Economics, Econometrics and Finance
3 years ago

Global supply chains threaten free trade, but Rules of Origin offer solution.

3 views
SSRN Electronic Journal
Rules of Origin in Customs Unions and Global Free Trade
David Tsirekidze

Paper Summary

The article explores how trade rules impact global free trade in a three-country Customs Union. It shows that as countries join global supply chains, free trade becomes less stable. Rules of Origin can help address this issue. Depending on how globalized countries are, free riding or exclusion can hinder global free trade. Rules of Origin can either help or harm efforts to achieve global free trade.

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