Market Access to the EU: Rules of Origin Eckart Naumann tralac Conference Stellenbosch, South Africa 11-12 November 2004.

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Presentation transcript:

Market Access to the EU: Rules of Origin Eckart Naumann tralac Conference Stellenbosch, South Africa November 2004

► Preferential EU market access regimes ► Rules of Origin as key determinant of market access ► Key aspects of Cotonou Rules of Origin ► Revision of EU Rules of Origin regime: recent developments ► Key issues in the context of EPA Rules of Origin Overview 2

► Generalised System of Preferences (GSP) – 178 dev. countries ► GSP to be enhanced (coverage, cumulation, graduation) ► Everything-But-Arms (EBA) – least-developed countries ► 39 / 48 are ACP ► Cotonou Agreement – 78 ACP countries ► Cotonou most favored among ACP based on utilisation of preferences Preferential EU Market Access 3

► Rules of Origin - implementation of trade policy ► Set the conditions for preferential market access ► Determine “economic nationality” of goods ► Prevention of trade diversion ► Trade barrier: political economy / protectionist elements ► Relationship: Rules of Origin and margin of preference Rules of Origin a Key Determinant of Market Access 4

► Basic principles of origin ( for preferential market access ) “Wholly obtained” or “Sufficiently processed” ► Wholly obtained: list of criteria ► Mostly agricultural goods, minerals and metals, fisheries ► Sufficiently processed: 3 methodologies (VA, SP, CTH) ► Applicable to most processed goods Key Origin Criteria of Cotonou Rules of Origin 5

► ACP (excl. SA) Exports 2003: € 28bn ► Of top 25 ACP exports (at HS4) to EU in 2003, ► 10 agricultural goods [ cocoa, fish, sugar, wood, bananas…] ► 9 minerals/metals [oil, gas, diamonds, aluminium, gold…] ► 6 manufactures [jerseys, T-shirts, boats…] Key ACP Exports 6

► Cumulation ► Value tolerance excludes tuna ► Derogation via EU-ACP Customs Cooperation Committee Other Aspects of Cotonou Rules of Origin 7

► Cotonou: “Revision of RoO” (Art 37(7)) ► EU Green Paper (December 2003, follow-up August 2004) ► Internal EU document: “RoO in Preferential Trade Regimes: Orientations for the Future” ► Revision of EU GSP: simplification, cumulation, graduation Towards a new Rules of Origin Framework 8

► All-ACP vs. regional Rules of Origin ► Methodology: simplification and technical changes e.g. single rule where feasible; VA vs foreign content ► Issues around cumulation: limitations ► Value tolerance rules: increase %, remove limitations Key Issues in the Context of EPA Rules of Origin 9

► Asymmetrical Reciprocity: tariff liberalisation or diff. RoO? ► Design Economic Development Indicators – for asymmetry ► Focus on market access for key sectors (current difficulties): ► e.g. Fisheries NB: “wholly obtained”, processed fish, territorial waters / EEZ, ownership & crew ► e.g. Textiles and Clothing current rules based on outdated system, little recognition of technical dev’mts  see trade data Key Issues in the Context of EPA Rules of Origin /2 10

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► Relationship: Rules of Origin and margin of preference ► And lastly… ACP must push for concessions and provide innovative proposals - If you don’t ask, you don’t get Key Issues in the Context of EPA Rules of Origin 14