On 22 April the WTO announced that its members had held their first discussions regarding implementation of the ministerial decision on preferential rules of origin for least developed countries (LDCs). The ministerial decision was one of the key outcomes of the WTO’s 10th ministerial conference in Nairobi last December. The provisions set out under the Nairobi decision aim to facilitate LDCs’ export of goods to both developed and developing countries under unilateral preferential trade arrangements in favour of LDCs. According to the WTO the key beneficiaries will be countries of the LDC group, the proponent of the Nairobi decision.
The Nairobi decision builds on the earlier 2013 Bali ministerial decision on preferential rules of origin by providing more detailed directions on specific issues, such as methods for determining when a product qualifies as “made in an LDC”, and when inputs from other sources can be “cumulated” - or combined together - into the consideration of origin. The provisions also call on preference-granting members to consider simplifying documentary and procedural requirements related to origin as well as other measures to further streamline customs procedures.
The ministerial decision also requires WTO members to notify the WTO of their preferential rules of origin for LDCs to enhance transparency, make the rules better understood, and promote an exchange of experiences as well as mainstreaming of best practices. The WTO concludes that its relevant bodies shall also annually review these preferential rules of origin.