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Product-specific rules of origin in EU and US preferential trading arrangements: an assessment

Listed author(s):
  • Céline Carrere

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)

  • Olivier Cadot

    (IMA - Institut de macroéconomie appliquée - HEC Lausanne - Faculté des Hautes Etudes Commerciales (HEC Lausanne))

  • Bolormaa Tumurchudur
  • Jaime De Melo

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)

Building on earlier work by Estevadeordal (2000), we construct a synthetic index (R-index) intending to capture the restrictiveness of rules of origin in preferential trading agreements. The R-index is applied to NAFTA and the Single List of the EU's PANEURO system covering all of the EU's preferential trade agreements. The R-index highlights low a common set of rules of origin can affect countries differently depending on their export structures, and how their complexity varies across sectors. Having controlled for the extent of tariff preference at the tariff-line level, the R-index contributes to explain differences in the rate at which preferences are used. Finally, we compute estimates of the compliance costs associated with rules of origin under NAFTA and under PANEURO and find them to be between 6.8% of good value (NAFTA and 8% (PANEURO).

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Paper provided by HAL in its series Post-Print with number hal-00022988.

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Date of creation: 2006
Publication status: Published in World Trade Review, Cambridge University Press (CUP), 2006, 5 (2), pp.199-224
Handle: RePEc:hal:journl:hal-00022988
Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00022988
Contact details of provider: Web page: https://hal.archives-ouvertes.fr/

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  1. 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.
  2. Trefler, Daniel, 1993. "International Factor Price Differences: Leontief Was Right!," Journal of Political Economy, University of Chicago Press, vol. 101(6), pages 961-987, December.
  3. 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.
  4. 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.
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