Brief: Rules Of Origin In The EPA
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The document discusses the Cariforum-EC Economic Partnership Agreement (EPA), specifically focusing on the rules of origin that determine the qualification of goods for trade preferences. It highlights the negotiation outcomes regarding production, consignment, certification, and administrative cooperation while retaining much of the structure from the Cotonou Agreement. Changes allow for relaxed conditions on certain products of interest to Cariforum states while maintaining essential certification and verification processes.
![Jamaica Office Barbados Office Brief No.:
2nd Floor, JAMPRO Building, 3rd Floor, Mutual Building,
18 Trafalgar Road, Kingston 5, JAMAICA Hastings, Christ Church, BARBADOS 3200.3/EPA-11[08]
Tel: (876) 946-2329 Fax: (876) 978 4360 Tel: (246) 430-1670 Fax: (246) 228-9528
Email: jamaica.office@crnm.org Email: barbados.office@crnm.org
EPA Brief
The Cariforum-EC Economic Partnership
Agreement (EPA)
Rules of Origin in the EPA
Introduction
Rules of origin govern the qualification of goods for benefit of the preferences available under a free trade
arrangement, such as the Economic Partnership Agreement (EPA) between CARIFORUM and the EC.
These arrangements can be set down in three areas:
• The production or manufacture and consignment of the goods;
• The certification of the goods as being eligible for preference; and
• The provisions for administrative co-operation including verification of origin.
This brief review of the conclusions of the negotiation of the EPA in the area of rules of origin addresses
the outcome in these three areas with reference to the arrangements which obtained under the Cotonou
Agreement.
Background
It is necessary to set this review against the contrasting initial positions adopted by the two Sides in the
negotiations and the resolution of these differences.
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Brief: Rules Of Origin In The EPA
- 1. Jamaica Office Barbados Office Brief No.: 2nd Floor, JAMPRO Building, 3rd Floor, Mutual Building, 18 Trafalgar Road, Kingston 5, JAMAICA Hastings, Christ Church, BARBADOS 3200.3/EPA-11[08] Tel: (876) 946-2329 Fax: (876) 978 4360 Tel: (246) 430-1670 Fax: (246) 228-9528 Email: jamaica.office@crnm.org Email: barbados.office@crnm.org EPA Brief The Cariforum-EC Economic Partnership Agreement (EPA) Rules of Origin in the EPA Introduction Rules of origin govern the qualification of goods for benefit of the preferences available under a free trade arrangement, such as the Economic Partnership Agreement (EPA) between CARIFORUM and the EC. These arrangements can be set down in three areas: • The production or manufacture and consignment of the goods; • The certification of the goods as being eligible for preference; and • The provisions for administrative co-operation including verification of origin. This brief review of the conclusions of the negotiation of the EPA in the area of rules of origin addresses the outcome in these three areas with reference to the arrangements which obtained under the Cotonou Agreement. Background It is necessary to set this review against the contrasting initial positions adopted by the two Sides in the negotiations and the resolution of these differences. more
- 2. Page 2 www.crnm.org CARIFORUM took the view at the outset that the provisions of Article 37 of the Cotonou Agreement, which called for a review of the rules of origin in the negotiation of the EPA, required an effort to take account of the concerns of CARIFORUM exporters, in particular in those cases where the rules of origin inhibited qualification of CARIFORUM exports for preferential access. At the same time, CARIFORUM also made it clear that the structure of the rules of origin in the Cotonou Agreement was acceptable for retention in the EPA. The EC presented an initial proposal which called for substantial and far-reaching change in the structure and detailed requirements of the rules of origin. These changes called inter alia for the provision of value- added conditions across the board (in substitution for the Cotonou structure which largely utilised conditions linked to change in tariff heading of third country materials), the discontinuance of certification of origin with the substitution of registration of exporters and changes in the verification procedures. In the end, the rules of origin in the CARIFORUM-EC EPA maintain the structure of the rules of origin in the Cotonou Agreement while providing for changes in the conditions governing production and manufacture of some goods and some adjustments in the other provisions. One additional factor needs to be stated. The rules of origin in the EPA apply to production and trade in both directions – trade from the EC States to CARIFORUM States and vice versa. CARIFORUM adopted the position that the provision of asymmetrical rules of origin would not have any useful effect, having regard to the developed economies and the availability of materials and production facilities in the EC. Arrangements Dealing With Production Or Manufacture And Consignment The CARIFORUM-EC EPA provides relaxed qualifying conditions on a number of products of export interest to CARIFORUM States including biscuits and other bakery products, jams and jellies, fruit juices and other beverages, garments, knitted and non-knitted, and air conditioning units. The submissions on behalf of the producers suggest that these changes will allow for CARIFORUM production to enjoy the preferences available under the EPA. The provisions dealing with consignment remain unchanged – goods must be consigned directly from the country of production or manufacture to the consignee in the importing State. Certification of Goods as Eligible for Preference The arrangements for certification of origin which were in place under the Cotonou Agreement have been maintained. CRNM Brief
- 3. Page 3 www.crnm.org Administrative Co-Operation Including Verification of Origin The arrangements for administrative co-operation and verification of origin remain largely unchanged. Want to know more about the Economic Partnership Agreement? Please Visit: http://www.crnm.o rg/feed.htm CRNM Brief