Rules of Origin (RoO) are essential components of any preferential trade agreement (PTA) short of a full customs union. The recent proliferation of PTAs has led to increased interest in the effects of RoO with empirical estimates consistently showing that they act as barriers to intra-PTA trade....

This paper is concerned with rules of origin when intermediate goods aredifferentiated. An analytical model emphasizes trade patterns and the relativeimportance of trade in intermediates given trade preferences. Econometric evidencebased on intra-OECD trade in motor vehicles and motor vehicle...

Restrictive preferential rules of origin cause producers in RTAs to source intermediate materials from RTA partners instead of non-parties in order to meet the rules of origin requirements. For RTAs concluded under Article XXIV, restrictive preferential rules of origin open doors to selective...