Building bridges between regionalism and multilateralism : enquiries on the ways and means to internationally regulate preferential rules of origin and their impact on systemic problems of FTA

Abstract

The analysis of rationales for preferential rules of origin presented in the thesis brings forward the assumptions that, contrary to what has been written in the literature, it still seems legitimate to maintain preferential rules of origin as distinct from non-preferential rules of origin. However, multiplication of rules of origin regimes causes systemic problems and fairness concerns. The thesis aims therefore at analysing diversification and harmonisation patterns and their interaction with the systemic problems identified. The final objective of the thesis is to analyse the possible methods for regulating rules of origin in light of these systemic issues. The thesis employs an interdisciplinary approach in order to understand rationales for and systemic problems derived from preferential rules of origin. The methodology, adopted to understand patterns of diversification and harmonisation, combines instead comparative analysis and case study approach with the analysis of WCO and WTO law. While it is impossible to find a solution that could solve all the systemic problems (beside the complete abolition of the rules), this thesis argues that the first objective of the WTO should be to achieve a greater level of correspondence between rules of origin and MFN concessions and address fairness concerns. This should allow the enforcement of rules of origin in line with article XXIV GATT, while recognising the particular role of preferential rules of origin in guaranteeing that the partner only benefits from the preferential liberalisation. Contrary to the current literature, the thesis hints that this can be addressed effectively without resorting to international substantial harmonisation and without leaving regulation simply to partial regional harmonisation processes, which are respectively either politically difficult to achieve or ineffective means for properly addressing systemic issues related to rules of origin.