Comparative Research On The Cumulation Rules Of FTA With International Experience

Economic globalization has been profoundly changing the whole world. As the representative of multilateral trading system, WTO has a profound impact on the development of international trade. But as the WTO " Doha Round " negotiation was very difficult to agree, for the further development of regional economy, global regional trade agreements has been growing rapidly. As the main form of regional trade agreements, FTA has played an important role in regional economic development. Due to the defect of FTA, in order to prevent trade deflection, most FTAs establish stringent rules of origin. The rules of origin limit the utilization of FTA and have a significant impact on the actual effect of FTA. Rules of origin can be divided into two parts:Rules of Origin criteria for products and institutional rules. Rules of Origin criteria for products is not reasonable and it can form setback for enterprises in the practical application. While the institutional arrangements in the rules of origin can regulate the strict degree of the rules of origin. The combination of rules of origin for products and institutional arrangements can reduce the negative impact of stringent rules of origin on businesses in the region. As the main form of institutional arrangements, cumulation rules have important impact on the effect of FTA. Cumulation rules may have different trade effects for different type members in the FTA. To study the cumulation rules in the international application can help our country make strategic choices in development and application of FTA.This paper is divided into seven chapters. The first chapter introduces the research background and related literature review. The second chapter introduces the application situation of FTA and rules of origin. The third chapter makes a statement about the limitations of the usage of FTA and rules of origin. The fourth chapter describes the connotation and application status of cumulation rules. The fifth chapter analyses the trade effects of cumulation rules. The sixth chapter compares the cumulation rules in the international practice. The seventh chapter describes the policy implications in the application of cumulation rules.