The last decade has seen an exponential growth in the formation of regional trade agreements (RTAs) and the development of regional dispute settlement mechanisms (DSMs). One of the most significant RTAs is the nascent ASEAN-China Free Trade Area (ACFTA) which has set-up its own untested DSM....

Restrictive preferential rules of origin cause producers in RTAs to source intermediate materials from RTA partners instead of non-parties in order to meet the rules of origin requirements. For RTAs concluded under Article XXIV, restrictive preferential rules of origin open doors to selective...