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rules of origin

Preferential treatment provided for in a free trade agreement is usually granted only to products originating from members of that FTA, so rules of origin are important. These are the criteria which determine the national origin of a product. The country of origin of a product is usually seen as the country where the last substantial transformation took place.

Enforcing and defining rules of origin for goods or services poses major problems. This issue has been very controversial in a number of agreements and trade unions and other critics have campaigned to highlight the ways in which rules of origin can be used and abused by governments and corporations alike. In particular there are concerns about the ease with which goods processed partly or fully in a third country can receive duty-free access under a bilateral agreement by being re-exported with just enough processing to satisfy rules of origin requirements. This is further complicated by the fact that different bilateral free trade agreements use different criteria to set rules of origin.

Trump officials eye tariff relief for USMCA-compliant products, Lutnick says
5-Mar-2025 Reuters
Trump’s administration is considering granting relief from his 25% tariffs on Canadian and Mexican imports to products that comply with the US-Mexico-Canada Agreement.
Stricter rules of origin won’t help Michigan’s auto workers
9-Oct-2024 The Hill
The United States International Trade Commission found that, through 2022, there were “few signs” that USMCA’s rules of origin had led to changes in production, trade, employment and investment or competitiveness.
EU Court: Western Sahara tomatoes cannot be labelled as Moroccan
7-Oct-2024 Western Sahara Resource Watch
In its ruling on, 4 October 2024 the EU Court of Justice ruled that products from Western Sahara on the EU market cannot be labelled “from Morocco”.
India for stricter Rules of Origin in auto sector under India, UK trade agreement
11-Sep-2024 Deccan Herald
India and the UK are negotiating a free trade agreement. The UK seeks reduced tariffs on goods, while India wants greater market access for its professionals and protection for its auto industry. Both countries are also discussing sustainability and innovation in the automotive sector.
UK says rules of origin deal with Canada probably won’t be extended
28-Mar-2024 CTV
Britain said that post-Brexit trade arrangements with Canada that enable its carmakers to avoid high tariffs there were likely to expire next week, marking the latest deterioration in trade ties between the historic allies.
Commerce chief signs HK-Asean FTA protocol
10-Jan-2024 The Star
This will enable Hong Kong businesses to more easily and effectively gain Hong Kong-originating status for more of their products, providing them with preferential tariff treatment when expanding into the growing Asean market.
India-Japan FTA: Rules of origin, product specific rules to be reviewed
27-Nov-2023 The Hindu BusinessLine
India’s long-pursued demand for a review of the India-Japan Free Trade Agreement may be met with the two sides preparing to take a relook at the rules of origin and product specific rules for greater market access for goods.
India-Asean trade pact review: India pitches for tighter rules of origin
24-Nov-2023 The Financial Express
The ROO revision would be in line with the provisions in the trade agreements that are currently being negotiated, where extent of value addition in a product originating from the exporting country is different for each chapter or product.
India-UK free trade agreement faces hurdle over medical devices
21-Nov-2023 NDTV
Finalising the rules of origin for the medical devices sector remains a sticking-point in the proposed free-trade agreement between India and the UK and the talks are on to iron out the differences, an official said.
India-UK FTA talks: ‘Good progress’ on bilateral investment agreement: Official
18-Sep-2023 Daily Pioneer
The talks on the proposed free trade agreement between India and the UK are moving and there is progress on issues such as rules of origin and bilateral investment treaty (BIT).
India pushes for Asean FTA update on trade gap
6-Jul-2023 Mint
India has initiated talks with the Association of Southeast Asian Nations (Asean) to address concerns over the rules of origin and trade imbalance.
Canada, Mexico win auto rules trade dispute with US
12-Jan-2023 Reuters
Canada and Mexico have won their challenge to the US interpretation of content rules for autos under the new North American trade pact, a decision that favors parts makers north and south of the US border.
FTA provisions to prevail in rules of origin disputes
22-Aug-2022 The Economic Times
India will follow provisions of free trade agreements (FTAs) over the wider and more stringent domestic framework in case of any dispute over value addition or rules of origin related to imports under FTAs.
RCEP: why benefits from the world’s largest trade pact may not be as clear-cut as they seem
10-Feb-2022 South China Morning Post
More than a month after the world’s largest trade pact came into force, questions remain over its practical application and potential benefits for small businesses, the e-commerce sector and workers.
AfCFTA members conclude negotiations on rules of origin to enhance free trade
1-Feb-2022 Xinhua
Member states of the African Continental Free Trade Area concluded their negotiations on rules of origin, covering 87.7 percent of goods on the tariff lines of the AU member states.
Canada joins Mexico’s official complaint arguing US violating trade pact over auto parts provision
14-Jan-2022 CBC
Canada is joining Mexico’s official complaint requesting a dispute settlement panel to resolve a claim that the US is violating the new NAFTA by insisting on a stricter interpretation of a key provision on auto parts.
Mexico asks USMCA dispute resolution panel on auto content
7-Jan-2022 US News
The Mexican government has requested a dispute resolution panel under the US-Mexico-Canada free trade agreement, because it claims the United States is improperly interpreting stricter regional content rules under the pact.
Tariffs, rules of origin new hurdles to Africa’s trade area
13-Oct-2021 The East African
A meeting held at the AfCFTA headquarters in Accra found that without these provisions no trade can take place.
Canada joins Mexico in seeking consultation with US over USMCA content rules
30-Aug-2021 Reuters
Canada has joined Mexico in seeking formal consultation with the United States over the interpretation of content rules for automobiles
AfCFTA rules of origin talks drag
15-Aug-2021 The Southern Times
The full rollout of the African Continental Free Trade Area (AfCFTA) is being delayed as countries haggle over the overarching agreement on rules of origin and tariff reduction schedules.