Utilisation Of Free Trade Agreements
Bureau, J C, R Chakir and J Gallezot (2007), « The use of trade preferences for developing countries in the agri-food sector, » Journal of Agricultural Economics 58, 175-198. is used as a measure to determine the origin of automobiles in the Trans-Pacific Partnership (TPP). Net costs are « total costs » minus promotion, marketing and after-sales service, royalties, shipping and packaging, and unauthorized interest charges. This net cost indicator is less sensitive to changes in exchange rates than to the value-added ratio, as the net cost indicator does not contain the export price, the changes of which are responsible for the impact of exchange rates on the value-added ratio. As a result, the impact of exchange rates on the use of free trade should be lower if the net cost method is used, not the value-added method. In other words, the application of the net cost method would allow exporters to avoid the fear of exchange rate fluctuations and promote stable use of free trade systems by exporters. Francois, J, B Hoekman and M Manchin (2006), « Preference erosion and multilateral trade liberalization liberalization, » World Bank Economic Review 20, 197-216. Free trade agreements in North Asia have high utilization rates for merchandise trade. According to the BDI study, the five factors that most hinder the use of EU free trade agreements by German exporters are: Tags: exchange rate, free trade agreements, free trade agreements, rules of origin How to interpret this surprising evidence? The existence of rules of origin has been highlighted as one of the main barriers preventing exporters from using free trade agreements and thus maintaining incomplete ATF utilization rates. Exporters must respect the rules of origin to be eligible for free trade rights. In other words, products exported under a free trade agreement must be « of origin » among the ESTV Member States. For example, a product is not considered originating when most inputs come from free trade agreements and the added value generated is not sufficient.
Therefore, depending on the production structure, exporters are not necessarily able to comply with the rules of origin and cannot apply the ESFREI regime.