In November , ICTSD and the Inter-American Development Bank ( IDB ) organised a dialogue on inclusive rules of origin as part of the RTA Exchange project. Rules of origin (RoOs) tell us where a product comes from and how that product should be treated in a particular market. The “rules” are the specific provisions that determine the national “origin” of a product, and whether that product is eligible for preferential treatment offered by a particular free trade agreement (FTA). These rules also spell out the procedures and documentary requirements that allow customs authorities to apply the rules and enable preferential treatment. RoOs give order to the increasingly fragmented and global trading system. However, the complexity and variety of RoOs that exist today also presents a challenge for firms that want to participate in production networks that span multiple countries, and therefore multiple trade agreements. At the seminar we discussed the critical issues surrounding RoO regimes and how they can be made more inclusive at the regional and multilateral level, through simplification and harmonisation. Below are the five most important aspects of RoOs and inclusive trade that you should know. 1. Strict rules of origin can impact global value chains...
Written by Jeremy T. Harris