WTO Rules of Origin Committee reviews LDC preferences; U.S. says AGOA and Haiti preferences extended to September 2028

rules of origin

The WTO Committee on Rules of Origin (CRO) met on 7-8 October to review developments in preferential rules of origin for least-developed countries (LDCs), hear updates from preference-granting members, and exchange experiences on origin administration and trade facilitation. Members also examined notifications on non-preferential rules of origin, discussed digital tools that can improve transparency and compliance with origin requirements, and considered draft annual reports on the Committee's work.

Work on preferential rules of origin for LDCs remains an important element of the Committee's agenda. These rules determine whether products qualify for non-reciprocal trade preferences offered by developed and developing WTO members and form part of the implementation of the WTO ministerial decisions adopted in Bali in 2013 and Nairobi in 2015. Currently, 22 WTO members provide such preferences to LDCs.

As part of the Committee's regular monitoring of these arrangements, the United States updated members on developments relating to its preferential schemes for LDCs, noting that the African Growth and Opportunity Act (AGOA) and trade preferences for Haiti had been extended until September 2028.

China presented a study examining the utilization of its trade preferences by LDCs. China said utilization rates were higher than those generally reported under methodologies commonly used in WTO discussions. LDCs noted that the methodology used by China appeared to combine utilization under LDC-specific preferential arrangements with utilization under other preferential schemes.

Members also discussed ongoing work in the World Customs Organization (WCO) concerning Annex K of the Revised Kyoto Convention governing rules of origin in the WCO. LDC members asked Switzerland, a member of the Sponsoring Group leading the work on the review of Annex K, to brief the CRO on recently adopted amendments at a future meeting.

Member presentations on origin administration and trade facilitation

The Committee heard a series of member presentations highlighting approaches to facilitating compliance with origin requirements and streamlining certification procedures.

Nigeria outlined measures aimed at improving certainty and efficiency for traders. These included incorporating origin-related obligations into the Nigeria Customs Service Act 2023, introducing advance rulings to provide greater predictability for businesses, and automating procedures for issuing certificates of origin. Nigeria said the digitalized system also enables real-time monitoring of trader compliance.

Japan shared its experience with self-certification and the digitalization of certificates of origin. The presentation highlighted reductions in administrative costs and processing times previously associated with paper certificates. Japan noted that self-certification places greater responsibility on traders while offering faster and more flexible procedures and said its use in several free trade agreements had helped businesses make greater use of preferential trading opportunities.

Brazil presented its rules of origin procedures in the context of the WTO Trade Facilitation Agreement. The presentation described how modern origin disciplines had been integrated with broader trade facilitation reforms to support more efficient customs procedures and improve predictability for traders.

The CRO also reviewed notifications on non-preferential rules of origin submitted by Canada, Malaysia, Norway and the Russian Federation.

Information session on digital tools related to rules of origin

An accompanying information session received an update by the International Chamber of Commerce (ICC) on its work concerning non-preferential rules of origin. The information session also examined digital tools supporting work on rules of origin. Presentations from the WTO Secretariat, UN Trade and Development (UNCTAD) and the International Trade Centre showcased databases that help businesses and policymakers understand preferential regimes and origin requirements. More information about the session is available here.

Next meeting

The next meeting of the Committee on Rules of Origin is tentatively scheduled for 4 and 5 May 2027.

Share

Problems viewing this page? If so, please contact [email protected] giving details of the operating system and web browser you are using.