How do free trade agreements reduce tariff rates and non-tariff barriers?

This paper empirically investigates how far free trade agreements (FTAs) successfully lower tariff rates and non-tariff barriers (NTBs) for manufacturing industries by employing the bilateral tariff and NTB data in a time series for countries around the world. We find that FTAs under GATT Article XXIV and the Enabling Clause contribute to reducing tariff rates by 2.1% points and 1.5% points, respectively. In the case of NTBs, their respective impacts are 6.6% points and 5.7% points. Membership in the World Trade Organization (WTO) does not contribute greatly to reducing tariff rates but does play a significant role in reducing NTBs. These results provide important implications for the literature on numerical assessments of FTAs.

The policy impact of product-related environmental regulations in Asia

This paper focuses on EU chemical regulations, RoHS and REACH, and shows these EU regulations have driven Asian countries to introduce regulations that are similar yet modified versions to the EU regulations. Asia as the world manufacturing center has extensive production networks where parts and components of a final good are traded across borders. We discuss how product-related environmental regulations could impact on firms' activities then show that if Asian countries with complex supply chains introduce different product related chemical regulations without coordinating with neighboring countries, it could work as trade barrier for manufacturing activities in the region.