The Origin of Goods

Rules of Origin in Regional Trade Agreements

By: Olivier Cadot (Editor), Antoni Estevadeordal (Editor), Akiko Suwa-Eisenmann (Editor), Thierry Verdier (Editor)

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Hardcover | 13 March 2006

At a Glance

Hardcover
352 Pages

Dimensions(cm)
24.2 x 16.2 x 2.6

Hardcover

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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, 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.

Industry Reviews

`Review 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

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