Chapter

Rules of Origin as tools of development? Some lessons from SADC

Olivier Cadot, Antoni Estevadeordal, Akiko Suwa-Eisenmann and Thierry Verdier

in The Origin of Goods

Published in print February 2006 | ISBN: 9780199290482
Published online May 2006 | e-ISBN: 9780191603471 | DOI: http://dx.doi.org/10.1093/0199290482.003.0011
 Rules of Origin as tools of development? Some lessons from SADC

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Firm level interviews are used to assess the economic implications of the rules of origin (ROO) applied for trade to qualify under the Southern African Development Community (SADC) Trade Protocol. Approaches to ROO reflect the tension between regional integration as a platform for improving competitiveness in international markets, and using it as a ‘policy tool for development’ to obtain privileged access to a larger protected market. The analysis of selected SADC ROO in agriculture and manufacturing shows that these will prevent efficiency gains from being realized by the Free Trade Area by maintaining the pre-Trade Protocol protection and trade patterns. ROO that seek to influence the sourcing of inputs through fiat will encourage trade diversion and reduce international competitiveness.

Keywords: regional integration; international trade; free trade areas; preferential trade agreement; rules of origin; Southern African Development Community

Chapter.  14489 words. 

Subjects: International Economics

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