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Study on ROOs of FTA in China

Author: BianYing
Tutor: SunYuHong
School: Dongbei University of Finance
Course: International Trade
Keywords: FTA Rules of Orgin Comparative Analysis Restrictiveness
CLC: F752
Type: Master's thesis
Year: 2011
Downloads: 77
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Abstract


With the rapid development of economic integration,the number of Free Trade Area(FTA) as a major form of Regional Trade Arrangements are suring in numbers,and becoming the world’s most important and effective way of foreign trade cooperation. So, as a crucial instrument of FTA, rules of origin plays a very important role in preventing trade deflection, guiding the flow of foreign investments, and the development of regional trade arrangmenrts.TO avoid marginalized in the new regional integration, China will try to develop regional cooperation relationship with others. Now, China with Chile, New Zealand, ASEAN, Singapore and other countries or regions has signed a free trade agreement,and is actively working with India, Norway and other countries to negotiate. However, China has relatively lagged in making the rules of origin in FTA that we have involved in, mainly due to our late steps inparticipating in FTA, and the limitation of legislation experience, having no choice but to accept the propositions of other countries or regions,at the aspects of participating in regional trade arragements, formulating rules of origin, and to combine with the actual situation of our ecnomic and trade development, making a set of ruls of origin which conforms to the trade policy and bennifit demands, to improve the development of free trade agreement, to enhance the international competitiveness of our country. The writing of this paper is rightly based on this point.This paper has three parts, through the methods of text interpretation, index calculation and comparative analysis,etc,systematically elaborating the rules of origin free trade arragements. The article first introduces the concept of rules of origin, classification and applicable standards, then it describes the role of rules of origin to free trade arragements and the main development patterns in the world. This paper selects some typical free trade arragements in our country and other representative ones in the world which are not confined in NAFTA and pan-European, but absorbs South Korea and Japan which are more similar on the geographical location. Take the appalicable standards of rules of origin as the main line, work a comparative analysis to them. Trough uesd a method of calculation which comes from foreign country and free trade arragements of our country to calculate the individual FTA rules of origin of China’s overall level of restriction, and compare with the world’s major FTA rules of origin.According to the caculated results of restrictiveness,we can find that the restrict level of rules of origin of FTA in our country is lower than other countries’. The rule of origin in China-ASEAN and China-Chile rules of origin is not more stict thanChina-New Zealand’s, which is found by comparing that the main difference lies in the use of tariff change. Finally, according to the above comparative analysis, put forward the insufficient points and gives suggestions.

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CLC: > Economic > Trade and Economic > States foreign trade > China's foreign trade
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