ORIGIN(AL) RULES AND THE USE OF TRADE PREFERENCES: THE CASE OF EU TRADE WITH CANADA

Lars Nilsson ()
Additional contact information
Lars Nilsson: DG Trade

No 2023-3, DG TRADE Chief Economist Notes from Directorate General for Trade, European Commission

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)

Keywords: RoO; preference utilisation rates; CETA (search for similar items in EconPapers)
JEL-codes: F13 F14 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2023-11-30
New Economics Papers: this item is included in nep-eur, nep-int and nep-mac
References: Add references at CitEc
Citations:

Downloads: (external link)
https://policy.trade.ec.europa.eu/analysis-and-assessment/economic-analysis_en Full text (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:dgtcen:2023_003

Access Statistics for this paper

More papers in DG TRADE Chief Economist Notes from Directorate General for Trade, European Commission Contact information at EDIRC.
Bibliographic data for series maintained by Zornitsa Kutlina-Dimitrova ().