Keywords
cumulative rules of origin
economic integration
single market
preferential rules of origin
regional trade agreement
economic integration
single market
preferential rules of origin
regional trade agreement
Abstract
Globalisation causes complexity in the determination of the origin of goods. The basic concept of the rule of origin is to identify the "nationality" of goods. In this regard, the "nationality" of goods imposes the legal consequence of trade policy instruments that are applied to the goods. In order to determine such "nationality',) there are legal or administrative requirements that must be fulfilled by the traders, known as origin criteria. There are various types of preferential rules of origin depending on the agreement of the contracting parties under the Regional Integration Agreements, or RIAs. The rules of origin can be different from country to country since here is no binding agreement or international standard governing preferential rules of origin. The rules of origin govern cross border goods movement in international trade relations. The rules of origin are not applied to goods or products that are manufactured and sold inside the country itself The rules of origin influence investment and production decisions. The production decision includes the "production factor" and "profit maximising firms': One of the production factors is the source materials of the goods. Production efficiency is influenced by the use of good quality materials with the lowest price. This factor triggers the establishment of the free trade agreement or preferential trade agreement between potential trading partners.
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"The Rules of Origin for the ASEAN referential Trading Arrangements," available at: http://www.asean-sec.org/1376.htm.
"The WTO Agreement on Rules of Origin," available at: http://www.wto. org/english/docs_e/legal_e/22-roo.pdf.
Appellate Body Decision in EC Preferences.
ASEAN Preferential Trading Arrangements stipulated in the Agreement on ASEAN Preferential Trading Arrangements, signed in Manila on 24 February 1977.
Balme, Richard., and Bridges, Brian., Europe - Asia Relations Building Multilateralism, Palgrave Macmillan, New York, 2008.
Cotter, Thomas, Petros C. Mavroidis, and Blatter, Patrick, Regulatory Barriers and the Principle of Non-Discrimination in World Trade Law, The World Trade Forum, Volume 2, The University Michigan Press, USA, 2002.
Inama, Stefano., Rules of Origin in International Trade, Cambridge University Press, New York, USA, 2009.
Jackson, John H., The Jurisprudence of GATT and The WTO, Insights on Treaty Law and Economic Relations, Cambridge University Press, New York, 2000.
Molle, Willem., The Economics of European Integration: Theory, Practice, Policy, Fifth Edition, Ashgate Publishing Limited, England, 2006.
Polley, William J, The Most Favored Nations Clause: What Can Trade Theory Tell Us?, Department of Economics, Bradley University, 1 October, 2004.
The Revised Kyoto Convention.
Welfens, Paul J.J., Ryan, Cillian., Chirathivat, Suthipand., and Knipping, Franz., EU-ASEAN : Facing Economic Globalisation, Springer-Verlag, Berlin, Heidelberg, 2009.
Online Sources
"Agreement on the Common Effective Preferential Tariff Scheme for the ASEAN Free Trade Area," available at: http://www.asean.org/12375.htm, last accessed: 30 October 2011.
'Annex 2: Operational Certification Procedures for the Rules of Origin of the ASEAN Preferential Trading Arrangements," available at: http://www.aseansec.org/1376. htm.
"ASEAN Framework (Amendment) Agreement for the Integration of Priority Sectors, Cebu, the Philippines," 8th December, 2006, available at: http://www.asean. org/19200.htm, last accessed: 27 October 2011.
"ASEAN Framework Agreement for the Integration of Priority Sectors,'' signed in Vientiane, 29th November 2004, available at: http://www.aseamorg/16659.htm.
"ASEAN Free Trade Area (AFTA) Council," available at: http://wwwasean.org/19585.htm, last accessed 17 October 2011).
Augier, Patricia., Gasiorek, Michael., and Lai-Tong, Charles., "The Impact of Rules of Origin on Trade Flows," retrieved from: http://www.defi-univ.org/IMG/pdf/0301.pdf.
Cadot, Olivier., de Melo, Jaime., and Perez, Alberto Portugal., "Rules of Origin for Preferential Trading Arrangements: Implications for AFTA of EU and US Regimes," CREA-Institut de Macroeconomie Appliqué, University de Laus-anne, Juni 2006, Retrieved available at: http://www.hec.unil.ch/crea/publications/autrespub/china.pdf.
Cheng, Xin-xuan, "The Impact of Preferential Rules of Origin On The Relationship of Free Trade Area and The Multilateral Trading System," available at: http://www.cscan-ada.net/index.php/mse/article/viewFile/1614/1884.
"Declaration on the ASEAN Economic Community Blueprint," available at: http://www.asean.org/21081.htm.
Estevadeordal, Antoni., Harris, Jeremy., and Suominen, Kati., "Multilateralising Preferential Rules of Origin around the World," IDB Working Paper Series # IDB-WP-137, Inter-American Development Bank, 2009, available at: http://idb-docs.iadb.org/wsdocs/getdocu-mentaspx?docnum=1803029.
Falvey, Rod and Reed, Geoff, "Rules of Origin as Commercial Policy Instruments," Research Paper 2000/18, Centre for Research on Globalisation and Labour Markets, School of Economics, University of Nottingham, available at: http://www.nottingham.ac.uk/shared/shared_levpublications/Research_Papers/2000/00_18. pdf.
Folsom, Ralph H., "Bilateral Free Trade Agreements: A Critical Assessment And WTO Regulatory Reform Proposal," Legal Studies Research Paper Series, Research Paper No. 08-070, September 2008, available at: http://papers.ssrn.com/so13/papers cfrn?abstract_id=1262872, last accessed: 11th September 2010.
"Glossary Statistical Terms," available at: http://stats.oecd.org/glossary/detail.asp?ID=4992.
International Center for Economic Growth, Near East Program, "Free Trade Agreements and Rules of Origin," Policy Brief, Economic Policy Initiative Consortium Project, Brief#0012, available at: http://www.atdforum.org/IMG/pdf/Policy_Brief. Roapdf.
Izam, Miguel, "Rules of Origin and Trade Facilitation in Preferential Trade Agreement in Latin America," Serie, Commercio Internacional, Division of International Trade and Integration, Santiago, Chile, August, 2003, available at: http://www.eclac.org/publicaciones/xml/0/13420/1c11945i.pdf.
"Joint Media Statement of the Thirty-Eight ASEAN Economic Ministers' (AEM)," Meeting Kuala Lumpur, 22 August 2006 available at: http://www.asean.org/18692.htm.
Jones, Vivian C., and Martin, Michael E, "International Trade: Rules of Origin," RL34524, CRS Report for Congress, Congressional Research Service, January 11, 2011, available at: http://www.fas.org/sgp/crs/row/RL34524.pdf, last accessed: 11 February 2011.
"Ministers Discuss Implementation Progress of AEC Blueprint," Jakarta, 7 May 2011, available at: http://www.asean.org/26240.htm.
Naumann, Eckart., "Rules of Origin under EPAs: Key Issues and New Directions," Paper for Tralac Conference October 2005, available at: http://www.tralac.org/unique/tralac/pdf/20051018_ROO_paper.pdf.
"Paragraph 1 Article I Part I of the Agreement on Rules of Origin stipulate," available at: http://www.wto.orgienglish/docs_e/legal_e/22-roo.pdf.
"Protocol on Improvements on Extension of Tariff Preferences under The ASEAN Preferential Trading Arrangements," signed on Manila, 15 December 1987, available at: http://www.aseansec.org/1380.htm.
Stocker, Walter, "WCO Seminar on The Harmonization of Non-Preferential Rules of Origin," Technical Officer, Origin Sub-Directorate, World Customs Organization, available at: http://www.dga.gov.doidga-gov.net/uploads/file/seminar-io_regional_oma/01rules-of-or-igin-english.pdf, last accessed: 8 March 2011.
"Technical Information on Rules of Origin," available at: http://www.wto.org/english/tratop_e/roi_e/roi_info_e.htm.
"The Agreement On ASEAN Preferential • Trading Arrangements," Manila, 24 February 1977, available at : http://www.aseansec.org/1376.htm.
The ASEAN Secretariat, Chair's Statement of the 18th ASEAN Summit Jakarta, "ASEAN Community in a Global Community of Nations" 7 - 8 May 2011, available at: http://wwwasean.org/Statement_18th_ ASEAN_Summit.pdf.
"The Rules of Origin for the ASEAN referential Trading Arrangements," available at: http://www.asean-sec.org/1376.htm.
"The WTO Agreement on Rules of Origin," available at: http://www.wto. org/english/docs_e/legal_e/22-roo.pdf.