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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.

India tries to loosen RCEP tangle ahead of Leaders Summit on November 4
22-Oct-2019 The Hindu Business Line
Indian negotiators are in Bangkok trying to insert crucial provisions in the proposed Regional Comprehensive Economic Partnership (RCEP) pact.
AfCFTA: Officials push for all member states to ratify free trade deal
26-Sep-2019 The East African
With the July 1, 2020 launch of the African Continental Free Trade Area approaching, 90% of outstanding issues on the rules of origin and tariff guidelines have been resolved.
India walks a tight rope as RCEP negotiators meet in Vietnam for final talks
25-Sep-2019 The Hindu Business Line
India continues to grapple with the dilemma of wanting to stay in the group while protecting the interests of its vulnerable sectors and is yet to reach an understanding with other members, including China, on market opening commitments.
Japan leaves billions on table as paperwork clogs free trade deals
18-Aug-2019 Nikkei Asian Review
Only half of eligible companies enjoying fruits of 17 trade agreements.
Ministry announces changes in rules of origin in ASEAN-China FTA
17-Aug-2019 Vietnam Plus
The Ministry of Industry and Trade has announced amendments to the rules of origin under the ASEAN-China Free Trade Agreement (ACFTA).
India for ‘made in’ tag on all imported items
13-Aug-2019 The Economic Times
India could make it mandatory for all imports to carry ‘made in (country)’ tag declaring their place of origin as it looks to tackle large scale dumping and entry of sub-standard goods and give a fillip to local manufacturing.
Rules of origin key to African Continental Free Trade Area: UN report
27-Jun-2019 Xinhua
Rules of origin must be simple, transparent, business-friendly and predictable to work, said UNCTAD.
Tobacco as an ‘offensive interest’ in trade talks? The role of rules of origin
3-Jun-2019 EPHA
Beyond ISDS, another potential trade policy issue lurks in the background and which has not yet captured the attention of the health policy community: rules of origin in trade agreements.
Africa: How soon can the Continental Free Trade Agreement be implemented?
5-Apr-2019 All Africa
Among the key issues where negotiations are still needed include the rules of origin, non-tariff barriers, structure of implementation, schedule of concessions and tariff books.
Sacu, Mozambique fail to reach agreement to cushion Brexit impact
19-Mar-2019 Business Report
Issue with “cumulation,” which relates to certificates of origin required by exporters to both regions and differences in relation to timeframes for the continued recognition of sanitary and phytosanitary import requirements are not resolved.
India proposes stricter country of origin norms in RCEP pact
6-Sep-2018 Economic Times
India has mooted stricter rules of origin in the Regional Comprehensive Economic Partnership (RCEP) trade agreement to prevent Chinese goods from indirectly flooding the country.
US and Mexico put off NAFTA talks until Wednesday, autos eyed
22-Aug-2018 Reuters
Rules of origin for autos is really a “bilateral” issue between Mexico and the United States because Canada was relatively comfortable with the original US proposal.
NAFTA math may not add up to more US auto jobs
14-May-2018 Reuters
Trump administration demands in NAFTA trade negotiations meant to push auto jobs back to the United States may not be enough to spark a shift in where automakers build cars and trucks.
US wants 4-year phase-in for higher NAFTA auto content thresholds
2-May-2018 Reuters
The latest US proposal for increasing NAFTA’s regional automotive content would carry a four-year phase-in to meet a higher, 75 percent regional value threshold and new labor content rules requiring substantial work at wages of $16 an hour or higher.
NAFTA officials put top-level talks on hold until May 7 to consult with industry
30-Apr-2018 Reuters
Negotiators trying to hammer out a quick NAFTA deal said they will take a break until May 7, allowing time for consultations with the auto industry in Mexico.
Canada hails progress on crucial autos file at NAFTA talks
20-Apr-2018 Reuters
Canadian, Mexican and U.S. ministers seeking to revamp the North American Free Trade Agreement (NAFTA) have made good progress on the key question of autos, Canadian Foreign Minister said.
Trump said to soften key NAFTA demand on regional car content, but target may still be hard to reach
6-Apr-2018 Financial Post
The US proposal would distinguish between different NAFTA car parts by grouping them into five categories, some of which would have a lower requirement for North American content or none at all
US NAFTA autos negotiator called from Mexico for consultations: officials
27-Feb-2018 Reuters
The US negotiator for regional content requirements in autos flew back to Washington from a NAFTA round in Mexico on Monday to talk with car companies, officials said, in a development some hoped would lead to progress on the contentious issue.
Next Nafta talks scheduled to start with auto content rules
19-Feb-2018 Bloomberg
Seventh round set to run Feb. 25 to March 5 in Mexico City. Rules of origin to be one of most discussed issues in talks.
Mexico to make regional content proposal for autos in NAFTA talks
8-Feb-2018 Reuters
Mexico will make a proposal for regional content requirements for autos at the next round of talks to renegotiate the North American Free Trade Agreement (NAFTA), a senior Mexican official said.