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Rules of Origin in Preferential Trading Arrangements: Is All Well with the Spaghetti Bowl in the Americas?

Author

Listed:
  • Antoni Estevadeordal
  • Kati Suominen

Abstract

Preferential 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.

Suggested Citation

  • Antoni Estevadeordal & Kati Suominen, 2005. "Rules of Origin in Preferential Trading Arrangements: Is All Well with the Spaghetti Bowl in the Americas?," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Spring 20), pages 63-103, January.
    • Handle: RePEc:col:000425:008664
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    Citations

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    Cited by:

    1. Gislain Stéphane Gandjon Fankem, 2016. "Les déterminants du faible degré d'intégration commerciale de la CEEAC: le poids de la fragmentation politique, de la prolifération des Communautés Economiques Régionales et du niveau de démocr," African Development Review, African Development Bank, vol. 28(4), pages 383-396, December.
    2. Shearer, Matthew & Salles Almeida, Juliana & Gutiérrez Jr., Carlos H., 2009. "The Treatment of Agriculture in Regional Trade Agreements in the Americas," IDB Publications (Working Papers) 2795, Inter-American Development Bank.
    3. Mia Mikic & Mochamad Pasha (ed.), 2011. "Fighting Irrelevance: The Role of Regional Trade Agreements in International Production Networks in Asia," STUDIES IN TRADE AND INVESTMENT, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), number tipub2597, April.
    4. Julián Tole Martínez, 2019. "Colombia entre los TLC y la OMC: ¿liberación o administración del comercio internacional?," Books, Universidad Externado de Colombia, Facultad de Derecho, number 1130, October.
    5. Matthew Shearer & Juliana Salles Almeida & Carlos H. Gutiérrez Jr., 2009. "The Treatment of Agriculture in Regional Trade Agreements in the Americas," IDB Publications (Working Papers) 23538, Inter-American Development Bank.
    6. Schüle, Ulrich & Kleisinger, Tatiana, 2016. "The "Spaghetti Bowl": A case study on processing rules of origin and rules of cumulation," UASM Discussion Paper Series 2/2016, University of Applied Sciences Mainz.
    7. Sung Hee Lee & Kun Soo Park & Yong Won Seo, 2016. "Multinational Firm’s Production Decisions under Overlapping Free Trade Agreements: Rule of Origin Requirements and Environmental Regulation," Sustainability, MDPI, vol. 9(1), pages 1-16, December.
    8. Manchin, Miriam & Pelkmans-Balaoing, Annette O., 2007. "Rules of origin and the web of East Asian free trade agreements," Policy Research Working Paper Series 4273, The World Bank.
    9. Archanun KOHPAIBOON & Juthathip JONGWANICH, 2015. "Use of FTAs from Thai Experience," Working Papers DP-2015-02, Economic Research Institute for ASEAN and East Asia (ERIA).
    10. Shearer, Matthew & Salles Almeida, Juliana & Gutiérrez Jr., Carlos H., 2009. "The Treatment of Agriculture in Regional Trade Agreements in the Americas," IDB Publications (Working Papers) 2715, Inter-American Development Bank.
    11. Manoj Pant, 2010. "Regional Trading Arrangements and Developing Countries: Understanding the Phenomena," International Studies, , vol. 47(2-4), pages 187-203, April.
    12. Antoni Estevadeordal & Matthew Shearer & Kati Suominen, 2009. "Market Access Provisions in Regional Trade Agreement," IDB Publications (Working Papers) 9311, Inter-American Development Bank.
    13. Matthew Shearer & Juliana Salles Almeida & Carlos H. Gutiérrez Jr., 2009. "The Treatment of Agriculture in Regional Trade Agreements in the Americas," IDB Publications (Working Papers) 26158, Inter-American Development Bank.
    14. Julián Tole Martínez, 2019. "Colombia entre los TLC y la OMC: ¿liberación o administración del comercio internacional?," Books, Universidad Externado de Colombia, Facultad de Derecho, number 1139, October.

    More about this item

    Keywords

    Preferential trading arrangements; rules of origin; trade potential;
    All these keywords.

    JEL classification:

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

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