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Rules of Origin: Evolving Best Practices for RTAs/FTAs

Author

Listed:
  • Medalla, Erlinda M.
  • Lazaro, Dorothea C.

Abstract

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.

Suggested Citation

  • 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.
    • Handle: RePEc:phd:dpaper:dp_2006-01
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    References listed on IDEAS

    as
    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. Paul Brenton & Miriam Manchin, 2014. "Making EU Trade Agreements Work: The Role of Rules of Origin," World Scientific Book Chapters, in: INTERNATIONAL TRADE, DISTRIBUTION AND DEVELOPMENT Empirical Studies of Trade Policies, chapter 14, pages 299-313, World Scientific Publishing Co. Pte. Ltd..
    3. Anne O. Krueger, 1993. "Free Trade Agreements as Protectionist Devices: Rules of Origin," NBER Working Papers 4352, National Bureau of Economic Research, Inc.
    4. Kala Krishna, 2005. "Understanding Rules of Origin," NBER Working Papers 11150, National Bureau of Economic Research, Inc.
    5. 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.
    6. Alan V. Deardorff, 2004. "Who Makes the Rules of Globalization," Working Papers 517, Research Seminar in International Economics, University of Michigan.
    7. K.N. Harilal & P.L. Beena, 2003. "The WTO agreement on rules of origin: Implications for South Asia," Centre for Development Studies, Trivendrum Working Papers 353, Centre for Development Studies, Trivendrum, India.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Erlinda M. Medalla, 2008. "Rules of Origin : Regimes in East Asia and Recommendations for Best Practice," Trade Working Papers 22665, East Asian Bureau of Economic Research.
    2. repec:phd:pjdevt:pjd_2009_vol__xxxvi_no__2-c is not listed on IDEAS
    3. Ganeshan Wignaraja & Dorothea Lazaro & Genevieve DeGuzman, 2010. "FTAs and Philippine Business : Evidence from Transport, Food, and Electronics Firms," Trade Working Papers 22880, East Asian Bureau of Economic Research.
    4. Medalla, Erlinda M., 2008. "Rules of Origin: Regimes in East Asia and Recommendations for Best Practice," Discussion Papers DP 2008-19, Philippine Institute for Development Studies.
    5. Erlinda M. Medalla & M. Supperamaniam, 2008. "Suggested Rules of Origin Regime for EAFTA," Trade Working Papers 22014, East Asian Bureau of Economic Research.
    6. Medalla, Erlinda M. & Supperamaniam, M., 2008. "Suggested Rules of Origin Regime for EAFTA," Discussion Papers DP 2008-22, Philippine Institute for Development Studies.
    7. 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," MPRA Paper 37893, University Library of Munich, Germany.
    8. Medalla, Erlinda M. & Balboa, Jenny D., 2009. "ASEAN Rules of Origin: Lessons and Recommendations for Best Practice," Discussion Papers DP 2009-36, Philippine Institute for Development Studies.
    9. repec:phd:pjdevt:pjd_2008_vol__xxxv_no__2-b is not listed on IDEAS
    10. Erlinda M. Medalla & M. Supperamaniam, 2008. "Suggested Rules of Origin Regime for EAFTA," Trade Working Papers 22664, East Asian Bureau of Economic Research.

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    More about this item

    Keywords

    free trade agreements (FTAs); World Trade Organization; regional integration; rules of origin;
    All these keywords.

    JEL classification:

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

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