Made in China or Made in Tlon? The quest for a new origin concept measuring international trade and respecting consumers' rights

In 1998 UNCTAD published a study on the Globalization and international trade issues related to origin1 where it was advocated that the traditional concept of Rules of Origin had to be revisited in the light of the globalization dynamics. The study examined -in the context of international trade rules including the WTO Agreement on Rules of Origin (ARO-) the various application of Rules of Origin to different trade instruments ranging from antidumping to marks of origin. The study concluded that business life is faster than rule making and that the traditional concept of origin was vastly overtaken by the fragmentation of production. Fourteen years later, the WTO agreement on rules of origin has still to be concluded. More recently the WTO launched the Made in the World initiative, introducing, inter alia, the idea of different methodologies for compiling trade statistics and examining some aspects of the concept of origin. This initiative was arguably launched to ease the tensions among WTO members, and especially USA and China, showing that according to a different use and application of the concept of origin China's trade surplus was not caused by Chinese products per se since the values added in China was minimal. More precisely, such surplus had to be reviewed and understood in terms of the minimal value addition contents of some Chinese products. Evidence from trade in agricultural products and processed agricultural product in particular, has shown a reverse tendency where the concept of origin would tend to ensure the traceability of the origin, thus leading to the single farmer or producer -the exact contrary of globalization. Such traceability requirements go well beyond the traditional origin concept requesting the product to be grown and harvested in a specific region, respecting given production methods and traditional know how, Geographical indications2 and organic accreditation are the ultimate example of this tendency. The present study advocates for an inputs-output methodology based on the combined use of the Harmonized System, the worldwide used customs classification nomenclature, with trade statistics. . This methodology draws from and builds upon the Author's experience in negotiating rules of origin for more than two decades. The same methodology could be used to measure trade in intermediate products and would be an instrument for value chains analysis.