A multiple country of origin rule to help resolve trade disputes

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A number of authors have argued, quite convincingly, that the current country of origin rules are antiquated and should be change (Lloyd, 1993; Falvey and Reed, 1998; Ho, 1998). The main argument is that a single country of origin does not fit the reality of global production in the modern world. The logical conclusion is therefore the replacement of a single country of origin (SCO) rule by a multiple country of origin (MCO) description. Whereas a SCO rule is unavoidably arbitrary because of the global nature of production, a MCO description is only a factual, objective statement about the country of origin of the values added in proportion to the contributions by various countries (Ho, 1998; Lloyd, 1993). Lloyd and Ho have separately proposed tariff and quota regimes that accommodate the multiple country of origin reality and thus are free from the trade and investment diversion consequences that characterize single country of origin rule regimes.
Original languageEnglish
Title of host publication經濟全球化與中美經貿關係
Number of pages13
ISBN (Print)7801494962
Publication statusPublished - 1 Jan 2001

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