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The Rules of Origin Rule That Rewrote Global Chocolate Trade
Description
In this episode, Lucas and Luna break down how a single rule of origin requirement in the U.S.-Colombia free trade agreement rewrote the global chocolate supply chain. They trace the decision by Hershey to open a $250 million chocolate factory in Colombia in 2024, bypassing traditional cocoa-producing West Africa. The hosts explain the specific tariff-avoidance math: cocoa processed in Colombia qualifies for zero-duty entry into the U.S. if it meets the rule of origin threshold of 35 percent regional value content. They discuss how this reshaped trade flows, depressed West African cocoa revenues by an estimated $400 million in 2025, and prompted the EU to fast-track its own sustainable cocoa regulations. Lucas and Luna also explore whether this model will spread to other confectionery supply chains, from sugar to nuts. The conversation includes a subtle donation appeal tied to the economics of trade policy. No fluff, just a deep dive into one concrete trade rule with real-world consequences.