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3 years ago

Low utilization rates in FTAs signal need for rule of origin reforms.

SSRN Electronic Journal
Using Utilization Rates to Identify Rules of Origin Reforms: The Case of EU Free Trade Area Agreements
Pramila Crivelli, Stefano Inama, Jonas Kasteng

Paper Summary

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Governments are making trade agreements to help their businesses access new markets. Utilization rates show if companies are using these agreements. Low utilization rates mean the rules for trading need to be changed to make the agreements more attractive to businesses. By looking at specific product rules, researchers found that some rules are causing low utilization rates. Changing these rules could make it easier for companies to benefit from trade agreements.