Olivier Cadot, Antoni Estevadeordal, Akiko Suwa-Eisenmann, and Thierry Verdier
- Published in print:
- 2006
- Published Online:
- May 2006
- ISBN:
- 9780199290482
- eISBN:
- 9780191603471
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199290482.003.0011
- Subject:
- Economics and Finance, International
Firm level interviews are used to assess the economic implications of the rules of origin (ROO) applied for trade to qualify under the Southern African Development Community (SADC) Trade Protocol. ...
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Firm level interviews are used to assess the economic implications of the rules of origin (ROO) applied for trade to qualify under the Southern African Development Community (SADC) Trade Protocol. Approaches to ROO reflect the tension between regional integration as a platform for improving competitiveness in international markets, and using it as a ‘policy tool for development’ to obtain privileged access to a larger protected market. The analysis of selected SADC ROO in agriculture and manufacturing shows that these will prevent efficiency gains from being realized by the Free Trade Area by maintaining the pre-Trade Protocol protection and trade patterns. ROO that seek to influence the sourcing of inputs through fiat will encourage trade diversion and reduce international competitiveness.Less
Firm level interviews are used to assess the economic implications of the rules of origin (ROO) applied for trade to qualify under the Southern African Development Community (SADC) Trade Protocol. Approaches to ROO reflect the tension between regional integration as a platform for improving competitiveness in international markets, and using it as a ‘policy tool for development’ to obtain privileged access to a larger protected market. The analysis of selected SADC ROO in agriculture and manufacturing shows that these will prevent efficiency gains from being realized by the Free Trade Area by maintaining the pre-Trade Protocol protection and trade patterns. ROO that seek to influence the sourcing of inputs through fiat will encourage trade diversion and reduce international competitiveness.
Olivier Cadot, Antoni Estevadeordal, Akiko Suwa-Eisenmann, and Thierry Verdier
- Published in print:
- 2006
- Published Online:
- May 2006
- ISBN:
- 9780199290482
- eISBN:
- 9780191603471
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199290482.003.0005
- Subject:
- Economics and Finance, International
Little analytical attention has so far been devoted to the issue of rules of origin in a services and investment context. This chapter wades into this largely uncharted territory by advancing a few ...
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Little analytical attention has so far been devoted to the issue of rules of origin in a services and investment context. This chapter wades into this largely uncharted territory by advancing a few thoughts on a range of economic and legal considerations arising from the way in which various agreements seek to determine and condition who gets to benefit from services trade and investment liberalization. It focuses on the practice of preferential and non-preferential services trade liberalization as found in various bilateral and regional trade and investment agreements as well as the World Trade Organization’s (WTO) General Agreement on Trade in Services (GATS). It addresses a range of conceptual issues relating to services trade that impinge upon the design and implementation of rules of origin for services. The discussion draws attention to a number of salient characteristics of trade in services that limit the usefulness of concepts and approaches to origin developed in the context of trade in goods. Attention is also drawn to a number of economic considerations that should inform the design of rules of origin for services trade to minimize the potentially adverse effects of trade and investment diversion, and maximize the economy-wide gains in allocative efficiency that well-designed services liberalization can entail.Less
Little analytical attention has so far been devoted to the issue of rules of origin in a services and investment context. This chapter wades into this largely uncharted territory by advancing a few thoughts on a range of economic and legal considerations arising from the way in which various agreements seek to determine and condition who gets to benefit from services trade and investment liberalization. It focuses on the practice of preferential and non-preferential services trade liberalization as found in various bilateral and regional trade and investment agreements as well as the World Trade Organization’s (WTO) General Agreement on Trade in Services (GATS). It addresses a range of conceptual issues relating to services trade that impinge upon the design and implementation of rules of origin for services. The discussion draws attention to a number of salient characteristics of trade in services that limit the usefulness of concepts and approaches to origin developed in the context of trade in goods. Attention is also drawn to a number of economic considerations that should inform the design of rules of origin for services trade to minimize the potentially adverse effects of trade and investment diversion, and maximize the economy-wide gains in allocative efficiency that well-designed services liberalization can entail.
Olivier Cadot, Antoni Estevadeordal, Akiko Suwa-Eisenmann, and Thierry Verdier
- Published in print:
- 2006
- Published Online:
- May 2006
- ISBN:
- 9780199290482
- eISBN:
- 9780191603471
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199290482.003.0012
- Subject:
- Economics and Finance, International
This chapter presents information on the utilization by the sub-Saharan African developing countries of EU, US, and Japanese trade preferences, and explores the reasons why rules of origin may ...
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This chapter presents information on the utilization by the sub-Saharan African developing countries of EU, US, and Japanese trade preferences, and explores the reasons why rules of origin may constrain the take-up of the preferences. Unlike previous studies, which have concentrated on the overall level of utilization of available preferences, the variations in the rate of utilization of preferences across beneficiaries and across the three developed-country preferential schemes are highlighted.Less
This chapter presents information on the utilization by the sub-Saharan African developing countries of EU, US, and Japanese trade preferences, and explores the reasons why rules of origin may constrain the take-up of the preferences. Unlike previous studies, which have concentrated on the overall level of utilization of available preferences, the variations in the rate of utilization of preferences across beneficiaries and across the three developed-country preferential schemes are highlighted.
Olivier Cadot, Antoni Estevadeordal, Akiko Suwa-Eisenmann, and Thierry Verdier
- Published in print:
- 2006
- Published Online:
- May 2006
- ISBN:
- 9780199290482
- eISBN:
- 9780191603471
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199290482.003.0004
- Subject:
- Economics and Finance, International
This chapter breaks new ground in dissecting preferential trading arrangements (PTAs) by focusing on rules of origin (ROO), a crucial yet poorly understood market access discipline included in ...
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This chapter breaks new ground in dissecting preferential trading arrangements (PTAs) by focusing on rules of origin (ROO), a crucial yet poorly understood market access discipline included in virtually every PTA. It presents a global mapping of the existing ROO regimes, and puts forth an analytical coding scheme for the types of product-specific and regime-wide ROO employed in these regimes. The most immediate contribution of this chapter is to advance the understanding of the ROO regimes around the world, and provide analytical tools for empirical studies on ROO’s economic effects.Less
This chapter breaks new ground in dissecting preferential trading arrangements (PTAs) by focusing on rules of origin (ROO), a crucial yet poorly understood market access discipline included in virtually every PTA. It presents a global mapping of the existing ROO regimes, and puts forth an analytical coding scheme for the types of product-specific and regime-wide ROO employed in these regimes. The most immediate contribution of this chapter is to advance the understanding of the ROO regimes around the world, and provide analytical tools for empirical studies on ROO’s economic effects.
Olivier Cadot, Antoni Estevadeordal, Akiko Suwa-Eisenmann, and Thierry Verdier
- Published in print:
- 2006
- Published Online:
- May 2006
- ISBN:
- 9780199290482
- eISBN:
- 9780191603471
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199290482.003.0010
- Subject:
- Economics and Finance, International
This chapter focuses on the difference between free trade agreements with rules of origin and customs unions. The first part develops a model to assess the trade and production in intermediate and ...
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This chapter focuses on the difference between free trade agreements with rules of origin and customs unions. The first part develops a model to assess the trade and production in intermediate and final goods under these two forms of preferential trading arrangements. The second part performs a cross-sectional econometric analysis of bilateral trade in finished motor vehicles and parts in the OECD area. The findings suggest that ROO can be an effective barrier against third-party suppliers of intermediate goods, and that the ‘border effect’ on trade is mitigated within customs unions.Less
This chapter focuses on the difference between free trade agreements with rules of origin and customs unions. The first part develops a model to assess the trade and production in intermediate and final goods under these two forms of preferential trading arrangements. The second part performs a cross-sectional econometric analysis of bilateral trade in finished motor vehicles and parts in the OECD area. The findings suggest that ROO can be an effective barrier against third-party suppliers of intermediate goods, and that the ‘border effect’ on trade is mitigated within customs unions.
Olivier Cadot, Antoni Estevadeordal, Akiko Suwa-Eisenmann, and Thierry Verdier
- Published in print:
- 2006
- Published Online:
- May 2006
- ISBN:
- 9780199290482
- eISBN:
- 9780191603471
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199290482.003.0007
- Subject:
- Economics and Finance, International
Rules of origin (ROOs) in US free-trade agreements (FTAs) provide particularized benefits to industries like textiles and autos. In so doing, they have helped win Congressional approval of ...
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Rules of origin (ROOs) in US free-trade agreements (FTAs) provide particularized benefits to industries like textiles and autos. In so doing, they have helped win Congressional approval of controversial pacts like NAFTA (1993) and CAFTA (2005). ROOs are a form of hidden protection, reducing overall welfare, but they help US officials build winning coalitions for specific FTAs in the absence of a broad societal consensus in favor of trade liberalization.Less
Rules of origin (ROOs) in US free-trade agreements (FTAs) provide particularized benefits to industries like textiles and autos. In so doing, they have helped win Congressional approval of controversial pacts like NAFTA (1993) and CAFTA (2005). ROOs are a form of hidden protection, reducing overall welfare, but they help US officials build winning coalitions for specific FTAs in the absence of a broad societal consensus in favor of trade liberalization.
Olivier Cadot, Antoni Estevadeordal, Akiko Suwa-Eisenmann, and Thierry Verdier
- Published in print:
- 2006
- Published Online:
- May 2006
- ISBN:
- 9780199290482
- eISBN:
- 9780191603471
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199290482.003.0009
- Subject:
- Economics and Finance, International
This chapter looks at the role of Rules of Origin in the implementation of Preferential Trade Agreements (PTAs) in the southern cone region of Latin America. It considers the (imperfect) Custom Union ...
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This chapter looks at the role of Rules of Origin in the implementation of Preferential Trade Agreements (PTAs) in the southern cone region of Latin America. It considers the (imperfect) Custom Union (CU) of Mercosur and the Free Trade Agreements (FTAs) signed between Mercosur and Chile, and Mercosur and Bolivia. These PTAs allow the study of the potential contrast in the design of ROOs under CU and FTA. The following key questions are addressed: Was there any significant difference in the design of ROOs under CU and FTAs? Were the latter more restrictive? To what extent did normative vis-à-vis political economy considerations play any role in the determination of ROOs in the Southern Cone?Less
This chapter looks at the role of Rules of Origin in the implementation of Preferential Trade Agreements (PTAs) in the southern cone region of Latin America. It considers the (imperfect) Custom Union (CU) of Mercosur and the Free Trade Agreements (FTAs) signed between Mercosur and Chile, and Mercosur and Bolivia. These PTAs allow the study of the potential contrast in the design of ROOs under CU and FTA. The following key questions are addressed: Was there any significant difference in the design of ROOs under CU and FTAs? Were the latter more restrictive? To what extent did normative vis-à-vis political economy considerations play any role in the determination of ROOs in the Southern Cone?
Olivier Cadot, Antoni Estevadeordal, Akiko Suwa-Eisenmann, and Thierry Verdier (eds)
- Published in print:
- 2006
- Published Online:
- May 2006
- ISBN:
- 9780199290482
- eISBN:
- 9780191603471
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199290482.001.0001
- Subject:
- Economics and Finance, International
Rules of Origin (RoO) are among the most important instruments in the negotiation and functioning of Regional Trade Agreements (RTAs), designed to determine the eligibility of goods for preferential ...
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Rules of Origin (RoO) are among the most important instruments in the negotiation and functioning of Regional Trade Agreements (RTAs), designed to determine the eligibility of goods for preferential treatment among RTA members. Ostensibly meant to prevent the trans-shipment of imported products across RTA borders after only superficial assembly, they may act as complex and opaque trade barriers in practice. This book suggests that RoO do this with intent rather than accidentally. In other words, RoO are truly trade policy instruments. The book’s overall message for the policy community is that RoO are a potentially powerful and new barrier to trade. Their design should hold centre-stage in trade negotiations rather than being relegated to closed-door technical meetings.Less
Rules of Origin (RoO) are among the most important instruments in the negotiation and functioning of Regional Trade Agreements (RTAs), designed to determine the eligibility of goods for preferential treatment among RTA members. Ostensibly meant to prevent the trans-shipment of imported products across RTA borders after only superficial assembly, they may act as complex and opaque trade barriers in practice. This book suggests that RoO do this with intent rather than accidentally. In other words, RoO are truly trade policy instruments. The book’s overall message for the policy community is that RoO are a potentially powerful and new barrier to trade. Their design should hold centre-stage in trade negotiations rather than being relegated to closed-door technical meetings.
Olivier Cadot, Antoni Estevadeordal, Akiko Suwa-Eisenmann, and Thierry Verdier
- Published in print:
- 2006
- Published Online:
- May 2006
- ISBN:
- 9780199290482
- eISBN:
- 9780191603471
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199290482.003.0002
- Subject:
- Economics and Finance, International
This chapter surveys recent work on the economic effects, both theoretical and empirical, of Rules of Origin (ROO) in a Free Trade Area (FTA).
This chapter surveys recent work on the economic effects, both theoretical and empirical, of Rules of Origin (ROO) in a Free Trade Area (FTA).
Olivier Cadot, Antoni Estevadeordal, Akiko Suwa-Eisenmann, and Thierry Verdier
- Published in print:
- 2006
- Published Online:
- May 2006
- ISBN:
- 9780199290482
- eISBN:
- 9780191603471
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199290482.003.0006
- Subject:
- Economics and Finance, International
This chapter estimates the effect of NAFTA’s rules of origin (ROO) on Mexican access to the US market, treating ROO as politically-determined. Econometric estimates of bilateral disaggrated trade, ...
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This chapter estimates the effect of NAFTA’s rules of origin (ROO) on Mexican access to the US market, treating ROO as politically-determined. Econometric estimates of bilateral disaggrated trade, with tariff preference and endogenous ROO as determinants, suggest that the creation of a captive market for upstream US intermediate-good producers is indeed one of the political determinants of NAFTA.Less
This chapter estimates the effect of NAFTA’s rules of origin (ROO) on Mexican access to the US market, treating ROO as politically-determined. Econometric estimates of bilateral disaggrated trade, with tariff preference and endogenous ROO as determinants, suggest that the creation of a captive market for upstream US intermediate-good producers is indeed one of the political determinants of NAFTA.
Olivier Cadot, Antoni Estevadeordal, Akiko Suwa-Eisenmann, and Thierry Verdier
- Published in print:
- 2006
- Published Online:
- May 2006
- ISBN:
- 9780199290482
- eISBN:
- 9780191603471
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199290482.003.0008
- Subject:
- Economics and Finance, International
Using data on the preference and utilization rates of NAFTA for Mexican exports to the United States in 2001, this chapter proposes a method to estimate the likely costs of different Rules of Origin ...
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Using data on the preference and utilization rates of NAFTA for Mexican exports to the United States in 2001, this chapter proposes a method to estimate the likely costs of different Rules of Origin (ROO) for final and intermediate goods, and compares these results with those obtained using the synthetic index proposed by Estevadeordal (2000). Econometric results indicate that changes in tariff classification are more costly for final goods than for intermediate ones, and that technical requirements are the most constraining. For activities subject to regional value content minima, illustrative simulations are carried out to indicate what tariff preference margin would be necessary to compensate for the import content minima. Cost estimates suggest that, at least in the case of NAFTA, preferential market access is quite small, leading to speculations that these conclusions may carry over to other North-South preferential schemes.Less
Using data on the preference and utilization rates of NAFTA for Mexican exports to the United States in 2001, this chapter proposes a method to estimate the likely costs of different Rules of Origin (ROO) for final and intermediate goods, and compares these results with those obtained using the synthetic index proposed by Estevadeordal (2000). Econometric results indicate that changes in tariff classification are more costly for final goods than for intermediate ones, and that technical requirements are the most constraining. For activities subject to regional value content minima, illustrative simulations are carried out to indicate what tariff preference margin would be necessary to compensate for the import content minima. Cost estimates suggest that, at least in the case of NAFTA, preferential market access is quite small, leading to speculations that these conclusions may carry over to other North-South preferential schemes.
Olivier Cadot, Antoni Estevadeordal, Akiko Suwa-Eisenmann, and Thierry Verdier
- Published in print:
- 2006
- Published Online:
- May 2006
- ISBN:
- 9780199290482
- eISBN:
- 9780191603471
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199290482.003.0001
- Subject:
- Economics and Finance, International
This introductory chapter begins with an overview of the regionalism debate in the light of a rising globalization of the production process. It argues that depending on their design, preferential ...
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This introductory chapter begins with an overview of the regionalism debate in the light of a rising globalization of the production process. It argues that depending on their design, preferential trade arrangements have the power to boost or hamper the development of ‘regional production networks’ and rules of origin are a key element. The theory of rules of origin (ROO) is briefly recalled and introduces a short presentation of the four parts of the book: theoretical perspectives, the complexity of ROO, ROO and special interests, and measuring their impacts.Less
This introductory chapter begins with an overview of the regionalism debate in the light of a rising globalization of the production process. It argues that depending on their design, preferential trade arrangements have the power to boost or hamper the development of ‘regional production networks’ and rules of origin are a key element. The theory of rules of origin (ROO) is briefly recalled and introduces a short presentation of the four parts of the book: theoretical perspectives, the complexity of ROO, ROO and special interests, and measuring their impacts.
Olivier Cadot, Antoni Estevadeordal, Akiko Suwa-Eisenmann, and Thierry Verdier
- Published in print:
- 2006
- Published Online:
- May 2006
- ISBN:
- 9780199290482
- eISBN:
- 9780191603471
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199290482.003.0003
- Subject:
- Economics and Finance, International
This chapter considers the impact of Rules of Origins (ROOs) on two aspects of the international production fragmentation process. First, in an imperfect competitive environment with ‘strategic ...
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This chapter considers the impact of Rules of Origins (ROOs) on two aspects of the international production fragmentation process. First, in an imperfect competitive environment with ‘strategic outsourcing’ by firms, ROOs can fullfill the function of a commitment device to be more or less aggressive in the process of international fragmentation. Second, in a context when firm-suppliers relationships are characterized by some degree of contract incompleteness, ROOs may have important implications for the incomplete contractual problems existing between downward foreign firms and potential suppliers, especially by the way they influence the outside options of the concerned parties. ROOs in such a case can be effective even without been observed as binding in equilibrium. Normative and policy implications are derived.Less
This chapter considers the impact of Rules of Origins (ROOs) on two aspects of the international production fragmentation process. First, in an imperfect competitive environment with ‘strategic outsourcing’ by firms, ROOs can fullfill the function of a commitment device to be more or less aggressive in the process of international fragmentation. Second, in a context when firm-suppliers relationships are characterized by some degree of contract incompleteness, ROOs may have important implications for the incomplete contractual problems existing between downward foreign firms and potential suppliers, especially by the way they influence the outside options of the concerned parties. ROOs in such a case can be effective even without been observed as binding in equilibrium. Normative and policy implications are derived.
Christel Lane and Jocelyn Probert
- Published in print:
- 2009
- Published Online:
- May 2009
- ISBN:
- 9780199214815
- eISBN:
- 9780191721779
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199214815.003.0005
- Subject:
- Business and Management, International Business, Political Economy
This chapter shows how trade regulations and the global and regional institutions within which they are framed have distinctively shaped the textile and clothing industry for almost fifty years. It ...
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This chapter shows how trade regulations and the global and regional institutions within which they are framed have distinctively shaped the textile and clothing industry for almost fifty years. It reviews the quantitative restrictions imposed by the Multi-Fibre Arrangements (MFA) and the Agreement on Textiles and Clothing (ATC) until their expiry on 31 December 2004; the principal agreements on preferential access that govern tariff rates between the US or the EU on the one hand and their T/C trading partners on the other; and the highly complex pattern of rules of origin that shape the flow of component parts along the various stages of the clothing value chain.Less
This chapter shows how trade regulations and the global and regional institutions within which they are framed have distinctively shaped the textile and clothing industry for almost fifty years. It reviews the quantitative restrictions imposed by the Multi-Fibre Arrangements (MFA) and the Agreement on Textiles and Clothing (ATC) until their expiry on 31 December 2004; the principal agreements on preferential access that govern tariff rates between the US or the EU on the one hand and their T/C trading partners on the other; and the highly complex pattern of rules of origin that shape the flow of component parts along the various stages of the clothing value chain.
Junji Nakagawa
- Published in print:
- 2011
- Published Online:
- January 2012
- ISBN:
- 9780199604661
- eISBN:
- 9780191731679
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199604661.003.0002
- Subject:
- Law, Public International Law
This chapter analyzes international harmonization of rules relating to tariffs, comprising tariff classification, tariff evaluation and rules of origin. It traces its history in each regulatory area ...
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This chapter analyzes international harmonization of rules relating to tariffs, comprising tariff classification, tariff evaluation and rules of origin. It traces its history in each regulatory area from European initiatives in the mid-19th century to ongoing harmonization work conducted by the WTO and WCO (World Customs Organization) in the present. A major focus is on efforts to reconcile regulatory differences between Europe and the US and to coordinate the works of the GATT/WTO and the CCC (Customs Cooperation Council)/WCO.Less
This chapter analyzes international harmonization of rules relating to tariffs, comprising tariff classification, tariff evaluation and rules of origin. It traces its history in each regulatory area from European initiatives in the mid-19th century to ongoing harmonization work conducted by the WTO and WCO (World Customs Organization) in the present. A major focus is on efforts to reconcile regulatory differences between Europe and the US and to coordinate the works of the GATT/WTO and the CCC (Customs Cooperation Council)/WCO.
Yung Chul Park and Inkyo Cheong
- Published in print:
- 2008
- Published Online:
- May 2008
- ISBN:
- 9780199235889
- eISBN:
- 9780191717109
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199235889.003.0004
- Subject:
- Economics and Finance, South and East Asia
This chapter analyzes the causes and possible consequences of proliferation of bilateral FTAs, focusing on the case of East Asia. It attempts to find clues as to whether the bilateral FTAs in East ...
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This chapter analyzes the causes and possible consequences of proliferation of bilateral FTAs, focusing on the case of East Asia. It attempts to find clues as to whether the bilateral FTAs in East Asia that are completed or under discussion could be building or stumbling blocks for regional as well as global trade integration. Section 4.2 discusses some of the factors behind the increase in bilateral FTAs. Section 4.3 is devoted to an analysis of economic effects of the proliferation of FTAs. Section 4.4 examines the quality of East Asia's FTAs in terms of the coverage of tariff elimination and rules of origin. Section 4.5 discusses consequences of the proliferation of FTAs in East Asia. It is argued that for a number of institutional constraints, the proliferation is not likely to lead to the creation of a single East Asian FTA.Less
This chapter analyzes the causes and possible consequences of proliferation of bilateral FTAs, focusing on the case of East Asia. It attempts to find clues as to whether the bilateral FTAs in East Asia that are completed or under discussion could be building or stumbling blocks for regional as well as global trade integration. Section 4.2 discusses some of the factors behind the increase in bilateral FTAs. Section 4.3 is devoted to an analysis of economic effects of the proliferation of FTAs. Section 4.4 examines the quality of East Asia's FTAs in terms of the coverage of tariff elimination and rules of origin. Section 4.5 discusses consequences of the proliferation of FTAs in East Asia. It is argued that for a number of institutional constraints, the proliferation is not likely to lead to the creation of a single East Asian FTA.
Richard Pomfret
- Published in print:
- 2001
- Published Online:
- November 2003
- ISBN:
- 9780199248872
- eISBN:
- 9780191596797
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199248877.003.0010
- Subject:
- Economics and Finance, International
Analyses the new regionalism that emerged in the mid‐1980s. By downplaying the significance of trade diversion and emphasizing scale‐based and pro‐competitive benefits of integration, the new ...
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Analyses the new regionalism that emerged in the mid‐1980s. By downplaying the significance of trade diversion and emphasizing scale‐based and pro‐competitive benefits of integration, the new regionalism had a more positive vision of RTAs than mainstream customs union theory had. Section 1 introduces economies of scale and imperfect competition. Section 2 analyses non‐tariff barriers to trade. Section 3 covers ‘new areas’ of foreign investment, competition policy, and monetary integration, which had not featured in mainstream customs union theory. Section 4 deals with rules of origin, which had emerged as a major trade policy issue in the 1980s and 1990s.Less
Analyses the new regionalism that emerged in the mid‐1980s. By downplaying the significance of trade diversion and emphasizing scale‐based and pro‐competitive benefits of integration, the new regionalism had a more positive vision of RTAs than mainstream customs union theory had. Section 1 introduces economies of scale and imperfect competition. Section 2 analyses non‐tariff barriers to trade. Section 3 covers ‘new areas’ of foreign investment, competition policy, and monetary integration, which had not featured in mainstream customs union theory. Section 4 deals with rules of origin, which had emerged as a major trade policy issue in the 1980s and 1990s.
José Antonio Rivas
- Published in print:
- 2006
- Published Online:
- March 2012
- ISBN:
- 9780199206995
- eISBN:
- 9780191695674
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199206995.003.0007
- Subject:
- Law, Public International Law
This chapter examines whether rules of origin in free trade agreements (FTA) are in compliance with Article XXIV of the General Agreement on Tariffs and Trade (GATT). It argues that FTA rules of ...
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This chapter examines whether rules of origin in free trade agreements (FTA) are in compliance with Article XXIV of the General Agreement on Tariffs and Trade (GATT). It argues that FTA rules of origin qualify as ‘other regulations of commerce’ (ORC) and should therefore satisfy the conditions for ORC set forth in Article XXIV. It discusses the distinction between rules of origin that are overly restrictive and neutral rules of origin which do not add an extra and unlawful layer of protection to the already permitted tariff differentials between the Most Favoured Nation (MFN) tariffs and the FTA tariffs.Less
This chapter examines whether rules of origin in free trade agreements (FTA) are in compliance with Article XXIV of the General Agreement on Tariffs and Trade (GATT). It argues that FTA rules of origin qualify as ‘other regulations of commerce’ (ORC) and should therefore satisfy the conditions for ORC set forth in Article XXIV. It discusses the distinction between rules of origin that are overly restrictive and neutral rules of origin which do not add an extra and unlawful layer of protection to the already permitted tariff differentials between the Most Favoured Nation (MFN) tariffs and the FTA tariffs.
A. Estevadeordal and K. Suominen
- Published in print:
- 2009
- Published Online:
- May 2009
- ISBN:
- 9780199550159
- eISBN:
- 9780191720253
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199550159.003.0005
- Subject:
- Economics and Finance, International
This chapter addresses the growing concerns that PTAs may fall short of complying with GATT Article XXIV, which sets out the conditions for the format of free trade agreements and customs unions. The ...
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This chapter addresses the growing concerns that PTAs may fall short of complying with GATT Article XXIV, which sets out the conditions for the format of free trade agreements and customs unions. The chapter also examines the effects of PTAs on unfettered flow of global trade. It then proposes ways to enhance the complementarities between the PTA system and multilateral trade rules, including through ‘multilateralizing PTAs’ that aims at enhancing compatibilities between PTAs and the global trading system, and to strive to advance toward global free trade by way of PTAs. Multilateralization can be pursued through global, regional, and case-by-case policies alike. While any multilateralization approach has its challenges, all approaches, when smartly sequenced and receiving the backing of the major trade agreement hubs, could revitalize and add value to the multilateral trading system. At the minimum, they would help ensure that PTAs do not erode the gains of the past sixty years of multilateral trade liberalization. Besides the complexities of the PTA-multilateralism interplay, there are growing concerns that the proliferation of PTAs is creating an unmanageable ‘spaghetti bowl’ of rules that risks degenerating the world trading system into hundreds of miniblocs. The PTA spaghetti could, in turn, generate new frictions and transactions costs to firms operating in multiple PTA theaters at once.Less
This chapter addresses the growing concerns that PTAs may fall short of complying with GATT Article XXIV, which sets out the conditions for the format of free trade agreements and customs unions. The chapter also examines the effects of PTAs on unfettered flow of global trade. It then proposes ways to enhance the complementarities between the PTA system and multilateral trade rules, including through ‘multilateralizing PTAs’ that aims at enhancing compatibilities between PTAs and the global trading system, and to strive to advance toward global free trade by way of PTAs. Multilateralization can be pursued through global, regional, and case-by-case policies alike. While any multilateralization approach has its challenges, all approaches, when smartly sequenced and receiving the backing of the major trade agreement hubs, could revitalize and add value to the multilateral trading system. At the minimum, they would help ensure that PTAs do not erode the gains of the past sixty years of multilateral trade liberalization. Besides the complexities of the PTA-multilateralism interplay, there are growing concerns that the proliferation of PTAs is creating an unmanageable ‘spaghetti bowl’ of rules that risks degenerating the world trading system into hundreds of miniblocs. The PTA spaghetti could, in turn, generate new frictions and transactions costs to firms operating in multiple PTA theaters at once.
A. Estevadeordal and K. Suominen
- Published in print:
- 2009
- Published Online:
- May 2009
- ISBN:
- 9780199550159
- eISBN:
- 9780191720253
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199550159.003.0006
- Subject:
- Economics and Finance, International
This chapter focuses on the concerns laid out in Chapter 5 and puts forth ways of managing them. It finds that there are both theoretical and empirical reasons to believe that the PTA spaghetti bowl ...
More
This chapter focuses on the concerns laid out in Chapter 5 and puts forth ways of managing them. It finds that there are both theoretical and empirical reasons to believe that the PTA spaghetti bowl does present problems and transactions costs to the member economies and companies operating in the agreements tangle. One and perhaps the politically most feasible solution to the PTA tangle is convergence, a process by which the various existing PTAs become connected to each other. The prospects for convergence vary across sub-sets of PTAs and across economic sectors. There are clear PTA families centered around the United States, EU, and Mexico, in particular, wherein attaining convergence might be easiest. Any convergence drive would, however, require the members to define the scope of their effort and the stakeholders that will have to be involved, and, importantly, guarantee complementarities with the WTO system.Less
This chapter focuses on the concerns laid out in Chapter 5 and puts forth ways of managing them. It finds that there are both theoretical and empirical reasons to believe that the PTA spaghetti bowl does present problems and transactions costs to the member economies and companies operating in the agreements tangle. One and perhaps the politically most feasible solution to the PTA tangle is convergence, a process by which the various existing PTAs become connected to each other. The prospects for convergence vary across sub-sets of PTAs and across economic sectors. There are clear PTA families centered around the United States, EU, and Mexico, in particular, wherein attaining convergence might be easiest. Any convergence drive would, however, require the members to define the scope of their effort and the stakeholders that will have to be involved, and, importantly, guarantee complementarities with the WTO system.
