, 6 tweets, 2 min read Read on Twitter
I’ve never been a fan of FTA utilisation rates. So it might seem surprising that @nicolaskoehler and I have just written a policy brief on the topic for @ECIPE /1
I’m not a fan cause utilisation rates cannot measure the most important thing – why companies do not use trade agreements. Even the studies based on firm-level data – the most advanced ones-do not answer this question /2
The most they can do is to offer an insight into what the firms are claiming. But to find out why, you’ll need to go deeper. However, just because they can’t provide the final answer doesn’t mean that they couldn’t and shouldn’t be improved /3
@wto 's recent work on utilisation rates for unilateral programmes such as GSP could be extended to reciprocal trade deal by creating a database on FTA utilisation rates. Allowing for more in-depth studies and analysis /4
While you would still need surveys and other methods to understand why FTAs are not used, utilisation rate studies could help to identify the right questions to ask. Especially since the data is available to all national customs authorities / end
By the way, on utilization rates based on firm-level data check out the work of @JonasKasteng and the team at @Kommerskoll
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