Research On The Impact Of China-ASEAN Free Trade Area Rules Of Origin On Intermediate Trade

In order to promote the preferential tariff treatments of the trade products between contracting parties,the Free Trade Agreement(FTA)has set up a series of conditions for dividing the FTA,which has accelerated the development of trade liberalization and facilitation in the region.China-ASEAN Free Trade Area came into being under the background of global economic integration.In 2002,the cooperation between China and ASEAN countries had begun,and the free trade area was formally established in 2010.The bilateral trade between China and ASEAN has great potential and is a important markets of China's foreign trade.Good economic conditions,friendly national environment,and superior geographical location have provided strong support for the establishment and development of the China-ASEAN Free Trade Area,and provided a good example for future cooperation between China and other regions.Meanwhile,the intermediate goods trade between China and ASEAN has always occupied the main position of bilateral trade.The intermediate goods trade between China and ASEAN showed a trend of fluctuant rise from 2004 to 2017.The implementation of the rules of origin in the free trade zone has resulted in some trade costs and has affected the bilateral trade of intermediate goods.In order to further promote the development of intermediate goods in China-ASEAN free area,a unified free trade agreement is even more needed.Based on the BEC classification and HS six digit tax number comparison table,this paper extracts the intermediate goods trade data between China and major ASEAN countries from 2004 to 2017,and analyzes the mechanism of origin rules on the trade of intermediate products.Also,it calculates the Origin Rule Restriction Index of intermediate goods trade between China and ASEAN according to the Valuation Method.Based on the gravity model of panel data,this paper analyzes the relationship between the rules of origin and the intermediate goods trade in the China –ASEAN free trade area.Through empirical analysis,it can be concluded that the development of China ASEAN free trade area promotes the development of intermediate goods trade,but the rules of origin of China-ASEAN free trade area result in constraint effects on the development of intermediate goods trade,and the export constraint effect is greater than that of import constraint effects.The overall economic development scale of China and ASEAN can promote the bilateral intermediate goods trade,and the impact on import trade is greater than that on export.The differences of per capita income level between China and ASEAN have different effects on bilateral intermediate goods trade.The expansion of the difference of per capita income level promotes the export of intermediate goods to some extent,but hinders the import of intermediate goods.Finally,the trade resistance outside the China-ASEAN Free Trade Area has a certain impact on the development of trade in intermediate goods in the region.To some extent,it will promote the transfer of intermediate goods trade from outside the region to the region and further promote the development of intermediate goods.In view of the current situation and existing problems of the rules of origin between China and ASEAN,we can make corresponding adjustments from the following aspects to promote the development of bilateral trade in intermediate goods.First of all,pay attention to simplifying the content and implementation procedures of the rules of origin to reduce the degree of restriction.At the same time,pay attention to the differences between different industries and avoid formulating "one size fits all" rules of origin.Secondly,we should further speed up the pace of industrial and structural adjustment in the region,and constantly improve product identification.Finally,the facilitation level of certificates of origin acquisition should be improved to promote the rational allocation of resources and balanced industrial development in the area.