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Authors

Raj Bhala

Abstract

Rules of origin (ROOs) are not merely neutral, valuefree formulas to determine entitlement to duty-free, quota free (DFQF) treatment under a free trade agreement (FTA). They are the outcome of tortuous bargaining over competing political and economic interests in and within exporting and importing countries seeking to establish an FTA. Preferential ROOs in the Trans Pacific Partnership (TPP) illustrate this point. In the textile and apparel (T&A) and automotive sectors, negotiators from the TPP Parties battled to gain comparative advantages, or prevent erosions of these advantages. They did so not only with respect to each other, but also with an eye to competition from China. How successful they were in advancing or preserving their domestic sectoral interests, and anticipating challenges from China, remains to be seen.

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