Rules of Origin, Local Content and Cumulative Local Content in East Asia: Application of an International Input-Output Analysis
Rules of origin (RoO) are an integral part of all trade rules. In the case of free trade agreements (FTAs), RoO determine the ‘nationality’ of a product, and only products that are considered to have originated in FTA member countries are eligible for preferential tariff concessions. Therefore, it is evident that RoO significantly influence the effectiveness of FTAs. In East Asia (especially for ASEAN countries and China), local content or cumulative local content have become the most important criteria for determining the origin of a product.
KeywordsManufacturing Sector Intermediate Input Output Table Local Content Import Content
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