The Study Of CAFTA’s Rules Of Origin

CAFTA, as the largest and the most complicated FTA which China has signed up,is of great importance to the development of Chinese Economy. Rules of Originwhich is recognized as the heart of FTA has a great impact on the implementary effectof the FTA. Due to the Chinese nascent legislative technology, Rules of origin inCAFTA has a number of defects especially in the substantial transformation ruleswhich is too general to optimize resources distribution and to prevent the profit for theregion outflowing. On the base of the study of NAFTA, Pan Euro and CNFTA’sRules of Origin, this thesis does comparative analysis of the advantages anddisadvantages of the Rules of Origin in CAFTA, then explores a way to improve theRules of Origin in CAFTA and puts forward a blueprint of Rules of Origin of China’sfuture FTA practice. This thesis contains four charpters:Charpter1starts with introduce the basic theory of Rules of Origin, especially thestandard of the substantial transformation. It can be summarized in three kinds ofsubstantial transformation criteria i.e. the criterion of Change in Tariff Heading TestValue Added Test and Technical Test and points out their respective pros andcons. Then I also introduce the Regime-wide Rules of Origin, the impact of theRulesof Origin on trade and the efforts at global harmonization of rules of origin.Charpter2introduce the Rules of Origin of CAFTA and does deep analysis on itand then evaluates the characteristic of its content.Charpter3through the method of comparative analysis between NAFTA’s,PanEuro ‘s and CNFTA’s Rules of Origin, summarizes their respective characteristic andthen reveals the pros and cons of CAFTA’s Rules of Origin.Charpter4on the basis of the above study, puts forward proposals for upgradingrules of origin of CAFTA as well as the improvements of China’s future FTA practice.