Trade Efficiency Free Trade Agreements And Rules Of Origin

The creation of free trade zones is seen as an exception to the most privileged principle of the World Trade Organization (WTO), since the preferences of the parties to the exclusive granting of a free trade area go beyond their accession obligations. [9] Although GATT Article XXIV authorizes WTO members to establish free trade zones or to conclude interim agreements necessary for their establishment, there are several conditions relating to free trade zones or interim agreements leading to the creation of free trade zones. It should be noted that with regard to the qualification of the original criteria, there is a difference in treatment between inputs originating and outside a free trade agreement. Inputs originating from a foreign party are normally considered to originate from the other party when they are included in the manufacturing process of that other party. Sometimes the production costs generated by one party are also considered to be those of another party. Preferential rules of origin generally provide for such a difference in treatment in determining accumulation or accumulation. This clause also explains the impact of a free trade agreement on the creation and diversion of trade, since a party to a free trade agreement is encouraged to use inputs from another party to allow its products to originate. [22] Since WTO members are required to communicate their free trade agreements to the secretariat, this database is based on the official source of information on free trade agreements (called the WTO-language regional trade agreement). The database allows users to obtain information on trade agreements that are communicated to the WTO by country or theme (goods, services or goods and services).

This database provides users with an up-to-date list of all existing agreements, but those that are not notified to the WTO may be lacking. In addition, reports, tables and graphs containing statistics on these agreements, including preferential tariff analysis, are presented. [26] Free trade agreements, which are free trade zones, are generally outside the multilateral trading system. However, WTO members must inform the secretariat when new free trade agreements are concluded and, in principle, the texts of free trade agreements are reviewed by the Committee on Regional Trade Agreements. [11] Although a dispute in free trade areas is not the subject of litigation within the WTO`s dispute resolution body, “there is no assurance that WTO panels will comply and reject jurisdiction in a particular case.” [12] The economist has attempted to assess the extent to which free trade agreements can be considered public goods.

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