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  4. From Final Goods to Inputs: the Protectionist Effect of Rules of Origin

Oct

04

Wednesday

From Final Goods to Inputs: the Protectionist Effect of Rules of Origin

3.00pm

Public, Staff, Students

Department of Economics in the The School of Arts and Social Sciences welcomes Professor Paola Conconi as part of its 2017-18 Research Seminar Series.

The seminars are open to all - no registration necessary. If you would like to receive email notification of the Department’s seminars, please send your request to Kim.Edmunds.1@city.ac.uk.

Abstract

Speaker: Professor Paola Conconi (Université Libre de Bruxelles)

Recent decades have witnessed a surge of trade in intermediate goods and a proliferation of free trade agreements (FTAs). FTAs use rules of origin (RoO) to distinguish goods originating from member countries from those originating from third countries. In this paper, we show that the sourcing restrictions embedded in RoO greatly distort trade in intermediates.

We focus on the North American Free Trade Agreement (NAFTA), the world's largest FTA, and construct a unique dataset that allows us to map the input-output linkages in its RoO.

Exploiting cross-product and cross-country variation over time, we find that NAFTA RoO on final goods led to a sizeable reduction in the growth rate of imports of intermediate goods from third countries. Even if external tariffs are unchanged, FTAs may thus violate multilateral trade rules, by substantially increasing the level of protection faced by non-members.

Read the full From Final Goods to Inputs: the Protectionist Effect of Rules of Origin paper

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When & where

3.00pm - 4.30pmWednesday 4th October 2017

DLG09 Rhind Building City, University of London Northampton Square London EC1V 0HB United Kingdom