This paper shows that when moving from the North American Free Trade Agreement (NAFTA) to a Customs Union (CU), the general equilibrium impacts on Canadian GDP and welfare, of removing Rules of Origin (ROO), are potentially larger than the small effects resulting from the adoption of a common...

Increased market access from Free Trade Agreements (FTAs) promised by policy makers is often diluted by preferential rules of origin (ROO). This paper discusses two policy options one direct, and one indirect -- with regard to limiting the impact of NAFTA ROO on trade, and illustrates the impact...

Most computable general equilibrium (CGE) studies assessing the welfare impact of moving from a North American Free Trade Agreement (NAFTA) to a deeper form of integration, for example a Customs Union (CU), typically proxy the integration as the adoption of a common external tariff towards the...