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Clothes without an emperor: analysis of the preferential tariffs in ASEAN

Manchin, M.; Pelkmans-Balaoing, A.; (2007) Clothes without an emperor: analysis of the preferential tariffs in ASEAN. (Development Working Papers 223). Centro Studi Luca d’Agliano, University of Milano: Milan, Italy. Green open access

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Abstract

This paper examines the current state of intra-ASEAN trade under the preferential regime of the AFTA. It partly addresses some data problems and employs a gravity model to arrive at alternative ways of gauging the importance of preferences in the absence of data on the actual utilisation of AFTA preferential tariffs. Our results confirm the wide-spread notion that the AFTA preferential scheme is of very little consequence to intra-regional trade. However, in that limited range of products where AFTA might have an influence, preferences seem to matter only when the differential margin between the MFN and preferential tariff rates reaches a critical amount, allowing regional exporters to cover the costs of requesting preferences.

Type: Working / discussion paper
Title: Clothes without an emperor: analysis of the preferential tariffs in ASEAN
Open access status: An open access version is available from UCL Discovery
Publisher version: http://www.dagliano.unimi.it/publications/working-...
Language: English
Keywords: ASEAN trade policy, free trade areas, empirical estimates of preference utilisation
URI: https://discovery.ucl.ac.uk/id/eprint/18269
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