Jointly implemented by the International Centre for Trade and Sustainable Development (ICTSD) and the Inter-American Development Bank (IDB), the RTA Exchange works in the interest of the sharing of ideas, experiences to date and best practices to harvest innovation from RTAs and leverage lessons learned towards progress at the multilateral level. The ongoing stalemate on the Harmonization Work Programme (HWP) with respect to non-preferential rules of origin (RoO) has left business trade negotiators and customs officials negotiating free trade agreements (FTAs) in a “no man’s land.” Progress is clearly needed to ensure trade facilitation, not only for least-developed countries (LDCs), but all states in the period ahead. This paper examines some of the current limitations on RoO and the causes of deadlock. It also reviews lessons learned thus far in the implementation of RoO to put forward recommendations concerning cumulation, administration, and the need to take into account services in the manufacturing process.
Written by Stefano Inama