Study On The Economic Effects Of Rules Of Origin In Free Trade Agreement

Rules of origin are indispensable for the free trade agreements, which play a pivotal role in achieving the objectives of FTAs (Free Trade Areas). Therefore, it is meaningful to make an in-depth research on the FTAs' rules of origin. With the rapid development of FTAs throughout the world, rules of origin are getting more and more attention. However, there's little research in the effects of FTAs' rules of origin on trade and investment at present. Based on this situation, this peper focuses on the economic effects of rules of origin in the free trade agreements.Based on the theoretical research of FTAs' rules of origin, this paper empirically researches the economic effects drawing from the rules of origin of North American Free Trade Area(NAFTA) and ASEAN Free Trade Area(AFTA), and explores the effects of FTAs'rules of origin on regional trade and investment. After comparing the rules of origin of NAFTA and AFTA, we find that different rules of origin have different influences on the economic effect of FTAs and even the same rules of origin also exert different effects on different members of FTAs. This paper researches the differences of rules of origin and the different effects on trade and investment, analyses the reasons for these differences, and explores what kind of rules of origin is effective. It's meant to put forward suggestions and revelations for China to draw and perfect FTAs' rules of origin. It is where the emphasis and practical values of the research lie.