Exclusionary Rules of Origin of Mega-RTAs under WTO Law: Mega-RTA ‘Fracturing’ Its Overlapping RTA

2017 ◽  
Vol 17 (1) ◽  
pp. 121-144 ◽  
Author(s):  
JONG BUM KIM
Keyword(s):  
Value Added ◽  
Intermediate Goods ◽  
Rules Of Origin ◽  
Intermediate Inputs ◽  
Legal Remedy ◽  
Economic Partnership ◽  
Regional Comprehensive Economic Partnership

AbstractA mega-RTA such as the planned Trans-Pacific Partnership (TPP) or the Regional Comprehensive Economic Partnership (RCEP) may overlap another RTA, with the result that some of the parties to the mega-RTA's overlapping RTA may become common parties, while others may remain as single-agreement parties. If the mega-RTA provides rules of origin based on the change in tariff classification (CTC)-with-exception criterion such as yarn-forward rules, the rules of origin will become more restrictive with respect to the imports of the excluded intermediate goods from the single-agreement parties after the formation of the mega-RTA than before, thus failing to meet the requirement under GATT Article XXIV:5. The exclusionary rules of origin of the mega-RTA draw the trade away from the single-agreement parties, causing ‘fracture’ in the mega-RTA's overlapping RTA. As a legal remedy to the problem, the mega-RTA should eliminate the restriction from the CTC-with-exception criterion by adopting the rules of origin based on the non-exclusionary criteria such as the value-added or the CTC criterion that does not presumptively exclude the use of certain non-originating intermediate inputs.

An Assessment of Barbados' Competitiveness within the EU Market 1992-2006

2010 ◽  
Vol 10 (2) ◽  
pp. 1850194 ◽  
Author(s):  
Troy Lorde ◽  
Antonio Alleyne ◽  
Brian Francis
Keyword(s):  
Value Chain ◽  
Agricultural Policy ◽  
Market Access ◽  
Value Added ◽  
Rules Of Origin ◽  
History Of ◽  
Economic Partnership ◽  
Partnership Agreement ◽  
The Uk ◽  
The Eu

This paper assesses Barbados' competitiveness within the EU market in light of its recent signing of an Economic Partnership Agreement (EPA) with the EU in 2008. Using SITC data from 1992-2006, indices of revealed comparative advantage (RCA) were calculated. We found that Barbados possesses comparative advantages in Live Animals; Raw Sugars, Beet and Cane; and Spirits. However, policies such as the EU's Common Agricultural Policy (CAP), stringent sanitary and phytosanitary requirements, onerous rules of origin and non-tariff barriers including technical barriers to trade, threaten to undermine these advantages. These developments strongly suggest that Barbados must move agriculture up the value chain and increase value-added, as well as integrate it more fully with other sectors of its economy. Greater attention must be focused on countries in the EU other than the UK, if full advantage is to be taken of the EPA, as the UK market is already mature. There is evidence that export opportunities to these countries exist in other commodity groups (Fuels, Lubricants, etc.; Animal, Vegetable Oils Fats, Wax; Chemicals, Related Products; Manufactured Goods). When these issues are placed within the context of Barbados' history of weak capacity to take advantage of the market access opportunities available from their trading arrangements, the overarching challenge for Barbados is one of effective market access. This will require, among other things, a capable export promotion agency. The export of non-traditional commodities should be promoted, and greater support, perhaps in the form of incentives, should be provided to large firms that are not yet exporters to encourage them to look beyond the domestic market.

scholarly journals On the Concept of Foreign Exchange Multiplier—A Correction

1976 ◽  
Vol 15 (3) ◽  
pp. 334-337
Author(s):  
A. R. Kemal
Keyword(s):  
Foreign Exchange ◽  
Value Added ◽  
Intermediate Goods ◽  
Developing Economy ◽  
Intermediate Inputs ◽  
Output Vector ◽  
Mathematical Error

In an earlier issue of this journal, Diamond [1] has argued that in develop¬ing countries increased imports may have an inflationary rather than a defla¬tionary impact on the economy. His reasoning is based on the fact that develop¬ing countries are faced with short supplies of imported inputs and not with a deficient demand. An increase in the imports of intermediate goods results in increased production and higher G.N.P. The ratio of the increase in output to the increase in the imports is termed foreign exchange multiplier by Diamond. Diamond's analysis is quite useful as it enables one to determine the increase in output when foreign exchange constraint is relaxed in a developing economy. However, his analysis suffers from two problems. First, the assumption that all of the increase in foreign exchange will be allocated to the imports of intermediate goods is unrealistic. Second, there is a mathematical error in his Equation 6 when he divides the output vector by an imports vector. In this note, the assumption that all of the increase in foreign exchange is allocated to the imports of intermediate inputs is relaxed. Diamond's Equation 6 is corrected. It is further shown that for the computation of a foreign exchange multiplier for the economy as a whole one does not need inter-industry matrix and that information regarding the value added per unit of gross output is sufficient.

Analysis of India’s Competitive Position in RCEP

2021 ◽  
pp. 097226292110036
Author(s):  
Amlan Ray ◽  
M. G. Deepika ◽  
G. Badri Narayanan
Keyword(s):  
Value Added ◽  
Limited Participation ◽  
Goods And Services ◽  
Opt Out ◽  
The Future ◽  
Core Areas ◽  
Economic Partnership ◽  
Regional Comprehensive Economic Partnership ◽  
Tariff Structure ◽  
Areas Of Interest

In the context of policy developments surrounding India’s opting out of Regional Comprehensive Economic Partnership (RCEP) and India’s lack of ventures in plurilateral regional trade agreements (RTAs), we attempt to analyse the competitiveness and potential of Indian export items in the RCEP region. Our findings show low export intensity for India with RCEP member countries. Higher revealed comparative advantage (RCA) and duty reduction in partner countries may help India in enhancing exports of only a few commodities. India has high RCA in commodities, for which the tariffs by RCEP countries are already moderate. Considering India’s present trade balance position, tariff structure, non-tariff barriers (NTBs) of partner countries, intellectual property rights (IPR) and export competitiveness of Indian commodities, it appears to us that India had limited options but to opt out of RCEP. While the members of RCEP are still open to accepting India, more needs to be worked out on building competitiveness for Indian commodities and the future strategy for negotiations, if India considers itself to be a part of RCEP in the future. Given its limited participation in regional blocks, India should identify its core areas of interest in goods and services where it can enhance its competitiveness and attain better trade performance using strategic bilateral negotiations and possibly exploit imported inputs to promote higher value-added exports.

Washington is unlikely to join key Pacific trade pact

2020 ◽  
Keyword(s):  
United States ◽  
Free Trade Agreement ◽  
Trade Agreement ◽  
The United States ◽  
Asia Pacific ◽  
Rules Of Origin ◽  
Content Type ◽  
The United Kingdom ◽  
Economic Partnership ◽  
Regional Comprehensive Economic Partnership

Significance Beijing’s announcement came shortly after it and 14 other Asia-Pacific countries signed the Regional Comprehensive Economic Partnership (RCEP), the world’s largest free trade agreement (FTA). Some US partners want Washington to join the CPTPP. Impacts As the largest economy in RCEP, China will have greater leverage in defining trade standards in the region. RCEP’s standardised rules of origin will enable its members to strengthen supply chains within the bloc. The United States remaining outside the CPTPP could diminish the pact’s appeal to the United Kingdom, which wants to become a member.

Trade Creation or Trade Diversion in ASEAN and ASEAN+6 FTAs: Trade Indicators Approach

2015 ◽  
pp. 25-41
Author(s):  
Anh Tu Thuy ◽  
Ngoc Le Minh
Keyword(s):  
Comparative Advantage ◽  
Wheat Gluten ◽  
Free Trade Area ◽  
Private Investment ◽  
Trade Diversion ◽  
Trade Creation ◽  
Public And Private ◽  
Trade Area ◽  
Economic Partnership ◽  
Regional Comprehensive Economic Partnership

This paper makes use of two trade indicators, Revealed Comparative Advantage (RCA) and Regional Orientation (RO), to evaluate the economic impacts of the ASEAN Free Trade Area (The) and the Regional Comprehensive Economic Partnership (RCEP) on Vietnamese commodities at the Harmonized System (HS) 2-digit level. Several sectors in which Vietnam has revealed a comparative advantage, has benefited from the AFTA, and would continue to enjoy trade creation from the RCEP, are: Cereals (10), Salt, sulphur, earth, stone, plaster, lime and cement (25), Rubber (40), Knitted or crocheted fabric (60), etc. More importantly, the result provides a list of commodities in which Vietnam has a comparative advantage and only experiences trade creation when participating in the RCEP. These are: Milling products, malt, starches, inulin, wheat gluten (11), Vegetable plaiting materials, vegetable products not elsewhere specified (14), Wood and articles of wood, wood charcoal (44), etc. Findings also show commodities in which Vietnam has a comparative advantage; but are not well positioned in the RCEP market yet, e.g. Cereal, flour, starch, milk preparations and products (19) and Manmade staple fibres (55). If sufficient investment decisions and marketing strategies are applied to these commodities, they will well penetrate the RCEP market and bring trade creation and welfare improvement to Vietnam. Public and private investment should consider the above-mentioned commodities as targets to leapfrog the benefits of RCEP.

Respon ASEAN Terhadap Mundurnya India Dari Kerja Sama Regional Comprehensive Economic Partnership (RCEP)

2020 ◽  
pp. 183-202
Author(s):  
Raden Maisa Yudono ◽  
Wiwiek Rukmi Dwi Astuti ◽  
M. Chairil Akbar Setiawan
Keyword(s):  
Comparative Advantage ◽  
Economic Cooperation ◽  
Point Of View ◽  
Geographic Proximity ◽  
Strategic Partner ◽  
Business Interests ◽  
Political Conditions ◽  
Economic Partnership ◽  
Regional Comprehensive Economic Partnership ◽  
Static Point

Regional Comprehensive Economic Partnership (RCEP) is a cooperation framework formulated by ASEAN and 6 strategic partner countries and is the first proposal in ASEAN history to discuss comprehensive economic cooperation. RCEP is ASEAN's effort to strengthen its position as regional aktor in the Southeast Asian. RCEP negotiations underwent changes during India's decision to withdraw from the RCEP negotiations, which prompted ASEAN to respond to these developments. This study fokuses on response taken by ASEAN to India's decision to withdraw from the RCEP negotiations. The concept used is soft regionalism which emphasizes geographic proximity, historical relations and the comparative advantage of the region. Soft regionalism is driven by not only by economic and business interests, but also market interests that become the energy of soft regionalism in Asia. This concept is functioning well because it conforms to the pragmatic Asian political conditions. The findings of this study is that ASEAN cannot be separated from the concept of soft regionalism in which it has been running, and still sees all changes through static point of view. ASEAN needs to make new breakthroughs in realizing comprehensive cooperation in the region.

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