Research On Comparison Of Rules Of Origin In Free Trade Area And Effect On Trade

With the development of regional economic integration, the number of various regional economic organizations in the world is growing, the impact of which on the global economy is gradually strengthening. As the most common form in the various regional economic organizations, Free Trade Area (FTA) has been adopted by many countries or regions. By the end of March 2ed,2013, WTO has a total of 159 Member States. The number of regional trade agreements is 546,354 of which have been implemented. Almost all the members of WTO are related to the free trade agreement, and many countries have more than one agreement with other countries. The member states of the free trade area mutually cancel tariff, and make the trade freely. But they keep their tariff policy independently, so the organizations can be called semi-customs union. Due to the implementation of zero-tariff in FTA, non-member states most probably export products to high tariff member state through low tariff member, so as to avoid high tariff. And then, the benefits are possessed freely by non-member states, which comes from establishment of FTA. If things go on like this, FTA will be unable to survive. Therefore, the rules of origin in FTA is needed heavily to avoid non-member state grabbing the benefits of FTA. However, there are differences among the rules of origin in the FTAs, which has important influence on trade. So, it’s significant to research the differences, function of rules of origin in FTAs, and effects on tradeChapter one is exordium, including the purpose of this study, significance, methods and innovations, as well as the general situation of research at home and abroad. The second chapter starts from the origin of the free trade zone, and transits to the rules of origin, evolution, classification and standard. The first part in the third chapter introduces the three standards of rules of origin in the world; the second part compares the three standard of rules of origin among the major free trade area in the world, including wholly native and part native; the third part makes a comparison on origin criteria among China-Chile, China-ASEAN, China-New Zealand and China-Pakistan FTA, find out similarity among them. The fourth chapter is also divided into three parts. The first part analyses the positive and negative effects on international trade caused by the rules of origin in FTA; the second part takes advantage of the economic model to analyze the effects on trade made by rules of origin in FTA; the third part makes a comparison on the trade data within the FTA between China-ASEAN and NAFTA from 2003 to 2012. In the chapter five, this paper gives some suggestions on how to make a reasonable rules of origin to China.