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When two countries conclude a free trade agreement (FTA), they define rules of origin (RoOs) to determine whether a product is eligible for preferential treatment. RoOs exist to avoid that exports from third countries enter the FTA through the member with the lowest tariff (trade deflection)....
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-level trade flows between the EU and all other countries in the world as a comparison group, we find a sharp decline in trade from … rest of the world to use as the appropriate benchmark for comparison. This generates an estimate that Brexit reduced trade …
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