Global Trade and Customs Journal
Volume 14, Issue 4 (2019) pp. 146 – 153

https://doi.org/10.54648/gtcj2019014

Abstract

Drafting product specific rules of origin is the daily nightmare of trade negotiators engaged in Free Trade Agreements (FTAs) negotiations. There are no multilateral disciplines, little research has been carried out to concretely suggest best practices and the private sector is unable to provide valuable inputs due to the complexity of rules of origin (RoO) and their calculations. The use of the ad valorem percentage criterion in drafting RoO is often perceived as a shortcut to RoO complexities. In reality the apparent straightforward nature of the percentage criterion is hiding a number of complexities and drafting options. This first part of this article addresses such technicalities and provides recommendations about the calculation methodology of the ad valorem percentage criterion on the basis of comparative analyses and trends in major FTAs.

Extract

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