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

This book looks at rules of origin in preferential trading agreements and their growing importance in trade negotiations. The book's message is that rules of origin can act as powerful barriers to trade and have been deliberately used as such.

BiographyOlivier 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 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 Developpement. 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. He teaches Development Economics at EHESS PhD programmes and ENSAE, Paris. Has also worked as a consultant for the World Bank and the OECD Development Centre. 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 anddoctoral degrees were received from Ecole Polytechnique, Ecole des Ponts et Chaussees and EHESS

Table of Contents

List of Figures ix

List of Tables x

List of Contributors xii

Introduction Olivier Cadot Antoni Estevadeordal Akiko Suwa-Eisenmann Thierry Verdier 1

Rules of Origin: Theoretical perspectives 17

Understanding Rules of Origin Kala Krishna 19

The impact of Rules of Origin on strategic outsourcing: an IO perspective Mathias Thoenig Thierry Verdier 35

Rules of Origin in Regional Trade Agreements around the world 67

Mapping and measuring Rules of Origin around the world Antoni Estevadeordal Kati Suominen 69

Rules of Origin for services: economic and legal considerations Americo Beviglia Zampetti Pierre Sauve 114

The political economy of Rules of Origin 147

Rules of Origin as export subsidies Olivier Cadot Antoni Estevadeordal Akiko Suwa-Eisenmann 149

Rules of Origin and US trade policy I.M. (Mac) Destler 173

Measuring the impact of Rules of Origin 189

Are different Rules of Origin equally costly? Estimates from NAFTA Celine Carrere Jaime de Melo 191

Implementing PTAs in the Southern Cone region of Latin America: Rules of Origin Pablo Sanguinetti Eduardo Bianchi 213

Preferential trade arrangements production, and trade with differentiated intermediates Joseph Francois 237

Rules of Origin and development 257

Rules of Origin as tools of development? Some lessons from SADC Hennie Erasmus Frank Flatters Robert Kirk 259

Trade preferences for Africa and the impact of Rules of Origin Paul Brenton Takako Ikezuki 295

Index 315



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