IDEAS home Printed from https://ideas.repec.org/p/rsc/rsceui/2021-21.html
   My bibliography  Save this paper

Using Utilization Rates to Identify Rules of Origin Reforms: The Case of EU Free Trade Area Agreements

Author

Listed:
  • Pramila Crivelli
  • Stefano Inama
  • Jonas Kasteng

Abstract

Governments are increasingly entering FTAs and mega-regionals to secure market access for their firms. Utilization rates are used to monitor whether firms are using these FTAs. This paper is part of a recent stream of studies to dash out enduring myths that preferences are not used when preferential MFN rates are low or for unknown or vague reasons. Contrary to this sort of conventional wisdom this study advocates that low utilization rate is a valuable and unequivocal sign that reform of rules of origin and related administrative procedures is needed to make the FTA attractive and meaningful to the private sector. By using a “repeated offender” methodology this paper identifies a series of product specific rules of origin (PSROs) causing low utilization rates. Such PSROs are the candidate for reforms towards more lenient requirements that are commercially viable for firms.

Suggested Citation

  • Pramila Crivelli & Stefano Inama & Jonas Kasteng, 2021. "Using Utilization Rates to Identify Rules of Origin Reforms: The Case of EU Free Trade Area Agreements," RSCAS Working Papers 2021/21, European University Institute.
    • Handle: RePEc:rsc:rsceui:2021/21
    as

    Download full text from publisher

    File URL: https://cadmus.eui.eu/bitstream/handle/1814/70396/RSC%202021_21.pdf?sequence=1&isAllowed=y
    Download Restriction: no
    File URL: https://hdl.handle.net/1814/70396
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ornelas, Emanuel & Turner, John L., 2024. "The costs and benefits of rules of origin in modern free trade agreements," Journal of International Economics, Elsevier, vol. 147(C).
    2. Kniahin, Dzmitry & de Melo, Jaime, 2022. "A Primer on Rules of Origin as Non-Tariff Barriers," CEPR Discussion Papers 17076, C.E.P.R. Discussion Papers.
    3. Gourdon, Julien & Gourdon, Karin & de Melo, Jaime, 2023. "A (More) Systematic Exploration of the Trade Effect of Product-Specific Rules of Origin," World Trade Review, Cambridge University Press, vol. 22(3-4), pages 421-435, October.
    4. Dzmitry Kniahin & Jaime de Melo, 2022. "A Primer on Rules of Origin as Non-Tariff Barriers," JRFM, MDPI, vol. 15(7), pages 1-23, June.

    More about this item

    Keywords

    Free Trade Agreements; Trade Preferences; Rules of Origin; Product-Specific Rules of Origin; Preference Utilization Rates;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rsc:rsceui:2021/21. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: RSCAS web unit (email available below). General contact details of provider: https://edirc.repec.org/data/rsiueit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.