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Origin(Al) Rules And The Use Of Trade Preferences: The Case Of Eu Trade With Canada

Author

Listed:
  • Nilsson, Lars

    (DG Trade)

Abstract

Preferential rules of origin (RoO) are an integral and necessary part of preferential trading arrangements, as control of the origin of the preferentially imported goods is needed to prevent trade deflection. But complying with RoO are associated with costs. These can come in the form of burden to deal with the necessary administrative requirements and in terms of increased costs of imported intermediates should the RoO lead to a distortion of sourcing of inputs. This paper matches the RoO under the EU-Canada Comprehensive Economic and Trade Agreement with the exact products they apply to, which is novel. It further provides descriptive statistics on preference eligible trade, information on the value of potential duty savings and on the associated preference utilisation rates (PUR) by RoO. The empirical part of the paper conducts a comparative analysis of the impact of the various RoO on the PUR in EU trade with Canada for the 2018-2021 period. It also examines whether the same RoO has a different impact on the PUR depending on the direction of trade (EU imports vs. EU exports)

Suggested Citation

  • Nilsson, Lars, 2023. "Origin(Al) Rules And The Use Of Trade Preferences: The Case Of Eu Trade With Canada," DG TRADE Chief Economist Notes 2023-3, Directorate General for Trade, European Commission.
    • Handle: RePEc:ris:dgtcen:2023_003
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    More about this item

    Keywords

    RoO; preference utilisation rates; CETA;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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