CUMULATION AS A TOOL OF INTEGRATION IN THE ECONOMY OF GLOBAL CHAINS AND GROWING PROTECTIONISM

Abstract

The article considers different kinds of cumulation of origin as instruments for softening the strict rules of origin of goods in regional trade agreements (RTAs) to stimulate cross-border exchange  of goods in global value chains (GVC) between RTS members and beyond in the context of growing protectionism. Studies show that for countries with relatively limited opportunities for processing intermediate goods, raw material diagonal accumulation offers greater opportunities for participation in regional value chains, and for countries with limited natural resources but with the capacity to produce intermediate products under the GVСs, full cumulation suggests more opportunities in using tariff preferences under mega-regional trade initiatives, one of which is the Pan-Euro-Med Convention (PEM). In the post-Brexit trading model, cross-cumulation could support the UK’s participation in GVCs by introducing more flexible origin provisions. The use of full and cross-cumulation by countries within the FTA of the EAEU/CIS would facilitate the expansion of the free-trade zones of origin and stimulated the promotion of GVCs to the territory of the Commonwealth countries. Elimination of obstacles in the use of the rules of origin of the EAEU is a particularly urgent task in the light of the promotion of the idea of the formation of The Greater Eurasia with the center at the EAEU.