The influence of tariff regimes on global production networks (GPNs)

Abstract

Despite the recognition that trade policy-in particular, tariff regimes and rules of origin-can affect the geography of production, much GPN analyses pay scant attention to the tariff context of the sector studied. This paper proposes an analytical framework to more effectively integrate these regimes into applied GPN research. We test the framework, drawing on analysis of exports to the EU market in four sectors: Textiles and apparel, floriculture, fisheries and leather goods. The analysis confirms that, in the presence of high tariffs, preferences do seem to impact on sourcing for the EU market.