Trade patterns and global value chains in East Asia: - IDE-JETRO

D. Tariffs in Asia vary significantly among sectorsI. From massdemand to globalsupply chainsIndustrial tariffs 1 are lower in Asian countries thanagricultural ones (see Figure 7). Agriculture tariffsin India and the Republic of Korea are among the 10highest in the world, with the latter’s tariff for agriculturalproducts being more than seven times the average tarifffor industrial products. While Japan’s industrial productstariff is relatively low, its duties on agricultural imports arecomparable to those of Asian developing countries.The dominating position of semi-processed productsin Asian trade is reflected in the tariffs that countries inthe region impose. Tariffs on semi-processed productsare low compared to either raw materials or processedproducts. In the cases of the Republic of Korea andThailand, tariffs on semi processed products areless than one-third of those for raw materials. As foragricultural products, duties on raw materials remainhigh in most Asian economies (see Figure 8). But thereis little evidence of tariff escalation, the practice ofimposing higher tariffs the more processing is involvedin the imported product.II. Organizationof the globalproduction processIII. Infrastructureservices in globalvalue chainsFigure 7Agriculture vs. industrial tariffs in Asia, 2009 (percentage)IV. The evolutionof tariff policies504540V. Foreign directinvestment353025VI. Integrateddiversity2015105VII. An evolutionaryperspective onproduction networksin the Asia-US region0Republic of KoreaAgricultureIndiaJapanIndustryThailandChinese TaipeiViet NamChinaMalaysiaPhilippinesIndonesiaVIII. Trade inintermediate goodsIX. Vertical tradeand trade invalue addedSource: WTO (2010a).X. Cross-regionalspillover ofeconomic growth43