deflection. ROO raise production costs and create administrative costs. This paper argues that in the case of the recent wave of … the case of NAFTA, we find average compliance costs around 6% in ad valorem equivalent, undoing the tariff preference (4 …% on average) for a large number of tariff lines. Administrative costs amount to 47% of the preference margin. These …

In the presence of sunk costs to exporting, preferential tariff liberalization may have a prolonged, dynamic effect on …

of the costs of requesting preferences. The results suggest that preferential tariffs favorably affect intra …-regional imports only at very high margins (around 25 percentage points). This points to the likelihood of high administrative costs …