Download this Paper Open PDF in Browser

Improving Market Access for Small Enterprise: Design Principles for the Mega Regionals

"Como melhorar o acesso a mercado de pequenas empresas nos acordos megarregionais?" PONTES, VOLUME 11, NÚMERO 1 - FEVEREIRO 2015: 10-14 (In Portuguese)

7 Pages Posted: 6 Mar 2015  

Dan Ciuriak

Ciuriak Consulting Inc.; C.D. Howe Institute; Centre for International Governance Innovation (CIGI); BKP Development Research & Consulting GmbH

Hanne Melin

eBay Inc.

Derk Bienen

BKP Development Research & Consulting GmbH; Addis Ababa University

Date Written: February 8, 2015

Abstract

Small enterprises are underrepresented in international trade, and have not traditionally been the focus of trade negotiations. However, Internet technology is changing the conditions for international trade, decreasing the negative effect of distance and thereby enabling small enterprises to access multiple foreign markets. As small enterprises begin engaging in export, certain standard rules of preferential trade agreements (PTAs) needs to be revisited. Rules of origin (ROOs) constitute an essential element of PTAs; however, the fixed cost component of demonstrating compliance with ROOs impacts disproportionately on small enterprise making small shipments. This leads to low utilization of preferences for small shipments facing lower tariffs. In turn, this detracts from the welfare effects of PTAs in a number of ways. The mega regionals aim to improve utilization by small enterprise of the preferences they will create. However, for many trading firms, these measures will go for nought unless the mega regionals also address the discrimination against small enterprise in the rules of origin regime. In this note, we outline a “presumption of origin” proposition that addresses this issue and suggest how it could be administered.

Keywords: rules of origin, preferential trade agreements, mega regionals, small enterprises

JEL Classification: F13, F14, F15, F53

Suggested Citation

Ciuriak, Dan and Melin, Hanne and Bienen, Derk, Improving Market Access for Small Enterprise: Design Principles for the Mega Regionals (February 8, 2015). "Como melhorar o acesso a mercado de pequenas empresas nos acordos megarregionais?" PONTES, VOLUME 11, NÚMERO 1 - FEVEREIRO 2015: 10-14 (In Portuguese). Available at SSRN: https://ssrn.com/abstract=2573301

Dan Ciuriak (Contact Author)

Ciuriak Consulting Inc. ( email )

83 Stewart St.
Ottawa, Ontario K1N 6H9
Canada

C.D. Howe Institute ( email )

67 Yonge St., Suite 300
Toronto, Ontario M5E 1J8
Canada

Centre for International Governance Innovation (CIGI) ( email )

57 Erb Street West
Waterloo, Ontario N2L 6C2
Canada

BKP Development Research & Consulting GmbH ( email )

Romanstrasse 74
München, 80639
Germany

Hanne Melin

eBay Inc. ( email )

2065 Hamilton Avenue
San Jose, CA 95125
United States

Derk Bienen

BKP Development Research & Consulting GmbH ( email )

Jutastr. 14
München, 80636
Germany

Addis Ababa University ( email )

King George VI St
Addis Ababa, 1000
Ethiopia

Paper statistics

Downloads
47
Abstract Views
265