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Suggested Rules of Origin Regime for EAFTA

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  • Erlinda M. Medalla

    (Philippine Institute for Development Studies)

  • M. Supperamaniam
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    Abstract

    Determining origin within the context of international trade is not simple. Rules of Origin (ROOs) would involve laws, regulations and administrative determinations to ascertain a products country of origin which are not costless to comply with. As such, the criteria used to define origin and how it is administered would play a crucial role in the global trading order. In moving toward the East Asian vision of a community, a rational, enabling regime of ROO that would encourage deeper economic integration and shared prosperity should be established. This means a set of ROOs that is trade facilitating even as it attempts to prevent trade deflection, with enough safeguards for inclusive development both within and across countries in the region. To provide a clear understanding of the ROO and their proper application, this paper discusses the various approaches in determining the rules of origin. It also looks at the different ROO regimes in East Asia then points out some of the recurring ROO issues. Finally, the paper suggests key features of the ROO for the effective implementation and success of any preferential agreement such as the EAFTA.

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    Bibliographic Info

    Paper provided by East Asian Bureau of Economic Research in its series Trade Working Papers with number 22014.

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    Date of creation: Jan 2008
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    Handle: RePEc:eab:tradew:22014

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    Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200
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    Related research

    Keywords: Rules of origin; preferential trading agreements (PTAs); free trade;

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    References

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    1. Anson, José & Cadot, Olivier & de Melo, Jaime & Estevadeordal, Antoni & Suwa Eisenmann, Akiko & Tumurchudur, Bolormaa, 2003. "Rules of Origin in North-South Preferential Trading Arrangements with an Application to NAFTA," CEPR Discussion Papers 4166, C.E.P.R. Discussion Papers.
    2. Dorothea C. Lazaro & Erlinda M. Medalla, 2006. "Rules of Origin - Evolving Best Practices for RTAs/FTAs," Trade Working Papers 22006, East Asian Bureau of Economic Research.
    3. Anne O. Krueger, 1993. "Free Trade Agreements as Protectionist Devices: Rules of Origin," NBER Working Papers 4352, National Bureau of Economic Research, Inc.
    4. Olivier Cadot & Jaime de Melo & Antoni Estevadeordal & Akiko Suwa-Eisenmann & Bolormaa Tumurchudur, 2002. "Assessing the effect of NAFTA's rules of origin," Research Unit Working Papers 0306, Laboratoire d'Economie Appliquee, INRA.
    5. Cadot, Olivier & Carrère, Céline & de Melo, Jaime & Tumurchudur, Bolormaa, 2005. "Product Specific Rules of Origin in EU and US Preferential Trading Agreements: An Assessment," CEPR Discussion Papers 4998, C.E.P.R. Discussion Papers.
    6. Miriam Manchin, 2004. "Preference Utilisation and Tariff Reduction in EU Imports from ACP Countries," Tinbergen Institute Discussion Papers 04-132/2, Tinbergen Institute.
    7. Kala Krishna & Anne Krueger, 1995. "Implementing Free Trade Areas: Rules of Origin and Hidden Protection," NBER Working Papers 4983, National Bureau of Economic Research, Inc.
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