IMPACTS OF ROO ON FTA By Xie Zhujun JUNE 27,2006

Contents Ⅰ Rules of Origin in RTA and FTA Ⅱ ACFTA Ⅲ ROO of ACFTA Ⅳ Impacts of ROO on RTA/FTA Ⅴ Impacts of ROO on ACFTA Ⅵ Suggestion

Ⅰ Rules of Origin in RTA and FTA Regional Trade Agreement the rules of origin in RTA Free Trade Area The rules of origin in FTA

Ⅱ ACFTA ASEAN-China Free Trade Area 11 Members of ACFTA

Ⅲ ROO of ACFTA 40% value added in the member states PSR (Product Specific Rules) Form E

Ⅳ Impacts of ROO on RTA/FTA Trade transmission in the region Industrialization of the member states Raw material exports within the area FDI inflow and outflow of the region Gross income growing of the citizens Regulating the competition of exporters Trade barriers to the non-member states

Ⅴ Impacts of ROO on ACFTA Growing of FDI to ASEAN countries from China Import and export growing within ACFTA Inner advantage compensation of the member states Further understanding of parties concerned Competitiveness of the enterprises strengthened International co-operation of governments and organizations in ACFTA

Statistics of Form E issued in China (Jan. to Mar. 2006) Total number of form E issued in the first quarter of 2006: 14236 Total value covered: USD 196.53 million Source: Statistic Database of AQSIQ (General Administration of Quality Supervision Inspection and Quarantine)

Form E Issued and Chinese Export Profile to ASEAN (Jan. to Mar. 2006) Source: statistic database of AQSIQ (General Administration of Quality Supervision Inspection and Quarantine)

Ⅵ Suggestion To train the CIQ officials who issue certificates of origin To train the appliers of certificate of origin from the manufacturing and exporting sectors To share common interest of ROO To research the usage of ROO in RTA/FTA To strengthen the co-operation of ROO More propaganda to make full use of ROO

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