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Rules of Origin in Preferential Trading Arrangements: Is All Well with the Spaghetti Bowl in the Americas?

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  • Antoni Estevadeordal

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  • Kati Suominen

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Abstract

Preferential trading arrangements (PTAs) have proliferated spectacularly over the past decade around the world. Countries in the Western Hemisphere have been particularly prolific builders of PTAs, forging in a veritable spaghetti bowl of multiple and often overlapping agreements. Rules of origin, a key arbitrator of market access in each of these PTAs, epitomize the hemisphere´s spaghetti bowl problem: a growing number of the region´s PTAs carry complex and restrictive rules of origin, and the many rules-of-origin regimes differ from each other. As a result, rules of origin can undercut the trade-creating potential of the region´s hard-earned PTAs. The purpose of this paper is to present an in-depth diagnosis of rules-of-origin regimes in the Americas, and to offer policy recommendations for the region to counter the potential negative effects of rules of origin.

Suggested Citation

  • Antoni Estevadeordal & Kati Suominen, 2005. "Rules of Origin in Preferential Trading Arrangements: Is All Well with the Spaghetti Bowl in the Americas?," ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, vol. 0(Spring 20), pages 63-103, January.
  • Handle: RePEc:col:000425:008664
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    1. Brad J. Bowland & John C. Beghin, 1998. "Robust Estimates of Value of a Statistical Life for Developing Economies: An Application to Pollution and Mortality in Santiago," Center for Agricultural and Rural Development (CARD) Publications 99-wp214, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    2. Lozano Nancy, 2004. "Air Pollution in Bogotá, Colombia: A Concentration-Response Approach," REVISTA DESARROLLO Y SOCIEDAD, UNIVERSIDAD DE LOS ANDES-CEDE, August.
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    Cited by:

    1. Matthew Shearer & Juliana Salles Almeida & Carlos H. Gutiérrez Jr., 2009. "The Treatment of Agriculture in Regional Trade Agreements in the Americas," IDB Publications (Working Papers) 2795, Inter-American Development Bank.
    2. Sung Hee Lee & Kun Soo Park & Yong Won Seo, 2016. "Multinational Firm’s Production Decisions under Overlapping Free Trade Agreements: Rule of Origin Requirements and Environmental Regulation," Sustainability, MDPI, Open Access Journal, vol. 9(1), pages 1-16, December.
    3. Manchin, Miriam & Pelkmans-Balaoing, Annette O., 2007. "Rules of origin and the web of East Asian free trade agreements," Policy Research Working Paper Series 4273, The World Bank.
    4. Archanun KOHPAIBOON & Juthathip JONGWANICH, 2015. "Use of FTAs from Thai Experience," Working Papers DP-2015-02, Economic Research Institute for ASEAN and East Asia (ERIA).
    5. Matthew Shearer & Juliana Salles Almeida & Carlos H. Gutiérrez Jr., 2009. "The Treatment of Agriculture in Regional Trade Agreements in the Americas," IDB Publications (Working Papers) 2715, Inter-American Development Bank.
    6. Antoni Estevadeordal & Matthew Shearer & Kati Suominen, 2009. "Market Access Provisions in Regional Trade Agreement," IDB Publications (Working Papers) 9311, Inter-American Development Bank.
    7. Matthew Shearer & Juliana Salles Almeida & Carlos H. Gutiérrez Jr., 2009. "The Treatment of Agriculture in Regional Trade Agreements in the Americas," IDB Publications (Working Papers) 26158, Inter-American Development Bank.
    8. Matthew Shearer & Juliana Salles Almeida & Carlos H. Gutiérrez Jr., 2009. "The Treatment of Agriculture in Regional Trade Agreements in the Americas," IDB Publications (Working Papers) 23538, Inter-American Development Bank.

    More about this item

    Keywords

    Preferential trading arrangements; rules of origin; trade potential;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

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