What effects do rules of origin have on the utilization of trade preferences?

As free trade agreements continue to expand in numbers and complexity, preferential origin requirements also multiply and become more complex. The diversity and complexity of rules of origin increase trading costs and may diminish the appeal of preferential agreements. Hence, monitoring the utilization of preferential agreements vests a strategic interest for policy makers. The calculation and examination of utilization rates can help identify with greater precision origin-related requirements that may be hindering the full value of preferential agreements. The linkages between rules of origin and the utilization of preferences is discussed in the WTO Committee on Rules of Origin.

The table below contains academic and research articles which describe different effects of rules of origin on trade preferences.

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This page has been prepared under the WTO Secretariat's own responsibility and is without prejudice to the positions of members or to their rights and obligations under the WTO.