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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.

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).
Rules to verify origin of goods imported under FTA to take effect on September 21
16-Sep-2020 Money Control
The Government of India will implement a host of measures to curb the misuse of Free Trade Agreement (FTA) routes by unscrupulous importers, while ensuring that legitimate beneficiaries do not suffer.
India seeks stronger rules of origin as it urges ASEAN for FTA review
31-Aug-2020 Business Standard
India has pitched for stronger provisions in the rules of origin, removal of non-tariff barriers and better market access in the existing FTA with the the ASEAN, arguing the changes should kick off sooner rather than later.
Changes to USMCA steel requirements give Mexican auto sector headache
5-Jun-2020 Reuters
To qualify for tariff-free trade, makers of heavy vehicles must meet various requirements, including a 60% regional content threshold that will increase gradually and 70% regional inputs of steel and aluminum.
Coronavirus: India urges FTA partners to temporarily allow imports without certificate of origin
31-Mar-2020 The New Indian Express
India has urged the countries, with which it has FTAs, to allow imports of goods without certificate of origin are currently not issuing the document on account of lockdown due to COVID-19 pandemic.
S.Africa plans summit to finalise continental free trade agreement
14-Feb-2020 Reuters
South Africa will in May hold an extraordinary summit of the African Union to finalise a continental free trade agreement.
S. Korean firm to request arbitration in investor-state dispute with US government
15-Jan-2020 Hankyoreh
KTurbo claims US government violated terms of KORUS FTA, after US court judged that the company violated place of origin rules.
India speeding up FTA talks with Switzerland, Norway, Iceland
3-Jan-2020 The Hindu Business Line
India is making efforts to speed up free trade negotiations with the EFTA countries comprising Switzerland, Norway, Iceland and Leichtenstein in parallel with its discussions with the European Union on a similar pact.
Steel rules for cars stall progress on the revised Nafta agreement
9-Dec-2019 Bloomberg
US rules-of-origin demand presents new challenge for Mexico. Requirements for cars are among most complicated USMCA topics.
RCEP remains distant dream; India’s return to this free trade agreement not imminent
20-Nov-2019 Financial Express
India’s existing free trade agreements (FTAs) with Asean, Japan and South Korea already link duty concession to a 35% value addition, according to analysts.