Preferential Rules of Origin and the Multilateral Trading System: Pro-Development Policy Options |
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Authors: | Philippe De Lombaerde Luis Jorge Garay |
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Institution: | (1) Research Fellow, UNU-CRIS, Bruges, Belgium;(2) Associate Research Fellow, UNU-CRIS, Bruges, Belgium |
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Abstract: | With the proliferation of regional trade agreements since the late 1980s and early 1990s, preferential rules of origin have
also proliferated. The discussion on these rules has gradually shifted from a purely technical discussion (“how to establish
the origin of goods not wholly obtained in one country”, and hence, “how to apply trade preferences in these cases”) to a
wider discussion also touching upon the transaction costs caused by having a “spaghetti bowl” of rules, and the actual or
presumed neo-protectionist use that is being made of them. In the context of the discussion on possible policy options for
developing countries simultaneously involved in (or negotiating) regional and multilateral trade agreements, this article
will first give a brief overview of the findings of the recent empirical literature. Some indications are then presented as
to what such policy options could look like.
This paper was first presented at the Ad-hoc Expert Group Meeting on The Development Interface between the Multilateral Trading
System and Regional Trade Agreements, Session III Regulatory Provisions in RTAs, Palais des Nations, Geneva, 15-16 March 2007.
It is partly based on P. De Lombaerde, L. J. Garay : Preferential Rules of Origin: EU and NAFTA Regulatory Models and the
WTO, in: The Journal of World Investment & Trade, Vol. 6, No. 6, 2005, pp. 953-994; and L. J. Garay, P. De Lombaerde: Preferential
Rules of Origin: Models and Levels of Rulemaking, in: S. Woolcock (ed.): Trade and Investment Rulemaking: The Role of Regional
and Bilateral Agreements, Tokyo 2006, UNU Press, pp. 78-106. |
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