Members exchange views on transparency and non-preferential rules of origin

LDC Group presentations and expectations

The LDC Group presented an updated expectations paper consolidating requests to preference-granting members regarding preferential rules of origin. Members including Cambodia, Senegal, Zambia, The Gambia and Nepal made presentations on behalf of the Group, identifying what they see as best practices in preferential rules of origin in areas such as ad valorem percentages, changes in tariff classification, methods of calculation, direct consignment, proof of origin and cumulation provisions.

The LDC Group, with support from UN Trade and Development (UNCTAD), presented preliminary findings from a field study funded by the government of the United Kingdom on the use of cumulation by firms in Africa, covering Mauritius, Kenya, Mozambique, South Africa and Ethiopia. The research combined legal and policy review, input-output analysis, questionnaires and firm-level interviews to identify cumulation cases. The study identified successful cases of cumulation use, but also revealed significant challenges including high logistical costs, limited awareness about preferences and cumulation provisions, institutional weaknesses and lack of transparency of laws and regulations at national levels.

The LDC Group introduced a proposal for a text to be included in an outcome document for the WTO's 14^th Ministerial Conference which will take place in March 2026. The proposed text would reaffirm information from past ministerial decisions, acknowledge the work done in the CRO, and instruct the Committee to intensify work on identifying and, where possible, agreeing on the best trade-facilitating practices for preferential rules of origin and related administrative requirements.

Several preference-granting members expressed concerns about the proposed text, noting that the CRO was already engaged in discussions aimed at improving preferential rules of origin that preference-granting members used for LDCs. The Chair proposed continued engagement through bilateral meetings.

Transparency initiatives and notifications

Six members submitted updated notifications of their rules of origin: Hong Kong, China; Viet Nam; Mexico; Albania; Japan; and New Zealand. The WTO Secretariat reported that, as of early-October 2025, 58 members had notified that they apply non-preferential rules of origin while 61 members do not apply such rules. Some of these notifications provide updated and standardized information based on a "template" proposed by the Chairperson of the CRO in 2024.

Updates on LDC preference programmes

Preference-granting members reported on recent developments in their programmes for LDCs. The United Kingdom outlined comprehensive reforms to its Developing Countries Trading Scheme (DCTS), including the creation of a new regional cumulation group in Africa comprising 50 countries and liberalized rules for apparel. Australia, Canada, Japan and China also provided updates on their respective LDC preference programmes and rules of origin approaches. These changes will enter into force next year.

Information session on non-preferential rules of origin

Members participated in an information session on 6 November focused on non-preferential rules of origin in international trade. The session featured presentations from the WTO Secretariat on the role and usage of these rules, from UNCTAD on compliance challenges in the current world trade environment, and from the International Chamber of Commerce on business perspectives regarding non-preferential origin requirements.

The Chair highlighted the value of engaging with the private sector in these information sessions, noting that businesses and trade operators handle rules of origin and certificates of origin on a daily basis and can inform the Committee about real-life problems and gaps. The Chair proposed organizing additional information sessions in the future and invited delegations to suggest topics for discussion.

Tariff uncertainties and rules of origin

China raised an agenda item on enhancing transparency in rules of origin amid current tariff uncertainties. Emphasizing that in today's interconnected global economy, frequent tariff adjustments create substantial unpredictability for enterprises, China proposed several measures to enhance transparency.

Next meetings

The next formal committee meetings are scheduled for 16-17 April 2026 and 7-8 October 2026.

Background

Rules of origin are the criteria needed to determine the national source of a product. Rules of origin are important in the application of import duties as well as trade policy instruments such as anti-dumping and countervailing duties, origin marking, and safeguard measures.

There is a wide variation in the practice of governments with regard to the rules of origin. The WTO's Agreement on Rules of Origin aims at long-term harmonization of rules of origin, other than rules of origin relating to the granting of tariff preferences, and to ensure that such rules do not themselves create unnecessary obstacles to trade. It also provides for transitional disciplines and an annex to the agreement sets out a "common declaration" with respect to the operation of rules of origin on goods which qualify for preferential treatment.

Further information on the WTO's work regarding rules of origin can be found at www.wto.org/origin.