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The Origin of GoodsRules of Origin in Regional Trade Agreements$
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Olivier Cadot, Antoni Estevadeordal, Akiko Suwa-Eisenmann, and Thierry Verdier

Print publication date: 2006

Print ISBN-13: 9780199290482

Published to Oxford Scholarship Online: May 2006

DOI: 10.1093/0199290482.001.0001

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PRINTED FROM OXFORD SCHOLARSHIP ONLINE (www.oxfordscholarship.com). (c) Copyright Oxford University Press, 2019. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 12 December 2019

Preferential trade arrangements production, and trade with differentiated intermediates †

Preferential trade arrangements production, and trade with differentiated intermediates †

Chapter:
(p.237) 9 Preferential trade arrangements production, and trade with differentiated intermediates
Source:
The Origin of Goods
Author(s):

Olivier Cadot (Contributor Webpage)

Antoni Estevadeordal

Akiko Suwa-Eisenmann (Contributor Webpage)

Thierry Verdier

Publisher:
Oxford University Press
DOI:10.1093/0199290482.003.0010

This chapter focuses on the difference between free trade agreements with rules of origin and customs unions. The first part develops a model to assess the trade and production in intermediate and final goods under these two forms of preferential trading arrangements. The second part performs a cross-sectional econometric analysis of bilateral trade in finished motor vehicles and parts in the OECD area. The findings suggest that ROO can be an effective barrier against third-party suppliers of intermediate goods, and that the ‘border effect’ on trade is mitigated within customs unions.

Keywords:   rules of origin, preferential trading arrangement, free trade agreement, customs union, border effect, final good, intermediate good, OECD, motor vehicle

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