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Rules of Origin, Preferences and Diversification in Apparel: African Exports to the US and to the EU

Author

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  • de Melo, Jaime
  • Portugal-Pérez, Alberto

Abstract

The EU and the US offer similar preferential market access for apparel exports to a group of African countries. These agreements differ in their product-specific rules of origin (PSRO). While EBA and Cotonou require yarn to be woven into fabric and then made-up into apparel in the same country or in a country qualifying for cumulation (double transformation), AGOA grants a special regime (SR) to “lesser developed countries” allowing them the use of fabric from any origin and still meet the criteria for preferences (single transformation). Using several estimation methods, this paper contrasts export performance to the US and EU markets and attributes an increase in export volume of about 300% for the top seven beneficiaries of AGOA’s SR to differences in respective PSRO and also an increase in the number of products exported.

Suggested Citation

  • de Melo, Jaime & Portugal-Pérez, Alberto, 2008. "Rules of Origin, Preferences and Diversification in Apparel: African Exports to the US and to the EU," CEPR Discussion Papers 7072, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:7072
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    Citations

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    Cited by:

    1. Louise Curran & Khalid Nadvi, 2015. "Shifting trade preferences and value chain impacts in the Bangladesh textiles and garment industry," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 8(3), pages 459-474.
    2. Behar, Alberto & Edwards, Lawrence, 2011. "How integrated is SADC ? trends in intra-regional and extra-regional trade flows and policy," Policy Research Working Paper Series 5625, The World Bank.
    3. Rotunno, Lorenzo & Vézina, Pierre-Louis & Wang, Zheng, 2013. "The rise and fall of (Chinese) African apparel exports," Journal of Development Economics, Elsevier, vol. 105(C), pages 152-163.
    4. de Melo, Jaime & Portugal-Perez, Alberto, 2013. "Preferential market access design: evidence and lessons from African apparel exports to the us and the EU," Policy Research Working Paper Series 6357, The World Bank.
    5. Jaime de Melo & Alberto Portugal-Perez, 2011. "Preferential Market Access Design: Evidence and Lessons from African Apparel Exports to the US and to the EU," Research Papers by the Institute of Economics and Econometrics, Geneva School of Economics and Management, University of Geneva 11091, Institut d'Economie et Econométrie, Université de Genève.
    6. Rotunno, Lorenzo & Vézina, Pierre-Louis & Wang, Zheng, 2013. "The rise and fall of (Chinese) African apparel exports," Journal of Development Economics, Elsevier, vol. 105(C), pages 152-163.

    More about this item

    Keywords

    AGOA; EBA; Regional Integration; Rules of Origin;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

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