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The concept of “accumulation/cumulation” or “cumulative rules of origin” allows countries which participate to a free trade agreement (FTA) or a trade arrangement (e.g., a unilateral trade concession scheme like AGOA or the Generalized System of Preference), to share production and jointly comply with the relevant rules of origin provisions. In other words, it allows products of one country to be further processed or added to products in another party of that preferential trade agreement or arrangement, as if they originate in the latter party. In this way, the production may be aggregated with other countries’ inputs, thus offering additional opportunities to source input materials. This essentially widens the definition of originating products and provides flexibility to develop economic relations between countries within a preferential trade scheme. Accordingly, through the concept of accumulation/cumulation in a free trade agreement, the use of input materials and manufacturing processes within that FTA is encouraged. This promotes regional economic integration amongst members of a free trade area.
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