Rules of Origin across African Regional Trading Agreements: A Landscape with Measures to Address Challenges at Harmonization☆

Gourdon, Julien; Kniahin, Dzmitry; Mélo, Jaime de; Mimouni, Mondher

doi:10.2991/jat.k.201224.001

Cited by 8 publications

(9 citation statements)

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“…Source: Figure 1a is based on Gourdon et al (2021) and Cadot and Ing (2016). Figure 1b: Authors' classification.…”

Section: Classification Of Psrsmentioning

confidence: 99%

“…1 For example, consider a Vietnamese producer wishing to export cotton shirts (HS 6205.20.00) to Japan. The options available for the producer are (i) entering under MFN (and paying a 7.4% tariff) or (ii) using one of four reciprocal FTAs or (ii) entering under GSP with Japan and benefit from preferential tariffs conditional on complying with the PSRs and RWRs attached to the agreements (see Gourdon et al 2021, figure 1). Choosing the most suitable (least cost) option involves search costs and implementation costs of those different PSRs.…”

Section: Introductionmentioning

confidence: 99%

“…9 This data base can be consulted with a search engine to download texts agreements, consult differences between MFN and preferential rates, RWRs and PSRs to help firms choose the best regime in its export decisions. See https://mag.wcoomd.org/magazine/wconews-87/rules-of-origin-facilitator/10 Mattoo et al (2020) andBreinlich et al (2022) give overviews of Deep Trade Agreements but do not delve into the classification of PSRs 11Gourdon et al (2021) use the ITC Rules of Origin Facilitator to identify some 1600 different categories of PSRs across PTAs. 12 The data were obtained from an administered questionnaire requesting categorization into 17 mutually exclusive PSR categories Angeli et al (2020).…”

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confidence: 99%

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A (more) systematic exploration of the trade effect of product-specific rules of origin

Gourdon¹,

Mélo²,

Gourdon³

2023

SSRN Journal

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“…Source: Figure 1a is based on Gourdon et al (2021) and Cadot and Ing (2016). Figure 1b: Authors' classification.…”

Section: Classification Of Psrsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

mentioning

confidence: 99%

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A (more) systematic exploration of the trade effect of product-specific rules of origin

Gourdon¹,

Mélo²,

Gourdon³

2023

SSRN Journal

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“…Figure 1 describes the two types of criteria used to identify origin and how they are mapped into the 7 non-overlapping PSR categories 8 Figure 1.Mapping of types and construction of PSR categories Notes: Numbering in parenthesis relates to the PSR category indicated. Source: Based on Gourdon et al (2021) and Cadot and Ing (2016). Authors’ classification.…”

Section: Classification Of Psrsmentioning

confidence: 99%

A (More) Systematic Exploration of the Trade Effect of Product-Specific Rules of Origin

Gourdon,

de Melo

2023

World Trade Review

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Rules of Origin (RoO) are critical components of Preferential Trade Agreements (PTAs). They are designed to stop products coming into a PTA through the partner that applies the lowest tariff – a phenomenon known as trade deflection. While RoO are necessary, complex RoO may undo the benefits of trade agreements. Using a novel database of RoO, this paper evaluates the incidence and restrictiveness of different types of Product-Specific Rules of Origin (PSRs) across 128 reciprocal PTAs for the period 1990–2015. Results, based on a structural gravity model controlling for confounding factors, display wide heterogeneity across different categories of PSRs attached to preferential margins, with more flexible PSRs associated with a significantly stronger trade effect compared to more restrictive ones where exporters do not have a choice among PSRs or have to satisfy multiple PSRs. A simulation exercise reveals that a radical simplification reform leading to the adoption of flexible PSRs providing alternative choices to prove origin would have increased global trade under PTAs on average by between 2.7 and 4% during the sample period.

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“…RoOs usually require a ‘significant transformation’ linked to either a change in tariff classification, technical requirement or value addition. Evidence shows that RoOs can restrict trade if they are either complicated or narrowly specified (Angeli et al, 2020; Cadot et al, 2007; Gourdon et al, 2021, 2023). RTAs often have apparel‐specific RoOs that are more restrictive and binding than RoOs found in other sectors (Estevadeordal et al, 2008; Manchin, 2006; Sytsma, 2021).…”

Section: Introductionmentioning

confidence: 99%

Heterogeneous trade agreements and adverse implications of restrictive rules of origin: Evidence from apparel trade

Abreha,

Robertson

2023

World Economy

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We revisit the heterogeneous effects of regional trade agreements (RTAs) using a PPML gravity model and comparing apparel and total trade. Apparel, as a politically sensitive sector, has specialised, unusually restrictive rules of origin (RoOs) clauses that vary considerably across RTAs. Our RTA estimates have a significantly higher variance for apparel trade than total trade. We also find that the sizes of the RTA estimates for apparel trade are significantly and negatively correlated with the restrictiveness of RoOs. Additionally, assessing temporary exceptions to the apparel RoOs in US trade agreements, we find that ending the temporary exceptions is associated with less apparel trade. We further illustrate how RTAs can be effective development policy instruments to promote economic development in developing countries. For example, updating the RoOs in the Dominican Republic‐Central America Free Trade Agreement can create jobs and significantly reduce Central American emigration.

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Rules of Origin across African Regional Trading Agreements: A Landscape with Measures to Address Challenges at Harmonization☆

Cited by 8 publications

References 0 publications

A (more) systematic exploration of the trade effect of product-specific rules of origin

A (more) systematic exploration of the trade effect of product-specific rules of origin

A (More) Systematic Exploration of the Trade Effect of Product-Specific Rules of Origin

Heterogeneous trade agreements and adverse implications of restrictive rules of origin: Evidence from apparel trade

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