Spaghetti Bowl Effect

Please note that the content of this book primarily consists of articles available from Wikipedia or other free sources online. The Spaghetti Bowl Effect is a phenomenon of international economic policy that refers to the complication which arises from the application of domestic rules of origin in the signing free trade agreements across nations. The effect leads to discriminatory trade policy because the same commodity is subjected to different tariffs and tariff reduction trajectories for the purpose of domestic preferences. With the increase in FTA's throughout the international economy, the phenomena has led to paradoxical, and often contradictory outcomes amongst bilateral and multilateral trade partners.