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Rules of Origin in FTAs in Europe and in the Americas: Issues and Implications for the EU-Mercosur Inter-Regional Association Agreement

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  • Kati Suominen
  • Antoni Estevadeordal
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    Abstract

    Rules of origin (RoO) are a central topic both in the Inter-Regional Association Agreement negotiations between the European Union (EU) and the Southern Common Market (Mercosur), and in the 34-country negotiations of the Free Trade Area of the Americas (FTAA). The purpose of this paper is to provide a detailed mapping of the different rules of origin regimes in FTAs in Europe and the Americas, and to draw lessons from these regimes to the EU-Mercosur RoO negotiations, in particular. The paper offers four recommendations. First, the EU¿s standardized RoO regime will play a central role in the EU-Mercosur RoO negotiations. However, there is plenty of room for mutual tariff concessions. At the minimum, the EU¿s tariff preferences for Mercosur should approximate those provided to Chile in order to foster Mercosur¿s chances to augment its industrial exports to the European market. Second, the EU-Mercosur FTA RoO regime should incorporate general and sector-specific adjustment mechanisms in order to enable Mercosur to better utilize the preferential treatment provided by the EU. Third, Mercosur will need to further consolidate its common market in order to take full advantage of the RoO regime¿s likely provision of diagonal cumulation. Fourth, Mercosur should make the most of its strategy of simultaneous trade negotiations in the Americas and with the EU by ensuring a high degree of compatibility between its two major future agreements.

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    Bibliographic Info

    Paper provided by Inter-American Development Bank in its series IDB Publications with number 9346.

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    Date of creation: Jan 2004
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    Handle: RePEc:idb:brikps:9346

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    Related research

    Keywords: Integration & Trade; INTAL ITD Working Paper N° 15; INTAL; Reglas de Origen; Política Comercial; MERCOSUR; Unión Europea;

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    Cited by:
    1. Hayakawa, Kazunobu & Nuttawut, Laksanapanyakul, 2013. "New measures of FTA liberalization level," IDE Discussion Papers 437, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    2. Hayakawa, Kazunobu, 2012. "Impact of diagonal cumulation rule on FTA utilization : evidence from bilateral and multilateral FTAs between Japan and Thailand," IDE Discussion Papers 372, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    3. Rafael Cornejo & Jaime Granados, 2006. "Convergence in the Americas: Some Lessons from the DR-CAFTA process," IDB Publications 9247, Inter-American Development Bank.

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