Transient global value chains and preferential trade agreements: rules of origin in US trade agreements with Jordan and Egypt

Shamel Azmeh

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: The impact of rules of origin (RoOs) in limiting the ability of developing countries to benefit from preferential trade agreements (PTAs) has been highlighted in the literature. One of the few US trade agreements that deviate permanently from the restrictive ‘yarn forward’ RoOs in textile and garments is the qualifying industrial zone (QIZ) agreement with Egypt and Jordan and the subsequent Free Trade Agreement (FTA) with Jordan. The more flexible RoOs of these agreements have contributed to a dramatic increase in exports especially from Jordan. Examining this through the lenses of global value chains (GVCs), this paper argues that these RoOs facilitated the integration of the two locations, particularly Jordan, in the highly contingent transient GVCs of Asian producers raising questions about the developmental impacts of such integration

Keywords: rules of origin; global value chains; industrial policy; transnational producers; qualifying industrial zones (search for similar items in EconPapers)
JEL-codes: F1 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (5)

Published in Cambridge Journal of Regions, Economy and Society, 2015, 8(3), pp. 475-490. ISSN: 1752-1378

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