Rules of Origin in International Trade

Abstract

This book discusses the different aspects of the rules of origin with a multidisciplinary perspective. It offers the first overview of the status of the negotiations on nonpreferential rules of origin under the World Trade Organization (WTO) agreement on rules of origin, after more than 10 years of negotiations, and its possible implications for other WTO Agreements. This book deals extensively with preferential rules of origin both under unilateral trade instruments like the Generalized System of Preferences, the Everything But Arms initiative, and the Africa Growth and Opportunity Act and in free-trade areas. Inama analyzes the experience of the United States and the European Community (EC) in developing the North American Free-Trade Agreement and the Pan-European rules of origin. He also compares and discusses the parallel experiences of the major southern regional trade agreements, including Mercosur, the Association of Southeast Asian Nations (ASEAN), and the ASEAN-China free-trade area, as well as the Common Market for Eastern and Southern Africa, Eastern Africa Community, and Southern Africa Development Community in their negotiations of the European Partnership Agreements with the EC. It discusses the evolution of the different sets of rules of origin, the economics of the rules of origin, and the technical options for drafting rules of origin including a methodology for drafting product-specific rules of origin. Stefano Inama is a project manager and senior trade and customs expert for the United Nations Conference on Trade and Development. He has extensively advised governments, private sector, and regional trade secretariats on rules of origin negotiations and has regularly been invited to speak on trade issues by universities such as the Bocconi University in Milan, Italy, and Columbia University in New York, as well as by international organizations.

Multilateral Disciplines on Rules of Origin: How Far Are We from Squaring the Circle?

“…72-73. 62 This is at least the assertion made by Inama (2009), at p. 75. 63 The EU made a tentative commitment to eliminate all export subsidies by 2013 subject to the successful completion of the Doha Round prior to that date.…”

“…21 This is for example the case among signatory countries of the Greater Arab Free Trade Area; see Dennis (2006). 22 For anti-dumping measures this would be the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade; for countervailing duties this would be the Agreement on Subsidies and Countervailing Measures. a number of other instruments that were not really designed for this purpose (one need only think of technical regulations and standards, sanitary and phytosanitary measures, or even anti-dumping and countervailing measures).…”

“…60 See WTO Documents in the "G/RO/W/*" series, particularly those submitted during the preparation and following circulation of the revised consolidated draft text of non-preferential rules of origin in December 2008. 61 Cited by Inama (2009), see pp. 72-73.…”

“…85 Ibid, p. 284.86 (1) production of fibre; (2) extrusion of spinning yarn; (3) fabric formation through weaving, knitting or other methods; and (4) cutting (or knitting to shape) and sewing or otherwise assembling apparel or made-up textile articles; see Inama (2009) at p. 317.87 Cantin and Lowenfeld (1993) p. 385.88 Inama (2009), p. 323.…”

Optimizing Global Value Chain Activities by Diagonal Cumulation of Origin

“…Rules of origin specify that only products entirely produced in one country, using only materials from that country, or products, which have been treated in a regulated way in that country, can be regarded as originating products [10]. These products are eligible to benefit from preferential treatment under a free trade agreement (FTA) or under the General System of Preferences (GSP) (autonomously granted preferences).…”