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Restrictive Rules of Origin and Their Circumvention

Author

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  • Sejut Jha

    (Sejuti Jha is a Ph.D Scholar, Indian Institute of Foreign Trade (IIFT), New Delhi. Email: sejuti.jha@gmail.com)

Abstract

This study is placed in the context of the emerging concerns regarding Rules of Origin (RoO) in Free Trade Agreements (FTAs). The first set of RoO for India, embedded in the text of the India–Sri Lanka Free Trade Agreement (ISLFTA), is analyzed with respect to its design and implementation issues. The first finding is high restrictive score of ISLFTA RoO on a comparative scale with RoO of other world FTAs. Absence of supplementary rules in their design seems to be the culprit, though such absence makes them procedurally simple. The effect of such restrictiveness on businesses is commented upon. The second issue is the circumvention of RoO norms in case of copper exports from Sri Lanka. This shows how problematic the issue of enforcement of RoO is, especially in a developing country perspective. A re-look into policy issues regarding both design and implementation of RoO is suggested.

Suggested Citation

  • Sejut Jha, 2010. "Restrictive Rules of Origin and Their Circumvention," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 11(1), pages 31-52, March.
    • Handle: RePEc:sae:soueco:v:11:y:2010:i:1:p:31-52
    DOI: 10.1177/139156141001100103
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    References listed on IDEAS

    as
    1. Olivier Cadot & Antoni Estevadeordal & Akiko Suwa-Eisenmann & Thierry Verdier, 2006. "The Origin of Goods: Rules of Origin in Regional Trade Agreements," Post-Print halshs-00754856, HAL.
    2. repec:oup:ecpoli:v:20:y:2005:i:43:p:567-624 is not listed on IDEAS
    3. Jiandong Ju & Kala Krishna, 2005. "Firm behaviour and market access in a Free Trade Area with rules of origin," Canadian Journal of Economics, Canadian Economics Association, vol. 38(1), pages 290-308, February.
    4. Saman Kelegama & Indra Nath Mukherji, 2007. "India-Sri Lanka Bilateral Free Trade Agreement : Six Years Performance and Beyond," Trade Working Papers 22104, East Asian Bureau of Economic Research.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Rules of Origin; FTAs; India–Sri Lanka Free Trade Agreement; JEL: F13; JEL: F15;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

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