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

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Author Info
Cadot, Olivier
Carrère, Céline
de Melo, Jaime
Tumurchudur, Bolormaa

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

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Find related papers by JEL classification:
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
F15 - International Economics - - Trade - - - Economic Integration

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  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. [Downloadable!] (restricted)
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  2. Olivier Cadot & Antoni Estevadeordal & Akiko Suwa-Eisenmann, 2004. "Rules of origin as export subsidies," Research Unit Working Papers 0405, Laboratoire d'Economie Appliquee, INRA. [Downloadable!]
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  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. [Downloadable!] (restricted)
  4. Richardson, Martin, 1995. "Tariff revenue competition in a free trade area," European Economic Review, Elsevier, vol. 39(7), pages 1429-1437, August. [Downloadable!] (restricted)
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  1. Medalla, Erlinda & Yap, Josef T., 2008. "Policy Issues for the ASEAN Economic Community: the Rules of Origin," Discussion Papers DP 2008-18, Philippine Institute for Development Studies. [Downloadable!]
  2. Pamela Bombarda, Elisa Gamberoni, 2008. "Firm Heterogeneity, Rules of Origin and Rules of Cumulation," HEI Working Papers 09-2008, Economics Section, The Graduate Institute of International Studies. [Downloadable!]
  3. Medalla, Erlinda, 2008. "Rules of Origin: Regimes in East Asia and Recommendations for Best Practice," Discussion Papers DP 2008-19, Philippine Institute for Development Studies. [Downloadable!]
  4. Salvatici, Luca & Cipollina, Maria, 2006. "Measuring Protection: Mission Impossible?," Working Papers 18876, TRADEAG - Agricultural Trade Agreements. [Downloadable!]
    Other versions:
  5. Miriam Manchin & Annette O. Pelkmans-Balaoing, 2007. "Clothes without an Emperor: Analysis of the Preferential Tariffs in ASEAN," Development Working Papers 223, Centro Studi Luca d\'Agliano, University of Milano. [Downloadable!]
    Other versions:
  6. Medalla, Erlinda & Supperamaniam, M., 2008. "Suggested Rules of Origin Regime for EAFTA," Discussion Papers DP 2008-22, Philippine Institute for Development Studies. [Downloadable!]
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