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

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  • Céline Carrere

    (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I)

  • Olivier Cadot

    (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I)

  • Jaime Melo De

    (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I)

  • Bolormaa Tumurchudur

    (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I)

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 HAL in its series Working Papers with number halshs-00564704.

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Date of creation: 09 Feb 2011
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Handle: RePEc:hal:wpaper:halshs-00564704

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Keywords: Rules of Origin; costs; NAFTA; PANEURO;

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References

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  1. Cadot, Olivier & Carrère, Céline & de Melo, Jaime & Portugal-Pérez, Alberto, 2005. "How Much Market Access in FTAs? Textiles Under NAFTA," CEPR Discussion Papers 5264, C.E.P.R. Discussion Papers.
  2. Brenton, Paul, 2003. "Integrating the least developed countries into the world trading system : the current impact of EU preferences under everything but arms," Policy Research Working Paper Series 3018, The World Bank.
  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.
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Citations

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Cited by:
  1. Persson, Maria, 2011. "From trade preferences to trade facilitation: Taking stock of the issues," Economics Discussion Papers 2011-23, Kiel Institute for the World Economy.
  2. Hayakawa, Kazunobu & Nuttawut, Laksanapanyakul & Shiino, Kohei, 2013. "Some practical guidance for the computation of free trade agreement utilization rates," IDE Discussion Papers 438, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  3. Cooke, Edgar F. A., 2012. "Is the impact of AGOA heterogeneous?," MPRA Paper 43277, University Library of Munich, Germany.
  4. Hayakawa, Kazunobu, 2014. "Impact of diagonal cumulation rule on FTA utilization: Evidence from bilateral and multilateral FTAs between Japan and Thailand," Journal of the Japanese and International Economies, Elsevier, vol. 32(C), pages 1-16.
  5. Hayakawa, Kazunobu & Nuttawut, Laksanapanyakul, 2013. "Impacts of common rules of origin on FTA utilization," IDE Discussion Papers 429, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  6. Hayakawa, Kazunobu & Kim, HanSung & Nuttawut, Laksanapanyakul & Shiino, Kohei, 2013. "FTA utilization : certificate of origin data versus customs data," IDE Discussion Papers 428, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  7. Hayakawa, Kazunobu & Nuttawut, Laksanapanyakul, 2013. "New measures of FTA liberalization level," IDE Discussion Papers 437, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  8. Chang, Kuo-I & Hayakawa, Kazunobu, 2012. "Selection and utilization of the early harvest list : evidence from the Free Trade Agreement between China and Taiwan," IDE Discussion Papers 365, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  9. Hayakawa, Kazunobu & Yang, Chih-Hai, 2013. "How do free trade agreements change import prices? : firm-level evidence from China's imports from ASEAN," IDE Discussion Papers 436, Institute of Developing Economies, Japan External Trade Organization(JETRO).

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