUROPEA EN LAS EXPORTACIONES PERUANAS DE MANGOS AL REINO UNIDO. IMPACT OF THE FREE TRADE AGREEMENT PERU - EUROPEAN UNION IN PERUVIAN MANGO EXPORTS TO THE UNITED KINGDOM.

LOGOS ◽

10.21503/log.v5i1.791 ◽

2017 ◽

Vol 5 (1) ◽

Author(s):

Mag. Alfonso Cossio Carlín

Keyword(s):

European Union ◽

United Kingdom ◽

Free Trade ◽

Free Trade Agreement ◽

Trade Agreement ◽

Product Portfolio ◽

The European Union ◽

The United Kingdom ◽

The Impact ◽

Preferential Access

RESUMENEl Objetivo General de la presente investigación es determinar el impacto que ha tenido el Tratado de Libre Comercio entre Perú y la Unión Europea en las exportaciones peruanas de mangos al Reino Unido (Inglaterra, Irlanda del Norte, Escocia y Gales). Las causas de dicho incremento no solamente se basan en un acceso preferencial (eliminación de aranceles de importación) sino también al aumento en el consumo de dicha fruta por parte de los residentes del Reino Unido. Este Tratado de Libre Comercio forma parte de una estrategia comercial integral que busca convertir al Perú en un país exportador, consolidando más mercados para su portafolio de productos, desarrollando una oferta exportable competitiva y promoviendo el comercio y la inversión, para brindar mayores oportunidades económicas y mejores niveles de vida.Por lo que en el presente artículo se presentan los siguientes ítems:IntroducciónMaterial y MétodoResultadosConclusionesBibliografíaPalabras claves: Tratado de Libre Comercio, consumo de mango, acceso preferencial.SUMMARYThe general objective of this research is to determine the impact that has had the Free Trade Agreement between Peru and the European Union in Peruvian exports of mangoes to the United Kingdom (England, Northern Ireland, Scotland and Wales). The causes of this increase not only rely on preferential access (elimination of import tariffs) but also to increased consumption of the fruit by UK residents.This FTA is part of a comprehensive business strategy that seeks to turn Peru into an exporter, consolidating more markets for its product portfolio, developing a competitive export supply and promoting trade and investment, to provide greater economic opportunities and improved living standards.So in this article, the following items are presented:• Introduction• Material and Methods• Results• Conclusions• BibliographyKeywords: Free Trade, consumption of mango, preferential access.

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African Continental Free Trade Agreement: the Pros and Cons on the Oil and Gas Industry in Nigeria

10.2118/207164-ms ◽

2021 ◽

Author(s):

Emmanuel Ayodele ◽

Oshogwe Akpogomeh ◽

Freda Amuah ◽

Gloria Maduabuchi

Keyword(s):

Free Trade ◽

Free Trade Agreement ◽

Oil And Gas ◽

Trade Agreement ◽

Oil And Gas Industry ◽

African Countries ◽

Gas Industry ◽

Cheap Labour ◽

Pros And Cons ◽

The Impact

Abstract Nigeria has oil and gas as her major source of revenue, accounting for more than 80% of her foreign exchange, with the AfCFTA, that has been signed and ratified not just by Nigeria but by other African countries taking away tariffs on goods and services produced across the continent irrespective of the market where it's been sold. The AfCFTA being the second largest free trade agreement in the history of World Trade Organization is aimed at uniting African markets. This paper aims to review the framework of the continental free trade agreement, it pros and cons, its grey area, and its impact on the Oil and Gas Industry in Nigeria. The impact of the agreement on the local industries servicing the oil and gas industry is considered as well. The paper reviews the possible advantage of the AfCFTA on the Nigerian oil and gas market. The possible threats to nationalization in the oil and gas industry due to the availability of cheap labour and technical expertise across the continent in the country is analyzed. Solutions to protect the oil and gas industry in Nigeria is recommended as well.

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Impact of Free Trade Agreement Use on Import Prices

The World Bank Economic Review ◽

10.1093/wber/lhx026 ◽

2018 ◽

Vol 33 (3) ◽

pp. 643-660

Author(s):

Kazunobu Hayakawa ◽

Nuttawut Laksanapanyakul ◽

Hiroshi Mukunoki ◽

Shujiro Urata

Keyword(s):

Free Trade ◽

Fixed Effects ◽

Free Trade Agreement ◽

Trade Agreement ◽

Firm Characteristics ◽

Most Favored Nation ◽

Rules Of Origin ◽

Import Prices ◽

Percentage Points ◽

The Impact

Abstract We examine the impact of free trade agreement (FTA) use on import prices. For this analysis, we employ establishment-level import data with information on tariff schemes, that is, the FTA and most-favored-nation schemes used for importing. Unlike previous studies, we estimate the effects of FTA use on prices by controlling for differences in importing-firm characteristics. There are three main findings. First, the effect of FTA use is overestimated when not controlling for importing firm-related fixed effects. Second, on average, firms’ FTA use reduces tariffs by 12 percentage points and raises import prices by 3.6–6.7 percent. Third, in general, we do not find a price rise resulting from the costs of complying with rules of origin.

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Impact of removing industrial tariffs under the European–Vietnam free trade agreement

Journal of Economics and Development ◽

10.1108/jed-06-2019-0011 ◽

2019 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Le Trung Ngoc Phat ◽

Nguyen Kim Hanh

Keyword(s):

Social Welfare ◽

Free Trade ◽

Free Trade Agreement ◽

Trade Agreement ◽

Household Consumption ◽

Industrial Sector ◽

Cge Model ◽

Content Type ◽

Factors Of Production ◽

The Impact

Purpose The purpose of this paper is to employ the computable general equilibrium (CGE) approach to examine how the European–Vietnam Free Trade Agreement (EVFTA) impacts on the Vietnamese economy in the case of the removal of industrial tariffs. Design/methodology/approach The authors construct a social accounting matrix based on the latest data of the Vietnam input-output Table for the year 2012 and then apply the CGE model to simulate the economic scenarios when the tariff rate of the industrial sector reduces to 0 percent. Findings The first simulation results demonstrate that the elimination of tariffs in the industrial sector will lead to a 9.13 percent increase in household consumption, together with an increase in the factors of production of the agricultural, industrial and service sectors by 9.61, 9.74 and 8.21 percent, respectively. The EVFTA also causes a deficit in the trade balance because the value of imports increases by 12.54 percent, while exports’ value slightly increases by 2.71 percent. Furthermore, there has been a drop of 2.29 percent in the total government income; nevertheless, social welfare witnesses a gain of 9.13 percent. The second scenario simulation draws crucial attention to policymakers that a small fluctuation in the production tax rate will cause a significant change in the economy. Practical implications The reduction of tariff in the industrial sector will increase the social welfare and strengthen the whole economy regarding the growth of household consumption, factors of production and trade value. On the unfavorable side, the EVFTA causes a national budget deficit and puts pressure on domestic production. This paper is a valuable reference for governments and policymakers when they decide to reduce tariffs or adjust production taxes once Vietnam integrates into the world economy. Originality/value This study differs from previous research works by utilizing a static CGE model to investigate the impact of removing the industrial tariff on the economy under EVFTA.

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Revenue, welfare and trade effects of European Union Free Trade Agreement on South Africa

South African Journal of Economic and Management Sciences ◽

10.4102/sajems.v20i1.1655 ◽

2017 ◽

Vol 20 (1) ◽

Cited By ~ 4

Author(s):

Kore M.A. Guei ◽

Gift Mugano ◽

Pierre Le Roux

Keyword(s):

South Africa ◽

European Union ◽

Simulation Model ◽

Free Trade ◽

Free Trade Agreement ◽

Trade Agreement ◽

Trade Creation ◽

The European Union ◽

Total Trade ◽

The Impact

Background: Using the partial equilibrium WITS-SMART Simulation model to assess the impact of liberalisation under the Trade Development and Cooperation Agreement (TDCA) of a free trade area between the European Union and South Africa. The identification of the impact of such agreement allows for trade policy negotiation adjustment that can be beneficial for South Africa.Aim: The aim of the study is to estimate and discuss the impact of a Free Trade Agreement (FTA) with the European Union and South Africa. More specifically, the study intends to estimate the impact of revenue, welfare, imports, exports, trade creation and to come up with policies options for South Africa that can be used in negotiations and policy formulations.Setting: The study used international trade data (2012) available in the WITS-SMART model to assess bilateral trade agreement between the European Union and South Africa.Methods: To identify the impact on revenue, welfare, imports, exports and trade creation, the study simulated an FTA (0% tariff rate) for all goods exchanged between the European Union and South Africa. Also, the elasticity of substitution used for the simulation model was 99%.Results: The findings of the study reveal that total trade effects in South Africa are likely to surge by US$ 1.036 billion with a total welfare valued at US$ 134 million. Dismantling tariffs on all European Union (EU) goods would be beneficial to consumers through net trade creation. Total trade creation would be US$ 782 million. However, South African producers are likely to contribute a trade diversion of US$ 254 million which has a negative impact on consumer welfare. The country might also experience a revenue loss amounting to US$ 562 million because of the removal of tariffs. In trade, the country’s exports and imports to the EU are expected to increase by US$ 12.419 million and US$ 1.266 million, respectively.Conclusion: The European Union–South Africa FTA would result in both trade creation and trade expansion effects. However, trade creation and revenue loss are potential threats. In order to mitigate revenue loss, government needs to consider alternative tax such as consumption tax on certain goods and value-added tax.

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Assessment of the Proposed India-China Free Trade Agreement: A General Equilibrium Approach

Journal of CENTRUM Cathedra (JCC) The Business and Economics Research Journal ◽

10.1108/jcc-08-02-2015-b002 ◽

2015 ◽

Vol 8 (2) ◽

pp. 81-108 ◽

Cited By ~ 3

Author(s):

Rahul Arora ◽

Sarbjit Singh ◽

Somesh K. Mathur

Keyword(s):

General Equilibrium ◽

Free Trade ◽

World Trade ◽

Free Trade Agreement ◽

Trade Agreement ◽

Tariff Reduction ◽

Trade Association ◽

Content Type ◽

The World ◽

The Impact

Purpose The present study is an attempt to evaluate the impact of the proposed India-China free trade agreement (FTA) in goods trade on both countries under a static general equilibrium framework. Design/Methodology/Approach The study has utilized the Global Trade Analysis Project (GTAP) model of world trade with the presence of skilled and unskilled unemployment in the world. For analysis purposes, 57 GTAP sectors, representing the whole regional economy, have been aggregated into 43 sectors and 140 GTAP regions, representing the whole world, have been aggregated into 19 regions. The study has also used the updated tariff rates provided by the World Trade Organization for better results. Findings The preliminary analysis using trade indicators depicted that by utilizing their own comparative advantage, both of the countries can maximize their gains by exporting more to the world. The simulation results from the GTAP analysis revealed that a tariff reduction in all goods trade would be more beneficial for both the countries than the tariff reduction in each other's specialized products. All other regions lose in terms of shifting the Indian imports towards China in a post-simulation environment. Regions with a significant loss are: the European Union (28 members), Southeast Asia, the Unites States, Japan, Korea, West Asia, and the European Free Trade Association (EFTA). Originality/Value The disaggregated sector-wise analysis has been performed using the latest available GTAP database, version 9.

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