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GTAP Resource #3715

"The Impact of Free Trade Agreements in ASEAN Using the CEPT Scheme: Comparative Study of Thailand and the Philippines"
by Todsadee, Areerat and Hiroshi Kameyama


Abstract
Recently, the Free Trade Agreement (FTA) networking in East Asia has been expanding. It has been developing with ASEAN as its hub. Furthermore, ASEAN itself has attempted to strengthen the integration by signing the ASEAN Trade in Goods Agreement (ATIGA) in 2008/2009 and by establishing ASEAN Economic Community (AEC) targeted in 2015. To assess the economic impact of FTAs, the comparative results of a simulation for Thailand and the Philippines are presented in this paper, using computable general equilibrium (CGE) model analysis. We used the global trade analysis project (GTAP) model with database version 7. The reference year corresponds to the global economy in 2004. Assuming the tariff reduction process as Common Effective Preferential Tariff (CEPT), some indexes such as GDP, term of trade (TOT), equivalent variation (EV) and allocative efficiency are shown. Thailand and the Philippines are both original members of ASEAN. The agricultural sector in both countries is still contributing a large share, but the performance for industrial change has not been the same. This paper analyzes the extent by which both countries can improve benefit of FTAs by reducing or eliminating tariffs on all products and on non-agricultural products under a CEPT scheme.


Resource Details (Export Citation) GTAP Keywords
Category: GTAP Application
Status: Published
By/In: Asian Rural Sociology IV, 14-25
Date: 2010
Version: 7
Created: Kameyama, H. (9/8/2011)
Updated: Kameyama, H. (9/9/2011)
Visits: 1,580
- Domestic policy analysis
- Agricultural policies
- Asia (East)


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