We are pleased to share with you a new self-published book “Rules of Origin in Free Trade Agreements: Theory and Application” by Eduardo Quispe Álvarez.
“The Rules of Origin are part of trade agreements, so it is first necessary to refer to these agreements, indicating that they are international agreements signed by the countries within the framework of the WTO, in order to accelerate not only their trade integration, through the elimination of tariffs and other trade barriers, but also and as a consequence, establish a common regulation, also based on what is established in the WTO, which serves as a framework and support for commercial exchanges.
On the other hand, compliance with the rules of origin indicates that the goods that are traded between the countries that sign a certain trade agreement are produced and consequently are classified as originating from any of the signatory countries of the aforementioned trade agreement. Therefore, the trade of such goods between these countries is free of tariffs or has a preferential tariff with respect to the tariff used with countries with which it does not have a signed trade agreement. Due to these reasons, it is very necessary for people involved in international trade to know the basis for the various criteria and the variations in their application, depending on the trade agreement signed.
For these purposes, a format has been designed that gives us answers to the reason for the existence of the rules of origin, to the various forms of their compliance and explains why such compliance implies a substantial transformation of the inputs to become a final merchandise. Consequently, the relationship between the substantial transformation and the criteria used to test said transformation is also explained.
This approach to the subject goes through a basic course in the application of the rules of origin and later through a more detailed explanation of said criteria, the various ways in which they are applied and also the ways in which such criteria are expressed, in the different trade agreements that exist. The latter is complemented by comparative tables included in Annex 3, in which the criteria in five trade agreements are shown, including among those mentioned, an integration process.
To complete the scenario, an explanation is given of the complementary elements that intervene in the rules of origin, highlighting the issue of accumulation, not only of goods but also of processes, a subject very little discussed and with some grey spaces in its application. It is important to note that chapter V includes, in a comparative table, the application of the rules of origin, to thirty products or goods, in five free trade agreements.”
Eduardo is an economist from the Federico Villarreal National University and Master in Administration from the Universidad del Pacífico, both in Lima, Peru; Diploma in Le Tecniche dell ’Integrazione Applicate allo Svillupo, Società Italiana per L’ Organizzazione Internazionale -Ministero degli Affari Esteri Italiano-Rome. On integration issues, he served as an international official of the General Secretariat of the Andean Community (CAN), occupying the management of Rules of Origin, Government Procurementand the Automotive Agreement, participating in negotiations of trade agreements carried out by the Andean countries with MERCOSUR and the European Union. He was also in charge of the administration of the mentioned international organisation. Subsequently, he served the Presidency of the Council of Ministers of Peru and was manager of the Procurement Project for “MYPErú” of the Ministry of Development and Social Inclusion. He currently works as a university professor and consultant.
This e-book has been reproduced on the INCU website with the permission of the author.