By Shahid Javed Burki, Guillermo E. Perry, Sara Calvo
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It must establish a "rule of origin," which usually takes the form of some sort of "content" rule, such that a product is considered to be Israeli only if its Israeli content exceeds an arbitrarily specified share in gross value. 2 The arbitrariness of this share specification is further compounded by the arbitrariness inherent in computing such content. Thus, consider the import of steel ingots that, in conjunction with homogeneous domestically produced ingots, go into producing scissors and forks.
Sara Calvo is senior economist of the Poverty Reduction and Economic Management Network Central Unit. The planning and organization of the Third Annual World Bank Conference on Development in Latin America and the Caribbean was a cooperative effort of the Central Bank of Uruguay and the World Bank's Latin America and the Caribbean Regional Office and Economic Development Institute. Particular gratitude is due to Hector Ribeiro, Public Relations Manager of the Central Bank of Uruguay, L. Kumar Arora, Conference Officer, and Lisa Taber of the World Bank, who were responsible for the general coordination of the conference; and Monica Echeverr$acute;ia for organizing external affairs matters.
At the insistence of the EU, which was interested in getting preferred access to these markets, the eventual acceptance of WTO obligations by these countries was marked by a raising of their MFN tariffs! The "Spaghetti-Bowl" Phenomenon: But if individual PTAs are flawed in this way, they have raised added concerns because of the "systemic" implications when many PTAs have emerged on the scene, as they have since the 1980s. These systemic implications arise because such preferential-trade agreements magnify the problems that arise, in essence, because we try to restrict or liberalize trade on the basis of which product comes from which country, or what I have called the "who is whose'' problem.