The Importance Of Product Specific Rules Of Origin In The Utilization Of Preferences In Trade Agreements

In this policy brief, based on a presentation at the Workshop on Preferential Trade Agreements on November 7, 2023 at PSE, Karin Gourdon, Woori Lee, Nadia Rocha and Thomas Verbeet look at the Central America-Dominican Republic-United States Free Trade... More

In this policy brief, based on a presentation at the Workshop on Preferential Trade Agreements on November 7, 2023 at PSE, Karin Gourdon, Woori Lee, Nadia Rocha and Thomas Verbeet look at the Central America-Dominican Republic-United States Free Trade Agreement (CAFTA-DR) and examine the impact of rules of origin applied to the entry of textile-clothing products into the US. The results suggest that the most complex rules, particularly those combining technical requirements with restrictions on the use of certain third-country inputs, imply an under-utilization of trade agreement preferences by exporters in Central America and the Dominican Republic, thereby limiting their effective access to the US market. Less