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Suggested Rules of Origin Regime for EAFTA

Author

Listed:
  • Erlinda M. Medalla

    (PIDS)

  • M. Supperamaniam

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.

Suggested Citation

  • Erlinda M. Medalla & M. Supperamaniam, 2008. "Suggested Rules of Origin Regime for EAFTA," Trade Working Papers 22664, East Asian Bureau of Economic Research.
    • Handle: RePEc:eab:tradew:22664
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    File URL: http://www.eaber.org/node/22664
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    References listed on IDEAS

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    1. José Anson & Olivier Cadot & Antoni Estevadeordal & Jaime de Melo & Akiko Suwa-Eisenmann & Bolormaa Tumurchudur, 2005. "Rules of Origin in North-South Preferential Trading Arrangements with an Application to NAFTA," Review of International Economics, Wiley Blackwell, vol. 13(3), pages 501-517, August.
    2. Miriam Manchin, 2006. "Preference Utilisation and Tariff Reduction in EU Imports from ACP Countries," The World Economy, Wiley Blackwell, vol. 29(9), pages 1243-1266, September.
    3. Medalla, Erlinda M. & Lazaro, Dorothea C., 2006. "Rules of Origin: Evolving Best Practices for RTAs/FTAs," Discussion Papers DP 2006-01, Philippine Institute for Development Studies.
    4. Anne O. Krueger, 1993. "Free Trade Agreements as Protectionist Devices: Rules of Origin," NBER Working Papers 4352, National Bureau of Economic Research, Inc.
    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. 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.
    7. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Medalla, Erlinda M. & Rosellon, Maureen Ane D., 2012. "Rules of Origin in ASEAN+1 FTAs and the Value Chain in East Asia," Discussion Papers DP 2012-37, Philippine Institute for Development Studies.

    More about this item

    Keywords

    Rules of origin; preferential trading agreements (PTAs); free trade agreements (FTAs); regional trade agreements (RTAs); East Asia;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General

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