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Rules of Origin: Evolving Best Practices for RTAs/FTAs

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Author Info

  • Medalla, Erlinda M.
  • Lazaro, Dorothea C.

Abstract

The paper aims to add to the understanding of the issues and suggests a framework to move toward the use of best practice in ROOs. Rules of origin (ROO), originally designed as uncontroversial and neutral devise for authentication and statistical purposes, have evolved over time to accommodate different purposes which come about with new technologies and other developments, across different trade regimes. ROO is becoming a tool in implementing discriminatory trade policies and trade policy instrument per se. ROO has become a critical and to some extent, a “dragging point” in the negotiation process of recent trade agreements. The growing relevance of ROO in trade negotiations cannot be overemphasized. The paper begins with the definition that has been adopted and traces the developments in the use of ROOs. It looks at ROOs within the context of multilateral rules of origin and the preferential ROO in Regional or Bilateral FTAs. Different types of ROO with some illustration from existing RTA are also presented. The paper also focuses on some recurring ROO issues, and presents some suggestions for a framework for ROO best practices which is characterized by transparency, predictability, neutrality, and non-discrimination, and with the added dimension of being development-friendly.

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File URL: http://dirp4.pids.gov.ph/ris/dps/pidsdps0601.pdf
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Bibliographic Info

Paper provided by Philippine Institute for Development Studies in its series Discussion Papers with number DP 2006-01.

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Length: http://dirp4.pids.gov.ph/ris/dps/pidsdps0601.pdf
Date of creation: 2006
Date of revision:
Handle: RePEc:phd:dpaper:dp_2006-01

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Keywords: World Trade Organization; regional integration; rules of origin; free trade agreement (FTA);

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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. Anne O. Krueger, 1993. "Free Trade Agreements as Protectionist Devices: Rules of Origin," NBER Working Papers 4352, National Bureau of Economic Research, Inc.
  3. Paul Brenton & Miriam Manchin, 2002. "Making EU Trade Agreements Work: The Role of Rules of Origin," International Trade 0203003, EconWPA.
  4. Kala Krishna, 2005. "Understanding Rules of Origin," NBER Working Papers 11150, National Bureau of Economic Research, Inc.
  5. 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.
  6. 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.
  7. K.N. Harilal & P.L. Beena, 2003. "The WTO agreement on rules of origin: Implications for South Asia," Centre for Development Studies, Trivendrum Working Papers 353, Centre for Development Studies, Trivendrum, India.
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Citations

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Cited by:
  1. Erlinda M. Medalla & M. Supperamaniam, 2008. "Suggested Rules of Origin Regime for EAFTA," Trade Working Papers 22014, East Asian Bureau of Economic Research.
  2. Raihan, Selim, 2008. "Rules of Origin and Sensitive List under SAFTA and Bilateral FTAs among South Asian Countries: Quantitative Assessments of Potential Implications for Nepal," MPRA Paper 37893, University Library of Munich, Germany.
  3. Erlinda M. Medalla, 2008. "Rules of Origin : Regimes in East Asia and Recommendations for Best Practice," Trade Working Papers 22665, East Asian Bureau of Economic Research.
  4. Medalla, Erlinda M., 2008. "Rules of Origin: Regimes in East Asia and Recommendations for Best Practice," Discussion Papers DP 2008-19, Philippine Institute for Development Studies.
  5. Medalla, Erlinda M., . "Rules of Origin: Regimes in East Asia and Recommendations for Best Practice," Philippine Journal of Development, Philippine Institute for Development Studies.
  6. Wignaraja, Ganeshan & Lazaro, Dorothea & DeGuzman, Genevieve, 2010. "FTAs and Philippine Business: Evidence from Transport, Food, and Electronics Firms," ADBI Working Papers 185, Asian Development Bank Institute.
  7. Medalla, Erlinda M. & Balboa, Jenny D., 2009. "ASEAN Rules of Origin: Lessons and Recommendations for Best Practice," Discussion Papers DP 2009-36, Philippine Institute for Development Studies.
  8. Medalla, Erlinda M. & Supperamaniam, M., 2008. "Suggested Rules of Origin Regime for EAFTA," Discussion Papers DP 2008-22, Philippine Institute for Development Studies.
  9. Erlinda M. Medalla & M. Supperamaniam, 2008. "Suggested Rules of Origin Regime for EAFTA," Trade Working Papers 22664, East Asian Bureau of Economic Research.

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