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Cumulation Rules in Preferential Rules of Origin

Meng Guobi  
Cumulation rule is broadly applied in the GSP and PTAs for its peculiar and important implications.Its role is paid much attention all over the world,and accordingly has brought about many arguments.There is no authoritative explanation for the cumulation rule at the international and domestic level.There are five types of cumulation generally.Cumulation rule has dual function.There are arguments in theory whether cumulation rule is consistent with the rules of GATT/WTO because it can lead to trade diversion in practice.Analyzing by GATT/WTO rules,there is a paradox concerning cumulation:on one hand,if cumulation exists,it will violate the GATT/WTO rules;on the other hand,if removing the cumulation,it will violate GATT/WTO rules too.It can be predicted that PRoOs will exist as long as the RoOs exist,and cumulation rule will exist as long as PRoOs exist in the long run with view to the wide practice at home and abroad.We have not made full use of cumulation in the PTAs in which China is a partner.We should gain some enlightenment from international practice of cumulation to promote the integration of local economy.
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