The Agreement on Rules of Origin (RoO) is an important international trade agreement that aims to promote fair and transparent trade practices among participating countries. For UPSC aspirants, understanding the RoO is essential for scoring well in the International Relations (IR) segment of the exam.
What is RoO?
RoO is a set of rules that dictate where a product comes from, and what percentage of it must be manufactured in a particular country to be eligible for export to a particular region. The RoO is created to prevent the illegal import of goods by countries trying to avoid customs restrictions and tariffs by claiming a product to be originating from a particular country, even if only a small percentage of the product is manufactured there.
Why is RoO important?
The RoO is essential to promote fair trade practices between countries. By ensuring that a product is manufactured in a particular country before it can be exported to a certain region, RoO prevents the illegal import of goods. This, in turn, promotes fair competition between businesses and helps create a level playing field for manufacturers.
Understanding RoO for UPSC aspirants
For UPSC aspirants, understanding RoO is key to cracking the IR segment of the exam. RoO is part of the World Trade Organization (WTO) Agreement on Customs Valuation and is a crucial aspect of international trade negotiations. UPSC aspirants must study the RoO in the context of international trade and understand its implications on various countries` economies worldwide.
Conclusion
RoO is an important aspect of international trade that promotes fair competition and transparency in the trade sector. Aspirants preparing for the UPSC exam must be well-versed in RoO and its implications to score well in the IR segment of the exam. With a solid understanding of RoO, aspirants can analyze trade negotiations, trade agreements, and their impact on global economies.