The Politics of Rules of Origin

Rules of origin (ROOs) aim to determine whether a particular trade concession will be applied to a given product in international trade. Certain features of ROOs make them particularly susceptible for employment as an instrument of foreign and domestic policies. Though some of those political objectives are desirable, the unrestrained political employment of ROOs embraces some significant hazards, particularly the undermining of the predictability and stability of trade relations. The increasing political employment of ROOs was one of the principal factors leading to the inclusion of this topic in the Uruguay Round agenda and the formulation of the 1994 WTO Agreement on Rules of Origin. The 1994 initial agreement is not effectively coping with the widening political employment of ROOs. Consequently, it is suggested to further restrain the involvement of political considerations in the formulation and implementation of ROOs