Rules of Origin in Preferential Trading Arrangements: Is All Well with the Spaghetti Bowl in the Americas?
AbstractPreferential trading arrangements (PTAs) have proliferated spectacularly over the past decade around the world. Countries in the Western Hemisphere have been particularly prolific builders of PTAs, forging in a veritable spaghetti bowl of multiple and often overlapping agreements. Rules of origin, a key arbitrator of market access in each of these PTAs, epitomize the hemisphere’s spaghetti bowl problem: a growing number of the region’s PTAs carry complex and restrictive rules of origin, and the many rules-of-origin regimes differ from each other. As a result, rules of origin can undercut the trade-creating potential of the region’s hard-earned PTAs. The purpose of this paper is to present an in-depth diagnosis of rules-of-origin regimes in the Americas, and to offer policy recommendations for the region to counter the potential negative effects of rules of origin.
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Bibliographic InfoArticle provided by LACEA - LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION in its journal Journal of LACEA Economia.
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