Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

A Geo-Economic Turn in Trade Policy?Rules of Origin: Bridging Regions to Withstand Turbulent Times

A Geo-Economic Turn in Trade Policy?: Rules of Origin: Bridging Regions to Withstand Turbulent Times [Global value chains are increasingly characterized by regional manufacturing “factories”: “factory” Europe, “factory” Asia, and “factory” North America. Underpinning these are the rules of origin (ROOs) of the regional trade agreements (RTAs). ROOs provide incentives to sourcing intermediate goods from the RTA parties, resulting in exclusionary effects on exports from third countries. The exclusionary effects are exacerbated in some ROOs because they are more restrictive than necessary to determine origin. Overall, product-specific ROOs in a plurilateral RTA that includes a manufacturing hub nation tend to be more restrictive than those in a bilateral RTA. Hence, the question arises whether the EU and Asia can develop an arrangement that can bridge the two regions without further fracturing global value chains. This chapter proposes that the extension of the Regional Convention on Pan-Euro-Med Preferential Rules of Origin (PEM Convention) to EU’s trading partners in Asia can enable geostrategic cooperation between the EU and its trading partners in Asia. In tandem with the underlying bilateral RTAs, the extended PEM Convention has an advantage over a plurilateral RTA because bilateral RTAs allow differentiated agreements in value-based issues. However, that the extension of the EU’s regional value chains to Asia may risk weakening global value chains.] http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png

A Geo-Economic Turn in Trade Policy?Rules of Origin: Bridging Regions to Withstand Turbulent Times

Part of the The European Union in International Affairs Book Series
Editors: Adriaensen, Johan; Postnikov, Evgeny
Kim, Jong Bum
Springer Journals — Feb 5, 2022
Download PDF
20 pages

Loading next page...
 
/lp/springer-journals/a-geo-economic-turn-in-trade-policy-rules-of-origin-bridging-regions-M5socOyo4n
Publisher
Springer International Publishing
Copyright
© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2022
ISBN
978-3-030-81280-5
Pages
175 –195
DOI
10.1007/978-3-030-81281-2_8
Publisher site
See Chapter on Publisher Site

Abstract

[Global value chains are increasingly characterized by regional manufacturing “factories”: “factory” Europe, “factory” Asia, and “factory” North America. Underpinning these are the rules of origin (ROOs) of the regional trade agreements (RTAs). ROOs provide incentives to sourcing intermediate goods from the RTA parties, resulting in exclusionary effects on exports from third countries. The exclusionary effects are exacerbated in some ROOs because they are more restrictive than necessary to determine origin. Overall, product-specific ROOs in a plurilateral RTA that includes a manufacturing hub nation tend to be more restrictive than those in a bilateral RTA. Hence, the question arises whether the EU and Asia can develop an arrangement that can bridge the two regions without further fracturing global value chains. This chapter proposes that the extension of the Regional Convention on Pan-Euro-Med Preferential Rules of Origin (PEM Convention) to EU’s trading partners in Asia can enable geostrategic cooperation between the EU and its trading partners in Asia. In tandem with the underlying bilateral RTAs, the extended PEM Convention has an advantage over a plurilateral RTA because bilateral RTAs allow differentiated agreements in value-based issues. However, that the extension of the EU’s regional value chains to Asia may risk weakening global value chains.]

Published: Feb 5, 2022

There are no references for this article.