Learning to Use Trade Agreements

Kala Krishna (), Carlos Salamanca, Yuta Suzuki and Christian Volpe Martincus

No 29319, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Preferential trade areas (PTAs) allow firms to pay zero or preferential tariffs as long as Rules of Origin (ROOs) are met. Meeting them is costly for exporters not only in terms of production costs but also in terms of fixed costs, such as documentation costs. We ask if these fixed costs change with the experience of exporters in obtaining preferential tariffs. We explore this using a unique exporter-importer matched transaction-level customs data set on a group of Latin American countries. We estimate a model-based equation and show that these fixed costs depend on the history of preference utilization.

JEL-codes: F02 F13 F14 F68 N76 (search for similar items in EconPapers)
Date: 2021-10
New Economics Papers: this item is included in nep-cwa, nep-int and nep-lam
Note: ITI
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Citations: View citations in EconPapers (10)

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Journal Article: Learning to use trade agreements (2025)
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