Making Free Trade Deals Work for Small Business: A Proposal for Reform of Rules of Origin

12 Pages Posted: 22 Aug 2015

See all articles by Dan Ciuriak

Dan Ciuriak

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

Date Written: August 6, 2015

Abstract

The high costs of complying with Rules of Origin (ROO) requirements mean that small and medium-sized firms (SMEs) often find it cheaper and more efficient to pay customs duties instead of producing the paperwork that would allow them access to preferential, often zero tariffs under trade agreements, according to a new report from the C.D. Howe Institute. In “Making Free Trade Deals Work for Small Business: A Proposal for Reform of Rules of Origin,” author Dan Ciuriak outlines a ‘presumption of origin’ proposal that would improve SME access to FTA preferences by modifying a specific feature of how ROOs are applied. This, says the author, would help improve the performance of SMEs under Canada’s existing free trade agreements (FTAs), and indeed should be incorporated in FTAs currently under negotiation, such as the TPP.

Keywords: Trade and International Policy, Small Business

JEL Classification: F13

Suggested Citation

Ciuriak, Dan, Making Free Trade Deals Work for Small Business: A Proposal for Reform of Rules of Origin (August 6, 2015). C.D. Howe Institute ebrief 212. Available at SSRN: https://ssrn.com/abstract=2648536 or http://dx.doi.org/10.2139/ssrn.2648536

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

Asia Pacific Foundation of Canada ( email )

Canada

HOME PAGE: http://ciuriakconsulting.com/

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