Trade is key to development. In order for any nation to develop, pathways to trade need to be favorable. The EEC’s and then the EU’s development cooperation policies have historically supported favorable trade agreements with Africa. From Yaoundé through Lomé 4 bis, elements such as the...

We analyse the impact of relaxing rules of origin (ROOs) in a simple setting with heterogeneous firms that buy intermediate inputs from domestic and foreign sources. In particular, we consider the impact of switching from bilateral to diagonal cumulation when using preferences (instead of paying...