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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
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