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

Celine Carrere, Olivier Cadot, Bolormaa Tumurchudur and Jaime de Melo

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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).

Keywords: trading; arrangements (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (39)

Published in World Trade Review, 2006, 5 (2), pp.199-224

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Related works:
Working Paper: Product Specific Rules of Origin in EU and US Preferential Trading Arrangements: An Assessment (2011) Downloads
Journal Article: Product-specific rules of origin in EU and US preferential trading arrangements: an assessment (2006) Downloads
Working Paper: Product Specific Rules of Origin in EU and US Preferential Trading Arrangements: An Assessment (2005) Downloads
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