::Spaghetti bowl effect
::concepts
The spaghetti bowl effect is a phenomenon of international economic policy that refers to the complication which arises from the application of domestic rules of origin in the signing free trade agreements across nations. The effect leads to discriminatory trade policy because the same commodity is subjected to different tariffs and tariff reduction trajectories for the purpose of domestic preferences.<ref>http://www.adbi.org/working-paper/2009/04/14/2940.asian.noodle.bowl.serious.business/asian.ftas.and.the.noodle.bowl/</ref> With the increase in FTA's throughout the international economy, the phenomenon has led to paradoxical, and often contradictory outcomes amongst bilateral and multilateral trade partners. When applied specifically to trade among Asian nations, the effect is sometimes called the "noodle bowl effect".<ref name="the economist">
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referring to the manner in which half-finished products and parts go around various FTA networks using tariff differentiation in an effort to export finished products to the consumer countries at the lowest price; he visualized this as crisscrossing lines and likened these strings of lines to strands of spaghetti tangled in a bowl.<ref>http://www.rieti.go.jp/en/columns/a01_0193.html</ref>
More recently, the term has been used by scholars to explain the difficulties of East Asian Free Trade Agreements in solving the intertwined mass of preferential trading arrangements among ASEAN members.
Spaghetti bowl effect sections
Intro See also References
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Trade::noodle Category::effect Origin::nations Trade::which Economy::lines Policy::products
The spaghetti bowl effect is a phenomenon of international economic policy that refers to the complication which arises from the application of domestic rules of origin in the signing free trade agreements across nations. The effect leads to discriminatory trade policy because the same commodity is subjected to different tariffs and tariff reduction trajectories for the purpose of domestic preferences.<ref>http://www.adbi.org/working-paper/2009/04/14/2940.asian.noodle.bowl.serious.business/asian.ftas.and.the.noodle.bowl/</ref> With the increase in FTA's throughout the international economy, the phenomenon has led to paradoxical, and often contradictory outcomes amongst bilateral and multilateral trade partners. When applied specifically to trade among Asian nations, the effect is sometimes called the "noodle bowl effect".<ref name="the economist">
{{#invoke:Citation/CS1|citation
|CitationClass=journal
}}</ref>
referring to the manner in which half-finished products and parts go around various FTA networks using tariff differentiation in an effort to export finished products to the consumer countries at the lowest price; he visualized this as crisscrossing lines and likened these strings of lines to strands of spaghetti tangled in a bowl.<ref>http://www.rieti.go.jp/en/columns/a01_0193.html</ref>
More recently, the term has been used by scholars to explain the difficulties of East Asian Free Trade Agreements in solving the intertwined mass of preferential trading arrangements among ASEAN members.
Spaghetti bowl effect sections
Intro See also References
| PREVIOUS: Intro | NEXT: See also |
| << | >> |