A part of a book.
Rules of Origin as Export Subsidies
Title of the book
The Origin of Goods: Rules of Origin in Regional Trade Agreements
Oxford University Press, CEPR
Cadot O., Estevadeordal A., Suwa-Eisenmann A., Verdier T.
This chapter estimates the effect of NAFTA’s rules of origin (ROO) on Mexican access to the US market, treating ROO as politically-determined. Econometric estimates of bilateral disaggrated trade, with tariff preference and endogenous ROO as determinants, suggest that the creation of a captive market for upstream US intermediate-good producers is indeed one of the political determinants of NAFTA.
NAFTA, Rules of origin, Endogenous protection, Political economy, Free trade agreements, Regionalism
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