Download Barriers-structure - Asia

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How trade agreements affect trade barriers
in the Petri-Plummer-Zhai model:
Flow charts for tariffs, NTBs, and FDI barriers
November 2015
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.
Tariff Barriers
Agreement per
capita income
Measured tariff
Preference
utilization rate
0.25~0.85
Utilized tariff
Agreement size
(GDP)
Agreement-specific
tariff reduction
0.0~1.0
Reduction of
utilized tariff
ROO cost
increase rate
KEY:
0.1~0.4
Input
Iceberg cost
increase
New tariff
Calculated
value
Measured NTMs
Non-Tariff Measures
0.75/0.25
Estimated NTBs
Legitimate NTMs
goods: 0.75/0.25
services: .50/.50
Actionable
barriers
Agreement
provision score
Unchangeable
barriers
0.0 ~1.0
Barrier
reduction
MFN barrier
reduction
0.20
Subsequent effects
as in member countries
0.50/0.50
Cost reduction
Rent reduction
0.50/0.50
Iceberg cost
reduction
KEY:
Importing country
rent reduction
Exporting country
rent reduction
Input
Tariff-like effect +
domestic transfer
Tariff-like effect +
transfer abroad
Calculated
value
Investment Barriers
Measured FDI gap
0.75/0.25
Barrier-related gap
Legitimate gap
0.75/0.25
Actionable gap
Agreement
provision score
Unchangeable gap
0.0 ~1.0
Gap reduction
MFN gap
reduction
0.20
Same effects that follow
gap reduction in
member countries
0.50/0.50
Investment
cost reduction
Investment
rent reduction
KEY:
0.50/0.50
0.50/0.50
Input
Host benefit
Investor
benefit
Host benefit
Investor
benefit
Calculated
value
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