The Origin of Goods: Rules of Origin in Regional Trade Agreements

Hardcover | February 23, 2006

EditorOlivier Cadot, Antoni Estevadeordal, Akiko Suwa-Eisenmann

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The dark side of preferential trade agreements, Rules of Origin (RoO) are used to determine the eligibility of goods to preferential treatment. Ostensibly meant to prevent the trans-shipment of imported products across Free Trade Agreement borders after superficial screwdriver assembly, theyact in reality as complex and opaque trade barriers. This book provides evidence strongly suggesting that they do so by intent rather than accidentally---in other words, that RoOs are policy. Part one draws insights about the effects of RoOs on cross-border trade and outsourcing from recent economic theory. Part two reviews the evidence on RoOs in preferential agreements around the world, putting together the most comprehensive dataset on RoOs to date. Part three explores their"political economy"---how special interests have shaped them and continue to do so. Part four provides econometric evidence on their costs for exporters and consequent effects on trade flows. Finally, part five explores how they affect trade in the developing world where they spread rapidly and havethe potential to do most harm. Beyond the collection of new evidence and its interpretation in light of recent theory, the book's overall message for the policy community is that RoOs are a potentially powerful and new barrier to trade. Rather than being relegated to closed-door technical meetings, their design should holdcenter-stage in trade negotiations.

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The dark side of preferential trade agreements, Rules of Origin (RoO) are used to determine the eligibility of goods to preferential treatment. Ostensibly meant to prevent the trans-shipment of imported products across Free Trade Agreement borders after superficial screwdriver assembly, theyact in reality as complex and opaque trade ba...

Olivier Cadot is Professor of Economics at the University of Lausanne and Director of the Institut d'Economie Appliquee (Crea). He was previously Associate Professor at INSEAD and has held visiting positions at UCLA and McGill. He holds a Ph.D in Economics from Princeton University and a Master's in Economic History from McGill Univer...

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Format:HardcoverDimensions:352 pages, 9.21 × 6.14 × 1.01 inPublished:February 23, 2006Publisher:Oxford University PressLanguage:English

The following ISBNs are associated with this title:

ISBN - 10:0199290482

ISBN - 13:9780199290482

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Table of Contents

Olivier Cadot, Antoni Estevadeordal, Akiko Suwa and Thierry Verdier: Introduction: Rules of Origin in the World Trading SystemRules of Origin: Theoretical Perspectives1. Kala Krishna: Understanding Rules of Origin2. Matthias Thoenig and Thierry Verdier: The Impact of Rules of Origin on Strategic Outsourcing: an IO perspectiveRules of Origin in Regional Trade Agreements Around the World3. Antoni Estevadeordal and Kati Suominen: Mapping and Measuring Rules of Origin Around the World4. Americo Beviglia-Zampetti and Pierre Sauve: Rules of Origin for Services: Economic and Legal ConsiderationsThe Political Economy of Rules of Origin5. Olivier Cadot, Antoni Estevadeordal and Akiko Suwa: Rules of Origin as Export Subsidies6. I.M. Destler: Rules of Origin and US Trade PolicyMeasuring the Impact of Rules of Origin7. Celine Carrere and Jaime de Melo: Are Different Rules of Origin Equally Costly? Estimates from NAFTA8. Pablo Sanguinetti and E. Bianchi: Implementing PTAs in the Southern Cone Region of Latin America: Rules of Origin9. Joseph Francois: Preferential Trade Agreements and the Pattern of Production and Trade when Inputs are DifferentiatedRules of Origin and Development10. Hennie Erasmus, Frank Flatters and Robert Kirk: Rules of Origin as Tools of Development? Some Lessons from SADC11. Paul Brenton and Takako Ikezuki: Trade Preferences for Africa and the Impact of Rules of Origin

Editorial Reviews

`This book by some of the world's leading experts in the field is a state-of-the-art analysis of a complex and oft-neglected aspect of trade policy. With the growth of regionalism, rules of origin become more significant by the day, yet remain poorly understood. The present work goes a longway in remedying this deficiency. It comprises an enticing blend of economic theory and empirical study, together with political economy and development analysis. 'Patrick Low, Director of Economic Research and Statistics, WTO Secretariat