Rules of Origin as Non-Tariff Measures: Towards Greater Regulatory Convergence

Abstract

This paper examines some of the features of rules of origin (RoO) that makes these policy instruments nontariff measures, reflects on the causes of the longstanding deadlock in the WTO on multilateral harmonization of non-preferential RoO, and reviews recent trends in RoO included in recent preferential trade agreements (PTAs) involving the EU and/or the US. These reveal a steady and substantial movement towards adoption of similar approaches and illustrate that cooperation to reduce the trade-impeding effects of differences in RoO across jurisdictions is feasible. We argue that from a trade facilitation perspective such cooperation can and should pursue greater convergence between preferential and nonpreferential RoO, building on the developments observed in PTAs.