1. How trade agreements affect trade barriers in the Petri-Plummer-Zhai model: Flow charts for tariffs, NTBs, and FDI barriers November 2015

2. Note: the following charts show how the barriers for a single agreement are calculated. The barriers that apply to a trade flow (say, exports from Viet Nam to Japan) are selected as the lowest among the barriers calculated under the several trade agreements that cover the trade flow.

3. Measured tariff Utilized tariff Reduction of utilized tariff ROO cost increase rate New tariff Iceberg cost increase 0.25~0.85 Agreement size (GDP) 0.1~0.4 0.0~1.0 Input Calculated value KEY: Tariff Barriers Preference utilization rate Agreement-specific tariff reduction Agreement per capita income Agreement per capita income

4. Measured NTMs Estimated NTBs Actionable barriers Cost reduction Rent reduction Exporting country rent reduction Importing country rent reduction Tariff-like effect + transfer abroad Tariff-like effect + domestic transfer Iceberg cost reduction 0.75/0.25 Barrier reduction 0.0 ~1.0 Agreement provision score 0.50/0.50 Legitimate NTMs goods: 0.75/0.25 services:.50/.50 Unchangeable barriers Input Calculated value KEY: MFN barrier reduction 0.20 Non-Tariff Measures Subsequent effects as in member countries

5. Measured FDI gap Barrier-related gap Actionable gap Investment cost reduction Investment rent reduction 0.75/0.25 Gap reduction 0.0 ~1.0 Agreement provision score 0.50/0.50 Legitimate gap 0.75/0.25 Unchangeable gap Investor benefit Host benefit Input Calculated value KEY: MFN gap reduction 0.20 Investment Barriers 0.50/0.50 Investor benefit Host benefit Same effects that follow gap reduction in member countries