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Rules of Origin: Evolving Best Practices for RTAs/FTAs


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.

Citations

This publication has been cited time(s).

  1. Wignaraja, Ganeshan, Dorothea Lazaro, and Genevieve De Guzman, 2010 "FTAs and Philippine business: Evidence from transport, food, and electronics firms" , East Asian Bureau of Economic Research

  2. Wignaraja, Ganeshan, Dorothea Lazaro, and Genevieve DeGuzman, 2010 "FTAs and Philippine business: Evidence from transport, food, and electronics firms" , Asian Development Bank Institute

  3. Lazaro, Dorothea C., Ganeshan Wignaraja, and Genevieve De Guzman, 2011 "Factors affecting use or nonuse of Free Trade Agreements in the Philippines" , Philippine Institute for Development Studies

  4. Medalla, Erlinda M. and M. Supperamaniam, 2008 "Suggested rules of origin regime for EAFTA" , Philippine Institute for Development Studies

  5. Medalla, Erlinda M. and M. Supperamaniam, 2008 "Suggested rules of origin regime for EAFTA" , East Asian Bureau of Economic Research

  6. Medalla, Erlinda M., 2008 "Rules of origin: Regimes in East Asia and recommendations for best practice" , Philippine Institute for Development Studies

  7. Medalla, Erlinda M., 2008 "Rules of origin: Regimes in East Asia and recommendations for best practice" , East Asian Bureau of Economic Research

  8. Medalla, Erlinda M. and M. Supperamaniam, 2008 "Suggested rules of origin regime for EAFTA" , East Asian Bureau of Economic Research

  9. Medalla, Erlinda M., 2010 "Rules of origin: Regimes in East Asia and recommendations for best practice" , (via RePEc)

  10. Medalla, Erlinda M. and Jenny D. Balboa, 2009 "ASEAN rules of origin: Lessons and recommendations for best practice" , Philippine Institute for Development Studies

  11. 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" , University Library of Munich, Germany