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Tariffic Tuna - a study on the impact of rules of origin on Thailands tuna trade

Wingård, Christopher LU (2011) NEKM01 20112
Department of Economics
Abstract
The purpose of this study is to evaluate the impact of Rules of Origin (RoO) on the tuna trade in Thailand by comparing the existing trade agreements of two major partners, the EU and Japan. It is widely recognised that RoO affect the outcome of preferential trade agreements (PTA) due to its complicated nature. Thailand is the largest producer of canned tuna in the world and conducts its trade with the EU under the Generalized System of Preferences (GSP) and with Japan under the recently implemented Japan-Thailand Economic Partnership Agreement (JTEPA). Comparing the two trading arrangements, focusing especially on the RoO, this study found significant differences between the two. The JTEPA has more lenient RoO than the GSP which affects... (More)
The purpose of this study is to evaluate the impact of Rules of Origin (RoO) on the tuna trade in Thailand by comparing the existing trade agreements of two major partners, the EU and Japan. It is widely recognised that RoO affect the outcome of preferential trade agreements (PTA) due to its complicated nature. Thailand is the largest producer of canned tuna in the world and conducts its trade with the EU under the Generalized System of Preferences (GSP) and with Japan under the recently implemented Japan-Thailand Economic Partnership Agreement (JTEPA). Comparing the two trading arrangements, focusing especially on the RoO, this study found significant differences between the two. The JTEPA has more lenient RoO than the GSP which affects Thailand’s trade pattern, both in terms of import and export. The cumulation rules offered by the JTEPA were found to be particularly beneficial for the Thai tuna industry, leading to increased south-south trade in the region. Utilization rates for the EU GSP are very low, much due to the strict RoO. Comprehensive data for the JTEPA is lacking in this study, but the more liberal RoO in the JTEPA is likely to lead to a higher utilization rate. The study concludes that extended cumulation has a significant effect on the economic impact of the RoO and therefore has a vital role to play in the future reform of the RoO. (Less)
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author
Wingård, Christopher LU
supervisor
organization
course
NEKM01 20112
year
type
H1 - Master's Degree (One Year)
subject
keywords
Rules of Origin, Thailand, Canned tuna, PTA, GSP, JTEPA, Utilization rate
language
English
id
2203877
date added to LUP
2011-11-11 14:14:11
date last changed
2011-11-11 14:14:11
@misc{2203877,
  abstract     = {The purpose of this study is to evaluate the impact of Rules of Origin (RoO) on the tuna trade in Thailand by comparing the existing trade agreements of two major partners, the EU and Japan. It is widely recognised that RoO affect the outcome of preferential trade agreements (PTA) due to its complicated nature. Thailand is the largest producer of canned tuna in the world and conducts its trade with the EU under the Generalized System of Preferences (GSP) and with Japan under the recently implemented Japan-Thailand Economic Partnership Agreement (JTEPA). Comparing the two trading arrangements, focusing especially on the RoO, this study found significant differences between the two. The JTEPA has more lenient RoO than the GSP which affects Thailand’s trade pattern, both in terms of import and export. The cumulation rules offered by the JTEPA were found to be particularly beneficial for the Thai tuna industry, leading to increased south-south trade in the region. Utilization rates for the EU GSP are very low, much due to the strict RoO. Comprehensive data for the JTEPA is lacking in this study, but the more liberal RoO in the JTEPA is likely to lead to a higher utilization rate. The study concludes that extended cumulation has a significant effect on the economic impact of the RoO and therefore has a vital role to play in the future reform of the RoO.},
  author       = {Wingård, Christopher},
  keyword      = {Rules of Origin,Thailand,Canned tuna,PTA,GSP,JTEPA,Utilization rate},
  language     = {eng},
  note         = {Student Paper},
  title        = {Tariffic Tuna - a study on the impact of rules of origin on Thailands tuna trade},
  year         = {2011},
}