Rules of origin hinder trade preferences for least developed countries.
The article looks at how trade agreements are affected by rules that determine how much foreign content can be in exported products. By studying changes in rules for clothing exports to the EU, the researchers found that these rules can make it hard for the least developed countries to take advantage of trade preferences. However, different products and countries respond in different ways to these rule changes, suggesting that there is no one-size-fits-all solution.