The Development of FTA Rules of Origin Functions

  •  Xin xuan Cheng    


The rules of origin derived from the international trade needs of country trade statistics. When a government determined the supply and demand sources of imports and exports, they needed to clear the meaning of origin. For a large trade country, its customs levels differed from the country. So when imported the goods, the first was to discern the source of goods, then can accurately provide the appropriate treatment of the goods. It’s also the need to balance international trade. From this, the rules of origin initially were the technical aspects of international trade. With the development of liberalization of international trade and the tariff levels gradually reduced between countries, the use of non-tariff barriers was limited. Rules of origin’s impact on trade structure and resource allocation became more and more prominent, which had evolved into a hidden trade protection tool. With the deepening of international economic exchange, the application of rules of origin had expanded from the original customs technical problems to the country quotas, anti-dumping and many other fields. Also, it had become a powerful policy tool for implementing the trade protection, to some extent it had evolved into the discriminatory non-tariff barriers.

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