The Preferential and Non-Preferential Rules for Determining Product Origin and Their Significance in International Trade Law
DOI:
https://doi.org/10.60131/jlaw.1.2025.9278Keywords:
Free Trade, World Trade Organization (WTO), Economic Nationality, Protectionism, Substantial Transformation, Tariff Classification, Preferential Treatment.Abstract
Rules of origin constitute a fundamental pillar of international trade law, serving to classify goods based on their origin (or “economic nationality”). These rules are crucial role to the functioning of free trade agreements, which grant significant tariff and non-tariff preferences to countries participating in a preferential trade regime (preferential rules of origin). Rules of origin are also essential for the implementation of various trade mechanisms, such as anti-dumping measures, quantitative restrictions (quotas), trade embargoes, labeling requirements, and safeguard measures (non-preferential rules of origin).
This article examines the legal framework of preferential and non-preferential rules of origin within the World Trade Organization (WTO). It explores the pivotal role that the rules of origin play in shaping the free trade dynamics and their impact on the trade policies of countries, in which these rules can act as a mechanism for protectionism, potentially becoming a "hidden weapon" that limits free trade and competition. The article also analyzes the practical challenges associated with the implementation of rules of origin in global trading regimes.
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