Members review reforms to facilitate participation in rules of origin work

Trade
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Ngozi Okonjo-Iweala Director-General of the World Trade Organization | Official Website

The interim Chair of the committee, Mr Guna Seelan Balakrishnan from Malaysia, highlighted the implementation of measures to improve the functioning of the committee and facilitate the work of delegates. He mentioned, "A total of seven measures were agreed and have already been implemented, such as using an e-Agenda and an annotated agenda to facilitate the work." The Secretariat provided updates on the status of these measures and demonstrated some of the tools to members.

Regarding the Draft Transparency Decision on Non-Preferential Rules of Origin, the interim Chair proposed a change of approach to address the impasse. He stated, "The interim Chair proposed a change of approach with a shorter and simpler draft decision reaffirming members' commitment to transparency and updated notifications." This proposal aims to reach a consensus among members on the initiative.

Members were invited to comment on the report of the Committee on Rules Of Origin to the General Council on preferential rules of origin for Least Developed Countries (LDCs). The interim Chair noted that the committee should continue its work to ensure transparent and simple rules of origin for LDCs. The LDC Group outlined a work programme for advancing discussions on best practices in the committee.

The European Union and the United States presented on their utilization of preferences for LDCs, with the EU reporting that over 91% of eligible imports from LDCs receive duty-free treatment in the EU market. The United States highlighted that preferences under certain trade preference programs are not fully utilized.

The WTO Secretariat reported on members' notifications of preferential rules of origin for LDCs. To date, 21 notifications have been received while three remain outstanding. Canada notified members of changes to its Least Developed Country Tariff (LDCT) program, allowing LDC beneficiaries an additional three-year period to retain full tariff benefits under the program.

The LDC Group presented papers analyzing the utilization rate of preferences provided by the United Kingdom and discussing potential future reforms on LDC rules of origin. Senegal welcomed reforms in preference-granting members' schemes that have made it easier for LDCs to access their markets.

The next formal committee meetings are scheduled for 21 November 2024 and 22 May 2025.

Rules of origin play a crucial role in determining the national source of a product and are essential in the application of import duties and trade policy instruments. The WTO's work on rules of origin aims at harmonization and ensuring that these rules do not create unnecessary obstacles to trade.