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

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  • Olivier CADOT

    (Centre d'Etudes et de Recherches sur le Développement International(CERDI))

  • Jaime MELO DE
  • Céline CARRERE

    (Centre d'Etudes et de Recherches sur le Développement International(CERDI))

  • Bolormaa TUMURCHUDUR

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

Suggested Citation

  • Olivier CADOT & Jaime MELO DE & Céline CARRERE & Bolormaa TUMURCHUDUR, 2005. "Product Specific Rules of Origin in EU and US Preferential Trading Arrangements: An Assessment," Working Papers 200508, CERDI.
    • Handle: RePEc:cdi:wpaper:678
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    References listed on IDEAS

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    1. Paul Brenton & Miriam Manchin, 2014. "Making EU Trade Agreements Work: The Role of Rules of Origin," World Scientific Book Chapters, in: INTERNATIONAL TRADE, DISTRIBUTION AND DEVELOPMENT Empirical Studies of Trade Policies, chapter 14, pages 299-313, World Scientific Publishing Co. Pte. Ltd..
    2. 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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