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

Author

Listed:
  • 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)

Abstract

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).

Suggested Citation

  • Céline Carrere & Olivier Cadot & Bolormaa Tumurchudur & Jaime De Melo, 2006. "Product-specific rules of origin in EU and US preferential trading arrangements: an assessment," Post-Print hal-00022988, HAL.
  • Handle: RePEc:hal:journl:hal-00022988
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00022988
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    References listed on IDEAS

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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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    1. repec:taf:intecj:v:30:y:2016:i:4:p:429-449 is not listed on IDEAS
    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. Persson, Maria, 2012. "From trade preferences to trade facilitation: Taking stock of the issues," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 6, pages 1-33.
    4. Kazunobu Hayakawa & Nuttawut Laksanapanyakul, 2017. "Impacts of common rules of origin on FTA utilization," International Economics and Economic Policy, Springer, vol. 14(1), pages 75-90, January.
    5. Kazunobu HAYAKAWA & Nuttawut LAKSANAPANYAKUL & Shujiro URATA, 2015. "Firm-level Impact of Free Trade Agreements on Import Prices," Working Papers DP-2015-33, Economic Research Institute for ASEAN and East Asia (ERIA).
    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. 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).
    8. Hayakawa, Kazunobu & Kim, HanSung & Yoshimi, Taiyo, 2015. "FTA in international finance : impacts of exchange rates on FTA utilization," IDE Discussion Papers 494, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    9. Maria Cipollina & David Laborde Debucquet & Luca Salvatici, 2017. "The tide that does not raise all boats: an assessment of EU preferential trade policies," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 153(1), pages 199-231, February.
    10. Céline Carrère & Jaime de Melo & Bolormaa Tumurchudur, 2010. "Disentangling Market Access Effects of Preferential Trading Arrangements with an Application for ASEAN Members under an ASEAN-EU FTA," The World Economy, Wiley Blackwell, vol. 33(1), pages 42-59, January.
    11. Hayakawa, Kazunobu & Nuttawut, Laksanapanyakul, 2013. "New measures of FTA liberalization level," IDE Discussion Papers 437, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    12. HAYAKAWA Kazunobu & URATA Shujiro & YOSHIMI Taiyo, 2017. "Choosing Between Multiple Preferential Tariff Schemes: Evidence from Japan's imports," Discussion papers 17002, Research Institute of Economy, Trade and Industry (RIETI).
    13. Hayakawa, Kazunobu & Kim, Han-Sung & Yoshimi, Taiyo, 2017. "Exchange rate and utilization of free trade agreements: Focus on rules of origin," Journal of International Money and Finance, Elsevier, vol. 75(C), pages 93-108.
    14. Carrère, Céline & de Melo, Jaime, 2009. "The Doha Round and Market Access for LDCs: Scenarios for the EU and US Markets," CEPR Discussion Papers 7313, C.E.P.R. Discussion Papers.
    15. Low, Patrick, 2014. "Preferentialism in Trade Relations: Challenges for the World Trade Organization," ADBI Working Papers 478, Asian Development Bank Institute.
    16. Hayakawa, Kazunobu & Nuttawut, Laksanapanyakul & Yoshimi, Taiyo, 2018. "Tariff scheme choice," IDE Discussion Papers 684, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    17. Hayakawa, Kazunobu & Kimura, Fukunari & Laksanapanyakul, Nuttawut, 2016. "Firm-level trade creation and diversion of regional trade agreements in Thailand," IDE Discussion Papers 621, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    18. 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.
    19. Honggue Lee, 2013. "The Effects of Preferential Rules of Origin on Trade Flows," Korean Economic Review, Korean Economic Association, vol. 29, pages 379-403.
    20. Xavier Cirera, 2014. "Who captures the price rent? The impact of European Union trade preferences on export prices," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 150(3), pages 507-527, August.
    21. Hayakawa, Kazunobu & Kimura, Fukunari & Laksanapanyakul, Nuttawut, 2016. "Measuring the usage of preferential tariffs in the world," IDE Discussion Papers 595, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    22. Cooke, Edgar F. A., 2012. "Is the impact of AGOA heterogeneous?," MPRA Paper 43277, University Library of Munich, Germany.
    23. 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).
    24. Hayakawa, Kazunobu & Laksanapanyakul, Nuttawut & Yoshimi, Taiyo, 2016. "Firm-level utilization rates of regional trade agreements : importers' perspective," IDE Discussion Papers 615, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    25. Toshiyuki Matsuura & Kazunobu Hayakawa & Nuttawut LAKSANAPANYAKUL & Yuta Watabe, 2014. "Price and Quality Changes in Outsiders of Regional Trade Agreements," Working Papers e84, Tokyo Center for Economic Research.

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