In Search of Market Access: Why the Doha “Plan B” for December 2011 is likely to fail Erosion from Rules of Origin (Part II)

Once again the Doha Round negotiators are struggling to reach an agreement, this time by mid-December 2011 on a “plan B” package that would give increased market access to the Least Developed Countries (LDCs) under simplified rules of origin (RoO). We argue that in spite of some simplifying reforms by the EU and the US, administrative costs associated with establishing origin will continue to be sizeable, approximately equal to the effective market access left under “plan B”. Given the reluctance in the past for OECD countries to simplify their RoO, the note concludes that the meeting the December package is unlikely.