The Origin of Goods: Rules of Origin in Regional Trade Agreements
Olivier Cadot · Antoni Estevadeordal · Akiko Suwa-Eisenmann · Thierry Verdier
Feb 2006 · OUP Oxford
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About this ebook
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.
About the author
Olivier Cadot is Professor of Economics at the University of Lausanne and Director of the Institut d ́ Economie Appliquée (Créa). 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 University. He is a fellow of the CEPR and an associate scholar of the CERDI and CEPREMAP. He also serves on the editorial board of the Revue d ́ Economie du Développement. Thierry Verdier is Director of DELTA, Senior Civil Engineer and Research Director at the Institute for Advanced Studies in Social Sciences (Ecole des Hautes Etudes en Sciences Sociales, EHESS) in Paris. He is also the Co-director of the International Trade Programme at the Centre for Economic Policy Research (CEPR), London. His master and doctoral degrees were received from Ecole Polytechnique, Ecole des Ponts et Chaussées and EHESS. Antoni Estevadeordal is a Principal Trade Economist and Research Coordinator at the Integration, Trade and Hemispheric Issues Division of the Inter-American Development Bank (IDB). Before joining the IDB he taught at the University of Barcelona and Harvard University. He has published widely in major journals, most recently in American Economic Review, Quarterly Journal of Economics, Review of International Economics, Journal of Economic Integration, Economia and the Journal of World Trade. He holds a PhD and MA in Economics from Harvard University and a BA in Economics from the University of Barcelona. Akiko Suwa-Eisenmann is an Economist at INRA, National Institute for Agricultural Research, France. She is Director of Laboratoire d'Economie Appliquée, on the Paris-Jourdan campus. She teaches Development Economics at the Ecole des Hautes Etudes en Sciences Sociales PhD programme and ENSAE, Paris. Her graduate and doctoral degrees were received from Ecole Normale Supérieure and EHESS. She worked as a consultant for the World Bank and the OECD Development Centre.
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