In international trade agreements, ___ of Origin are the criteria used to determine the national source of a product, which is crucial for deciding whether the product qualifies for preferential tariff treatment under a Free Trade Agreement.
- 1965
- Kuznets
- health and education
- Rules
Answer: Rules
Rules of Origin prevent 'trade deflection,' where a non-member country routes its exports through a low-tariff FTA member country to bypass higher tariffs. These rules typically mandate that a product must undergo a substantial transformation or meet a minimum value-addition threshold (e.g., 35% local content) within the FTA zone to claim duty-free benefits.