The Origin of Goods Rules of Origin in Regional Trade Agreements

Author: Olivier Cadot; Antoni Estevadeoral; Akiko Suwa
Publisher: Oxford University Press
ISBN: 9780199290482
Published In: February 2006
Format: Hardback , 348 pages
Jurisdiction: International ? Disclaimer:
Countri(es) stated herein are used as reference only

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First book of its kind to address the growing importance of rules of origin in international trade
Original essays combine state-of-the-art economic theory and a wealth of fresh factual information with rigorous econometric analysis of the evidence

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, they act 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 have the 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 hold center-stage in trade negotiations.

Readership: Academics, members of the trade policy community, and international organizations.

Olivier Cadot, Antoni Estevadeordal, Akiko Suwa and Thierry Verdier: Introduction: Rules of Origin in the World Trading System
Rules of Origin: Theoretical Perspectives
1: Kala Krishna: Understanding Rules of Origin
2: Matthias Thoenig and Thierry Verdier: The Impact of Rules of Origin on Strategic Outsourcing: an IO perspective
Rules of Origin in Regional Trade Agreements Around the World
3: Antoni Estevadeordal and Kati Suominen: Mapping and Measuring Rules of Origin Around the World
4: Americo Beviglia-Zampetti and Pierre Sauvé: Rules of Origin for Services: Economic and Legal Considerations
The Political Economy of Rules of Origin
5: Olivier Cadot, Antoni Estevadeordal and Akiko Suwa: Rules of Origin as Export Subsidies
6: I.M. Destler: Rules of Origin and US Trade Policy
Measuring the Impact of Rules of Origin
7: Celine Carrere and Jaime de Melo: Are Different Rules of Origin Equally Costly? Estimates from NAFTA
8: Pablo Sanguinetti and E. Bianchi: Implementing PTAs in the Southern Cone Region of Latin America: Rules of Origin
9: Joseph Francois: Preferential Trade Agreements and the Pattern of Production and Trade when Inputs are Differentiated
Rules of Origin and Development
10: Hennie Erasmus, Frank Flatters and Robert Kirk: Rules of Origin as Tools of Development? Some Lessons from SADC
11: Paul Brenton and Takako Ikezuki: Trade Preferences for Africa and the Impact of Rules of Origin

Edited by Olivier Cadot, University of Lausanne and CEPR, Antoni Estevadeordal, Inter-American Development Bank, Akiko Suwa-Eisenmann, Institut National de la Recherche Agronomique (INRA), Paris-Jourdan, France, and Thierry Verdier, DELTA and CEPR

Contributors:

Olivier Cadot, University of Lausanne and CEPR

Antoni Estevadeordal, Inter-American Development Bank

Akiko Suwa, DELTA/INRA

Thierry Verdier, DELTA and CEPR

Kala Krishna, Pennsylvania State University and NBER

Matthias Thoenig, CERAS and CNRS

Kati Suominen, IDB

Americo Beviglia-Zampetti, UNCTAD

Pierre Sauvé, Institut d'Etudes Politiques

I.M. Destler, University of Maryland and Institute for International Economics

Celine Carrere, University of Auvergne

Jaime de Melo, University of Geneva

Pablo Sanguinetti, UTDT

E. Bianchi, IPECI

Joseph Francois, Tinbergen Institute and CEPR

Hennie Erasmus, SADC Secretariat

Frank Flatters, Queen's University

Robert Kirk, The Services Group

Paul Brenton, World Bank

Takako Ikezuki, World Bank

Review(s) from previous edition

"One cannot understand today's multilateral trading system without understanding its web of Preferential Trade Agreements. And one cannot understand these agreements without understanding their Rules of Origin. This collection of original theoretical and empirical papers sheds considerable light on what may well be the most important instrument of trade policy of our times. - Gene Grossman, Professor of Economics, Princeton University

"Rules of origin are among the least understood and most important elements of free trade agreements. This well organized study presents both a technical and political analysis of their uses and impacts and is a "must read" for anyone responsible for developing, negotiating, or implementing these rules. " - Carla A. Hills, Former US Trade Representative

"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 long way 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