scholarly journals Market Access and Welfare Effects of Free Trade Areas without Rules of Origin

10.3386/w5480 ◽  
1996 ◽  
Author(s):  
Jiandong Ju ◽  
Kala Krishna
Keyword(s):  
Free Trade ◽  
Market Access ◽  
Welfare Effects ◽  
Rules Of Origin ◽  
Free Trade Areas

Cross-Cumulation Arrangement as FTA Under GATT Article XXIV

2019 ◽  
Vol 23 (1) ◽  
pp. 165-185
Author(s):  
Jong Bum Kim
Keyword(s):  
World Trade Organization ◽  
Free Trade ◽  
Value Chain ◽  
World Trade ◽  
Free Trade Area ◽  
Rules Of Origin ◽  
Free Trade Areas ◽  
Intermediate Products ◽  
Trade Area ◽  
The World

ABSTRACT A cross-cumulation arrangement helps manufacturers meet the demands of the global value chain economy by facilitating the sourcing of intermediate products within the territories of participants in the arrangement. It is a de facto free-trade area formed by a network of bilateral free-trade areas underpinning the arrangement. However, a cross-cumulation clause provided in a bilateral free-trade area that underpins a cross-cumulation arrangement is inconsistent with General Agreement on Tariffs and Trade (GATT) Articles I and III because the intermediate products from the participants in the arrangement are more favorably treated than products from non-participants in the arrangement. The GATT inconsistencies of a cross-cumulation clause cannot be justified by the GATT Article XXIV exception, because a cross-cumulation clause of a bilateral free-trade area derogates from the free-trade area’s aim by facilitating trade in intermediate products between the free-trade area parties and non-parties to the free-trade area that are participants in the arrangement. In contrast, a cumulation clause provided in a free-trade area contributes to the free-trade area’s aim by facilitating trade in intermediate products between the parties to the free-trade area. To bring a cross-cumulation arrangement such as the Regional Convention on Pan-Euro-Med Preferential Rules of Origin into conformity with World Trade Organization law, the arrangement and its underlying free-trade areas should be recognized as a de jure free-trade area under GATT Article XXIV and notified to the World Trade Organization as such. A large cross-cumulation arrangement as a mega-free-trade area is likely to contribute to the world trading system by harmonizing divergent free-trade area rules of origin and providing an efficient mechanism for the formation of a mega-free-trade area.

scholarly journals Znacaj porekla proizvoda u evropskim sporazumima o trgovini

2003 ◽  
Vol 44 (157) ◽  
pp. 61-83
Author(s):  
Radovan Kovacevic
Keyword(s):  
Free Trade ◽  
Market Access ◽  
Trade Agreements ◽  
Preferential Trade Agreements ◽  
Rules Of Origin ◽  
Preferential Trade ◽  
The Balkans ◽  
Policy Objectives ◽  
The Impact ◽  
The Eu

The key element of the EU's free trade and preferential trade agreements is the extent to which they deliver improved market access and thus contribute to the EU's foreign policy objectives towards developing countries and neighbouring countries in Europe, including the countries of the Balkans. The previous preferential trade schemes have been ineffective in delivering improved access to the EU market. The main reason for this is probably very restrictive rules of origin that the EU imposes, coupled with the costs of proving consistency with these rules. If the EU wants the 'Everything but Arms' agreement and free trade agreements with countries in the Balkans to generate substantial improvements in access to the EU market for products from these countries, then it will have to reconsider the current rules of origin and implement less restrictive rules backed upon by a careful safeguards policy. Governments apply rules to distinguish between foreign and domestic products and to define the foreign origin of a product where some imports receive preferential treatment. The purpose of this paper is to focus on the issue of the rules of origin, and on the "cummulation" of such rules within the EU preferential trade agreements. It does this, firstly, through detailing rules of origin, secondly, by providing a conceptual discussion of the impact of (the cummulation of) rules of origin, and thirdly, by exploring characteristics of preferential trade agreements.

FREE TRADE AREAS AND RULES OF ORIGIN: ECONOMICS AND POLITICS

2007 ◽  
Vol 19 (2) ◽  
pp. 169-190 ◽  
Author(s):  
RUPA DUTTAGUPTA ◽  
ARVIND PANAGARIYA
Keyword(s):  
Free Trade ◽  
Rules Of Origin ◽  
Free Trade Areas ◽  
Economics And Politics
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