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Product Specific Rules of Origin in EU and US Preferential Trading Agreements: An Assessment

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  • Cadot, Olivier
  • Carrère, Céline
  • de Melo, Jaime
  • Tumurchudur, Bolormaa

Abstract

Building on earlier work by Estevadeordal, we construct a synthetic index (R-index) intending to capture the restrictiveness on market access due to product specific rules of origin (PSRO) that apply at the tariff-line level. The R-index is constructed for rules of origins under NAFTA and under the single list applying to PANEURO, the new regime applying to all EU preferential trade agreements. The R-index highlights how identical PSRO have different impacts across countries, and how the complexity of PSRO varies across sectors. Having controlled for the extent of tariff preference at the tariff-line level, the R-index contributes to account for differences in utilization rates at the tariff line level. The index is then used to assess composition effects across countries subjected to some set of PSRO and to compute estimates of the compliance costs associated with rules of origin under both regimes.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 4998.

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Date of creation: Apr 2005
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Handle: RePEc:cpr:ceprdp:4998

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Keywords: costs; NAFTA; PANEURO; rules of origin;

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References

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  1. Anson, José & Cadot, Olivier & de Melo, Jaime & Estevadeordal, Antoni & Suwa Eisenmann, Akiko & Tumurchudur, Bolormaa, 2003. "Rules of Origin in North-South Preferential Trading Arrangements with an Application to NAFTA," CEPR Discussion Papers 4166, C.E.P.R. Discussion Papers.
  2. Cadot, Olivier & Estevadeordal, Antoni & Suwa Eisenmann, Akiko, 2005. "Rules of Origin as Export Subsidies," CEPR Discussion Papers 4999, C.E.P.R. Discussion Papers.
  3. Kala Krishna & Anne Krueger, 1995. "Implementing Free Trade Areas: Rules of Origin and Hidden Protection," NBER Working Papers 4983, National Bureau of Economic Research, Inc.
  4. Richardson, Martin, 1995. "Tariff revenue competition in a free trade area," European Economic Review, Elsevier, vol. 39(7), pages 1429-1437, August.
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Cited by:
  1. Yap, Josef T. & Medalla, Erlinda M., 2008. "Policy Issues for the ASEAN Economic Community: the Rules of Origin," Discussion Papers DP 2008-18, Philippine Institute for Development Studies.
  2. Manchin, Miriam & Pelkmans-Balaoing, Annette O., 2008. "Clothes without an Emperor: Analysis of the preferential tariffs in ASEAN," Journal of Asian Economics, Elsevier, vol. 19(3), pages 213-223, June.
  3. Medalla, Erlinda M., . "Rules of Origin: Regimes in East Asia and Recommendations for Best Practice," Philippine Journal of Development, Philippine Institute for Development Studies.
  4. Salvatici, Luca & Cipollina, Maria, 2006. "Measuring Protection: Mission Impossible?," Working Papers 18876, TRADEAG - Agricultural Trade Agreements.
  5. Erlinda M. Medalla & Josef T. Yap, 2008. "Policy Issues for the ASEAN Economic Community : the Rules of Origin," Trade Working Papers 22666, East Asian Bureau of Economic Research.
  6. Medalla, Erlinda M. & Balboa, Jenny D., 2009. "ASEAN Rules of Origin: Lessons and Recommendations for Best Practice," Discussion Papers DP 2009-36, Philippine Institute for Development Studies.
  7. Erlinda M. Medalla & Josef T. Yap, 2008. "Policy Issues for the ASEAN Economic Community : the Rules of Origin," Trade Working Papers 22015, East Asian Bureau of Economic Research.
  8. Erlinda M. Medalla & M. Supperamaniam, 2008. "Suggested Rules of Origin Regime for EAFTA," Trade Working Papers 22014, East Asian Bureau of Economic Research.
  9. Erlinda M. Medalla, 2008. "Rules of Origin : Regimes in East Asia and Recommendations for Best Practice," Trade Working Papers 22665, East Asian Bureau of Economic Research.
  10. Medalla, Erlinda M., 2008. "Rules of Origin: Regimes in East Asia and Recommendations for Best Practice," Discussion Papers DP 2008-19, Philippine Institute for Development Studies.
  11. Medalla, Erlinda M. & Supperamaniam, M., 2008. "Suggested Rules of Origin Regime for EAFTA," Discussion Papers DP 2008-22, Philippine Institute for Development Studies.
  12. Erlinda M. Medalla & M. Supperamaniam, 2008. "Suggested Rules of Origin Regime for EAFTA," Trade Working Papers 22664, East Asian Bureau of Economic Research.

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