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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.

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.
Delay expected as deadline looms for AfCFTA rules of origin talks
29-Jul-2021 Global Trade Review
Talks aimed at finalising key aspects of the new African Continental Free Trade Area are facing delays, as member countries work to reach an overarching agreement on rules of origin and tariff reduction schedules.
US clashes with Mexico, Canada on car rules in USMCA risk
19-Jul-2021 Bloomberg
The US insists on a stricter way than Mexico and Canada believe they agreed to for counting the origin of certain core parts including engines, transmissions and steering systems in the overall calculation.
Kenya-UK economic partnership agreement betrays the East African Community
3-Jul-2021 Citizen Digital
While the Kenya-UK EPA consistently makes reference to the EAC and even purports that its is signed on behalf of Kenya and the EAC, it fails terribly when examined against the above requirements of mutual cooperation.
Reconsidering RCEP’s Impact on Foreign Investment
28-Jun-2021 The Diplomat
Based on our analysis, RCEP does not ensure a new world order for FDI. Countries wanting to attract FDI cannot rest on the laurels of RCEP or its changes in ROOs.
AU Heads of State direct AfCFTA negotiations to be concluded by June
14-May-2021 Joy Online
This includes the protocols on rules of origin which seeks to deal with the issue of third party exports into the free zone area.
Outstanding negotiations on AfCFTA to conclude before end of the year
26-Apr-2021 Joy Online
Some outstanding negotiations are part of necessary conditions to ensure the success of the AfCFTA, but have been facing challenges from member countries despite commencement of the agreement.
RCEP expected to bring ’explosive growth,’ fierce competition among parties
9-Mar-2021 CGTN
In a more open market, Chinese products will face fierce competition from low-end products made by Southeast Asian countries with comparative advantages in labor and land, and high-end products by developed countries like Japan and South Korea.
African free trade tariff rules should be completed by July-official
12-Jan-2021 Reuters
Members of Africa’s new free trade area should complete their tariff reduction schedules and finalise essential rules of origin by July.
Rules of Origin a key issue for continuing African free trade area talks
29-Oct-2020 Engineering News
African Union Ministers of Trade held their twelfth meeting, undertaken virtually, which was focused on concluding essential elements that remain to be agreed in the AfCFTA talks.
Vietnam continues institutional reform as part of EVFTA commitment
13-Oct-2020 Vietnam Plus
Vietnam is continuing its institutional reform commitments made in the historic EU-Vietnam Free Trade Agreement (EVFTA) in an aim to boost exports of agricultural products and attract more investment from the EU trading bloc.
AFCFTA: Rules of origin negotiations at concluding stages
9-Oct-2020 This Day
Nigeria has negotiated and almost concluded the rules of origin to pave way for Nigeria’s ratification of the African Continental Free Trade Agreement (AfCFTA).