Rules of Origin as Trade Barriers: The Case of Saudi Arabia
Lola Rotimi2021, Journal of World Economics
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The Kingdom of Saudi Arabia (KSA) on 2 July 2021 changed its rules of origin (RoO) pertaining to when a product can be said to have originated from within the Gulf Cooperation Council (GCC) for the purpose of utilising the preferential tariff rates. The new RoO require a 40% value added to the product during production within the GCC; and a 25% local workforce in the manufacturing company. The previous RoO had been in operation and relied upon by the other GCC nations since the 1981 Unified Economic Agreement. Although KSA has acted contrary to the spirit and principles of the GCC Charter; and possibly restricted, disrupted and distorted international trade, its actions are nonetheless lawful under both regional and international law. My paper critically examines Saudi Arabia's obligations under the regional and international legal frameworks; in particular, that of the GCC and World Trade Organisation (WTO).
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Rules of Origin as Trade Barriers
Olufunlola Rotimi
Key Points
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Introduction
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GCC Rules of Origin
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International Rules of Origin
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Regional Rules of Origin
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Conclusion
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