World Bank2014-08-012014-08-012007-06https://hdl.handle.net/10986/19238Rules of origin are a necessary feature of any regional trade agreement. They ensure that preferences are available only to the signatories of the agreement and that imports from non-members do not avoid customs duties by entering through the member with the lowest tariff. The rules of origin define the amount of local processing, or the extent of the transformation of the product, that must be undertaken in the country from which the product claiming preferences is exported. The definition of these requirements to prevent trade deflection is not straightforward. If the rules are too onerous and complex and are costly to comply with, they will limit the impact of tariff reductions on trade. Indeed, import competing industries have often been successful in obtaining restrictive rules of origin that dilute the impact of the loss of tariff protection. This is most apparent in agreements between developed countries and lower wage countries. As FTAs multiply in the region, putting in place rules of origin (ROO) that are simple, transparent, and easy to implement becomes important. The experience in the implementation of the AFTA rules of origin can provide some lessons for the upcoming FTAs.en-USCC BY 3.0 IGOABSORPTION PRINCIPLEADMINISTRATIVE COSTSADMINISTRATIVE PROCEDURESAGRICULTURAL COMMODITIESAGRICULTURAL PRODUCEAGRICULTURAL PRODUCTSAGRICULTURAL SECTORAPPARELAPPAREL PRODUCERSAPPLIED STUDIESAUTHENTICATIONAVERAGE TARIFFAVERAGE TARIFF RATESAVERAGE TARIFFSBILATERAL CUMULATIONBILATERAL MARKET ACCESSBILATERAL TRADEBILATERAL TRADE AGREEMENTSBORDER TRADECERTIFICATION PROCEDURESCHAMBERS OF COMMERCECOMMERCIAL POLICYCOMPLIANCE COSTSCONCESSIONSCONTENT RULESCUSTOMSCUSTOMS AUTHORITIESCUSTOMS CLASSIFICATIONCUSTOMS CODESCUSTOMS DUTIESCUSTOMS PROCEDURESDOMESTIC FIRMSDOMESTIC INDUSTRIESDOMESTIC MARKETDOMESTIC PRICESDOMESTIC PRODUCERSDOMESTIC REGULATIONSDUTY DRAWBACKDUTY REBATESDUTY-FREE TREATMENTECONOMIC COOPERATIONECONOMIC ENVIRONMENTECONOMIC WELFAREEXCHANGE RATEEXCHANGE RATE FLUCTUATIONSEXPORT COUNTRYEXPORT PROCESSINGEXPORT PROCESSING ZONESEXPORTERSEXPORTING COUNTRYEXPORTING MEMBER STATEEXPORTSEXTERNAL TARIFFSEXTERNAL TRADEFINAL PRODUCTFINAL PRODUCTSFINANCIAL CRISISFINISHED PRODUCTFRAMEWORK AGREEMENTFREE TRADEFREE TRADE AGREEMENTSFREE TRADE AREAFREE TREATMENTHARMONIZATIONIMPORT COSTSIMPORTED INPUTSIMPORTSINCREASING POLICY COORDINATIONINTERMEDIATE GOODSINTERMEDIATE INPUTINTERMEDIATE INPUTSINTERNATIONAL COMPETITIVENESSINTRA-ASEAN TRADELABOR COSTSLOCAL CONTENTLOCAL VALUELOW TRADEMARKET ACCESSMEMBER COUNTRIESMEMBER COUNTRYMEMBER STATESMERCHANDISE TRADEMETAL PRODUCTSMULTILATERAL ARENANATIONAL TREATMENTNON-ORIGINATING INPUTSNON-ORIGINATING MATERIALSNON-TARIFF BARRIERNON-TARIFF BARRIERSNON-TARIFF MEASURESORIGIN DETERMINATIONORIGIN REQUIREMENTORIGIN RULESORIGINATING COUNTRYORIGINATING PARTSORIGINATING PRODUCTSPACIFIC REGIONPARTNER COUNTRIESPATTERN OF TRADEPOLICY RESEARCHPREFERENTIAL ACCESSPREFERENTIAL AGREEMENTPREFERENTIAL AGREEMENTSPREFERENTIAL MARGINPREFERENTIAL RATESPREFERENTIAL RULESPREFERENTIAL RULES OF ORIGINPREFERENTIAL STATUSPREFERENTIAL TARIFFPREFERENTIAL TARIFF TREATMENTPREFERENTIAL TRADEPREFERENTIAL TRADE AGREEMENTPREFERENTIAL TRADE AGREEMENTSPREFERENTIAL TRADINGPREFERENTIAL TRADING ARRANGEMENTSPRIVATE SECTORPROCESSING REQUIREMENTSPRODUCT SPECIFICPRODUCT-SPECIFIC RULESPRODUCTION COSTSPRODUCTION NETWORKSPRODUCTION PROCESSESPROVING ORIGINRAW MATERIALSREASONABLE MANNERRECIPROCAL BASISREDUCING TARIFFSREGIONAL AGREEMENTSREGIONAL CONTENTREGIONAL INTEGRATIONREGIONAL MARKETSREGIONAL PREFERENCESREGIONAL PRODUCERSREGIONAL TRADEREGIONAL TRADE AGREEMENTREGIONAL VALUEREGIONAL VALUE CONTENTREGIONALISMREGULATORY BARRIERSREMOVING TARIFFSRESTRICTIVE RULESRESTRICTIVE RULES OF ORIGINSUBSTANTIAL TRANSFORMATIONTARIFF BARRIERTARIFF BARRIERSTARIFF CLASSIFICATIONTARIFF EQUIVALENTSTARIFF HEADINGTARIFF LEVELSTARIFF LINESTARIFF PREFERENCESTARIFF PROTECTIONTARIFF RATESTARIFF REDUCTIONSTECHNICAL REQUIREMENTSTERRITORIAL WATERSTRADE AGENDATRADE AGREEMENTTRADE CREATIONTRADE DEFLECTIONTRADE DIVERSIONTRADE FACILITATIONTRADE FLOWSTRADE IN GOODSTRADE ISSUESTRADE LIBERALIZATIONTRADE NEGOTIATIONSTRADE NEGOTIATORSTRADE PERFORMANCETRADE POLICYTRADE PREFERENCESTRADING PARTNERTRADING PARTNERSTRADING SYSTEMTRANSACTION COSTSTRANSNATIONAL CORPORATIONSTRANSPARENT RULESUNDETERMINED ORIGINUNILATERAL TRADEUNILATERAL TRADE LIBERALIZATIONVALUE-ADDED REQUIREMENTVALUE-ADDED RULEVALUE-CONTENT REQUIREMENTWORLD PRICEWORLD PRICESWORLD TRADEWORLD TRADE ORGANIZATION10.1596/19238