Preferential Rule Of Origin-China's Application And Strategy

Preferential Rule of Origin is the Rule of Origin performed single-sided by a country, or by more than two countries (regions) after the agreement that the rules are applicable in the countries (regions) involved. It is used in the Generalized Systems of Preferences and all kinds of rapidly-increasing Regional Trade Agreements. Generalized Systems of Preferences is a tariff preference system given by the developed countries single-sided to the developing countries. With over 30 years passed, new preference lists and details which are introduced under the fixes on the Rule of Origin made by the donor countries are adjusting the trading relationships among the participants. As china is one of the developing countries, new preference lists and details would bring much impact on china's economy. Another Preferential Rule of Origin is widely used due to the rapidly-increasing Regional Trade Agreements. The countries can make and fix the rule with arbitrary, because the Preferential Rule of Origin is not bring into any multilateral legal system. With a higher degree of exclusive and protection, the rules have been widely used and promote the intra-regional economic development. It is important to probe into china's use of Preferential Rule of Origin as china enters WTO and RTA.The paper firstly describes the background and Research Methods of Preferential Rule of Origin. Then, shows the characteristics of different types of the rules on basis of the outline. Thirdly, sets WTO,GSP system,the pan-European system and North American Free Trade Area as examples to show the situation of usage about the rules from an international perspective. And follows china's use of Preferential Rule of Origin and the problems in process of application. In the end of the article, puts forward several principle and advice to perfect china's Preferential Rule of Origin.