Economics Research Community Seminar – Dr Antonio Navas

Title: Breaking down barriers: The effectiveness of Mutual Recognition Agreements for trusted traders

Date: 7 February 2024

Time: 13:00-14:00

Location: NUBS.2.03

If you would like to attend, please register using the following link:

Breaking Down Barriers: The Effectiveness of Mutual Recognition Agreements for Trusted Traders

Speaker: Dr Antonio Navas, University of Sheffield

Antonio was awarded his PhD by the European University Institute in December 2006. After that he enjoyed a post-doctoral position in GREQAM (Universite d’Aix-Marseille) funded by the CNRS. He has taught several courses in both macroeconomics and microeconomics in leading universities in Spain including Universidad Carlos III de Madrid and Universidad de Alicante.

He joined the Department of Economics at the University of Sheffield as a lecturer in September 2012.

Abstract:

Over 80% of the UK exports happen between trade partners with an Mutual Recognition Agreement (MRA) for trusted traders, where they are entitled to reduced customs procedures at foreign borders, yet little is known about the efficiency of such trade policy. We entangle this problem using the UK-US MRA and the most widely used trusted trader scheme, the Authorized Economic Operator (AEO). We observe that most firms are indirectly deemed as “safe traders” by using AEO certified agents and hence extend the heterogeneous firm model `a la Melitz (2003) by incorporating administrative costs and highlighting the role of agents. Utilizing transaction-level UK customs data, we empirically confirm our model predictions that an MRA improves firms’ participation in exporting and boost their export values through the use of certified agents.