Publication:
Why OECD Countries Should Reform Rules of Origin

Simple item page
dc.contributor.authorCadot, Olivier
dc.contributor.authorde Melo, Jaime
dc.date.accessioned2012-03-30T07:12:33Z
dc.date.available2012-03-30T07:12:33Z
dc.date.issued2008-03-01
dc.description.abstractWith preferential trade agreements on the rise worldwide rules of origin—which are necessary to prevent trade deflection—are attracting increasing attention. At the same time, preference erosion for Generalized System of Preferences (GSP) recipients is increasing resistance to further multilateral negotiations. Drawing on different approaches, this article shows that the current system of rules of origin that is used by the European Union and the United States in preferential trade agreements (including the GSP) and that is similar to systems used by other Organisation for Economic Co-operation and Development countries should be drastically simplified if developed economies really want to help developing economies integrate into the world trading system. In addition to diverting resources for administrative tasks, current rules of origin carry significant compliance costs. More fundamentally, it is becoming increasingly clear that they are often been designed to force developing economies to buy inefficient intermediate products from developed economies to "pay for" preferential access for the final product. The evidence also suggests that a significant share of the rents associated with market access (net of rules of origin compliance costs) is captured by developed economies. Finally, the restrictiveness of rules of origin is found to be beyond the levels that would be justified to prevent trade deflection, suggesting a capture by special interest groups. The article outlines some alternative paths to reforms.en
dc.identifier.citationWorld Bank Research Observer
dc.identifier.doi10.1596/4416
dc.identifier.issn1564-6971
dc.identifier.urihttps://hdl.handle.net/10986/4416
dc.publisherWorld Bank
dc.relation.ispartofseriesWorld Bank Research Observer
dc.rightsCC BY-NC-ND 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/igo/
dc.subjectcustoms unions
dc.subjectexport protection
dc.subjectexternal tariff
dc.subjectexternal tariffs
dc.subjectfree trade
dc.subjectfree trade agreements
dc.subjectintermediate goods
dc.subjectmarket access
dc.subjectmultilateral negotiations
dc.subjectpreferential access
dc.subjectpreferential trade
dc.subjectpreferential trade agreements
dc.subjectregionalism
dc.subjectrules of origin
dc.subjecttariff revenue
dc.subjecttrade deflection
dc.subjecttrade facilitation
dc.subjectworld trade
dc.subjectworld trade organization
dc.subjectworld trading system
dc.titleWhy OECD Countries Should Reform Rules of Originen
dc.typeJournal Articleen
dc.typeArticle de journalfr
dc.typeArtículo de revistaes
dspace.entity.typePublication
okr.date.doiregistration2025-05-06T11:20:59.421468Z
okr.doctypeJournal Article
okr.globalpracticeGovernance
okr.globalpracticeTrade and Competitiveness
okr.globalpracticeTrade and Competitiveness
okr.identifier.report1
okr.language.supporteden
okr.pagenumber77
okr.pagenumber105
okr.pdfurlwbro_23_1_77.pdfen
okr.peerreviewAcademic Peer Review
okr.region.countryUruguay
okr.region.countryTunisia
okr.topicInternational Economics and Trade
okr.topicPublic Sector Development
okr.topicInternational Economics and Trade::Free Trade
okr.topicLaw and Development::Trade Law
okr.topicInternational Economics and Trade::Trade Policy
okr.volume23
relation.isJournalIssueOfPublication3cb07100-0c5f-498c-b8bd-285aaf1dec2e
relation.isJournalIssueOfPublication.latestForDiscovery3cb07100-0c5f-498c-b8bd-285aaf1dec2e
relation.isJournalOfPublication9e5fbe82-492f-4142-8378-17d50245d9de
relation.isJournalVolumeOfPublicationa1f3687a-aaa7-4662-8859-5d5213fc65bc
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
wbro_23_1_77.pdf
Size:
324.89 KB
Format:
Adobe Portable Document Format
Download
Collections
Journal Articles